Kits Eyecare Ltd., a leading vertically integrated eyecare provider, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial & Operational Highlights
For the first quarter of 2026, compared to the first quarter of 2025:
- Revenue increased by 23.3% to a record $57.5 million compared to $46.6 million. In constant currency, revenue increased by 27.0%
- Gross profit increased by 37.5% to $23.5 million, or 40.9% of revenue, compared to $17.1 million, or 36.7% of revenue
- Adjusted EBITDA margin was 7.2% at $4.1 million of Adjusted EBITDA, compared to 7.4% at $3.5 million of Adjusted EBITDA
- Record Q1 glasses revenue of $10.8 million, increased 60.5% year-over-year; over 156,000 units delivered, increased by 50.0% year-over-year
- Net Income increased by 23.2% to $2.0 million or $0.06 per share, compared to $1.6 million or $0.05 per share
“This quarter reflects continued momentum across the platform, with revenue up 23% (27% on a constant currency basis) and glasses revenue growing over 60% year-over-year,” said Roger Hardy, Co-Founder and CEO of KITS. “Our glasses category was a standout in the first quarter, where increasing scale and higher-value customer behavior began to compound. This shift, combined with the durability of our contact lens platform, positions us to continue to drive sustained profitable growth across the business.”
The company said the contact lens segment continued to deliver durable, recurring revenue, expanding to $46.7 million, while the eyeglasses segment accelerated as a growth driver, generating a record first quarter glasses revenue of $10.8 million, a 60.5% year-over-year increase.
Glasses units delivered reached approximately 156,000, with premium lens upgrades outpacing overall unit growth, rising 75.5% year-over-year and representing 41.8% of glasses revenue, it said.
“Profitability metrics remained robust as the Company reported its 14th consecutive quarter of positive Adjusted EBITDA, totaling $4.1 million for the quarter. Reported gross margin of 40.9% includes a $2.1 million non-recurring tariff recovery; excluding this item, gross margin remained above 37%, reflecting the strength of the underlying product mix and continued customer adoption of premium upgrades. Net income for the first quarter was $2.0 million, compared to $1.6 million in the prior year period,” it said.
“We believe this sustained profitability was anchored by the high level of recurring behavior within the KITS customer community. Repeat orders accounted for 63.9% of total Q1 revenue, providing a stable foundation that helps allow for efficient customer acquisition and reinforces the long-term scalability of the KITS platform. During the quarter, the Company acquired 99,900 new customers, and the two-year Active Customer base increased 17.1% year-over-year to 1,108,000.”
For the second quarter of 2026, KITS management said it expects revenue to be in the range of $57.0 million to $59.0 million, with Adjusted EBITDA as a percentage of revenue between 3.0% and 5.0%.
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