Innovative Eyewear Reports Third-Quarter 2026 Results

Nine-month revenue already exceeded full-year 2025 revenue of $2,661,669.

Rhea-AI Summary

Innovative Eyewear (NASDAQ: LUCY) reported third-quarter 2026 revenue of $1,009,696, marking its thirteenth consecutive quarter of year-over-year revenue growth. Revenue rose 51%, while gross profit reached $320,910. Gross margin was 32%, versus 37% a year earlier and 24% in the preceding quarter. Inventory provisions and higher commissions and platform fees weighed on margin; lower sourcing costs and tariff refunds provided offsets.

Quarterly net loss widened to $2,287,141 from $1,836,267. Nine-month revenue rose 64% to $2,793,776, while net loss widened to $6,267,327 from $5,721,064. At September 30, the company held approximately $4.5 million in combined cash, cash equivalents and investments, with no debt. Shipments to Australia and New Zealand began in October, and U.S. big-box display installations began November 1. The company expects new channels to drive growth in 2027.

16 points · 0 major

PositiveiHow this balance works

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue rose 51% year over year to $1,009,696, driven primarily by volume.
• Moderate pointThird-quarter gross profit increased to $320,910 from $244,837 a year earlier.
• Moderate pointThird-quarter Lucyd Armor sales rose 164% to approximately 7,800 units.
• Moderate pointThird-quarter wholesale revenue increased to $223,305 from $25,796 a year earlier.
• Moderate pointNo debt at September 30, alongside approximately $4.5 million in cash, cash equivalents and investments.
• Moderate pointNet working capital was approximately $6.7 million at September 30, 2026.

10 minor points

• Minor pointNine-month revenue rose 64% to $2,793,776, exceeding full-year 2025 revenue of $2,661,669.
• Minor pointNine-month Lucyd Armor sales rose 119% to approximately 16,600 units.
• Minor pointNine-month wholesale revenue increased to $358,443 from $70,405 a year earlier.
• Minor pointLower frame and lens sourcing costs added approximately 18 percentage points to third-quarter gross margin.
• Minor pointTariff refunds of $124,854 added approximately 12 percentage points to third-quarter gross margin.
• Minor pointSales and marketing expenses declined in the third quarter, partially offsetting other operating expense increases.
• Minor pointInitial U.S. big-box purchase order included approximately 2,300 Lucyd Armor units sold during the third quarter.
• Minor pointDirected Electronics initial orders were placed in September; shipments to Australia and New Zealand began in October.
• Minor point. Forward-looking: it has not happened yet and may not happen.Upgraded Lucyd Armor collection is planned for the first half of 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.New channels are expected by the company to drive growth in 2027.

Negative

• Moderate pointThird-quarter net loss widened to $2,287,141 from $1,836,267; basic and diluted loss per share narrowed to $0.27 from $0.38.
• Moderate pointThird-quarter operating expenses rose 23% to $2,659,283 on higher administrative and research and development costs.
• Moderate pointThird-quarter gross margin was 32%, down from 37% a year earlier but above second-quarter 2026's 24%.
• Minor pointNine-month net loss widened to $6,267,327 from $5,721,064; basic and diluted loss per share narrowed to $0.89 from $1.62.
• Minor pointNine-month operating expenses rose 11% to $7,153,967, mainly from license royalties and compensation.

2 minor points

• Minor pointExcess and slow-moving inventory provision on certain co-branded products reduced third-quarter gross margin by approximately 30 percentage points.
• Minor pointHigher commissions and platform fees reduced third-quarter gross margin by approximately 4 percentage points.

Key Figures

Q3 net revenue: $1,009,696, up 51% Lucyd Armor units sold: Approximately 7,800, up 164% Gross margin: 32% +4 more

Q3 net revenue

$1,009,696, up 51%

Three months ended September 30, 2026, versus the prior-year quarter

Lucyd Armor units sold

Approximately 7,800, up 164%

Q3 2026; approximately 2,300 units were under the initial big-box retailer purchase order

Gross margin

32%

Q3 2026; compared with 37% in the prior-year quarter, 24% in Q2, and 23% in Q1

Net loss

$2,287,141, or $(0.27) per share

Q3 2026; prior-year quarter net loss was $1,836,267, or $(0.38) per share

Nine-month net revenue

$2,793,776, up 64%

Nine months ended September 30, 2026; exceeded full-year 2025 net revenue of $2,661,669

Cash, investments, and working capital

Approximately $4.5 million; approximately $6.7 million; no debt

Company position at September 30, 2026

Big-box store rollout

More than 150 stores

Lucyd Armor display installation began November 1, 2026

Historical Context

1 past event · Latest: Oct 06

1 event

1. Oct 06

   Preliminary Q3 sales

   24h Move

   +3.9%

   Preliminary Q3 net sales were approximately $1.04 million, up approximately 55% year over year.

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

Key Terms

form 10-q, net working capital, white-label program

3 terms

form 10-q regulatory

"will file its Quarterly Report on Form 10-Q today."

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

net working capital financial

"with net working capital of approximately $6.7 million and no debt."

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.

white-label program technical

"regarding a white-label program."

A white-label program is an arrangement where one company produces a product or service and another company rebrands and sells it under its own name. The producer supplies the underlying technology, manufacturing, or platform and typically handles fulfillment or backend support, while the reseller controls branding, customer relationships, pricing, and marketing; the end product appears to buyers as if created by the reseller. A key limitation is that the reseller does not own the underlying intellectual property or core infrastructure unless the contract explicitly transfers those rights, so changes to the product or continuity of supply depend on the producer.

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Q3 Revenue Up 51% Year-over-Year & Lucyd Armor Rolling Into 150+ Big-Box Stores

MIAMI, Nov. 9, 2026 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (NASDAQ: LUCY; LUCYW), the developer & manufacturer of smart eyewear under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands, today announced its unaudited financial results for the three and nine months ended September 30, 2026, and will file its Quarterly Report on Form 10-Q today.

Harrison Gross, CEO of Innovative Eyewear, commented, "Nine months into the year, we have already outpaced our full-year 2025 revenue. Marking our second consecutive $1M+ quarter and expanding our gross margin to 32% sets a solid foundation as we enter the fourth quarter, historically our strongest of the year. Our Directed Electronics orders are currently shipping to Australia and New Zealand, and Lucyd Armor is launching in stores at one of the largest U.S. big-box retailers. We expect these new channels to drive our growth in 2027. Furthermore, the inclusion of Reebok Smart Eyewear Powered by Lucyd on TIME's Best Inventions of 2026 list underscores our continued market leadership in both form and function."

Net revenue for the three months ended September 30, 2026, was $1,009,696, up $341,568, or 51%, from the prior-year quarter, marking the 13th consecutive quarter of year-over-year growth. Growth was driven primarily by volume. The Company sold approximately 7,800 Lucyd Armor smart safety glasses, up 164%, including approximately 2,300 units under the initial purchase order from one of the largest U.S. big-box retailers, and wholesale revenue rose to $223,305 from $25,796.

Gross profit was $320,910, or 32% of net revenue, compared with $244,837, or 37%, in the prior-year quarter, and up from 24% in the second quarter and 23% in the first quarter of 2026. A provision for excess and slow-moving inventory on certain co-branded products reduced third-quarter gross margin by approximately 30 percentage points, and higher commissions and platform fees reduced it by approximately 4 percentage points. Lower sourcing costs for frames and lenses added approximately 18 percentage points, and tariff refunds of $124,854 added approximately 12 percentage points.

Total operating expenses were $2,659,283, an increase of $493,619, or 23%, on higher general and administrative expenses, mainly compensation, public relations, and license royalties, and higher research and development costs for an upgraded Lucyd Armor collection planned for the first half of 2027, partially offset by lower sales and marketing expenses. Net loss was $2,287,141, or $(0.27) per share, basic and diluted, compared with $1,836,267, or $(0.38) per share, in the prior-year quarter.

Net revenue for the nine months ended September 30, 2026, was $2,793,776, an increase of $1,091,917, or 64%, and already exceeds full-year 2025 net revenue of $2,661,669. The Company sold approximately 16,600 Lucyd Armor units, up 119%, and wholesale revenue rose to $358,443 from $70,405. Total operating expenses were $7,153,967, an increase of $705,572, or 11%, driven mainly by license royalties and compensation. Net loss was $6,267,327, or $(0.89) per share, basic and diluted, compared with $5,721,064, or $(1.62) per share, in the prior-year period.

At September 30, 2026, the Company held approximately $4.5 million of combined cash and cash equivalents and investments, with net working capital of approximately $6.7 million and no debt.

The Company expects to sustain its growth, supported by several initiatives now underway:

• Fourth-quarter shipments. Directed Electronics, the Company's exclusive distributor for Australia and New Zealand, placed its initial orders in September 2026, and the Company began shipping to both countries in October. In-store installation of Lucyd Armor displays in more than 150 stores of one of the largest U.S. big-box retailers began on November 1, 2026, and FYihealth Group is placing Lucyd products across approximately 345 FYidoctors, Visique, and Solis clinics in Canada. Historically, the fourth quarter has been the Company's strongest.
• Award-winning products. Reebok Smart Eyewear Powered by Lucyd was named to TIME's Best Inventions of 2026 in the "Sports & Fitness" category. Lucyd Armor received the Red Dot Design Award 2026. The Lucyd Aero smart eyewear collection, the Company's lightest and most advanced to date, launched in October 2026.
• New channels. The Company offers HTC's VIVE Eagle smart eyewear on Lucyd.co under its strategic alliance with HTC Corporation and is in discussions with a major automotive retailer regarding a white-label program.

About Innovative Eyewear, Inc.
Innovative Eyewear is a developer of cutting-edge ChatGPT-, Claude- and Gemini-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, sunglass, sporting goods and safety eyewear markets. To learn more and explore our continuously evolving collection of smart eyewear, 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, revenue growth, liquidity, the expected timing of shipments and retail placement under purchase orders, anticipated product launches, prospective customers and channel partners, and 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 retail tests, partnerships and commercial discussions described in this release have not resulted in definitive agreements except as expressly stated, 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, except as required by law. 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 for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, under the caption "Risk Factors." These factors include, among others: the timing and volume of orders, reorders, shipments, returns and sell-through at the Company's retail and distribution partners; the timing and market acceptance of new products; the amount and timing of any further tariff refunds; the Company's ability to obtain additional financing when needed; and the Company's ability to maintain compliance with Nasdaq continued listing requirements.

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-reports-third-quarter-2026-results-302932527.html

SOURCE Innovative Eyewear, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Innovative Eyewear revenue grow in the third quarter of 2026?

Innovative Eyewear's third-quarter revenue rose 51% year over year to $1,009,696. Growth was driven primarily by volume, and the quarter marked its thirteenth consecutive quarter of year-over-year revenue growth.

Was Innovative Eyewear profitable in the third quarter of 2026?

Innovative Eyewear reported a net loss of $2,287,141, compared with $1,836,267 a year earlier. Basic and diluted loss per share narrowed to $0.27 from $0.38.

What is the status of Innovative Eyewear's automotive white-label program?

Innovative Eyewear is in discussions with a major automotive retailer regarding a white-label program. The program remains at the discussion stage.