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NV

National Vision Holdings, Inc. (EYE)·Q3 2026 Earnings Summary

Executive Summary

  • Revenue grew 7.9% year over year to $487.3M, with adjusted comps +7.7% and adjusted operating margin +90 bps to 4.1%; GAAP diluted EPS was $0.04 and adjusted diluted EPS $0.13 .
  • Results modestly beat consensus: revenue $487.3M vs $473.1M*, and EPS $0.13 vs $0.1298*; the quarter was negatively impacted by an 80 bps revenue headwind from timing of unearned revenue and higher healthcare costs .
  • Guidance raised for FY25: net revenue to $1.970–$1.988B, AOI to $92–$98M, adjusted EPS to $0.63–$0.71; tax rate raised to 28% and capex cut to $80–$85M .
  • Catalysts: continued strength in managed care, progressives, and outside Rx segments; premium frame/lens adoption; pricing actions in Q4 (lenses, coatings, bundle) and CRM-driven engagement; investor day on Nov 17 could frame multi-year margin and growth algorithm .

What Went Well and What Went Wrong

  • What Went Well
    • 11th consecutive positive comp quarter; adjusted comp +7.7% with average ticket +7.1% driven by pricing, merchandising mix, and selling techniques .
    • Strong momentum in targeted higher-value segments: managed care approaching low-teens comp growth with positive transaction/ticket trends; progressives and outside Rx also strong .
    • Premium products resonating: faster-than-expected turns in premium frames (Ted Baker, Jimmy Choo, Hugo Boss) and premium lens add-ons; successful Meta-enabled smart glasses pilot expanding to +250 stores in Q4 .
  • What Went Wrong
    • Healthcare costs were a headwind throughout the year and were disproportionate in Q3, limiting SG&A leverage; still guided to similar pressure in Q4 .
    • Revenue and EPS were negatively impacted by timing of unearned revenue (~80 bps on revenue; $(0.03) on both GAAP and adjusted EPS) .
    • Cash-pay traffic remained soft; overall traffic flat with mix shifting toward higher-value segments (managed care, progressives, outside Rx), though cash-pay customers did trade up in frames/lenses .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Total Net Revenue ($USD Millions)$451.5 $486.4 $487.3
GAAP Diluted EPS ($USD)$(0.11) $0.11 $0.04
Adjusted Diluted EPS ($USD)$0.12 $0.18 $0.13
Income from Continuing Ops ($USD Millions)$(8.44) $8.73 $3.37
Adjusted Operating Income ($USD Millions)$14.29 $23.80 $19.81
Costs Applicable to Revenue (% of Net Revenue)42.1% 41.2% 41.7%
Actual vs Estimates (Q3 2025)ConsensusActual
Revenue ($USD Millions)$473.1*$487.3
Primary EPS ($USD)$0.1298*$0.13
Primary EPS - # of Estimates11*—
Revenue - # of Estimates9*—

Values marked with * retrieved from S&P Global.

Segment/Brand KPIs (comparable store sales growth):

BrandQ3 2024Q3 2025
America’s Best+1.2% +8.1%
Eyeglass World−0.9% +5.2%
Military−0.6% +4.4%
Fred Meyer−7.3% +4.1%
Total Comps+1.4% +6.8%
Adjusted Comps+0.9% +7.7%

Operating KPIs across quarters:

KPIQ1 2025Q2 2025Q3 2025
Comparable Store Sales Growth (%)+4.1% +6.5% +6.8%
Adjusted Comparable Store Sales Growth (%)+5.5% +5.9% +7.7%
Store Count (period-end)1,237 1,240 1,242
Average Ticket YoY change——+7.1%

Guidance Changes

MetricPeriodPrevious Guidance (Aug 6, 2025)Current Guidance (Nov 5, 2025)Change
Adjusted Comparable Store Sales GrowthFY 2025 (52-wk basis)3.0%–5.0% 5.0%–6.0% Raised
Net RevenueFY 2025$1.934B–$1.970B $1.970B–$1.988B Raised
Adjusted Operating IncomeFY 2025$85M–$95M $92M–$98M Raised
Adjusted Diluted EPSFY 2025$0.62–$0.70 $0.63–$0.71 Raised
Depreciation & AmortizationFY 2025$93M–$96M $91M–$93M Lowered
Interest ExpenseFY 2025$17M–$19M $17M–$19M Maintained
Tax RateFY 202527% 28% Raised
Capital ExpendituresFY 2025$87M–$90M $80M–$85M Lowered
53rd Week ContributionFY 2025≈$35M revenue; ≈$3M AOI ≈$35M revenue; ≈$3M AOI Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Pricing architectureInitial “no-regrets” pricing; plan to evolve Pricing and mix drove gross margin leverage Moving to surgical lens/coating pricing; modernizing bundle to $95; more sophisticated plan Advancing
Managed care growthStrength in managed care cohort Healthy managed care trends offset softer cash-pay traffic Managed care comp growth approaching low-teens; aiming toward 50% penetration over time Strengthening
CRM & marketingRoadmap to improve digital/CRM Building modernized brand campaign CRM launched; better engagement; America’s Best brand campaign lifted unaided awareness ~19% and consideration ~10% Positive inflection
Premium product adoptionBranded frame assortment enhancement planned Assortment/mix driving ticket Faster-than-expected turns in premium frames; premium lens add-ons gaining Accelerating
Remote examsCapacity flexibility noted —Remote enabled in >70% of locations; scaling where allowed Near-saturation
SG&A/cost optimizationCost actions helping margins SG&A leverage focus; AOI up 69% YoY SG&A leveraged 10 bps; healthcare cost headwinds; multi-year cost optimization to be discussed at investor day Mixed (leverage vs healthcare)
Tariffs/macroIncluded in outlook risk Outlook includes tariffs impact Tariffs unchanged vs prior guidance Stable

Management Commentary

  • “The momentum we’re building… is driven by the success of the strategy… growing in areas where we are underdeveloped… managed care… progressives… outside Rx… healthier bottom line” .
  • “We are also pleased with our initial pilot of Meta-enabled smart glasses… we are excited to roll out Meta to an additional 250 locations during the fourth quarter” .
  • “In the fourth quarter, we’re taking our next set of pricing actions on lenses, lens add-ons, and our bundle offer… moving… to $95 price point” .
  • “Adjusted SG&A leveraged 10 bps despite ongoing headwinds in healthcare costs… operating margin expansion remains a primary focus” .

Q&A Highlights

  • Pricing contribution and run-rate: 2026 pricing benefit expected similar to 2025; Q4 actions focus on lenses/coatings/package; modernization to $95 bundle .
  • Cash-pay dynamics: Cohort remains soft but trades up into premium frames/lenses; slight purchase cycle acceleration; managed care growth (~2% category growth) converting some cash-pay consumers .
  • Flow-through and margin: Year-to-date AOI margin expansion +120 bps; management intent to invest while maintaining positive margin expansion .
  • Remote exam penetration: Enabled in north of 70% of locations; constrained where state regulations limit deployment .
  • Brand campaign impact: America’s Best “Every Eye Deserves Better” with unaided awareness up ~19% and consideration up ~10% .

Estimates Context

  • Q3 2025 actuals modestly exceeded consensus: revenue $487.3M vs $473.1M*, primary EPS $0.13 vs $0.1298*; # of estimates: revenue (9), EPS (11)*. Adjusted EPS uptick came despite $(0.03) per-share headwind from unearned revenue timing; continued pricing/mix strength drove margins .
  • FY25 guidance raised across revenue, AOI, EPS; consensus likely to move up on revenue/margin trajectory, factoring Q4 pricing actions and CRM/assortment benefits, but offset by healthcare cost headwinds and pragmatic holiday consumer sentiment discussed by management .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Mix shift to higher-value cohorts and premium products is the primary driver of ticket/margin expansion; pricing playbook in Q4 should sustain momentum into FY26 .
  • Operational headwinds from healthcare costs are real but being mitigated; SG&A leverage and cost optimization remain core to multi-year margin expansion .
  • Solid execution: 11 consecutive comp quarters; brand KPIs (awareness/consideration) and CRM engagement inflecting, supporting near-term comps and customer reactivation .
  • Guidance raise (revenue, AOI, EPS) de-risks the back half; watch Q4 pricing modernization and holiday conversion/NPS metrics for validation .
  • Remote exam capabilities near saturation enhance capacity flexibility; regulatory limits cap further penetration, but current coverage (>70%) supports scalability .
  • Stock reaction drivers: evidence of sustained ticket and margin gains, clarity on FY26 pricing/assortment algorithm at investor day (Nov 17), and updates on healthcare cost mitigation .
  • Near-term trading lens: modest beat, guidance raise, and Q4 pricing actions are positive; monitor cash-pay traffic recovery and healthcare cost trajectory; medium-term thesis centers on mix/merchandising-driven profitability with CRM-enabled engagement .

Notes: All figures reflect continuing operations; quarter ended September 27, 2025. Press release and 8-K include non-GAAP reconciliations and note a $(0.03) per-share headwind from unearned revenue timing .