Innovative Eyewear Inc. Reports Q1 2026 Unaudited Financial Results

Rhea-AI Summary

Innovative Eyewear (NASDAQ:LUCY) reported unaudited Q1 2026 revenue of $773,561, up 70% year over year, marking its 11th consecutive quarter of revenue growth. Lucyd Armor® smart safety glasses drove roughly two-thirds of smartglass unit sales.

Gross margin was 23%, modestly above full-year 2025 (21%) and second-half 2025 (22%). Operating expenses rose 20% to $2.55 million. Net loss was $2.31 million, or $(0.37) per share. The company ended the quarter with $5.68 million in cash, equivalents and investments, $7.66 million in net working capital, and no debt, and raised $1.41 million from equity offerings. Commercial pilots, new retail discussions, Newegg onboarding, and a Red Dot Award for Lucyd Armor® support the smart eyewear growth strategy.

Positive

• Q1 2026 revenue of $773,561, up 70% year over year
• Eleventh consecutive quarter of year-over-year revenue growth
• Lucyd Armor® accounted for about two-thirds of smartglass unit sales
• Gross margin at 23%, above full-year 2025 level of 21%
• Quarter-end cash, equivalents and investments totaled $5.68 million
• No outstanding debt and only $0.02 million in long-term liabilities

Negative

• Q1 2026 net loss of $2,309,368
• Operating expenses increased 20% year over year to $2,547,210
• Cash, equivalents and investments declined from $6.51 million to $5.68 million since December 31, 2025
• Weighted average shares rose to 6.25 million from 2.45 million, indicating dilution
• Net working capital decreased from $8.39 million to $7.66 million quarter over quarter

News Market Reaction – LUCY

-7.92%

2 alerts

-7.92% Session close to close

-8.5% Trough Tracked

$6.36M Market Cap

0.7x Rel. Volume

In the May 15 session, LUCY declined 7.92%, reflecting a notable negative market reaction. Argus tracked a trough of -8.5% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -7.9% in the session following this news. A negative reaction despite strong top-lin...

Analysis

The stock moved -7.9% in the session following this news. A negative reaction despite strong top-line growth would fit prior episodes where robust revenue updates met concern over losses and costs. Earnings moves have averaged 5.93%, with some double‑digit declines following margin or expense pressure. Q1 2026 again shows a net loss of $(2.31M) and operating expenses of $2.55M, alongside equity raises of $1.41M. Any sharp downside could reflect heightened sensitivity to dilution and the gap between rapid growth and profitability.

Key Figures

Q1 2026 net revenue: $773,561 Revenue growth YoY: 70% Other non-operating income: $62,397 +5 more

8 metrics

Q1 2026 net revenue $773,561 Three months ended March 31, 2026

Revenue growth YoY 70% Q1 2026 vs Q1 2025

Other non-operating income $62,397 Q1 2026; vs $125,088 prior-year quarter

Gross profit margin 23% Q1 2026; vs 21% full-year 2025 and 22% 2H 2025

Total operating expenses $2,547,210 Q1 2026; up 20% year-over-year

Net loss $(2,309,368) Q1 2026; $(0.37) per share basic and diluted

Cash & investments $5.68M Combined cash, cash equivalents and investments at March 31, 2026

Equity offering proceeds $1.41M Net cash raised from equity offerings in Q1 2026

Previous Earnings Reports

5 past events · Latest: Apr 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	Preliminary Q1 2026	Positive	+2.5%	Preliminary Q1 2026 sales up 78% YoY to about $0.81M.
Mar 25	Full-year 2025 results	Positive	+0.0%	2025 revenue $2.67M, margin 21%, net loss narrowed slightly.
Nov 13	Q3 2025 results	Positive	-12.4%	Q3 revenue up 163% YoY, gross margin 37%, net loss persisted.
Aug 14	Q2 2025 results	Negative	-6.8%	Revenue up 88% YoY but gross margin fell to -2% and loss widened.
May 13	Q1 2025 results	Positive	+46.5%	Q1 2025 revenue grew 19% with margin jumping to 49%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have generally highlighted strong revenue growth, but market reactions have been inconsistent, with both sharp rallies and notable selloffs following similar fundamental updates.

Recent Company History

Across recent earnings, Innovative Eyewear has repeatedly reported double‑digit or higher growth, driven largely by Lucyd Armor and cobranded lines. Q1 2025 showed improving margins and sparked a 46.46% move, while Q2 and Q3 2025 combined robust revenue gains with margin pressure and wider losses, drawing negative reactions of -6.82% and -12.43%. The full‑year 2025 report on Mar 25, 2026 (revenue $2.67M, gross margin 21%) saw no price change. Preliminary Q1 2026 results on Apr 22, 2026 prompted a modest 2.45% rise, framing today’s detailed Q1 numbers as another step in the same growth trajectory.

Key Terms

non-operating income, money market funds, u.s. treasury bills, gross profit margin, +1 more

5 terms

non-operating income financial

"The Company also recognized $62,397 of other non-operating income during the current quarter"

Non-operating income is money a company earns or loses from activities outside its main business — for example interest, investment gains or losses, and one-time sales of assets. Investors watch it because it can inflate or mask the health of the core business: think of it as a shop owner’s extra income from renting out a back room rather than from selling products, which can boost short-term profits but may not reflect sustainable performance.

money market funds financial

"comprised of dividends from investments in money market funds and interest income"

A money market fund is a pooled investment that buys very short-term, low-risk debt like government bills and commercial paper to provide a safe place to park cash. Think of it as a public savings jar that aims to preserve your money while paying a small amount of interest and allowing quick access—important to investors who want liquidity and capital protection without locking funds into longer-term, higher-risk investments.

u.s. treasury bills financial

"and interest income from investments in U.S. Treasury bills."

U.S. Treasury bills are short-term government IOUs sold to investors to raise cash for federal operations; they mature in a year or less and are typically bought at a slight discount and redeemed for their full face value. They matter to investors because they are viewed as one of the safest, most liquid places to park cash, serve as a baseline for short-term interest rates, and influence borrowing costs and portfolio decisions much like a conservative savings option.

gross profit margin financial

"Gross profit margin for the first quarter of 2026 was 23%."

Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.

net working capital financial

"Net working capital (current assets less current liabilities) was $7.66 million"

Net working capital is the amount left when you subtract a company’s short-term bills (like accounts payable and short-term loans) from its short-term assets (cash, money owed to it, and inventory). Think of it as the cash cushion a business has to keep daily operations running — a bigger cushion means fewer short-term funding worries, while a small or negative number can signal pressure to raise cash or cut activity, which matters to investors assessing stability and short-term risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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First Quarter Revenue Increased 70% Year Over Year

MIAMI, May 14, 2026 /PRNewswire/ -- 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 quarter ended March 31, 2026.

Net revenue for the three months ended March 31, 2026 (the "current quarter") was $773,561, an increase of $319,060 or 70% from the three months ended March 31, 2025. The first quarter of 2026 marks the 11th consecutive quarter of year-over-year revenue growth. This top-line revenue growth was primarily driven by volume increases from sales of the Company's highly successful Lucyd Armor^® smart safety glasses, which represented approximately two-thirds of the Company's total smartglass units sold in the current quarter.

The volume increases from Lucyd Armor^® were partially offset by lower volumes in certain of the Company's other smartglass product lines, reflecting a strategic realignment of the Company's product mix. Specifically, the Company is intentionally shifting sales volume toward the higher-ROI Lucyd Armor^® safety category; sunsetting certain prior-generation collections to make room for the recently launched Reebok^® Powered by Lucyd optical collection for the wholesale channel; and the typical seasonal softness in the sports category during the winter months. In total, however, the year-over-year growth in revenue of 70% represents an acceleration from the full-year 2025 growth rate of approximately 63% and reflects continued positive momentum across the Company's smart eyewear portfolio.

The Company also recognized $62,397 of other non-operating income during the current quarter, compared to $125,088 in the prior year quarter. These amounts were primarily comprised of dividends from investments in money market funds and interest income from investments in U.S. Treasury bills. The year-over-year decrease in such amounts was primarily due to lower dividend yields and interest rates in the current market and macroeconomic environment.

The Company aims to continue its revenue growth momentum supported by the following commercial initiatives currently in progress:

• The Company is in the process of listing Lucyd Armor® for sale online with a major national retailer.
• The Company is beginning a pilot product launch with a top 5 national optical retailer.
• The Company is in negotiations with a major Canadian optical chain for a rollout of Lucyd Armor® in approximately 300 stores.
• The Company is in discussions with a major auto parts chain for a white-labeled Lucyd Armor product with the chain's branding.
• A major energy sector company is conducting a pilot of Lucyd Armor® for workforce communication applications.
• The Company is in commercial discussions with a top 3 hardware retail chain regarding a potential online product listing.
• The Company recently completed onboarding with Newegg.com, a leading online retailer focused on consumer technology and electronics, with reported annual revenue of approximately $1.3 billion. The Company expects its products to go live on the Newegg platform later this month, expanding its online distribution reach and access to technology-focused consumers.

Also, during the first quarter of 2026, the Company received the prestigious Red Dot Award for Lucyd Armor^®. The Red Dot Award recognizes the world's leading products that demonstrate functional and aesthetic design excellence, and notable recipients of the award have included some of the world's leading tech and consumer goods companies.

Gross profit margin for the first quarter of 2026 was 23%. This was slightly ahead of the Company's gross profit margin for full fiscal year 2025 (21%) and the second half of fiscal year 2025 (22%). The prior-year comparison reflects an unusually elevated Q1 2025 gross profit margin of 49%, which was primarily attributable to the positive impact of one-off credits and inventory adjustments totaling approximately $132,000 and is not representative of the underlying run-rate gross margin for the business. The Company does not currently anticipate material changes in gross profit margins from current levels.

Total operating expenses in the first quarter of 2026 were $2,547,210, an increase of $422,886 or 20% from the prior year quarter. This increase was primarily driven by higher general and administrative expenses, which increased by $498,703 year-over-year primarily due to the combination of higher amounts paid to outside service providers for various corporate and compliance functions, and higher payments due under multi-year license agreements. Sales and marketing costs were essentially flat year-over-year, while research and development costs decreased by $72,467 from the first quarter of 2025, primarily driven by the timing of product development cycles. 

The Company's net loss for the first quarter of 2026 was $2,309,368 or $(0.37) per share, basic and diluted, compared with $1,778,703 or $(0.72) per share, basic and diluted, in the prior year's quarter. Weighted average shares outstanding for the three months ended March 31, 2026 and 2025 were approximately 6.25 million and 2.45 million, respectively.

The Company ended the quarter with approximately $5.68 million of combined cash and cash equivalents and investments, compared with $6.51 million of combined cash and cash equivalents and investments as of December 31, 2025. Net working capital (current assets less current liabilities) was $7.66 million at March 31, 2026, and $8.39 million at December 31, 2025. The Company had no outstanding debt as of March 31, 2026, and long-term liabilities of only $0.02 million.

During the first quarter of 2026, the Company raised $1.41 million of net cash proceeds from equity offerings.

Harrison Gross, CEO of Innovative Eyewear Inc., commented, "I am very pleased by our strong start to the year, as exhibited by our ongoing and accelerating revenue growth. We intend to build on this momentum as we seek to drive further growth this year through ongoing discussions with prospective partners across the big box retail, traditional optical, hardware, automotive, industrial MRO distribution, and construction and logistics channels. We are receiving constructive feedback from key retail and optical accounts on our near-term product roadmap, and we are working to convert that engagement into incremental revenue. We are very optimistic about the growth of the smart eyewear category, the future of our Company and our outlook for 2026 and beyond."

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands. True to our mission to Upgrade Your Eyewear®, our Bluetooth smart glasses allow users to stay safely and ergonomically connected to their digital lives and are offered in hundreds of frame and lens combinations to meet the needs of the optical market. To learn more and explore our continuously evolving collection of smart eyewear, please visit www.lucyd.co.

Forward-Looking Statements

This press release contains certain forward-looking statements, including those relating to the Company's business operations, projections, market position, revenue growth, commercial discussions, pipeline opportunities, prospective customers and channel partners, anticipated product launches and retail listings, future product lines and developments. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "anticipate," "believe," "continue," "estimate," "expect," "future," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Commercial discussions described in this release have not resulted in definitive agreements and there can be no assurance that any such discussions will result in executed agreements or generate revenue on the timing or in the volumes described, or at all. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K under the caption "Risk Factors."

Investor Relations Contact:
Scott Powell
Skyline Corporate Communications Group, LLC
Telephone: +1 (646) 893-5835
Email: IR@skylineccg.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/innovative-eyewear-inc-reports-q1-2026-unaudited-financial-results-302772907.html

SOURCE Innovative Eyewear, Inc.

FAQ

How did Innovative Eyewear (NASDAQ:LUCY) perform in Q1 2026?

Innovative Eyewear reported Q1 2026 revenue of $773,561, a 70% year-over-year increase. According to Innovative Eyewear, this marked the 11th straight quarter of revenue growth, driven mainly by Lucyd Armor smart safety glasses and supported by ongoing distribution initiatives.

What was Innovative Eyewear's net loss and EPS in Q1 2026?

Innovative Eyewear reported a Q1 2026 net loss of $2,309,368, or $(0.37) per share. According to Innovative Eyewear, this compares with a $1,778,703 loss, or $(0.72) per share, in Q1 2025, reflecting higher revenue and higher operating expenses alongside increased share count.

What were Innovative Eyewear's cash and debt levels at March 31, 2026?

Innovative Eyewear ended Q1 2026 with $5.68 million in cash, cash equivalents and investments. According to Innovative Eyewear, net working capital was $7.66 million, the company had no outstanding debt, and long-term liabilities totaled only $0.02 million at quarter-end.

How did gross margin for LUCY change in Q1 2026?

Innovative Eyewear reported a Q1 2026 gross margin of 23%. According to Innovative Eyewear, this was slightly above the 21% full-year 2025 and 22% second-half 2025 margins, while Q1 2025’s 49% margin was boosted by one-time credits and adjustments.

What growth drivers did Innovative Eyewear highlight for its smart eyewear business?

Innovative Eyewear highlighted Lucyd Armor safety glasses as a key growth driver, representing about two-thirds of smartglass units. According to Innovative Eyewear, multiple pilots, retailer discussions, Newegg onboarding, and a Red Dot Award for Lucyd Armor support its smart eyewear expansion strategy.

Did Innovative Eyewear issue new equity during Q1 2026 and what was the impact?

Innovative Eyewear raised $1.41 million in net cash from equity offerings in Q1 2026. According to Innovative Eyewear, weighted average shares increased to about 6.25 million from 2.45 million a year earlier, contributing to shareholder dilution but strengthening the balance sheet.