Innovative Eyewear, Inc. Announces Q3 Business Update

MIAMI, Sept. 3, 2026 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (Nasdaq: LUCY; LUCYW), the developer & manufacturer of smart eyewear under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands, is pleased to announce significant business progress in Q3 2026.

Retail Partnerships

Last week the Company announced its strategic alliance with the HTC corporation, as well as releasing that its upcoming U.S. big box store test has tripled in size. Additionally, its 375-store test with Canada's FYiDoctors kicks off in September, bringing Lucyd Armor to eyewear shops coast to coast. Read the full updates in the Company's newsroom.

All three are major developments that can help shape the future of the Company. While it hasn't been announced which retailer is doing the test yet, it is one of the three largest big box stores in the USA, and the Lucyd Armor line will be tested in stores across the country. The test is confirmed to go live in mid-October 2026, when Lucyd Armor will start appearing on those shelves.

Next, with the launch into FYiDoctors, the Company will experience its first national eyewear chain rollout. This unprecedented launch brings Lucyd Eyewear into 375 stores at once, more than doubling our brick-and-mortar store count overnight to over 700. The Company sees this as a major event, with a large optical company backing its products on a national scale. We believe it will lead to more recognition and retail opportunities in the optical sphere, and of course, contribute meaningfully to the growth of the B2B channel.

Also, we want to emphasize the value of the HTC partnership, both to customers and shareholders. After a comprehensive initial meeting at HTC headquarters in Taiwan this July, and reviewing their upcoming VIVE Eagle camera glasses, we saw an immediate benefit in forming a strategic alliance to introduce this product to the US market. The Company has several tangible benefits from this partnership:

1) According to Counterpoint Research, "Global Smart Glasses Shipments Grew 139% YoY in H2 2025; Meta Expanded Market Share to 82%."¹ With the HTC line added to Lucyd.co, we are able to immediately address the largest segment of smart eyewear customers, camera glass users, with a similar functionality profile.

2) We have heard from many customers that they like the idea of camera glasses but want an alternative to current products, due to data or personal privacy concerns. This will meet that need.

3) HTC is a very large and experienced tech partner, which can contribute meaningfully to future product development. We are already discussing developing a future AR (display) glass together.

4) By leveraging a 3rd party partner for consumer camera glasses, we can go to market without the significant time, R&D and inventory expenses associated with developing and launching our in-house products.

Simply put, this partnership greatly broadens the horizons of our product offering. This is our first step in a new initiative: partnering with quality smartglass providers that offer significantly different functionality from our core products, and offering them through Lucyd.co. This way, we can serve every potential smart eyewear customer.

Financial Highlights

The Company is pleased to report that our commercial progress is well matched by our financial growth. We have surpassed $1 million in quarterly revenue for the first time ever. Twelve consecutive quarters of year-over-year revenue growth, combined with improving gross margin and reduced operating expenses, point to a more profitable growth trajectory. With the initial product placement for FYiDoctors shipped in Q3 2026, and the expansion of our rollout with a major big box retailer, we believe we will further increase our revenue growth.

As we scale, it is also worth mentioning our revenue generation is becoming more efficient. Innovative Eyewear is generating revenue far more efficiently than it was a year ago: operating expenses have fallen from 467% of revenue in Q1 2025 to 193% in Q2 2026, and net loss has narrowed from 391% of revenue to 165% over the same period. Each new dollar of sales is now costing the company significantly less to produce.

Lucyd Armor Updates

Next, we will highlight a few developments in the Lucyd Armor line, our triple-award-winning smart safety glasses. Commercial use tests are underway with the following companies: DHL, ExxonMobil, ThermoKing, ABM Inc., and Fastenal. On the retail side, we are making progress towards ecommerce launches with Home Depot Canada and Lowes.com. We are also working on safety certifications for the AUS/NZ market, as we believe we have some opportunities in that market.

We received our first professional endorsement of Lucyd Armor, from an EMS chief based in New York, Garry Resnick: "Whether it's monitoring communications at a special event or needing to go "hands free" while providing critical patient care, these glasses have been an incredible asset." Garry and his team are using Lucyd Armor to stay in constant contact across their ambulance fleet.

On the product development side of Armor, we're working diligently on an all-new, upgraded lineup for H1 2027, with new standard features such as wakeword activation for AI and Walkie. We have begun partnering with Qualcomm to introduce an improved, standardized chipset across all Lucyd models, which will make backend and 3rd party app development easier. We've also just introduced some of our first Armor "mods", accessory upsell products like sound-boosting fins that attach to the temples to amplify output, and a particle protection gasket. A charging case and safety strap are in the works as well, to maximize customer satisfaction and revenue opportunities on our most popular line.

Software Updates

We have some powerful new features in the Lucyd app. Our Newscast feature lets you hear custom newscasts based on your interests, generated and delivered in real time on your eyewear. We've also introduced over-the-air translations, via the new third mode of Walkie called 1-on-1. In 1-on-1, AI automatically dubs over your voice into the other person's preferred language, and vice-versa, making cross-border, cross-language communication a breeze. We encourage you to try out this incredibly smooth new feature for your next conversation with a native Spanish, French or Portuguese speaker. Just have them download the Lucyd app and invite them to your 1-on-1 channel.

Upcoming Launches

Two big launches are coming up, HTC VIVE Eagle in mid-September, and Lucyd Aero™ in mid-October. We are looking forward to the customer response to our lightest frames ever, Aero, and our first camera glasses, VIVE Eagle.

Thanks for reading this update, and for your support of our company. We have a great deal in motion this fall, with many new developments on the horizon. Mass market adoption of smart eyewear is at hand.

Best Wishes

Harrison Gross & Team Lucyd

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.

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Forward Looking Statements

This press release contains certain forward-looking statements, including those relating to retail partners. 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]

¹ https://counterpointresearch.com/en/insights/Global-Smart-Glasses-Shipments-Grew-139-Percent-YoY-in-H2-2025

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SOURCE Innovative Eyewear, Inc.