Recent News
June 3, 2026: Company presented at the William Blair 46th Annual Growth Stock Conference. June 9, 2026: Director Michael J. Nicholson purchased shares in a disclosed insider transaction. June 15–17, 2026: Corporate posts described expansion of clinician network and an outreach program bringing vision care to communities, and June–July communications highlighted recruiting and development initiatives for doctors of optometry. July 21, 2026: Company communications noted student-to-OD pipeline expansion.
Technical Analysis
ADX at 27.65 indicates a strong directional move; the directional indicators show a bearish bias as DI- (26.69) increases while DI+ (19.48) decreases.
MACD sits negative at -0.43 and continues declining while the signal line remains at 0.01, indicating weakening momentum and no bullish MACD crossover.
MRO reads -19.37 and is decreasing; the oscillator’s negative value implies the market price sits below the model target and therefore contains mean-reversion upside potential relative to the valuation model.
RSI 51.36 trending down signals neutral-to-weakening momentum; price trades below the 20-day average ($20.08) and well below the 200-day average ($23.74), while short-term EMAs decline, reinforcing near-term technical resistance around the 20.0–20.3 area (20-day average and SuperTrend upper at $20.28).
Fundamental Analysis
Revenue totaled $543,880,000. Reported revenue growth measured 8.04%; quarter-over-quarter revenue change registered 1.44%; year-over-year revenue change reads -51.88% per the provided YoY figure. Operating income (EBIT) reached $45,239,000 with EBITDA of $71,083,000.
Operating margin (and EBIT margin) stands at 8.32%, which sits above the industry peer mean of 7.02% and above the industry peer median of 4.69%, signaling relatively stronger profitability versus peers on a margin basis. QoQ operating margin improved by 5.31 percentage points; YoY operating margin improved by 0.62 percentage points.
EPS came in at $0.25 versus an estimate of $0.18, a $0.07 beat and an EPS surprise of 38.89%. Forward EPS equals $0.3016 while forward P/E reads 91.60; trailing P/E stands at 55.74, reflecting elevated multiple levels versus longer-term earnings. Price-to-book equals 2.24, below the industry peer mean of 2.80 but above the industry peer median of 1.30.
Liquidity and leverage show constraints: current ratio 0.62 and quick ratio 0.37 indicate tight near-term coverage of current liabilities; debt-to-assets equals 34.26% and debt-to-equity equals 77.07%. Interest coverage sits at 15.88x, providing substantial coverage of interest expense despite leverage. Net debt totals $173,936,000 against cash and short-term investments of $67,898,000.
Cash flow and returns: operating cash flow reached $61,705,000 and free cash flow $44,136,000, producing a free cash flow yield of 2.20%, slightly above the industry peer mean free cash flow yield of 2.02%. Return on equity registers 3.47% and return on assets 1.56%.
WMDST values the stock as over-valued based on the supplied valuation assessment and the mix of elevated multiples, constrained liquidity ratios, and positive margin expansion. Financial results and guidance appeared in the company’s investor communications during June–August 2026.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-08-12 |
| NEXT REPORT DATE: | 2026-11-11 |
| CASH FLOW | Begin Period Cash Flow | $ 40.3 M |
| Operating Cash Flow | $ 61.7 M | |
| Capital Expenditures | $ -17.57 M | |
| Change In Working Capital | $ -9.02 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 29.3 M | |
| End Period Cash Flow | $ 69.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 543.9 M | |
| Forward Revenue | $ 105.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 219.1 M | |
| Depreciation | $ 23.4 M | |
| Depreciation and Amortization | $ 25.8 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 498.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 324.7 M | |
| EBITDA | $ 71.1 M | |
| EBIT | $ 45.2 M | |
| Operating Income | $ 45.2 M | |
| Interest Income | — | |
| Interest Expense | $ 2.8 M | |
| Net Interest Income | $ -2.85 M | |
| Income Before Tax | $ 42.4 M | |
| Tax Provision | $ 11.2 M | |
| Tax Rate | 26.4 % | |
| Net Income | $ 31.2 M | |
| Net Income From Continuing Operations | $ 31.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.18 | |
| EPS Actual | $ 0.25 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 38.889 % | |
| Forward EPS | $ 0.30 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.0 B | |
| Intangible Assets | $ 948.9 M | |
| Net Tangible Assets | $ -50.90 M | |
| Total Current Assets | $ 260.6 M | |
| Cash and Short-Term Investments | $ 67.9 M | |
| Cash | $ 67.9 M | |
| Net Receivables | $ 44.0 M | |
| Inventory | $ 107.7 M | |
| Long-Term Investments | $ 71.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 87.2 M | |
| Short-Term Debt | $ 16.6 M | |
| Total Current Liabilities | $ 418.5 M | |
| Net Debt | $ 173.9 M | |
| Total Debt | $ 692.1 M | |
| Total Liabilities | $ 1.1 B | |
| EQUITY | ||
| Total Equity | $ 898.0 M | |
| Retained Earnings | $ 286.9 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 11.21 | |
| Shares Outstanding | 80.114 M | |
| Revenue Per-Share | $ 6.79 | |
| VALUATION | Market Capitalization | $ 2.0 B |
| Enterprise Value | $ 2.6 B | |
| Enterprise Multiple | 37.052 | |
| Enterprise Multiple QoQ | -48.709 % | |
| Enterprise Multiple YoY | 13.101 % | |
| Enterprise Multiple IPRWA | high: 232.675 median: 47.681 mean: 45.392 EYE: 37.052 low: -110.357 |
|
| EV/R | 4.843 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.25 | |
| Asset To Liability | 1.8 | |
| Debt To Capital | 0.435 | |
| Debt To Assets | 0.343 | |
| Debt To Assets QoQ | -2.17 % | |
| Debt To Assets YoY | -14.463 % | |
| Debt To Assets IPRWA | high: 1.218 EYE: 0.343 mean: 0.317 median: 0.31 low: 0.002 |
|
| Debt To Equity | 0.771 | |
| Debt To Equity QoQ | -3.515 % | |
| Debt To Equity YoY | -19.954 % | |
| Debt To Equity IPRWA | high: 2.582 mean: 1.021 median: 1.011 EYE: 0.771 low: -2.227 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.238 | |
| Price To Book QoQ | -9.504 % | |
| Price To Book YoY | 96.116 % | |
| Price To Book IPRWA | high: 20.672 mean: 2.801 EYE: 2.238 median: 1.301 low: -11.625 |
|
| Price To Earnings (P/E) | 55.741 | |
| Price To Earnings QoQ | -69.118 % | |
| Price To Earnings YoY | 57.024 % | |
| Price To Earnings IPRWA | high: 167.375 EYE: 55.741 mean: 38.972 median: 30.133 low: -277.995 |
|
| PE/G Ratio | 0.279 | |
| Price To Sales (P/S) | 3.695 | |
| Price To Sales QoQ | -13.495 % | |
| Price To Sales YoY | 97.627 % | |
| Price To Sales IPRWA | high: 22.583 mean: 5.076 EYE: 3.695 median: 3.329 low: 0.026 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 91.602 | |
| Forward PE/G | 0.458 | |
| Forward P/S | 19.446 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 72.376 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.272 | |
| Asset Turnover Ratio QoQ | 6.366 % | |
| Asset Turnover Ratio YoY | 6.949 % | |
| Asset Turnover Ratio IPRWA | high: 1.21 median: 0.386 mean: 0.342 EYE: 0.272 low: 0.001 |
|
| Receivables Turnover | 12.568 | |
| Receivables Turnover Ratio QoQ | 10.715 % | |
| Receivables Turnover Ratio YoY | 10.053 % | |
| Receivables Turnover Ratio IPRWA | EYE: 12.568 high: 10.101 mean: 4.085 median: 3.159 low: 0.052 |
|
| Inventory Turnover | 2.224 | |
| Inventory Turnover Ratio QoQ | -6.396 % | |
| Inventory Turnover Ratio YoY | -1.082 % | |
| Inventory Turnover Ratio IPRWA | high: 9.435 mean: 5.073 median: 4.582 EYE: 2.224 low: 0.718 |
|
| Days Sales Outstanding (DSO) | 7.261 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 13.939 | |
| Cash Conversion Cycle Days QoQ | 3.694 % | |
| Cash Conversion Cycle Days YoY | -54.633 % | |
| Cash Conversion Cycle Days IPRWA | high: 90.31 mean: 18.199 median: 17.779 EYE: 13.939 low: -62.922 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -3.445 | |
| CapEx To Revenue | -0.032 | |
| CapEx To Depreciation | -0.749 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ -50.90 M | |
| Net Working Capital | $ -157.87 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.162 | |
| Current Ratio | 0.623 | |
| Current Ratio QoQ | 13.783 % | |
| Current Ratio YoY | 14.741 % | |
| Current Ratio IPRWA | high: 6.745 mean: 1.259 median: 0.866 EYE: 0.623 low: 0.273 |
|
| Quick Ratio | 0.365 | |
| Quick Ratio QoQ | 10.476 % | |
| Quick Ratio YoY | 3.34 % | |
| Quick Ratio IPRWA | high: 6.531 mean: 1.038 median: 0.66 low: 0.492 EYE: 0.365 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.737 | |
| Cost Of Debt | 0.302 % | |
| Interest Coverage Ratio | 15.884 | |
| Interest Coverage Ratio QoQ | 916.75 % | |
| Interest Coverage Ratio YoY | 177.859 % | |
| Interest Coverage Ratio IPRWA | high: 50.112 EYE: 15.884 median: 6.088 mean: 4.034 low: -106.56 |
|
| Operating Cash Flow Ratio | 0.108 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.983 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.855 % | |
| Revenue Growth | 8.039 % | |
| Revenue Growth QoQ | 143.606 % | |
| Revenue Growth YoY | -51.877 % | |
| Revenue Growth IPRWA | high: 31.112 % EYE: 8.039 % mean: -0.102 % median: -4.881 % low: -16.261 % |
|
| Earnings Growth | 200.0 % | |
| Earnings Growth QoQ | 1199.968 % | |
| Earnings Growth YoY | -121.053 % | |
| Earnings Growth IPRWA | EYE: 200.0 % high: 180.0 % mean: 10.406 % median: 4.423 % low: -375.0 % |
|
| MARGINS | ||
| Gross Margin | 59.709 % | |
| Gross Margin QoQ | 2.692 % | |
| Gross Margin YoY | -0.139 % | |
| Gross Margin IPRWA | high: 88.188 % EYE: 59.709 % mean: 25.415 % median: 23.497 % low: -15.298 % |
|
| EBIT Margin | 8.318 % | |
| EBIT Margin QoQ | 531.108 % | |
| EBIT Margin YoY | 62.398 % | |
| EBIT Margin IPRWA | high: 42.75 % EYE: 8.318 % mean: 7.017 % median: 4.692 % low: -60.342 % |
|
| Return On Sales (ROS) | 8.318 % | |
| Return On Sales QoQ | 415.366 % | |
| Return On Sales YoY | 62.398 % | |
| Return On Sales IPRWA | high: 38.866 % EYE: 8.318 % mean: 7.63 % median: 4.66 % low: -48.669 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 44.1 M | |
| Free Cash Flow Yield | 2.196 % | |
| Free Cash Flow Yield QoQ | -519.885 % | |
| Free Cash Flow Yield YoY | 74.424 % | |
| Free Cash Flow Yield IPRWA | high: 9.14 % EYE: 2.196 % mean: 2.021 % median: 1.666 % low: -19.945 % |
|
| Free Cash Growth | -492.669 % | |
| Free Cash Growth QoQ | 259.258 % | |
| Free Cash Growth YoY | -37.736 % | |
| Free Cash Growth IPRWA | high: 422.536 % median: -15.215 % mean: -33.746 % EYE: -492.669 % low: -582.609 % |
|
| Free Cash To Net Income | 1.415 | |
| Cash Flow Margin | 8.346 % | |
| Cash Flow To Earnings | 1.456 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.557 % | |
| Return On Assets QoQ | 826.786 % | |
| Return On Assets YoY | 120.538 % | |
| Return On Assets IPRWA | high: 7.175 % EYE: 1.557 % mean: 1.199 % median: 1.162 % low: -19.583 % |
|
| Return On Capital Employed (ROCE) | 2.824 % | |
| Return On Equity (ROE) | 0.035 | |
| Return On Equity QoQ | 811.286 % | |
| Return On Equity YoY | 104.596 % | |
| Return On Equity IPRWA | high: 0.346 mean: 0.039 median: 0.038 EYE: 0.035 low: -0.279 |
|
| DuPont ROE | 3.528 % | |
| Return On Invested Capital (ROIC) | 2.919 % | |
| Return On Invested Capital QoQ | 710.833 % | |
| Return On Invested Capital YoY | 100.757 % | |
| Return On Invested Capital IPRWA | high: 15.003 % EYE: 2.919 % median: 2.517 % mean: 2.134 % low: -10.552 % |
|