Lucyd (LUCY) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 51% YoY to $1.01M; nine-month revenue climbed 64% to $2.79M, exceeding FY2025 revenue of $2.66M. Q3 was the 13th consecutive quarter of YoY growth and the second consecutive quarter above $1M.

• Growth was driven by higher unit volumes, Lucyd Armor demand, and new wholesale accounts, while management expects new retail and distribution channels to support 2027 growth.

Financial highlights

• Q3 gross profit was $320,910 versus $244,837; gross margin fell to 32% from 37%, primarily due to a reserve for excess co-branded inventory.

• Nine-month gross profit was $738,870 versus $452,705; gross margin was 26.4% versus 26.6%.

• Q3 operating expenses rose 23% to $2.66M and net loss widened to $2.29M from $1.84M; nine-month expenses rose 11% to $7.15M and net loss was $6.27M versus $5.72M.

• Q3 cost of goods sold included a $301,341 excess and slow-moving inventory provision and $124,854 in tariff refunds; the nine-month inventory provision was $331,763.

Outlook and guidance

• Management expects available liquidity to fund operations for at least 12 months, including availability under a related-party facility; operating losses may continue as growth investments proceed.

• Lucyd Armor displays began installation Nov. 1 across 150+ stores of a major U.S. big-box retailer; FYihealth Group is placing products across ~345 Canadian clinics.

• Products are scheduled for 345 FYidoctors, Visique, and Solis clinics and over 150 U.S. big-box stores; management expects ~900 U.S. and Canadian retail locations by year-end 2026.

• Directed Electronics began shipments to Australia and New Zealand in October after placing initial orders in September; Q4 has historically been the strongest quarter.

• E-commerce is expected to remain the larger revenue share near to medium term, with wholesale contribution growing; Lucyd Armor hardware and software upgrades are in development for H1 2027.