Y-O-Y Second Quarter Revenue Increased 74% & Gross Margin Improved to 24%

MIAMI, Aug. 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 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 diluted, compared with $3,884,797 or $(1.37) per share. Weighted average shares outstanding for the six months ended June 30, 2026 and 2025 were approximately 6.33 million and 2.84 million, respectively.

At June 30, 2026 the Company held approximately $3.74 million of combined cash and cash equivalents and investments, compared with $6.51 million at December 31, 2025. Net working capital was $6.22 million, compared with $8.39 million, with no outstanding debt and long-term liabilities of only approximately $0.01 million. During the six months the Company received approximately $1.46 million of gross proceeds, or $1.41 million net, from at-the-market sales of common stock. Subsequent to quarter end, on July 9, 2026, the Company closed a warrant inducement transaction generating approximately $3.0 million of gross proceeds, or $2.6 million net, intended for working capital and general corporate purposes.^[1]

As of August 11, 2026, the Company had approximately $5.2 million of combined cash and cash equivalents and investments, and 8,609,196 shares of common stock issued and outstanding.

The Company expects to sustain this revenue growth momentum, supported by several commercial initiatives now underway:

Premium product momentum. In April 2026 the Company launched the new Reebok® Powered by Lucyd optical collection, its highest average selling price frame collection to date.

Canadian retail rollout underway. As previously announced in July 2026, the Company entered into a retail launch with FYihealth group, operators of the FYidoctors optical chain in Canada, centered on the 2026 rollout of Lucyd Armor® in approximately 345 FYidoctors and Visique clinics. Initial shipments commenced in July 2026.

Expanding U.S. retail footprint. The Company has been selected for a wearables brand test with a major U.S. and global retailer covering 183 stores, with the in-store set scheduled to begin in October 2026. Together with these partnerships, the Company expects the number of retail locations offering its products to increase materially during 2026 from over 400 at the end of 2025.

Enterprise demand and a new white-label channel. Several leading industrial and logistics companies are testing Lucyd Armor® for workforce use. The Company has also launched a white-label offering for retailers and legacy eyewear brands, and is in advanced discussions with a prospective customer for a white-label line of smart safety glasses.

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¹ The Company advanced $250,000 to Tekcapital Europe, Ltd., a subsidiary of Tekcapital plc, under a short-term note bearing simple interest at 12% per annum, guaranteed by Tekcapital plc.

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer of cutting-edge ChatGPT- and Claude-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, liquidity, commercial discussions, pipeline opportunities, prospective customers and channel partners, anticipated product launches and retail listings, 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 test, 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. 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" and its quarterly report on Form 10-Q for the quarterly period ended June 30, 2026.

Investor Relations Contact:

Scott Powell

Skyline Corporate Communications Group, LLC

Telephone: +1 (646) 893-5835

Email: IR@skylineccg.com

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SOURCE Innovative Eyewear, Inc.