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Innovative Eyewear Inc. Reports Significant Growth in Q2 2025 Financial Performance

Innovative Eyewear Inc. (NASDAQ: LUCY, LUCYW), a prominent player in the smart eyewear market, has unveiled its unaudited financial results for the second quarter of 2025. The company reported a remarkable 88% surge in net revenue for the quarter ending June 30, 2025, greatly exceeding the previous year's figures. This financial performance aligns with the company's strategic focus on product innovation and market expansion.

In total, the revenue for the quarter reached $579,230, marking a substantial increase from $308,123 during the same period in 2024. Notably, the year-to-date revenue hit $1,033,731, representing a 49% rise from the first half of 2024. This growth can largely be attributed to successful new product introductions, particularly the Lucyd Armor smart safety glasses launched in October 2024 and the Reebok® Powered by Lucyd collection introduced in April 2025.

The Lucyd Armor line has quickly become a centerpiece of the company’s offerings, accounting for nearly 50% of total units sold in the recent quarter, validating the company's strategy to deliver specialized eyewear targeting specific user needs. In tandem, the Reebok collection is being celebrated for its superior audio quality, the result of rigorous development efforts by a dedicated team of audio engineers.

Despite the impressive revenue advancement, the gross profit margin reflected a decline to -2% for Q2 2025, compared to an 18% margin in the same period last year. The year-to-date gross profit margin improved to 20%, a notable increase of 11 percentage points. This decline in the quarterly margin was primarily linked to increased customs duties and importation costs, with management actively pursuing a multi-faceted approach to mitigate these impacts. These measures include diversifying the logistics network and slightly raising prices on custom lenses.

In addition to financial results, Innovative Eyewear has announced several key developments during the quarter, such as:

• - The successful launch of the Reebok® Powered by Lucyd collection, which has resonated well with consumers.
• - Strategic partnerships with Smartech Retail Group, showcasing products at their new TMRW flagship store in Times Square, New York.
• - Collaboration with EyeRecommend to extend the availability of their smart eyewear to over 600 independent optometry stores across Canada.
• - Introduction of new hands-free capabilities with custom Siri commands for their Walkie feature.

Management believes that the Lucyd Armor's success highlights the potential for tailored eyewear solutions, positioning the company to address the specific demands of various niches within sports, safety, and general eyewear categories. Harrison Gross, CEO of Innovative Eyewear, expressed satisfaction with the company's performance, especially the continuous year-over-year sales growth seen over the past 24 months.

Looking ahead, the company is optimistic about its ability to navigate tariff challenges and enhance margins through greater international distribution and efficiency improvements. The newly launched Reebok product line is expected to significantly expand their market presence in the active lifestyle segment, while the Lucyd Armor glasses continue to gain traction.

Despite the positive growth figures, Innovative Eyewear reported a net loss of $(2,106,094) or $(0.66) per share for Q2 2025, slightly worse than the $(1,948,399) loss or $(1.87) per share in Q2 2024, largely due to increased tariffs. For the six months concluded on June 30, 2025, the total net loss was $(3,884,797) or $(1.37) per share, reflecting a minor decrease from $(3,919,710) or $(4.37) per share during the corresponding period in 2024.

The company ended Q2 2025 with a robust cash position of $8,912,645 in cash and equivalents, up from $7,524,171 at the end of 2024, demonstrating strong liquidity driven by equity transactions and warrant exercises.

Overall, Innovative Eyewear is poised for continued growth as it leverages its innovative product lines and strategic partnerships in the dynamic eyewear market. To discover more about their product offerings, visit www.lucyd.co.