Should you sell your Warby Parker stock?

Roth Capital analyst Matt Koranda maintained a “Neutral” rating and $24.00 price target on Warby Parker (Warby Parker Stock Quote, Chart, News, Analysts, Financials NYSE:WRBY) saying the stock remains a battleground ahead of first-quarter results.

“WRBY stock has been all over the map since 4Q results,” Koranda said in his April 22 earnings preview. He said bulls continue to point to a resilient category, steady store expansion and upside from AI glasses, while bears remain focused on lagging growth versus optical peers and weaker store efficiency.

Koranda said the first-quarter bar looks easier after management reset guidance in late February, and he expects an in-line quarter. He is forecasting revenue of $240-million, Adjusted EBITDA of $28.6-million and Adjusted EPS of $0.11, compared with consensus of $240-million, $27.7-million and $0.11. Management’s guidance calls for revenue of $238-million to $240-million and Adjusted EBITDA of $27.0-million to $28.0-million.

“We’re still looking for more on the AI glasses roll-out and store efficiency improvements before coming off the sidelines,” Koranda said.

Near-term estimate revisions after the quarter will likely depend on two issues: timing around a smart-glasses rollout and the state of core optical demand. Koranda said recent first-quarter commentary from EssilorLuxottica was encouraging, though he added that growth there was likely helped materially by already-commercialized smart-glasses products such as Ray-Ban Meta and Oakley Meta.

Koranda said that if Warby Parker is going to generate meaningful smart-glasses revenue in 2026, the next few weeks or months would be the logical time to introduce those products more broadly. He said Roth is currently modelling about $44-million in smart-glasses revenue from roughly 130,000 units, mostly in the second half of 2026, while noting that most consensus forecasts do not appear to include any contribution.

On the quarter, Koranda said pricing and mix looked relatively stable, while broader industry checks were constructive. He cited Jobson data suggesting first-quarter retail optical demand rose about five per cent year-over-year, though demand softened through the quarter. He also pointed to positive read-throughs from EssilorLuxottica and KITS, while noting alternative data on credit card spending, web traffic and store visits was mixed.

Koranda expects Warby Parker to generate $123.8-million in Adjusted EBITDA on $1.01-billion in revenue in fiscal 2026, improving to $159.5-million in Adjusted EBITDA on $1.17-billion in revenue in fiscal 2027. Warby Parker is scheduled to report first-quarter results on May 7.

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