Core Viewpoint - Innovative Eyewear Inc. reported significant revenue growth in Q2 2025, driven by new product launches and increasing consumer demand for smart eyewear [1][3][7]. Financial Performance - Net revenue for Q2 2025 was $579,230, an 88% increase from Q2 2024 [3]. - Year-to-date net revenue for the six months ended June 30, 2025, was $1,033,731, a 49% increase compared to the same period in 2024 [3]. - The gross profit margin for Q2 2025 was -2%, down from 18% in the same period last year, primarily due to higher custom duties and tariffs [4]. - For the six months ended June 30, 2025, the gross profit margin was 20%, an increase of 11 percentage points from the prior year [4]. - The company reported a net loss of $(2,106,094) or $(0.66) per share for Q2 2025, compared to a loss of $(1,948,399) or $(1.87) per share in Q2 2024 [9]. Product Development and Market Strategy - The Lucyd Armor smart safety glasses, launched in October 2024, accounted for nearly half of total units sold in Q2 2025 [3]. - The Reebok Powered by Lucyd collection, launched in April 2025, features the best audio quality to date, reflecting a strategic initiative to enhance product sound quality [3]. - The company is diversifying its logistics network and expanding sales outside the U.S. to mitigate tariff impacts [4][7]. Partnerships and Milestones - Innovative Eyewear entered a partnership with Smartech Retail Group to showcase its smart eyewear at the TM:RW flagship store in Times Square [8]. - A partnership with EyeRecommend was established to provide smart eyewear to over 600 independent optometry stores across Canada [8]. Future Outlook - Management is optimistic about mitigating tariff effects on gross margins and aims to build a globally-focused business with significant distribution outside the U.S. [7]. - The company believes it is well-positioned to grow revenue and market share in the second half of 2025, particularly with the new Reebok product line and continued traction of the Lucyd Armor glasses [7].

Core Viewpoint - Innovative Eyewear, Inc. is actively participating in several key investor and industry events in Q3 2025 to showcase its latest developments and product portfolio, aiming to foster connections with potential partners, customers, and investors [1][3]. Company Overview - Innovative Eyewear, Inc. develops smart eyewear under various brands including Lucyd®, Nautica®, Eddie Bauer®, and Reebok®, focusing on Bluetooth audio glasses that enhance user connectivity while maintaining ergonomic safety [4]. Scheduled Events - Skyline Signature Series Webinar (Virtual; August 12): A live virtual webinar for public companies to present their stories to financial professionals, featuring a Q&A session [6]. - H.C. Wainwright 27th Annual Global Investment Conference (New York, NY; September 8-10): A premier event for corporate leaders and investors to explore emerging trends and investment opportunities [6]. - NIBA Conference (Fort Lauderdale, FL; September 16-17): A leading event for micro-cap and small-cap investment professionals to network and discover new opportunities [6]. - Vision Expo West (Las Vegas, NV; September 17-20): A key event in the optical industry showcasing advancements in eyewear and providing networking opportunities [6]. - SILMO Paris (Paris, France; September 26-29): An international trade show dedicated to optics and eyewear, featuring exhibitions and educational events [6].

Business Strategy - Warby Parker's pricing strategy differs from other brands that adopted its direct-to-consumer model during the 2010s boom [1]

Real Estate Market - Oakley sunglasses brand's billionaire founder lists Beverly Hills mansion for $65 million [1] - The mansion is located in a neighborhood that was once home to Elvis Presley and President Richard Nixon [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $214.5 million, reflecting a year-over-year increase of 13.9% [29] - Adjusted EBITDA for Q2 was $25 million, with an adjusted EBITDA margin of 11.7%, up from 10.4% in the previous year [37] - Active customers increased by 9% year-over-year, totaling 2.6 million [10][29] - Average revenue per customer rose by 4.6% to $316 [29] Business Line Data and Key Metrics Changes - Glasses revenue grew approximately 11% year-over-year, with progressive lenses accounting for 23% of prescription units sold [13][30] - Contact lenses saw a significant increase of 28% year-over-year, now representing 11.5% of total revenue [20][30] - Eye exams grew 44% year-over-year, contributing 6% to total revenue [22][30] Market Data and Key Metrics Changes - Retail revenue increased by 19.3% year-over-year, driven by new store openings and growth in established stores [29][30] - The company opened 11 new stores in Q2, bringing the total to 298 stores [31] - Retail productivity was reported at 101.7, indicating strong performance in existing stores [32] Company Strategy and Development Direction - The company aims to expand its store footprint to over 900 locations across North America, highlighting significant growth potential [7] - A partnership with Google was announced to develop AI-powered intelligent eyewear, expanding the company's total addressable market [8][9] - The company is transitioning away from the Home Try-On program to focus on in-store experiences and AI-driven digital tools [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the eye care consumer market, despite challenges in April [49] - The company raised its full-year guidance, expecting net revenue between $880 million and $888 million, representing 14-15% growth year-over-year [42] - Management noted that the gross impact of tariffs has moderated, contributing positively to EBITDA flow-through [39] Other Important Information - The CFO announced plans to step down after 14 years, with the co-CEO taking on interim financial responsibilities [24][25] - The company reported a strong cash position of $286 million and generated $24 million in free cash flow during Q2 [38] Q&A Session Summary Question: Insights on the health of the eye care consumer and future growth - Management noted stability in the customer base and confidence in continued growth, citing the ability to adapt quickly to market changes [49][50] Question: Progress on the Google partnership and its importance - The partnership is expected to unlock new levels of utility in eyewear, with a focus on AI integration [59][60] Question: Impact of selective price increases on consumer behavior - Price increases were well received, with minimal impact on conversion rates and a stronger uptake on higher-value lens upgrades [64] Question: Drivers of revenue growth acceleration into July - Growth was observed across both retail and e-commerce channels, supported by pricing changes implemented earlier in the year [70][71] Question: Details on the Warby Advisor tool - The AI-driven tool provides personalized frame recommendations, enhancing the online shopping experience [73][74] Question: Future opportunities in the insurance market - The company sees significant growth potential in its insurance business, with ongoing efforts to enhance customer awareness and utilization [83][84] Question: Long-term outlook for contacts and progressives - Both segments are viewed as long-term growth drivers, with significant market share opportunities remaining [85][88]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $214.5 million, reflecting a year-over-year increase of 13.9% [29] - Adjusted EBITDA for Q2 was $25 million, with an adjusted EBITDA margin of 11.7%, up from 10.4% in the previous year [36] - Active customers increased by 9% year-over-year, totaling 2.6 million, with average revenue per customer rising 4.6% to $316 [10][29] Business Line Data and Key Metrics Changes - Glasses revenue grew approximately 11% year-over-year, with progressive lenses accounting for 23% of prescription units sold [13][30] - Contact lenses saw a significant increase of 28% year-over-year, now representing 11.5% of total revenue [20][30] - Eye exams grew 44% year-over-year, contributing 6% to total revenue [21][30] Market Data and Key Metrics Changes - Retail revenue increased by 19.3% year-over-year, driven by the opening of new stores and growth in existing locations [29][15] - The company opened 11 new stores in Q2, bringing the total to 298 stores, with a focus on underpenetrated suburban markets [15][30] Company Strategy and Development Direction - The company aims to expand its store footprint to over 900 locations across North America, highlighting significant growth potential [6] - A partnership with Google was announced to develop AI-powered intelligent eyewear, expanding the company's total addressable market beyond traditional glasses [7][9] - The company is transitioning away from the Home Try On program to focus on in-store experiences and AI-driven digital tools [18][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the eye care consumer and the ability to maintain growth despite macroeconomic challenges [48] - The company raised its full-year guidance, expecting net revenue between $880 million and $888 million, representing 14-15% growth year-over-year [41] - Management noted that tariff-related impacts have moderated, allowing for improved financial performance [38] Other Important Information - Steve Miller, the Chief Financial Officer, announced his departure after 14 years, with Dave Gilboa assuming interim financial responsibilities [23][25] - The company is focusing on leveraging AI technology to enhance customer experience and operational efficiency [51][72] Q&A Session Summary Question: Thoughts on the health of the eye care consumer and future growth - Management noted stability in the customer base and confidence in continued growth, citing the ability to adapt quickly to market changes [48][49] Question: Progress on the Google partnership and its importance - The partnership is expected to unlock new levels of utility for consumers, with glasses becoming a primary interface for engaging with AI [57][60] Question: Drivers of revenue growth acceleration into July - Growth has been observed across both retail and e-commerce channels, supported by recent pricing changes [70] Question: Details on the Warby Advisor feature - The AI-driven tool provides personalized frame recommendations based on user preferences, showing strong engagement and sales [72] Question: Impact of sunsetting the Home Try On program - The program's sunset allows for resource reallocation towards marketing and higher-margin initiatives, reflecting a shift in the company's business model [90]

Financial Performance - Net revenue for Q2 2025 reached $214 million, a 13.9% increase year-over-year[10] - Adjusted EBITDA for Q2 2025 was $25 million, representing an 11.7% margin[10] - The company projects full year 2025 net revenue to be between $880 million and $888 million, representing approximately 14-15% year-over-year growth[28] - The company anticipates full year 2025 Adjusted EBITDA to be between $98 million and $101 million, with an 11.1-11.4% margin[28] - For Q3 2025, the company expects net revenue between $223 million and $225 million, a growth of approximately 16-17% year-over-year, with an Adjusted EBITDA margin of approximately 11%[30] Business Highlights - The company has 298 stores, including 293 in the U S and 5 in Canada[8, 23] - The company estimates a potential footprint of over 900 stores[24] - Over 20 million pairs of glasses have been distributed through the Buy a Pair, Give a Pair program[8] Customer Retention - The company demonstrates compelling and consistent sales retention rates, with customer cohorts showing increasing sales retention over time[17]

Core Insights - Revenue from Ray-Ban Meta smart glasses has more than tripled year over year, indicating strong market demand and successful product positioning [1] - EssilorLuxottica reported first-half sales of €14.02 billion (approximately US$16.25 billion), reflecting a 7.3% increase compared to the previous year, driven by the success of smart glasses [2] - The company is positioning itself at the forefront of transforming eyewear into a computing platform, integrating AI and sensory technology [3] Company Developments - The partnership between EssilorLuxottica and Meta, which began in 2019, has led to significant product launches, including the Ray-Ban Meta and the new Oakley Meta Performance AI glasses [2][3] - EssilorLuxottica plans to continue its collaboration with Meta for the next decade to develop multi-generational smart eyewear products, as confirmed by a renewed long-term partnership agreement [4] - The company also owns several prominent eyewear brands, including Ray-Ban, Oakley, Vogue Eyewear, and Persol, which enhances its market presence [4]

Financial Performance - EssilorLuxottica's Q2 revenue exceeded expectations [1] - Profit was constrained by tariffs and investments in smart glasses [1]

Group 1 - The company reported a sound revenue growth of 7.3% in both Q2 and H1, indicating strong performance across all regions and businesses [8] - North America showed acceleration in performance, with Direct-to-Consumer (DTC) maintaining solid growth [8] - EMEA confirmed strong performance in both Professional Services (PS) and DTC, being the best region for the company [8] Group 2 - AI glasses, particularly Ray-Ban Meta, experienced over 200% increase in sales in H1, showcasing significant market demand [8] - The successful launch of Oakley Meta and the 50th anniversary edition further solidified the company's position in the AI glasses market [8] - Nuance Audio has been rolled out in 10,000 locations across North America and Europe, indicating strong adoption [8] Group 3 - The adjusted operating margin remained stable at 18.3% in H1, reflecting effective cost management [8] - The company generated a sound free cash flow of €951 million, demonstrating strong financial health [8] - The acquisition of Optegra clinics marks a significant step in the company's MedTech journey, enhancing its capabilities in personalized patient care [8]