Warby Parker teams with Google. Is the stock a buy?

Warby Parker (Warby Parker Stock Quote, Chart, News, Analysts, Financials NYSE:WRBY) is teaming up with Google in a new smart glasses partnership that Roth Capital Partners analyst Matt Koranda calls a clear positive for the eyewear company.

In a May 21 update, Koranda highlighted Google’s $150 million commitment—split evenly between product development and a direct equity investment in Warby—as a move that could unlock a new growth segment while boosting Warby’s balance sheet.

“Based on the press release, the product will most likely not be available until early 2026 (PR language says ‘after 2025’),” Koranda said. “We view this as a significant positive development for Warby and raise our 2026 forecast modestly to reflect initial smart glasses sales.”

Koranda’s rating for the stock is “Neutral,” he raised his 12-month price target to $21.00 from $18.00.

Warby Parker is a New York-based eyewear company that sells glasses, sunglasses, and contact lenses directly to consumers through its website and retail stores. Founded in 2010, the company also offers optical services.

Koranda called the new partnership a positive move for the company, citing several key benefits.

First, the deal gives Warby access to smart glasses technology through a credible tech and AI partner, opening up a potentially large and untapped market. Second, Google is funding the development with a $75-million investment, meaning little upfront cost for Warby. Third, Google is also making a $75-million equity investment, strengthening Warby’s already solid balance sheet. Fourth, smart glasses could boost Warby’s average order value, helping improve store and omnichannel efficiency, an area Roth has previously flagged as a concern.

The stock rose 16% on May 20, which Koranda sees as justified. If that move reflects expectations for stronger earnings in 2026, it implies consensus that Adjusted EBITDA would need to rise to about $138-million, up from $119-million. Koranda said it looks achievable, assuming modest costs and typical gross margins, estimating smart glasses sales of about 88,000 units at an average price of $400, just 3% of Warby’s 2.6 million active customers in Q1.

“The AI-powered glasses partnership was announced around Google I/O, with the timing of the I/O keynote announcement seemingly necessitating the unusual intraday news release,” Koranda said. “Google has committed to investing $75mn in product development and another $75mn in an equity investment in Warby. The companies intend to launch ’a series of products over time,’ with the first intelligent eyewear line coming ‘after 2025.’

“Our review of the Google I/O keynote suggests it is partnering with Warby and another eyewear brand, Gentle Monster, as its first optical partners, indicating there will likely be additional partners and that Warby’s partnership is unlikely to be exclusive over time. The smart glasses appear to incorporate key technology elements like an inframe camera, microphone, open-ear speakers, an optional in-lens display, and Gemini AI technology.”

Koranda noted that several key details about the Warby-Google partnership remain unclear. Most importantly, pricing has not been disclosed. For comparison, Meta’s Ray-Ban Wayfarer smart glasses retail for \$299, with prescription lenses pushing the total to about \$510. The timeline for product availability is also vague. Phrasing like ‘after 2025” likely points to early 2026, but it’s not definitive. Koranda also said it’s unclear when or at what price Google’s \$75-million equity investment in Warby will occur.

He said while this deal is reminiscent of the Meta-Ray-Ban partnership, there are differences. Meta has talked about possibly taking a stake in EssilorLuxottica, but no agreement has been finalized, and the cost-sharing details between Meta and Ray-Ban haven’t been disclosed. Public reports suggest Ray-Ban has sold around two million smart glasses since launching the latest model in late 2023, with as many as 1.5 million units sold in 2024 alone.

Koranda thinks Warby Parker will do $94.0-million in Adjusted EBITDA on revenue of $877.5-million in fiscal 2025. he thinks those numbers will improve to $127.7-million on revenue of $1,008.2-million in fiscal 2026.

“We bumped up our 2026 sales estimate by $21mn to reflect modest unit sales of smart glasses in 2026 (~52k units assuming $400 AOV),” he said. “We give credit for corporate average GMs and no incremental opex, sending our adj EBITDA to $128mn from prior $116mn.”

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