Warby Parker Inc.

WRBYdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Warby Parker Inc. earns about -114% on invested capital, below its ~9% cost of capital, but has diluted owners by 76% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.21 and $7.63 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$540.8M1$598.1M2$669.8M3$771.3M3$871.9M3
Net income−$144.3M4−$110.4M5−$63.2M6−$20.4M6$1.64M6
Operating cash flow−$32M7$10.4M8$61M9$98.7M9$110.8M9
Capital expenditure$48.5M10$60.2M11$53.7M12$64M12$67M12
Free cash flow (derived)−$80.5M7−$49.8M8$7.32M9$34.7M9$43.7M9
Total debt
Cash & equivalents$256.4M13$208.6M14$216.9M15$254.2M16$286.4M16
Diluted shares71.2M114.9M117.4M120.4M125.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$29.39
your share of equity
Profit it earned you last year
$0.13
Free cash flow it threw off
$3.5
Debt you’d be carrying

10 shares is a claim on $29.39 of net worth that earned you $0.13 and generated $3.5 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-114% avg · 5y
FY21 -385%FY22 -111%FY23 -58%FY24 -18%FY25 2%

It earned about -114% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+76% shares · 5y

Share count is up 76% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $7.21 and $7.63 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$7.63
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$34.7M
DCF · Growth Exit 5Y
$7.21
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$34.7M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$0.81
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.21
The three cases
Bear0.0%$6.25
Base5.0%$7.21
Bull10.0%$8.36

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001504776-24-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001504776-25-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001504776-26-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001504776-24-000006 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001504776-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001504776-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001504776-24-000006 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001504776-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001504776-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001504776-24-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001504776-25-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001504776-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001504776-23-000006 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001504776-24-000006 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001504776-25-000010 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001504776-26-000006 (CashAndCashEquivalentsAtCarryingValue)