Revenue landed below the market bar. Q2 net revenue was $235.5 million, up 9.8% year over year, but below the published consensus of roughly $238.0 million and only at the low end of management’s prior $235–$238 million outlook. (Income Statement; prior company guidance)
| Metric | Q2 2026 | Q2 2025 | Market expectation / comparison |
|---|---|---|---|
| Net revenue | $235.5M | $214.5M | ~$238.0M consensus |
| Gross profit | $136.5M | $113.6M | 57.9% margin (Income Statement) |
| Adjusted gross profit | $136.9M | $116.4M | 58.1% margin (Adjusted Gross Profit reconciliation) |
| Net income | $4.6M | $(1.8)M | $0.04 diluted EPS vs. ~$0.10 consensus |
| Adjusted EBITDA | $32.9M | $25.0M | Above prior $27M–$29M outlook, but boosted by tariff refunds (Adjusted EBITDA reconciliation; prior company guidance) |
| Free cash flow | $6.8M | $23.9M | Down $17.2M year over year (Free Cash Flow reconciliation) |
The EBITDA beat is much less impressive underneath the headline. Adjusted EBITDA included an $11.8 million tariff-refund benefit, so EBITDA excluding that one-time benefit was approximately $21.1 million—below the prior outlook range. The refund also lifted gross margin by roughly 500 basis points; excluding it, gross margin would have been about 53.1%, only modestly above last year’s 53.0% reported margin. (Financial Highlights; Adjusted Gross Profit reconciliation)
Underlying cost pressure is building ahead of the product launch. Reported SG&A rose 12.8% year over year and increased to 56.6% of revenue from 55.1%, with retail compensation and technology spending rising as the company prepares for Intelligent Eyewear. The 15 net new stores also increased fixed doctor and occupancy costs faster than revenue. (Income Statement; Financial Highlights)
The launch remains an unproven option, not current performance. Management reaffirmed full-year guidance, including a $14.4 million tariff-refund benefit, while excluding any Intelligent Eyewear revenue or halo effect. That keeps the near-term outlook intact, but it also means the quarter offered little evidence that the new category can offset slower-than-expected revenue and heavier operating investment. (Financial Highlights; Guidance discussion)
Net read: below expectations on sales and earnings quality, with the apparent EBITDA beat mostly nonrecurring. Cash generation reinforces the weaker underlying picture: first-half operating cash flow fell to $54.1 million from $69.6 million, while capital spending rose to $39.0 million from $32.4 million. (Cash Flow statement)
Read the original 8-K on SEC EDGAR ↗