National Vision Holdings, Inc. Reports Third Quarter 2026 Financial Results

ALPHARETTA, Ga.--( BUSINESS WIRE)--National Vision Holdings, Inc. (NASDAQ: EYE) (“National Vision,” “we,” “our,” “us” or the “Company”) today reported its financial results for the third quarter ended October 3, 2026.

“Our strategy continues to deliver profitable growth as we execute the commercial transformation of the business,” said Alex Wilkes, National Vision’s CEO. “Third quarter adjusted operating margin expanded 320 basis points and adjusted diluted earnings per share more than doubled year over year. Comparable store sales growth was bolstered by positive traffic and ticket in our managed care cohort that meaningfully contributed to our profitability. Growth in higher value transactions offset industry headwinds concentrated in lower-value transactions. These lower value transactions represent only a high single digit share of sales and an even smaller share of gross profit – a distinction that matters as we focus on growth that translates into stronger earnings.”

Mr. Wilkes continued, “Our strong earnings power and cash flow generation gives us the flexibility to accelerate our new store openings one year ahead of plan while continuing to invest in the capabilities that will strengthen National Vision over the long term. We are updating our outlook to reflect the current consumer environment, and through continued disciplined execution, we expect to deliver full year profitability in line with our long-term algorithm. We believe the actions we are taking are building a stronger, more durable business, positioning National Vision to gain share and deliver durable profitable growth.”

This release includes certain Non-GAAP Financial Measures that are not recognized under generally accepted accounting principles (“GAAP”), including Adjusted Comparable Store Sales Growth, Adjusted Operating Income, Adjusted Operating Margin, Adjusted SG&A and Adjusted Diluted EPS. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP to GAAP Financial Measures” below for more information.

Third Quarter 2026 Summary

Year-to-Date 2026 Summary

Balance Sheet and Cash Flow Highlights as of October 3, 2026

Share Repurchase Program

Effective November 9, 2026, the Company's board of directors authorized the Company to repurchase up to $100 million aggregate amount of shares of the Company's common stock until December 28, 2030. The new share repurchase authorization replaces the Company's previous share repurchase authorization approved effective March 2, 2026, which had remaining capacity of $10.0 million at the time of its replacement. Repurchases of shares of common stock may be made through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital management needs and opportunities, and corporate and regulatory considerations. The Company has no obligation to repurchase any amount of its common stock, and such repurchases, if any, may be suspended or discontinued at any time.

Fiscal 2026 Outlook

The Company is updating its fiscal 2026 outlook for the 52 weeks ending January 2, 2027, as set forth below.

Prior Fiscal 2026 Outlook

(As of August 12, 2026)

Updated Fiscal 2026 Outlook

(As of November 12, 2026)

New Stores (1)

30-35

~30

Adjusted Comparable Store Sales Growth (2)

3.0% - 5.0%

2.0% - 3.0%

Net Revenue

$2.037 billion - $2.076 billion

$2.019 billion - $2.038 billion

Adjusted Operating Income (2)

$119 million - $139 million

$119 million - $131 million

Adjusted Diluted EPS (2)(3)

$0.94 - $1.09

$0.95 - $1.03

Depreciation and Amortization (4)

$92 million - $93 million

Interest (5)

$11 million - $13 million

Tax Rate (6)

~30%

Capital Expenditures

$72 million - $76 million

$72 million - $74 million

Assumes primarily America's Best new stores, does not include 20 Military store additions in April 2026.

Refer to “Non-GAAP Financial Measures” below for more information.

Assumes approximately 81 million shares.

Includes amortization of acquisition intangibles of approximately $0.7 million, which is excluded in the definition of Adjusted Operating Income.

Before the impact of gains or losses on change in fair value of derivatives and charges related to debt discounts and deferred financing costs.

Excluding the impact of vesting of restricted stock units and stock option exercises.

The fiscal 2026 outlook information provided in this release includes Adjusted Operating Income and Adjusted Diluted EPS guidance. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results.

The fiscal 2026 outlook is forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. These uncertainties include, but are not limited to, dynamic market conditions, unexpected disruptions including additional regulatory actions impacting international trade such as tariffs, issues relating to the implementation of our transformation initiatives, geopolitical issues, higher transportation or other costs due to rising fuel or energy costs, and other macroeconomic risks and uncertainties. Actual results may vary and those variations may be material. As such, the Company’s results may not fall within the ranges contained in its fiscal 2026 outlook. The Company uses these forward-looking measures internally to assess and benchmark its results and strategic plans. See “Forward-Looking Statements” below.

Conference Call Details

The Company will host a conference call to discuss the third quarter 2026 financial results and fiscal-year 2026 guidance today, November 12, 2026, at 8:30 a.m. Eastern Time. To pre-register for the conference call and obtain a dial-in number and passcode, please refer to the “Investors” section of the Company’s website at www.ir.nationalvision.com. A live audio webcast of the conference call will be available on the “Investors” section of the Company’s website at www.ir.nationalvision.com, where presentation materials will be posted prior to the conference call. A replay of the audio webcast will also be archived on the “Investors” section of the Company’s website.

About National Vision Holdings, Inc.

National Vision Holdings, Inc. (NASDAQ: EYE) is one of the largest optical retail companies in the United States with over 1,200 stores in 40 states and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the company operates four retail brands: America’s Best Contacts & Eyeglasses, Eyeglass World, and Vista Opticals inside select Fred Meyer stores and on select military bases, and an e-commerce website DiscountContacts.com, offering a variety of products and services for customers’ eye care needs. For more information, please visit www.nationalvision.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements contained under “Fiscal 2026 Outlook,” as well as other statements related to our current beliefs and expectations regarding the performance of our industry, the Company’s strategic direction, market position, prospects including remote medicine and optometrist recruiting and retention initiatives, and future results. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or variations of these words or other comparable words. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Forward-looking statements are not guarantees and are subject to various risks and uncertainties, which may cause actual results to differ materially from those implied in forward-looking statements. Such factors include, but are not limited to, market volatility, an overall decline in the health of the economy, global macroeconomic conditions and other factors that may affect consumer spending or behavior; our ability to successfully implement our strategic initiatives, or anticipate the impact of important strategic initiatives; our ability to recruit and retain vision care professionals for in-store roles or to provide remote care offerings; our ability to compete in the highly competitive optical retail industry; our ability to maintain, protect, and enhance the value of our owned brands; the success of our marketing, advertising and promotional efforts; our ability to open and operate new stores (including as a result of store conversions) in a timely and cost-effective manner or to successfully enter new markets; our ability to increase sales in existing stores and to successfully reinvest in existing stores; our ability to successfully implement our pricing strategies; changes in the cost of inputs, and factors such as wage rate increases, inflation, cost increases, tariffs and related measures, increases in the price of raw materials and energy prices; significant capital requirements to fund our expanding business including updating our Enterprise Resource Planning (“ERP”) and Customer Relationship Management (“CRM”), and other technological, systems and capabilities; the potential for our growth strategies to strain our existing resources and cause the performance of our existing stores to suffer; risks associated with leasing substantial amounts of space, including future increases in occupancy costs; our ability to successfully manage the distinct risks faced by our e-commerce and omni-channel business; our ability to retain our existing senior management team, attract qualified new personnel or successfully implement our succession plans; seasonal fluctuations in our operating results and inventory levels; the potential impacts of catastrophic events, including changing climate and weather patterns leading to severe weather and natural disasters; the potential for certain technological advances, greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, or future drug development for the correction of vision-related problems to reduce the demand for our products; our ability to successfully manage our inventory balances and inventory shrinkage; the potential for the loss of, or disruption in the operations of, one or more of our distribution centers or optical laboratories, which would impact our ability to process and fulfill customer orders and deliver our products in a timely manner, or at all, or result in quality issues; the performance of our Host brands and our ability to maintain or extend our operating relationships with our Host partners; sustainability issues, including those related to climate change; our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; our reliance on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues; risks associated with vendors from whom our products and certain services are sourced and our dependence on a limited number of suppliers; changes in U.S. or international laws, including tariffs, affecting our ability to source merchandise and services internationally; the impact of any significant failure, inadequacy, interruption or security breach affecting our information technology systems, or those of our vendors; our ability to comply with state, local and federal vision care and healthcare laws and regulations, as well as managed vision care laws and regulations; liability stemming from rapidly changing and increasingly stringent laws, regulations, contractual obligations, and industry standards relating to privacy, data security and data protection; product liability, product recall or personal injury issues; our ability to comply with laws, regulations and enforcement activities or changes in statutory, regulatory, accounting and other legal requirements; the outcome of legal proceedings relating to our business operations; the protection and validity of our intellectual property; risks related to our indebtedness; changes in interest rates; restrictions in our credit agreement that limit our flexibility in operating our business; and risks related to owning our common stock. Additional information about these and other factors that could cause National Vision’s results to differ materially from those described in the forward-looking statements can be found in filings by National Vision with the Securities and Exchange Commission (“SEC”), including our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC.

Non-GAAP Financial Measures

To supplement the Company’s financial information presented in accordance with GAAP and aid understanding of the Company’s business performance, the Company uses certain non-GAAP financial measures, namely “EBITDA,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Diluted EPS,” “Adjusted Comparable Store Sales Growth,” “Adjusted SG&A,” and “Adjusted SG&A Percent of Net Revenue.” We believe EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses these non-GAAP financial measures to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

To supplement the Company’s comparable store sales growth presented in accordance with GAAP, the Company provides “Adjusted Comparable Store Sales Growth,” which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. Management uses Adjusted Comparable Store Sales Growth as the basis for key operating decisions, such as allocation of advertising to particular markets and implementation of special marketing programs. Accordingly, we believe that Adjusted Comparable Store Sales Growth provides timely and accurate information relating to the operational health and overall performance of each brand. We also believe that, for the same reasons, investors find our calculation of Adjusted Comparable Store Sales Growth to be meaningful.

EBITDA: We define EBITDA as net income (loss), plus interest expense (income), net, income tax provision (benefit) and depreciation and amortization.

Adjusted Operating Income: We define Adjusted Operating Income as net income (loss), plus interest expense (income), net and income tax provision (benefit), further adjusted to exclude stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of acquisition intangibles, Enterprise Resource Planning (“ERP”) and Customer Relationship Management (“CRM”) implementation expenses, shareholder activism costs, severance and associate-related costs associated with organizational restructuring and certain other expenses.

Adjusted Operating Margin: We define Adjusted Operating Margin as Adjusted Operating Income as a percentage of net revenue.

Adjusted EBITDA: We define Adjusted EBITDA as net income (loss), plus interest expense (income), net, income tax provision (benefit) and depreciation and amortization, further adjusted to exclude stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, ERP and CRM implementation expenses, shareholder activism costs, severance and associate-related costs associated with organizational restructuring and certain other expenses.

Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net revenue.

Adjusted Diluted EPS: We define Adjusted Diluted EPS as diluted earnings (loss) per share, adjusted for the per share impact of stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of debt discounts and deferred financing costs of our term loan borrowings, amortization of the conversion feature and deferred financing costs related to our 2.50% convertible senior notes due on May 15, 2025 ("2025 Notes") when not required under U.S. GAAP to be added back for diluted earnings (loss) per share, derivative fair value adjustments, ERP and CRM implementation expenses, shareholder activism, severance and associate-related costs associated with restructuring and certain other expenses, less the tax effect of these adjustments, including tax expense (benefit) from stock-based compensation.

Adjusted SG&A: We define Adjusted SG&A as SG&A adjusted to exclude stock-based compensation expense, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expense, ERP and CRM implementation expenses, shareholder activism, severance and employee-related costs associated with restructuring and certain other expenses.

Adjusted SG&A Percent of Net Revenue: We define Adjusted SG&A Percent of Net Revenue as Adjusted SG&A as a percentage of total net revenue.

Adjusted Comparable Store Sales Growth: We measure Adjusted Comparable Store Sales Growth as the increase or decrease in sales recorded by the comparable store base in any reporting period, compared to sales recorded by the comparable store base in the prior reporting period, which we calculate as follows: (i) sales are recorded at the point of sale (ii) sales are adjusted for managed care insurance collection estimates (iii) stores are added to the calculation during the 13th full fiscal month following the store’s opening; (iv) closed stores are removed from the calculation for time periods that are not comparable; (v) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (vi) when applicable, we adjust for the effect of the 53rd week; (vii) in fiscal years following a 53-week fiscal year, there is a one week calendar shift to the comparable prior year period. For the calculation of the adjusted comparable store sales growth in the three months ended October 3, 2026, we compared weeks 27 through 39 in fiscal 2026 against weeks 28 through 40 in fiscal 2025 and for the nine months ended October 3, 2026, we compared weeks 1 through 39 in fiscal year 2026 against weeks 2 through 40 in fiscal year 2025. Quarterly, year-to-date and annual adjusted comparable store sales are aggregated using only sales from all whole months of operation included in both the current reporting period and the prior reporting period. When a partial month is excluded from the calculation, the corresponding month in the subsequent period is also excluded from the calculation. There may be variations in the way in which some of our competitors and other retailers calculate comparable store sales. As a result, our adjusted comparable store sales may not be comparable to similar data made available by other retailers.

EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue and Adjusted Comparable Store Sales Growth are not recognized terms under U.S. GAAP and should not be considered as an alternative to net income or income from operations as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with U.S. GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

Please see “Reconciliation of Non-GAAP to GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures.

National Vision Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

In thousands, except share data

As of

October 3, 2026

As of

January 3, 2026

ASSETS

Current assets:

Cash and cash equivalents

59,963

38,708

Accounts receivable, net

40,982

57,322

Inventories, net

123,783

89,318

Prepaid expenses and other current assets

31,507

40,374

Total current assets

256,235

225,722

Noncurrent assets:

Property and equipment, net

327,412

344,619

Goodwill

700,976

700,642

Trademarks and trade names

240,547

Other intangible assets, net

7,047

7,554

Right of use assets

401,151

394,896

Other assets

70,208

69,698

Total noncurrent assets

1,747,341

1,757,956

Total assets

2,003,576

1,983,678

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

75,992

78,999

Other payables and accrued expenses

110,108

109,674

Unearned revenue

45,783

52,279

Deferred revenue

64,270

64,560

Current maturities of long-term debt and finance lease obligations

16,276

16,583

Current operating lease obligations

93,276

90,313

Total current liabilities

405,705

412,408

Noncurrent liabilities:

Long-term debt and finance lease obligations, less current portion and debt issuance costs

217,360

229,327

Noncurrent operating lease obligations

361,135

358,377

Deferred revenue

22,640

22,517

Other liabilities

8,734

8,944

Deferred income taxes, net

86,828

82,572

Total noncurrent liabilities

696,697

701,737

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 200,000,000 shares authorized; 87,629,000 and 86,278,538 shares issued as of October 3, 2026 and January 3, 2026, respectively; 78,066,064 and 79,416,050 shares outstanding as of October 3, 2026 and January 3, 2026, respectively

876

862

Additional paid-in capital

854,320

834,000

Accumulated other comprehensive income (loss)

379

(121

)

Retained earnings

318,502

255,717

Treasury stock, at cost; 9,562,936 and 6,862,488 shares as of October 3, 2026 and January 3, 2026, respectively

(272,903

)

(220,925

)

Total stockholders’ equity

901,174

869,533

Total liabilities and stockholders’ equity

2,003,576

1,983,678

National Vision Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

Three Months Ended

Nine Months Ended

In thousands, except per share amounts

October 3, 2026

September 27, 2025

October 3, 2026

September 27, 2025

Revenue:

Net product sales

410,609

393,483

1,253,244

1,200,837

Net sales of services and plans

99,924

93,847

299,974

283,240

Total net revenue

510,533

487,330

1,553,218

1,484,077

Costs applicable to revenue (exclusive of depreciation and amortization):

Products

116,858

114,615

362,249

346,215

Services and plans

93,204

88,584

275,321

262,545

Total costs applicable to revenue

210,062

203,199

637,570

608,760

Operating expenses:

Selling, general and administrative expenses

247,134

252,339

746,658

755,038

Depreciation and amortization

22,646

22,185

69,309

67,684

Asset impairment

—

2,506

502

Other income, net

(301

)

(358

)

(101

)

Total operating expenses

269,479

274,523

818,115

823,123

Income from operations

30,992

9,608

97,533

52,194

Interest expense, net

2,992

4,119

9,177

12,901

Earnings before income taxes

28,000

5,489

88,356

39,293

Income tax provision

8,812

2,117

25,571

13,010

Net income

19,188

3,372

62,785

26,283

Earnings per share:

Basic

0.24

0.04

0.79

0.33

Diluted

0.24

0.04

0.78

0.33

Weighted average shares outstanding:

Basic

78,698

79,223

79,300

79,053

Diluted

80,064

81,195

80,718

80,170

Comprehensive income:

Net income

19,188

3,372

62,785

26,283

Unrealized gain on hedge instruments

—

667

—

Tax provision of unrealized gain on hedge instruments

—

167

—

Comprehensive income

19,244

3,372

63,285

26,283

National Vision Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended

In Thousands

October 3, 2026

September 27, 2025

Cash flows from operating activities:

Net income

62,785

26,283

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

69,309

67,684

Amortization of debt issuance costs

725

932

Amortization of cloud computing implementation costs

9,951

6,823

Asset impairment

2,506

502

Deferred income tax expense (benefit)

4,256

(879

)

Stock-based compensation expense

19,301

17,836

Inventory adjustments

4,361

3,818

Other

489

(334

)

Changes in operating assets and liabilities:

Accounts receivable

16,248

2,974

Inventories

(38,826

)

2,088

Operating lease right of use assets and lease liabilities

149

(2,249

)

Other assets

(7,636

)

(26,077

)

Accounts payable

(3,007

)

20,621

Deferred and unearned revenue

(6,663

)

7,686

Other liabilities

925

5,426

Net cash provided by operating activities

134,873

133,134

Cash flows from investing activities:

Purchase of property and equipment

(55,481

)

(48,441

)

Other

5,006

(3,848

)

Net cash used for investing activities

(50,475

)

(52,289

)

Cash flows from financing activities:

Repayments on long-term debt

(19,937

)

(94,712

)

Borrowings on long-term debt

10,000

—

Payments on finance lease obligations

(2,485

)

(2,255

)

Proceeds from issuance of common stock

1,110

1,013

Purchase of treasury stock

(51,998

)

(2,555

)

Net cash used for financing activities

(63,310

)

(98,509

)

Net change in cash, cash equivalents and restricted cash

21,088

(17,664

)

Cash, cash equivalents and restricted cash, beginning of year

40,302

75,237

Cash, cash equivalents and restricted cash, end of period (i)

61,390

57,573

(i) Cash balance includes restricted cash of $1.4 million and $1.5 million for the nine months ended October 3, 2026 and September 27, 2025, respectively, that are not reflected in cash and cash equivalents shown on the Condensed Consolidated Balance Sheets.

National Vision Holdings, Inc. and Subsidiaries

Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)

Reconciliation of Adjusted Operating Income to Net Income

Three Months Ended

Nine Months Ended

In thousands

October 3, 2026

September 27, 2025

October 3, 2026

September 27, 2025

Net income

19,188

3,372

62,785

26,283

Interest expense, net

2,992

4,119

9,177

12,901

Income tax provision

8,812

2,117

25,571

13,010

Stock-based compensation expense (a)

5,913

5,501

19,301

17,836

Asset impairment (b)

—

2,506

502

Litigation settlement (c)

—

1,903

—

1,903

Amortization of acquisition intangibles (d)

169

507

ERP and CRM implementation expenses (f)

336

1,368

1,262

5,529

Other (g)

(285

)

1,258

3,050

6,412

Adjusted Operating Income

37,125

19,807

124,159

84,883

Net income margin

3.8

0.7

4.0

1.8

Adjusted Operating Margin

7.3

4.1

8.0

5.7

Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding.

Reconciliation of EBITDA and Adjusted EBITDA to Net Income

Three Months Ended

Nine Months Ended

In thousands

October 3, 2026

September 27, 2025

October 3, 2026

September 27, 2025

Net income

19,188

3,372

62,785

26,283

Interest expense, net

2,992

4,119

9,177

12,901

Income tax provision

8,812

2,117

25,571

13,010

Depreciation and amortization

22,646

22,185

69,309

67,684

EBITDA

53,638

31,793

166,842

119,878

Stock-based compensation expense (a)

5,913

5,501

19,301

17,836

Asset impairment (b)

—

2,506

502

Litigation settlement (c)

—

1,903

—

1,903

ERP and CRM implementation expenses (f)

336

1,368

1,262

5,529

Other (g)

(285

)

1,258

3,050

6,412

Adjusted EBITDA

59,602

41,823

192,961

152,060

Net income margin

3.8

0.7

4.0

1.8

Adjusted EBITDA Margin

11.7

8.6

12.4

10.2

Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding.

Reconciliation of Adjusted Diluted EPS to Diluted EPS

Three Months Ended

Nine Months Ended

Shares in thousands, except per share amounts

October 3, 2026

September 27, 2025

October 3, 2026

September 27, 2025

Diluted EPS

0.24

0.04

0.78

0.33

Stock-based compensation expense (a)

0.07

0.24

0.22

Asset impairment (b)

—

0.03

0.01

Litigation settlement (c)

—

0.02

—

0.02

Amortization of acquisition intangibles (d)

—

0.01

Amortization of deferred financing costs (e)

—

0.01

ERP and CRM implementation expenses (f)

—

0.02

0.07

Other (g)

—

0.02

0.04

0.07

Tax effects (h)

(0.01

)

(0.04

)

(0.12

)

(0.09

)

Adjusted Diluted EPS

0.30

0.13

1.01

0.65

Weighted average diluted shares outstanding

80,064

81,195

80,718

80,170

Reconciliation of Adjusted SG&A to SG&A

Three Months Ended

Nine Months Ended

In thousands

October 3, 2026

September 27, 2025

October 3, 2026

September 27, 2025

SG&A

247,134

252,339

746,658

755,038

Stock-based compensation expense (a)

5,913

5,501

19,301

17,836

Litigation settlement (c)

—

1,903

—

1,903

ERP and CRM implementation expenses (f)

336

1,368

1,262

5,529

Other (g)

(285

)

1,258

2,713

6,412

Adjusted SG&A

241,170

242,309

723,382

723,358

SG&A Percent of Net Revenue

48.4

51.8

48.1

50.9

Adjusted SG&A Percent of Net Revenue

47.2

49.7

46.6

48.7

Note: Percentages reflect line item as a percentage of total net revenue.

(a)

Non-cash charges related to stock-based compensation programs, which may vary from period to period depending on the timing of awards and performance vesting conditions.

(b)

Reflects write-off related to non-cash impairment charges of long-lived assets, primarily impairment of property and equipment related to the Eyeglass World lab restructuring initiative in the second quarter of 2026 and lease-related assets on closed or underperforming stores.

(c)

Expenses associated with settlement of certain litigation.

(d)

Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting following the acquisition of the Company by affiliates of KKR & Co. Inc.

(e)

Amortization of deferred financing costs and other non-cash charges related to our debt. We adjust for amortization of deferred financing costs related to the 2025 Notes only when adjustment for these costs is not required in the calculation of diluted earnings per share under U.S. GAAP.

(f)

Costs related to the Company’s ERP and CRM implementation.

(g)

Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted SG&A), which are primarily related to severance and associate-related cost associated with organizational restructuring of $2.2 million for nine months ended October 3, 2026, and $0.8 million and $2.9 million for the three and nine months ended September 27, 2025, respectively, cost associated with EGW restructuring of $0.6 million for the nine months ended October 3, 2026, and shareholder activism costs of $2.1 million for the nine months ended September 27, 2025. Certain costs associated with the EGW lab optimization initiative are recognized in costs applicable to revenue, with the remainder recorded in SG&A.

(h)

Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates, including tax expense (benefit) from stock-based compensation.

Reconciliation of Adjusted Comparable Store Sales Growth to Total Comparable Store Sales Growth

Comparable store sales growth (a)

Three Months Ended October 3, 2026

Three Months Ended September 27, 2025

Nine Months Ended October 3, 2026

Nine Months Ended September 27, 2025

2026 Outlook (b)

Owned & Host segment

America’s Best

3.4 %

8.1 %

3.5 %

6.7 %

Eyeglass World

(2.5) %

5.2 %

1.2 %

3.7 %

Military

1.9 %

4.4 %

0.5 %

3.4 %

Fred Meyer

3.2 %

4.1 %

0.1 %

4.1 %

Total comparable store sales growth

3.6 %

6.8 %

3.8 %

5.7 %

2.5% - 3.5%

Adjustments for effects of: (b)

Unearned & deferred revenue

(0.8) %

0.9 %

(0.6) %

0.7 %

(0.5) %

Adjusted Comparable Store Sales Growth

2.8 %

7.7 %

3.2 %

6.4 %

2.0% - 3.0%

(a)

We calculate total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate and other revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month (v) if applicable, the impact of a 53rd week in a fiscal year; and (vi) in fiscal years following a 53-week fiscal year, there is a one week calendar shift to the comparable prior-year period. For the calculation of the adjusted comparable store sales growth in the third quarter of 2026, we compared weeks 27 through 39 in fiscal 2026 against weeks 28 through 40 in fiscal 2025. Brand-level comparable store sales growth is calculated based on point-of-sale revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 15. “Segment Reporting” in our Annual Report on Form 10-K for the period ended January 3, 2026.

(b)

Adjusted Comparable Store Sales Growth includes the effect of deferred and unearned revenue as if such revenues were earned at the point of sale, resulting in the changes from total comparable store sales growth based on consolidated net revenue.