Tekcapital's Innovative Eyewear touts jump in interim top-line growth

(Alliance News) - Tekcapital PLC on Friday reported broadly flat bottom-line earnings in the first half of 2025 for investee and smart eyewear manufacturer Innovative Eyewear Inc, but a jump in top-line growth.

The London-based intellectual property investor reported a net loss of USD3.88 million for Innovative Eyewear in the six months that ended June 30, slightly narrowed from USD3.91 million a year earlier.

For the second quarter, the portfolio company's net loss widened to USD2.1 million from USD1.9 million, "mainly due to significantly higher tariffs", Tekcapital explained.

"The company is aggressively responding to the current tariff and international trade environment with a multi-pronged approach including diversification of its logistics network, expansion of ex-US sales, mild price increases on custom lenses and modification of its product fulfilment model. Actions taken by the company are expected to mitigate the impacts of tariffs going forward," said Tekcapital.

Innovative Eyewear delivered net revenue of USD1.0 million during the six-month period, up 49% from the year before. For the second quarter alone, net revenue rose 88% on-year to USD579,230.

Top-line revenue growth was driven largely by "growing consumer demand" following the company's recent new product launches, which comprised the Lucyd Armor smart safety glasses and the Reebok Powered by Lucyd collection.

Gross profit margin for the first half was 20%, up 11 percentage points from the prior year. In the second quarter, gross profit margin was negative 2% against 18% the year before.

Tekcapital reported its investee's operating expenses increased by around 6% during the first half of the year.

"I am very pleased by our performance and improved sales for the quarter, as we continue our upward trend of outperforming sales each quarter on a year-over-year basis, which we have done every quarter for the last 24 months," said Innovative Eyewear Chief Executive Officer Harrison Gross.

Gross continued: "Looking ahead to the second half of 2025, we believe we are well positioned to build on our momentum and significantly grow both revenue and market share.

"I am particularly excited about the potential of our newly launched Reebok product line, which expanded our portfolio to include smart glasses for active lifestyles, coupled with the continued significant traction of the Lucyd Armor smart safety glasses. Both product lines address vast subsets of the eyewear market which are underserved by smart eyewear providers."

Shares in Tekcapital closed up 4.1% at 6.98 pence in London on Friday. The stock remains down 3.8% over the past year.

By Emily Parsons, Alliance News reporter

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