Operating cash flow consistently exceeds net income (OCF/NI of 6.38 in 2026Q2), but FCF margins are volatile at 2.9%, and SBC of $9.9M exceeds net income, indicating earnings quality concerns.
Warby Parker Inc. (WRBY) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 95.36M | 110.78M | 98.74M | 60.99M | 10.37M | -31.99M | 32.76M | 21.39M |
| Operating CF Margin % | - | 12.71% | 12.8% | 9.11% | 1.73% | -5.92% | 8.32% | 5.77% |
| Operating CF Growth % | -60.17% | 12.19% | 61.9% | 488.15% | 132.41% | -197.67% | 53.12% | - |
| Net Income | 7.74M | 1.64M | -20.39M | -63.2M | -110.39M | -144.27M | -55.92M | 0 |
| Depreciation & Amortization | 53.47M | 50.28M | 45.87M | 38.55M | 31.86M | 21.87M | 18.38M | 14.52M |
| Stock-Based Compensation | 34.6M | 34.54M | 47.29M | 70.51M | 98.03M | 107.15M | 44.91M | 8.5M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -85.27M | 0 |
| Other Non-Cash Items | 4.48M | 6.78M | 6.72M | 9.32M | 5.42M | 7.76M | 85.27M | 0 |
| Working Capital Changes | -4.93M | 17.55M | 19.26M | 5.81M | -14.55M | -24.5M | 25.39M | -1.62M |
| Change in Receivables | -941K | -1.34M | -169K | -345K | -451K | -392K | 517K | -644K |
| Change in Inventory | 1.17M | 7.83M | 9.89M | 6.61M | -11.79M | -18.62M | -10.02M | -12.61M |
| Change in Payables | 13.36M | 8.5M | 689K | 1.63M | -7.94M | -11.11M | 5.9M | 5.53M |
| Cash from Investing | -73.61M | -67.05M | -66.03M | -54.67M | -60.18M | -48.51M | -20.07M | -32.63M |
| Capital Expenditures | -73.61M | -67.05M | -64.03M | -53.67M | -60.18M | -48.51M | -20.07M | -32.63M |
| CapEx % of Revenue | 8.07% | 7.69% | 8.3% | 8.01% | 10.06% | 8.97% | 5.1% | 8.81% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -15.38M | -12M | 4.96M | 2.87M | 3.29M | 23M | 245.94M | -83.36M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 91K | 31.61M | 945K | 590K |
| Equity Issued (Net) | -7.38M | 2.36M | 4.63M | 2.87M | 3.2M | 11.95M | 244.99M | -79.47M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -10.6M | 0 | 0 | 0 | 0 | -8.09M | 0 | -79.47M |
| Other Financing | -8M | -14.36M | 333K | 0 | 0 | -20.56M | 0 | -4.48M |
| Net Change in Cash | 6.29M | 32.2M | 37.27M | 8.31M | -47.83M | -57.67M | 258.66M | -94.36M |
| Free Cash Flow | 21.75M | 43.74M | 34.71M | 7.32M | -49.81M | -80.51M | 12.69M | -11.24M |
| FCF Margin % | 2.39% | 5.02% | 4.5% | 1.09% | -8.33% | -14.89% | 3.22% | -3.03% |
| FCF Growth % | -58.48% | 26% | 374.21% | 114.7% | 38.13% | -734.51% | 212.9% | - |
| FCF per Share | 0.17 | 0.35 | 0.29 | 0.06 | -0.43 | -0.71 | 0.11 | -0.10 |
| FCF Conversion (FCF/Net Income) | 2.81x | 67.51x | -4.84x | -0.97x | -0.09x | 0.22x | -0.59x | - |
| Interest Paid | 0 | 0 | 0 | 227K | 184K | 150K | 466K | 88K |
| Taxes Paid | 0 | 0 | 0 | 419K | 536K | 356K | 230K | 369K |
Quick answers to the most common questions about buying WRBY stock.
Warby Parker Inc. (WRBY) generated $110.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Warby Parker Inc. (WRBY) generated $43.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Warby Parker Inc. (WRBY) spent $67.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
SBC dilutes earnings quality
Metrics are mathematically derived from official filings.
Cash Conversion Outpaces Net Income
Warby Parker's operating cash flow consistently exceeds net income, with OCF/NI ratios above 6 in recent quarters, indicating strong cash conversion despite GAAP losses, as per quarterly filings.
The OCF/NI ratio spiked to 6.38 in 2026Q2 and 7.72 in 2026Q1, reflecting that operating cash flow is far higher than net income, which is typical when non-cash charges like D&A and SBC are significant. This suggests that earnings quality is supported by cash generation, but investors should note that SBC, a non-cash expense, inflates the gap. The negative OCF/NI in loss-making quarters (e.g., -3.91 in 2025Q4) indicates that cash flow remains positive even when net income is negative, underscoring the resilience of the underlying business.
FCF Volatility Masks Underlying Stability
Free cash flow swung from -$1.5M in 2025Q3 to $23.9M in 2025Q2, with FCF margins ranging -0.7% to 11.1%, per reported data, indicating variability but a generally positive trend.
FCF has been positive in most quarters, with 2026Q2 at $6.8M and 2026Q1 at $8.4M, but the 2025Q3 dip to -$1.5M highlights sensitivity to working capital swings. The average FCF margin over the last four quarters is roughly 4.5%, which is modest but improving from earlier periods. This suggests that while the company is not yet a high FCF generator, it is moving toward sustainable positive cash flow, supported by revenue growth and margin expansion.
Capital Intensity Reflects Retail Expansion
CapEx as a percentage of revenue has hovered between 6.7% and 9.7% over the past ten quarters, per financial statements, indicating a consistent investment in growth infrastructure.
CapEx/Rev has remained in the 7-10% range, with 2026Q2 at 9.7%, suggesting that Warby Parker is investing heavily in new stores and technology to support its omnichannel model. This level of capital intensity is typical for specialty retailers, but it limits near-term FCF. The consistency of CapEx relative to revenue implies that management is committed to expansion, which may pay off in the long run if revenue growth continues.
Working Capital Swings Drive Cash Flow Variability
Working capital changes have ranged from -$8.4M to $16.8M quarterly, per reported data, causing significant quarterly FCF volatility, with 2025Q2 benefiting from a $16.8M inflow.
The working capital line is the primary driver of quarterly cash flow fluctuations, as seen in 2025Q2 where a $16.8M positive change boosted OCF to $40.2M, and 2025Q3 where a -$8.4M change reduced OCF to $18.0M. This suggests that inventory and receivables management are not yet stable, and investors should monitor these swings as they can obscure the underlying cash generation. The negative working capital changes in some quarters may indicate inventory build-up or slower collections, which could pressure cash flow if not managed.
Buybacks Resume While Dividends Absent
Warby Parker initiated share repurchases in 2026, with $4.4M and $6.2M in Q2 and Q1 respectively, per cash flow data, while paying no dividends, signaling a shift toward shareholder returns.
After no buybacks in 2024 and 2025, the company repurchased shares in the first two quarters of 2026, totaling $10.6M. This suggests that management believes the stock is undervalued and that cash flow is sufficient to support buybacks. However, the absence of dividends and the modest buyback size relative to market cap indicate a conservative capital return policy, likely prioritizing reinvestment in growth.
SBC Masks True Cash Earnings
Stock-based compensation has exceeded net income in most quarters, with SBC of $9.9M versus net income of $4.6M in 2026Q2, per filings, suggesting reported earnings overstate cash profitability.
SBC is a non-cash expense that reduces reported net income but does not impact operating cash flow, which is why OCF is consistently higher than net income. However, SBC dilutes existing shareholders and represents a real economic cost. In 2026Q2, SBC was more than double net income, indicating that the company is not yet generating cash profits after accounting for employee compensation. Investors should adjust for SBC to assess true cash earnings, which may be lower than reported OCF suggests.