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 …