0001628280-26-034824
SEC filingRevenue rose 6.6% to $543.9M, net income doubled to $31.2M, driven by pricing initiatives and managed care growth.
For the first quarter of fiscal 2026, National Vision reported total net revenue of $543.9 million, a 6.6% increase from $510.3 million in the prior-year quarter. Growth was driven by pricing initiatives, favorable product mix, and a $10.4 million positive impact from unearned and deferred revenue timing. Net product sales rose 6.5% to $439.5 million, led by eyeglass sales (+$20.4M) and contact lens sales (+$7.0M). Net sales of services and plans grew 7.0% to $104.4 million, with exam revenues up 8.4%.
Gross margin (costs applicable to revenue as a percentage of net revenue) slightly decreased by 10 basis points to 40.3%, as lower eyeglass margins from product mix offset pricing benefits and optometrist cost leverage. SG&A expenses increased only 0.2% to $256.1 million, resulting in a 300 basis point improvement in SG&A as a percentage of revenue (47.1% vs 50.1%), primarily due to lower payroll and advertising costs.
Income from operations surged to $45.2 million (5.7% of revenue) from $26.1 million (2.8%) in the prior year. Net income more than doubled to $31.2 million, with diluted EPS rising to $0.38 from $0.18. Adjusted Operating Income increased 34.4% to $55.5 million, and Adjusted EBITDA grew 22.9% to $78.7 million, with margins expanding to 10.2% and 14.5%, respectively.
The company operates as a single reportable segment, Owned & Host, which generated 99.2% of total net revenue. Within this segment, America’s Best (1,062 stores) posted comparable store sales growth of 4.4%, Eyeglass World (122 stores) grew 5.2%, Military (72 stores) grew 2.2%, and Fred Meyer (18 stores) grew 4.7%. Total Owned & Host revenue was $539.3 million, up 4.7% from $515.0 million. The segment benefited from pricing initiatives, managed care strength, and new store openings (8 new America’s Best stores). Network expansion continued with the acquisition of 20 additional Military stores in April 2026, bringing total store count to 1,274.
Corporate and Other revenue declined to $4.5 million (from $5.6 million) due to lower e-commerce and managed care results. The effects of unearned and deferred revenue added $0.1 million in the current quarter versus a $10.3 million drag in the prior year, reflecting timing differences.
Management remains focused on modernization, including re-platforming AmericasBest.com, which caused traffic disruptions in early Q2 but with sequential improvement expected. The company anticipates continued macroeconomic uncertainty, particularly from tariffs (less than 10% of COGS directly exposed from China, less than 1% from Mexico) and inflation pressure on wages and raw materials. For fiscal 2026, National Vision plans to open 30-35 new stores (primarily America’s Best), not including the 20 Military stores added. Capital allocation priorities include investing in existing operations, debt management, and a new $50 million share repurchase authorization through 2030. The company also highlighted risks from optometrist availability and potential regulatory changes. No specific quantitative forward guidance was provided for revenue or earnings.
Cash and cash equivalents stood at $67.9M as of April 4, 2026, up from $38.7M at year-end 2025, driven by strong operating cash flow of $61.7M. Total debt (including finance leases) was $241.8M, consisting primarily of a Term Loan A ($234.3M principal) and finance lease obligations ($8.5M). The company maintains a $300M revolving credit facility with no outstanding borrowings. Shareholders' equity increased to $898.0M from $869.5M, supported by net income and stock issuances partially offset by treasury stock purchases.
The Notes disclose no material purchase commitments or contractual obligations beyond debt maturities. Scheduled debt maturities over the next three years: $9.9M in remainder of fiscal 2026, $13.3M in 2027, and $211.1M in 2028. Deferred revenue totaled $89.1M, with $57.1M expected to be recognized in the next fiscal year.
During Q1 2026, the company repurchased 0.389M shares for $10.5M under a new $50M authorization approved on March 2, 2026. No dividends were paid. Net debt decreased by $4.1M via scheduled repayments ($3.3M on Term Loan A, $0.8M on finance leases). Capital expenditures were $17.6M (3.2% of revenue), primarily for store build-outs.
The company operates a single reportable segment, Owned & Host, encompassing America's Best, Eyeglass World, Military, and Fred Meyer. For Q1 2026, segment revenue was $539.3M (99.2% of total consolidated revenue), with segment EBITDA of $137.0M, up from $124.7M in the prior-year quarter. Corporate and other expenses totaled $67.5M, including unallocated overhead and stock-based compensation. No geographic breakdown is provided.