Warby Parker Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator | |||||||||||||||||
Net income (loss) | $ | 1,641 | $ | (20,390) | $ | (63,197) | |||||||||||
| Denominator | |||||||||||||||||
Weighted average shares, basic | 122,670 | 120,385 | 117,389 | ||||||||||||||
Dilutive impact of: | |||||||||||||||||
Stock options | 1,239 | — | — | ||||||||||||||
RSUs and PSUs | 1,101 | — | — | ||||||||||||||
| ESPP purchase rights | 90 | — | — | ||||||||||||||
Weighted average shares, diluted | 125,100 | 120,385 | 117,389 | ||||||||||||||
| Earnings (loss) per share | |||||||||||||||||
| Basic | $ | 0.01 | $ | (0.17) | $ | (0.54) | |||||||||||
| Diluted | $ | 0.01 | $ | (0.17) | $ | (0.54) | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Stock options | — | 1,697 | 2,156 | ||||||||||||||
| Unvested RSUs | 681 | 2,740 | 3,050 | ||||||||||||||
| Unvested PSUs | 4,633 | 4,398 | 4,398 | ||||||||||||||
| ESPP purchase rights | — | 286 | 502 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.