Innovative Eyewear Inc. Reports Q2 2025 Unaudited Financial Results

Rhea-AI Summary

Innovative Eyewear (NASDAQ: LUCY), developer of smart eyewear brands including Lucyd®, Nautica®, Eddie Bauer®, and Reebok®, reported significant growth in Q2 2025. The company achieved 88% year-over-year revenue growth to $579,230, while operating expenses increased by only 6%.

Key highlights include the successful launch of Reebok® Powered by Lucyd collection and strong performance of Lucyd Armor® smart safety glasses, which represented nearly half of total units sold. However, gross profit margin declined to -2% from 18% due to higher tariffs and import costs.

The company reported a net loss of $(2.1M) or $(0.66) per share, compared to $(1.9M) or $(1.87) per share in Q2 2024. Cash position strengthened to $8.9M, up from $7.5M in December 2024, primarily due to warrant exercises.

Positive

• Revenue grew 88% year-over-year to $579,230 in Q2 2025
• Operating expenses increased only 6% while revenue grew 88%
• Cash position improved to $8.9M from $7.5M in December 2024
• Successful launch of Reebok® collection and strong performance of Lucyd Armor® line
• New partnerships with Smartech Retail Group and EyeRecommend for expanded distribution

Negative

• Gross profit margin declined to -2% from 18% year-over-year due to higher tariffs
• Net loss increased 8% to $2.1M in Q2 2025
• Significant impact from higher customs duties and importation costs

Insights

Financial Analyst

Innovative Eyewear shows strong 88% revenue growth, but declining margins from tariffs impact overall financial health.

Innovative Eyewear's Q2 2025 results present a mixed financial picture. The 88% year-over-year revenue increase to $579,230 demonstrates impressive top-line growth, significantly outpacing the modest 6% increase in operating expenses. This growth efficiency suggests improving operational leverage and marketing effectiveness.

However, the concerning element is the collapse in gross profit margin to -2% from 18% in Q2 2024, primarily attributed to higher tariffs and import costs. This margin deterioration directly impacted the bottom line, with net losses increasing to $2.1 million ($0.66 per share) despite the revenue gains.

The company's cash position appears stable at $8.9 million, up from $7.5 million at year-end 2024, though this improvement stems from warrant exercises and equity transactions rather than operational cash flow, indicating potential dilution for existing shareholders.

Product diversification shows promise with the Lucyd Armor smart safety glasses (launched October 2024) representing nearly half of units sold, while the new Reebok collection (April 2025) expands their market reach. Their partnerships with Smartech Retail Group and EyeRecommend extend distribution channels both in high-visibility retail locations and across 600+ Canadian optometry stores.

Looking forward, management's strategy to mitigate tariff impacts through logistics network diversification, international sales expansion, and price adjustments will be crucial for rebuilding margins. Their consecutive 24 months of year-over-year quarterly sales growth demonstrates consistent market traction, but until gross margins recover, profitability remains elusive despite impressive revenue growth.

Revenue Surged 88% in Q2 2025 vs. Q2 2024

MIAMI, Aug. 14, 2025 /PRNewswire/ -- Innovative Eyewear Inc., (NASDAQ: LUCY, LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer®, and Reebok® brands, today announced its unaudited financial results for the three and six months ended June 30, 2025.

Net revenue for the quarter ended June 30, 2025 was $579,230, an increase of 88% from the quarter ended June 30, 2024. On a year-to-date basis, net revenue for the six months ended June 30, 2025 was $1,033,731, an increase of 49% from the comparable period in 2024. For both the quarter and year-to-date periods, this top-line revenue growth was primarily driven by growing consumer demand of the Company's recent new product launches – the Lucyd Armor^® smart safety glasses (launched October 2024), and the Reebok^® Powered by Lucyd collection (launched April 2025). The Lucyd Armor product line has been highly successful since its launch, and represented nearly half of the Company's total units sold during the current quarter. Additionally, the recently launched Reebok^® Powered by Lucyd frames boast the Company's best audio quality to-date, as a result of a strategic initiative begun in 2024 to produce the best sounding smartglasses on the market, with a new team of audio engineers. The 88% revenue growth far outpaced growth in Company's operating expenses for the quarter, which increased by approximately 6%.  

Gross profit margin for the second quarter of 2025 was  -2%, compared to 18% for the same period in the prior year. Gross profit margin for the six months ended June 30, 2025 was 20%, an increase of 11 percentage points from the prior year. This quarterly decrease of 20% was primarily due to significantly higher custom duties, tariffs, and importation costs. The Company is aggressively responding to the current tariff and international trade environment with a multi-pronged approach including diversification of its logistics network, expansion of ex-US sales, mild price increases on custom lenses and modification of its product fulfillment model. Actions taken by the Company are expected to mitigate the impacts of tariffs going forward.

During the second quarter of 2025, Innovative Eyewear announced several important milestones, including: 

• Successful launch of the long-awaited Reebok® Powered by Lucyd sport smart eyewear collection, which has been very well-received by customers.
• Entry into a partnership with Smartech Retail Group to showcase the Company's smart eyewear at Smartech's new TM:RW flagship department store, now open in Times Square of New York City.
• Entry into a partnership with EyeRecommend to provide the Company's smart eyewear to more than 600 independent optometry stores across Canada.
• New handsfree functionality with custom Siri commands for the Company's Walkie feature.

Management believes that the success of the Lucyd Armor product line indicates that delivering smart eyewear for specific user niches can be a significant differentiator. With management's experience developing dozens of different styles and models of smart eyewear, the Company is uniquely positioned to address specific user needs in the sport, safety, and general optical categories.

Harrison Gross, CEO of Innovative Eyewear Inc., commented,

"I am very pleased by our performance and improved sales for the quarter, as we continue our upward trend of outperforming sales each quarter on a year-over-year basis, which we have done every quarter for the last 24 months. We are optimistic about the potential to mitigate the effect of tariffs on our gross margins in the future, as we build a more globally-focused business with significant distribution outside of the USA. Our sales growth materially outpaced our increased operating expenses as our marketing efforts continue to yield improved returns. Looking ahead to the second half of 2025, we believe we are well positioned to build on our momentum and significantly grow both revenue and market share. I am particularly excited about the potential of our newly launched Reebok^® product line, which expanded our portfolio to include smart glasses for active lifestyles, coupled with the continued significant traction of the Lucyd Armor smart safety glasses. Both product lines address vast subsets of the eyewear market which are underserved by smart eyewear providers."

Overall, the company's bottom line net loss for the second quarter of 2025 was $(2,106,094) or $(0.66) per share, compared with $(1,948,399) or $(1.87) per share in the second quarter of 2024, representing an 8% greater loss that was mainly due to significantly higher tariffs. For the six months ended June 30, 2025, the Company had a net loss of $(3,884,797) or $(1.37) per share, or a 1% smaller loss than $(3,919,710) or $(4.37) per share in the prior year comparable period.

The Company ended the quarter with $8,912,645 of combined cash and cash equivalents and investments, compared with $7,524,171 combined cash and cash equivalents and investments as of December 31, 2024. This increase in funds was primarily attributable to warrant exercises and other equity transactions entered into during the current quarter.

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd^®, Nautica^®, Eddie Bauer^®, and Reebok^® 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, 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. 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: scott@skylineccg.com

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SOURCE Innovative Eyewear, Inc.

FAQ

What was Innovative Eyewear's (LUCY) revenue growth in Q2 2025?

Innovative Eyewear reported 88% year-over-year revenue growth to $579,230 in Q2 2025, primarily driven by the success of Lucyd Armor® smart safety glasses and the new Reebok® collection.

How did LUCY's gross profit margin perform in Q2 2025?

The gross profit margin declined to -2% from 18% year-over-year, primarily due to significantly higher custom duties, tariffs, and importation costs.

What was Innovative Eyewear's (LUCY) cash position in Q2 2025?

The company ended Q2 2025 with $8.9 million in combined cash and investments, up from $7.5 million in December 2024, mainly due to warrant exercises and equity transactions.

What are the main brands under Innovative Eyewear's portfolio?

Innovative Eyewear develops smart eyewear under the brands Lucyd®, Nautica®, Eddie Bauer®, and Reebok®.

What was LUCY's earnings per share (EPS) in Q2 2025?

Innovative Eyewear reported a net loss of $(0.66) per share in Q2 2025, compared to $(1.87) per share in Q2 2024.