Revenue increased 63% over prior year
Gross Profit Margins increased by 8 percentage points despite tariff headwinds
MIAMI, March 25, 2026 /PRNewswire/ -- Innovative Eyewear Inc., (NASDAQ:LUCY, LUCYW)), the developer of smart eyewear under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands, today announced its full year 2025 financial results.
Net revenue for the year ended December 31, 2025 was approximately $2.67 million, an increase of $1.03 million or 63% from the year ended December 31, 2024. This strong year-over-year revenue growth was primarily driven by volume increases from sales of the Company's highly successful Lucyd Armor® smart safety glasses (first launched in October 2024), which represented approximately half of the Company's total smartglass units sold in the current year. The cobranded Reebok® Powered by Lucyd collection, which launched in April 2025, also contributed to the year-over-year volume increases. Total net revenue for the fourth quarter of 2025 was approximately $0.96 million, representing the highest quarterly sales amount since the Company's inception.
Gross profit margin for 2025 was 21%, compared to 13% for 2024. This improvement in gross profit margin was primarily attributable to lower product sourcing costs for both frames and prescription lenses as the Company continues to scale and develop its business. These improvements were partially offset by the negative impacts of tariffs during the current year, as well as provisions for certain excess, obsolete, and slow-moving inventory. Although tariffs had a negative impact on current year margins, various actions taken by management to help mitigate the impact of tariffs have generally been successful thus far, and by the end of 2025 had largely restored gross profit margins to a level consistent with the Company's pre-tariff business plan expectations. Management continues to monitor international trade policy and develop contingency sourcing options should tariff and international trade conditions materially change.
Total operating expenses in 2025 were approximately $9.06 million, an increase of $0.92 million or 11% from 2024. This increase was primarily driven by higher general administrative expenses, which increased by approximately $0.75 million year-over-year primarily due to the combination of higher employee compensation costs as the Company has expanded its team to fuel and support further growth, and higher license fees paid under multi-year cobranded license agreements. Sales and marketing expenses increased by approximately $0.26 million from prior year, primarily driven by increased spending on events and trade shows, as the Company grows and expands its network of potential business partners and retailers.
The Company also recognized approximately $0.90 million of other non-operating income during the current year, primarily driven by the receipt of a $0.57 million settlement payment related to certain legal matters; the remaining amount of other income mainly related to interest and dividends earned on investments in U.S. Treasury bills and money market funds.
The Company's net loss for 2025 was approximately $(7.59) million or $(1.90) per share, compared with $(7.77) million or $(5.19) per share in the prior year, reflecting the Company's continued investment in product development and market expansion to support further growth. Weighted average shares outstanding for the years ended December 31, 2025 and 2024 were approximately 3.99 million and 1.50 million, respectively.
The Company ended the year with approximately $6.51 million of combined cash and cash equivalents and investments, compared with $7.52 million of combined cash and cash equivalents and investments as of December 31, 2024. Net working capital (current assets less current liabilities) was $8.39 million at December 31, 2025, and $8.50 million at the end of 2024. The Company had no debt outstanding as of December 31, 2025, and long-term liabilities of only $0.03 million.
The Company generated significant amounts of proceeds from multiple equity offerings during both the current and prior year. Net cash flows provided by financing activities were $6.68 million in 2025 and $10.24 million in 2024.
Additionally, during the fourth quarter of 2025, Innovative Eyewear announced several important milestones related to its product portfolio and distribution network, including:
- Launched three additional new variants of the extremely popular Lucyd Armor smart safety glasses, in order to expand the collection to a wider audience and build on the success of the original model with important variations in lens functionality and sizing. The Armor Slim model recently received ANSI certification, enabling it to be sold in the U.S. for safety applications. Lucyd Armor is currently available for purchase in the United States, Canada, and European Union markets, with all necessary safety certifications including ANSI Z87.1+, CSA Z94.3, and EN 16639:2018.
- Launched two new light-adaptive sport smartglass models in the Reebok Powered by Lucyd collection, designed for use in the gym and indoor sports. The Reebok smart eyewear collection offers the Company's most powerful music experience to-date, with an end-to-end overhauled sound system developed with leading audio engineers.
- Announced a new partnership with SmartBuyGlasses, one of the largest global online independent sellers of prescription, standard, and designer eyewear, to provide its Reebok smart eyewear to customers.
Harrison Gross, CEO of Innovative Eyewear Inc., commented, "I am very pleased by our impressive sales growth for the year. We continue our upward trend of outperforming sales each quarter on a year-over-year basis, which we have done every quarter for over two years now. I am also pleased by the overall improvements in our gross profit margin during the year, despite headwinds from tariffs. We plan to build on the continued success and momentum of our most popular product lines, Lucyd Armor® smart safety glasses, Lucyd Lyte®, and Reebok® Powered by Lucyd smartglasses. We are also excited about the potential of international growth and expansion, as we continue to make progress towards building a more globally focused business with significant distribution outside of the U.S. In summary, we believe that we are well positioned to deliver further revenue growth in 2026 and beyond."
About Innovative Eyewear, Inc.
Innovative Eyewear is a developer & manufacturer 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 audio 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, 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, 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:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, NY 10036
Office: +1 (646) 893-5835
Email: [email protected]
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SOURCE Innovative Eyewear, Inc.