Innovative Eyewear, Inc. (LUCY) AI Stock Analysis

• Market Cap: $5.99M
• Dividend Yield: N/A
• Average Volume (3M): 543.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: 53.22%
• EPS Growth: 72.69%
• Country: US
• Employees: 11
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.38
• Shares Outstanding: 5,350,183
• 10 Day Avg. Volume: 196,778
• 30 Day Avg. Volume: 543,314
• PEG Ratio: 0.02
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 4.50
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: -1.12K
• Enterprise Value/Revenue: -2.80K
• Enterprise Value/Gross Profit: -12.25K
• Enterprise Value/Ebitda: 838.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-12.28% Downside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is primarily weighed down by weak financial performance—large losses and continued cash burn—despite improving gross margin and solid revenue growth. Technical signals are also negative with the stock trading below major moving averages. Valuation offers only limited support because losses result in a negative P/E and no dividend yield is provided.

Positive Factors

Strong revenue scaling

Consistent top-line growth demonstrates product-market fit and expanding distribution. Durable revenue expansion supports investment in R&D, channel development, and scale benefits, improving the odds of reaching sustainable unit economics over the next several quarters.

Material gross margin improvement

A large, sustained jump in gross margin signals better product economics or favorable mix, which improves the company's ability to absorb operating costs. If maintained, higher gross margins materially increase potential for future profitability as revenue scales.

Minimal leverage (no debt)

A zero-debt balance sheet reduces refinancing risk and preserves flexibility to raise capital or invest in growth without interest burden. This structural strength improves resilience during cyclical weakness and gives management optionality on funding strategies.

Negative Factors

Persistent negative cash flow

Sustained cash burn forces reliance on external financing or dilutive capital raises, limiting long-term autonomy. Continued negative operating and free cash flow constrain reinvestment, raise solvency risk if markets tighten, and pressure ability to execute multi-quarter growth plans.

Large operating losses and negative margins

Very large operating losses indicate the cost base far exceeds current revenue and operating leverage hasn't emerged. Persistent losses threaten sustainability, require sizeable margin improvement or revenue acceleration to reach self-funding, and increase future financing needs.

Balance-sheet volatility history

Historic swings in equity and leverage reflect past financing stress and operational fragility. Such volatility raises the bar for creditors and investors, can limit access to capital on favorable terms, and increases execution risk during industry or demand shocks.

Innovative Eyewear, Inc. Business Overview & Revenue Model

Company Description

Innovative Eyewear, Inc. develops and sells smart eyeglasses and sunglasses. The company's flagship product is Lucyd Lyte glasses that enable the wearer to listen to music, take and make calls, and use voice assistants to perform various smartphone tasks hands-free. It also offers Vyrb, a social media application that enables the user to receive and send posts through Lucyd Lyte smart glasses with voice. The company sells its products through various e-commerce and retail distribution channels. Innovative Eyewear, Inc. has a partnership with Lucyd. The company was founded in 2019 and is headquartered in North Miami, Florida. Innovative Eyewear, Inc. operates as a subsidiary of Lucyd Ltd.

How the Company Makes Money

Innovative Eyewear, Inc. generates revenue primarily through the sale of its smart eyewear products. The company's revenue streams include direct sales to consumers through its online platform and retail partnerships, along with wholesale distribution to optical retailers. By pioneering in the smart eyewear sector, the company also engages in collaborations and partnerships with technology firms to integrate advanced features into its products, which may include licensing fees or co-marketing arrangements. Additionally, the company may leverage its technological innovations to offer premium-priced products, thereby enhancing its overall profitability.

Innovative Eyewear, Inc. Financial Statement Overview

Summary

Revenue growth and a sharp improvement in gross margin are positives, and the company carries no debt. However, financial quality is held back by very large ongoing operating/net losses and materially negative operating and free cash flow, indicating continued cash burn and limited operating leverage so far.

Income Statement

Revenue is scaling quickly (TTM (Trailing-Twelve-Months) revenue up ~21% vs. the prior year; strong multi-year top-line expansion), and gross margin improved materially in TTM (~41%) versus 2024 (~13%), suggesting better product economics and/or mix. However, profitability remains very weak: the company is still generating large operating losses (TTM EBIT and EBITDA deeply negative) and a substantial net loss (TTM net margin roughly -322%), indicating the cost base is far ahead of current revenue levels and operating leverage has not yet materialized.

Balance Sheet

Leverage appears minimal with total debt at zero in the most recent periods (TTM and 2024), which reduces financial risk and refinancing pressure. That said, returns are strongly negative (TTM return on equity is meaningfully below zero), consistent with ongoing losses eroding economic value, and the balance sheet profile shows notable volatility over time (including negative equity in 2020 and high leverage in 2021), which is a risk factor despite the current low-debt position.

Cash Flow

Cash generation remains a key weakness: operating cash flow and free cash flow are both materially negative in TTM (roughly -$7.9M and -$8.0M), indicating continued cash burn to fund operations. While free cash flow decline narrowed versus 2024 (TTM free cash flow growth is positive), cash flow is still not self-funding, leaving the business dependent on external capital or a sharp improvement in operating performance to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39M	1.64M	1.15M	659.79K	690.67K	57.00K
Gross Profit	546.42K	215.19K	-119.33K	-56.29K	148.25K	-17.27K
EBITDA	-7.98M	-7.62M	-6.58M	-5.54M	-3.20M	-762.22K
Net Income	-7.85M	-7.77M	-6.66M	-5.68M	-3.24M	-768.18K
Balance Sheet
Total Assets	11.18M	9.84M	6.22M	4.69M	824.32K	231.66K
Cash, Cash Equivalents and Short-Term Investments	8.00M	7.52M	4.29M	3.59M	79.73K	27.02K
Total Debt	0.00	0.00	0.00	61.36K	289.03K	599.54K
Total Liabilities	925.00K	743.17K	659.94K	665.46K	616.80K	765.85K
Stockholders Equity	10.25M	9.10M	5.56M	4.02M	207.52K	-534.19K
Cash Flow
Free Cash Flow	-7.97M	-7.01M	-6.02M	-3.44M	-1.33M	-99.30K
Operating Cash Flow	-7.87M	-6.74M	-5.77M	-3.22M	-1.21M	-40.26K
Investing Cash Flow	3.59M	-5.16M	-198.75K	-219.95K	-118.45K	-59.04K
Financing Cash Flow	6.43M	10.24M	6.66M	6.96M	1.39M	126.33K

Innovative Eyewear, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUCY, the sentiment is Negative. The current price of 1.14 is above the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.28, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUCY.

Innovative Eyewear, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRBY	60 Neutral	$2.72B	5,852.63	0.20%	―	14.55%	―
BLCO	60 Neutral	$6.53B	-18.10	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RVP	48 Neutral	$19.82M	-2.97	-8.05%	―	-0.95%	58.17%
STAA	46 Neutral	$982.40M	-10.09	-24.65%	―	-32.42%	-540.37%
LUCY	43 Neutral	$5.99M	-0.43	-74.10%	―	53.22%	72.69%

Innovative Eyewear, Inc. Corporate Events

Innovative Eyewear Announces Leadership Change and Restructuring

On November 1, 2025, Innovative Eyewear, Inc. announced a leadership change with Konrad Dabrowski resigning as Co-Chief Financial Officer to become Chief AI and Growth Officer, while Oswald Gayle will now serve as the sole Chief Financial Officer. This restructuring, approved by the Board of Directors, reflects a strategic shift in the company’s focus, although it does not affect the compensation of the involved executives.

The most recent analyst rating on (LUCY) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Innovative Eyewear, Inc. stock, see the LUCY Stock Forecast page.