Warby Parker Inc.WRBY

Warby Parker Inc. Leases Disclosure

10-KFiled Feb 26, 20262 min read
Leases
The Company leases retail, office, optical laboratory, and distribution center space under operating leases from third parties. As of December 31, 2025, the total lease terms of the various leases range from 1 to 12 years. The leases generally contain renewal options and rent escalation clauses, and from time to time include contingent rent provisions. Renewal options are exercisable at the Company’s sole discretion and are included in the lease term if they are reasonably certain to be exercised. In general it is not reasonably certain that lease renewals will be exercised at lease commencement and as such, lease renewals are not included in the lease term.
Net lease expense consists of the following:
Year Ended December 31,
202520242023
Operating lease expense$38,501 $34,915 $30,133 
Variable lease expense(1)
1,296 767 1,831 
Net lease expense$39,797 $35,682 $31,964 
(1) Variable lease expense primarily consists of contingent rent.
The following table presents future lease payments:
Operating Leases(1)
2026
$
44,137 
2027
55,007 
2028
50,554 
2029
41,730 
2030
30,161 
Thereafter
57,723 
Total undiscounted lease cash flows
279,312 
Impact of discounting
46,164 
Present value of lease payments
$
233,148 
(1)    The year 2026 includes $11.6 million of expected cash inflows from TIAs. Operating lease payments exclude $13.9 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.

The following tables present other relevant lease information:
December 31,
2025
Weighted average remaining lease term (years)6.0
Weighted average discount rate5.7 %
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$47,844 $44,459 $37,126 
Lease assets obtained in exchange for new operating lease liabilities$28,064 $75,888 $15,544 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 28, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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