# Eyewear markups: what a 54% gross margin actually tells you

One retailer's public accounts show why factory cost, gross profit and net profit cannot be used interchangeably.

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Published by: [No Secrets Research](https://nosecrets.app/en/about#methodology)
Added: 2026-10-20
Topic: Behind the business

## Scope and context

Applies to: Warby Parker FY2025 consolidated accounts; US shopping guidance
Time context: Fiscal year ended December 31, 2025
Sources checked: 2026-10-20

One company's consolidated accounts, including contacts and eye care, are not an industry average or the cost of a specific pair. They do not establish whether your quote is fair.

## The disclosed numbers

Warby Parker's 2025 Form 10-K reports $871.905 million in revenue, a 54.0% gross margin and $1.641 million in net income. Our calculation puts net income at about 0.19% of revenue. A 54% gross margin clearly does not mean 54% net profit.

[1: Warby Parker · SEC filing](https://www.sec.gov/Archives/edgar/data/1504776/000150477626000006/wrby-20251231.htm)

## This is not a factory-cost table

Its cost of goods sold includes optical labs, shipping, retail occupancy and eye-exam staff costs as well as products. Marketing and other operating expenses are also disclosed. These accounting categories cannot establish a viral claim that a particular pair 'costs $10 to make'.

[1: Warby Parker · SEC filing](https://www.sec.gov/Archives/edgar/data/1504776/000150477626000006/wrby-20251231.htm)

## Compare a complete, matching specification

Our checklist: separate frame, lens specification, coatings, fitting, warranty and replacement terms. In the US, prescription-release rights can help you obtain competing quotes. Compare the complete package; an advertised starting price may describe a different lens or level of service.

[2: FTC](https://consumer.ftc.gov/articles/buying-prescription-glasses-or-contact-lenses-your-rights)

## Sources

1. [Warby Parker 2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/1504776/000150477626000006/wrby-20251231.htm) — Warby Parker · SEC filing. FY2025. Consolidated financial statements and cost definitions; not a per-pair factory-cost disclosure.

2. [Buying Prescription Glasses or Contact Lenses: Your Rights](https://consumer.ftc.gov/articles/buying-prescription-glasses-or-contact-lenses-your-rights) — FTC. . Consumer comparison-shopping guidance, including limits around pupillary distance.

## Disclosure

AI-assisted research, writing and translation by No Secrets, using the linked public documents. This is a source summary, not firsthand reporting or an independently audited investigation. No affiliate links are used in this article.

The source-check date is not the event date. Original documents control if a summary differs.