Warby Parker Inc.

Hello and welcome to today's Warby Parker second quarter 2025 earnings conference call. My name is Bailey and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press start followed by one on your telephone keypad. I'd like to pass the conference over to Jacqueline Berkeley, Head of Investor Relations to begin. Please go ahead when you're ready.

Thank you and good morning everyone. Here with me today are Neil Blumenthal and Dave Gilboa, our co-founders and co-CEOs alongside Steve Miller, Senior Vice President and Chief Financial Officer. Before we begin, we have a couple of reminders. Our earnings release and slide presentation are available on our website at .warbyparker.com. During this call and in our presentation, we will be making comments of a forward looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled risk factors and the company's latest annual report on form 10K. These forward looking statements are based on information as of August 7th, 2025 and except as required by law, we assume no obligation to publicly update or revise our forward looking statements. Additionally, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with US GAAP. Reconciliation of our non-GAAP measures to the most directly comparable US GAAP measures can be found in this morning's press release and our slide deck available on our IR website. And with that, I'll pass it over to Dave to kick us off.

Thank you, Jacqueline and good morning, everyone. 2025 has already been a busy and eventful year and we're excited by the progress we're making toward Warby Parker's ambitious near and long-term objectives. Our team delivered strong results in Q2, growing revenue 14% year over year and expanding adjusted EBITDA margin 130 basis points, both above the high end of our guidance while delivering our eighth straight quarter of accelerating customer growth. These results reflect the team's disciplined execution and ability to adapt in a dynamic environment like we saw in April, including taking decisive actions to mitigate the impact of tariffs. We continue to lay a strong foundation for long-term growth by investing strategically, driving innovation and forging key partnerships. In particular, we'd like to highlight some recent milestones that demonstrate progress against key pillars of our strategy to drive sustainable growth while creating positive impact along the way. In July, we opened our 300 store at Brookville Place in downtown Manhattan and just a few days ago, we opened our very first Target -in-Shops in Willowbrook, Illinois in Bloomington, Minnesota. We're only one third of the way to our long-term opportunity of more than 900 standalone stores across North America, underscoring the significant white space ahead. With additional scale, we are able to serve more customers than ever while having even greater impact. In Q2, we announced that we surpassed 20 million pairs of glasses distributed to people in need through our Buy a Pair, Give a Pair program, a powerful reminder of the impact we're having on communities across the world. These milestones also reflect a natural evolution in how we are serving our customers today and in the future. One led by a highly productive store footprint and supported by increasingly personalized AI-driven digital tools and experiences. We'll speak more to how AI is transforming the way we serve customers later in this call, but we also wanted to highlight how excited we are to be developing devices that will enable our customers to engage AI seamlessly wherever they go. In May, we announced a long-term partnership with Google to develop AI-powered intelligent eyewear designed for all-day use, marking a transformative step for our brand and significantly expanding our TAM beyond traditional glasses. We believe glasses are the perfect form factor to leverage AI, enabling the delivery of real-time, personalized insights tailored to what the wearer sees and hears as they move through the world. Glasses allow AI to understand the wearer's environment and surface relevant information without forcing someone to pull out their phone or look at a separate screen. Imagine the world's smartest assistant, ready with answers when you need them and invisible when you don't, embedded in a beautifully designed pair of glasses made for all-day wear. We're thrilled to partner with Google, an AI innovator renowned for technology that powers lives around the globe. Coupled with Warby Parker's capabilities in product design, eye care, retail operations, customer experience, and tech-enabled innovation, we believe our partnership is uniquely positioned for this rapidly evolving space. We see tremendous potential in what Warby Parker and Google can achieve together and look forward to sharing more in the coming months. It's been an active and productive first half, and we're pleased with our momentum heading into the rest of the year, which gives us confidence to raise our full-year guidance. Before Steve talks through our financials and guidance, Neil and I will recap the drivers of our Q2 performance. I'll start first with our eighth consecutive quarter of accelerating active customer growth. We ended Q2 with 2.6 million active customers, an increase of 9% on a trailing 12-month basis, with average revenue per customer up 4.6%. Our retail channel remains our primary growth engine, and we continue to see strong growth in active customers generated through our stores. In Q2, we invested across a broad mix of paid media channels to drive brand awareness and acquire new customers. As we shared in February, the key focus this year has been leveraging even more advanced analytics, including media mix modeling to optimize core spend and scale into newer high-potential channels. This approach has proven especially valuable in the first half, allowing us to adapt quickly and sustain momentum in a dynamic environment. We're also seeing encouraging results from new streaming and localized campaigns, whether through in-store events or targeted local media aimed at driving awareness for our stores and eye exams. Complementary to our core marketing efforts is strong growth within our insurance business, and we're especially encouraged by the continued ramp of Versant Health. Insurance customers are some of our highest value customers, spending more on their initial purchases, selecting progressive lenses at a higher rate, and returning more frequently. We believe insurance will remain a long-term tailwind as we drive broader awareness of our in-network and -of-network benefits. We're pleased to report consistency in our revenue retention metrics across cohorts with revenue retention rates of approximately 50% over 24 months and over 100% over 48 months. And now I'll pass it over to Neil to walk through the remaining drivers.