-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
WRBY posted Q1 net revenue of $242M (+8.3% Y/Y), marking the fifth consecutive quarter of double-digit growth, though the gross margin declined 230 bps to 54.0% due to fixed cost deleverage and tariff impacts. Adjusted EBITDA reached $29.6M with margin expanding 130 bps to 12.2%, reflecting operational efficiency gains from sunsetting the Home-Try On program and SG&A leverage. We think the performance reflects the company's strategic pivot toward profitability optimization over pure growth acceleration. Management guided revenue of $959M-$976M (10%-12% growth) and adjusted EBITDA of $117M-$119M, representing 12.2% margin expansion. We believe the intelligent eyewear development represents the most significant product catalyst, with management preparing what they describe as the world's first truly intelligent AI glasses for all-day wear. The $100M share repurchase authorization demonstrates confidence in the business model and provides capital allocation flexibility alongside strategic growth investments.