Innovative Eyewear Inc. Reports Record Second Quarter 2026 Results

Innovative Eyewear Inc., (NASDAQ: LUCY , LUCYW), ("Innovative Eyewear" or the "Company") the developer of smart eyewear under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands, today announced its unaudited financial results for the three and six months ended June 30, 2026.

Harrison Gross, CEO of Innovative Eyewear Inc., commented, "We didn't just carry our first-quarter momentum into the second quarter — we accelerated it, surpassing $1 million in quarterly revenue for the first time in our history while returning gross margin to positive territory. We intend to build on this momentum in the second half, and we remain very optimistic about our outlook for 2026 and beyond."

Net revenue for the three months ended June 30, 2026 (the "current quarter") was $1,010,519, an increase of $431,289 or 74% from the prior year quarter — the twelfth consecutive quarter of year-over-year revenue growth, the first quarter in the Company's history with net revenue above $1 million, and an acceleration from approximately 63% growth for full-year 2025 and 70% in the first quarter of 2026. Growth was predominantly attributable to volume, driven by Lucyd Armor® smart safety glasses, of which approximately 4,700 units were sold, a nearly 100% increase year-over-year, and by cobranded Reebok® sport and optical smartglasses, of which over 1,600 units were sold compared with approximately 400, partially offset by declines in certain other product lines.

Gross profit was $242,515, or 24% of net revenue, compared with a gross loss of $12,665, or (2)%, in the prior year quarter — an improvement of approximately 26 percentage points, reflecting a rebound from tariffs imposed on U.S. imports beginning in April 2025 and management's actions to mitigate them, which have largely restored margins to levels consistent with the Company's pre-tariff business plan.

Total operating expenses were $1,947,474, a decrease of $210,933 or 10%, on a $126,131 decrease in research and development costs and a $92,296 decrease in general and administrative expenses, the latter primarily on lower legal and outside consultant expenses, partially offset by higher public relations and branding spending and higher license royalties.

Other non-operating income was approximately $34,141, compared with $64,978. Net loss was $1,670,818 or $(0.26) per share, basic and diluted, compared with $2,106,094 or $(0.66) per share — a 21% reduction. Weighted average shares outstanding for the three months ended June 30, 2026 and 2025 were approximately 6.41 million and 3.21 million, respectively.

Net revenue for the six months ended June 30, 2026 was $1,784,080, an increase of $750,349 or 73%, driven primarily by volume — approximately 8,800 Lucyd Armor® units, a 91% increase, and nearly 2,000 Reebok® units — with the remainder largely driven by favorable price/mix from 2026 Lucyd Armor® price increases and the April 2026 Reebok® optical launch at premium price points, partially offset by a higher proportion of wholesale sales at wholesale pricing.

Gross profit margin was 23%, compared with 20% in the prior year period, which, as previously disclosed, included approximately $132,000 of one-off credits and inventory adjustments not representative of run-rate margin. The improvement primarily reflects better sourcing costs for frames and prescription lenses as order volumes have grown, together with tariff mitigation.

Total operating expenses for the six months were $4,494,684, an increase of $211,953 or 5%, driven by a $406,407 increase in general and administrative expenses — compensation and benefits, public relations and branding, and license royalties — partially offset by significant decreases in research and development costs.

Other non-operating income was approximately $96,538, compared with $190,066. Net loss was $3,980,186 or $(0.63) per share, basic and d...