National Vision Holdings, Inc.

Previous wording

We are one of the largest optical retailers in the U.S. and a leader in the value segment of the U.S. optical retail industry. We believe that vision is central to quality of life and that people deserve to see their best to live their best, regardless of their budget. Our mission is to make quality eye care and eyewear affordable and accessible to all Americans. We achieve this by providing eye exams, eyeglasses and contact lenses to value-seeking consumers. We deliver exceptional value and convenience to our customers, with attractive price points that provide value for a range of consumers. We reach our customers through a diverse portfolio of 1,240 retail stores across four brands and associated omni-channel consumer websites as of June 28, 2025.

Current wording

We are one of the largest optical retailers in the U.S. and a leader in the value segment of the U.S. optical retail industry. We believe that vision is central to quality of life and that people deserve to see their best to live their best, regardless of their budget. Our mission is to make quality eye care and eyewear affordable and accessible to all Americans. We achieve this by providing eye exams, eyeglasses and contact lenses to value-seeking consumers. We deliver exceptional value and convenience to our customers, with attractive price points that provide value for a range of consumers. We reach our customers through a diverse portfolio of 1,242 retail stores across four brands and associated omni-channel consumer websites as of September 27, 2025.

Previous wording

•Owned & Host - As of June 28, 2025, our owned brands consisted of 1,045 America’s Best Contacts and Eyeglasses (“America’s Best”) retail stores and 122 Eyeglass World retail stores. Our Host brands consisted of 53 Vista Optical locations on select military bases and 20 Vista Optical locations within select Fred Meyer stores as of June 28, 2025. All brands utilize our centralized laboratories. This segment also includes sales from our America’s Best, Eyeglass World, and Military omni-channel websites.

Current wording

•Owned & Host - As of September 27, 2025, our owned brands consisted of 1,049 America’s Best Contacts and Eyeglasses (“America’s Best”) retail stores and 122 Eyeglass World retail stores. Our Host brands consisted of 53 Vista Optical locations on select military bases and 18 Vista Optical locations within select Fred Meyer stores as of September 27, 2025. All brands utilize our centralized laboratories. This segment also includes sales from our America’s Best, Eyeglass World, and Military omni-channel websites.

Previous wording

•Results of other operating segments — Our dedicated e-commerce website, which was previously managed by AC Lens and was transitioned to NVI. Our e-commerce website sells contact lenses and optical accessory products to retail customers, and recognizes revenue when products have been delivered to the customer. Managed care business conducted by FirstSight, our wholly-owned subsidiary that is licensed as a single-service health plan under California law, which issues individual vision plans in connection with our America’s Best operations in California.

Current wording

•Results of other operating segments — Other operating segments include our dedicated e-commerce website, which sells contact lenses and optical accessory products to retail customers, and recognizes revenue when products have been delivered to the customer, and our managed care business conducted by FirstSight, our wholly-owned subsidiary that is licensed as a single-service health plan under California law, which issues individual vision plans in connection with our America’s Best operations in California.

Previous wording

The United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating, or terminating existing, trade agreements. For example, on April 2, 2025, the United States announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, on all U.S. imports. These actions, and retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global markets, which is continuing. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Less than 10% of our costs applicable to revenue are directly subject to tariffs from China. In Mexico, where our exposure relates to our outsourcing relationship with our third-party laboratory, we have mitigation plans in place and we estimate that less than one percent of our costs applicable to revenue are subject to tariffs in Mexico. We are continuing to evaluate these developments, including resulting impacts on our supply chain, commodity costs, and consumer spending, and our ability to offset a portion of these costs to mitigate the impact on our business, consolidated results of operations, and financial condition.

Current wording

The United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating, or terminating existing, trade agreements. For example, on April 2, 2025, the United States announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, on all U.S. imports. Additionally, on September 24, 2025, the U.S. Department of Commerce Bureau of Industry and Security announced the initiation of an investigation into the effects on U.S. national security of imports of personal protective equipment, medical consumables, and medical equipment, including devices, which could result in the imposition of tariffs or other import restrictions. These actions, and retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global markets, which is continuing. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Less than 10% of our costs applicable to revenue are directly subject to tariffs from China. In Mexico, where our exposure relates to our outsourcing relationship with our third-party laboratory, we have mitigation plans in place and we estimate that less than 1% of our costs applicable to revenue are subject to tariffs in Mexico. We are continuing to evaluate these developments, including resulting impacts on our supply chain, commodity costs, and consumer spending, and our ability to offset a portion of these costs to mitigate the impact on our business, consolidated results of operations, and financial condition.

Previous wording

(1)We calculate total comparable store sales from continuing operations based on consolidated net revenue from continuing operations excluding the impact of (i) other segments 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 and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth and net revenue are calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 9. “Segment Reporting” in our unaudited condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q.

Current wording

(1) We calculate total comparable store sales from continuing operations based on consolidated net revenue from continuing operations excluding the impact of (i) other segments 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 and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth and net revenue are calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 9. “Segment Reporting” in our unaudited condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q.

Previous wording

(2)Percentages reflect line item as a percentage of net revenue, adjusted for rounding.

Current wording

(2) Percentages reflect line item as a percentage of net revenue, adjusted for rounding.

Previous wording

Total net revenue of $486.4 million for the three months ended June 28, 2025 increased $34.7 million, or 7.7%, from $451.7 million for the three months ended June 29, 2024. Approximately 70% of the increase was driven by growth from Adjusted Comparable Store Sales Growth from continuing operations and approximately 40% of the increase was driven by new store sales, partially offset by approximately 10% from effects of closed stores. Net revenue includes a positive 0.6% impact from the timing of unearned revenue for the three months ended June 28, 2025 as compared to three months ended June 29, 2024

Current wording

Total net revenue of $487.3 million for the three months ended September 27, 2025 increased $35.8 million, or 7.9%, from $451.5 million for the three months ended September 28, 2024. Approximately 90% of the increase was driven by growth from Adjusted Comparable Store Sales Growth from continuing operations and approximately 30% of the increase was driven by new store sales, partially offset by approximately 10% from effects of closed stores and approximately 10% by effects of unearned revenue for the period. Net revenue includes a negative (0.8)% impact from the timing of unearned revenue for the three months ended September 27, 2025 as compared to three months ended September 28, 2024.

Previous wording

Comparable store sales growth from continuing operations and Adjusted Comparable Store Sales Growth from continuing operations for the three months ended June 28, 2025 were 6.5% and 5.9%, respectively, both reflecting a higher average ticket and continued strength in the managed care cohort, partially offset by a slight decrease in customer traffic.

Current wording

Comparable store sales growth from continuing operations and Adjusted Comparable Store Sales Growth from continuing operations for the three months ended September 27, 2025 were 6.8% and 7.7%, respectively, both reflecting a higher average ticket and continued strength in the managed care cohort, while customer traffic was relatively flat.

Previous wording

In the three months ended June 28, 2025, we opened eight America’s Best stores and closed five America’s Best stores. We also converted four Eyeglass World stores to America’s Best stores from June 29, 2024 to June 28, 2025. Overall, store count grew 2.0% from June 29, 2024 to June 28, 2025 (exclusive of the aforementioned conversions, we had 38 net new America’s Best stores, nine net closures of Fred Meyer stores, four net closures of Eyeglass World stores, and one net closure of a Military store).

Current wording

In the three months ended September 27, 2025, we opened four America’s Best stores, and closed two Fred Meyer stores as a result of the host partner’s decision to cease its overall operations at these locations. We also converted four Eyeglass World stores to America’s Best stores from September 28, 2024 to September 27, 2025. Overall, store count grew 0.9% from September 28, 2024 to September 27, 2025 (exclusive of the aforementioned conversions, we had 26 net new America’s Best stores, 11 net closures of Fred Meyer stores, and four net closures of Eyeglass World stores).

Previous wording

Net product sales comprised 81.1% and 80.1% of total net revenue for the three months ended June 28, 2025 and June 29, 2024, respectively. Net product sales increased $32.6 million, or 9.0%, in the three months ended June 28, 2025 compared to the three months ended June 29, 2024, driven primarily by pricing and product mix initiatives in eyeglass sales of $29.9 million, contact lens sales of $2.6 million and other add-on sales.

Current wording

Net product sales comprised 80.7% and 80.4% of total net revenue for the three months ended September 27, 2025 and September 28, 2024, respectively. Net product sales increased $30.3 million, or 8.4%, in the three months ended September 27, 2025 compared to the three months ended September 28, 2024, driven primarily by pricing and product mix initiatives in eyeglass sales of $25.1 million, contact lens sales of $4.7 million and other add-on sales.

Previous wording

Net sales of services and plans for the three months ended June 28, 2025 increased $2.1 million, or 2.3%, compared to the three months ended June 29, 2024, driven primarily by higher eye exam revenues of $1.8 million, or 3.2%.

Current wording

Net sales of services and plans for the three months ended September 27, 2025 increased $5.5 million, or 6.2%, compared to the three months ended September 28, 2024, driven primarily by higher eye exam revenues of $5.5 million, or 9.7%.

Previous wording

Owned & Host segment net revenue. Net revenue increased $34.7 million, or 7.9%, driven primarily by comparable store sales growth and new store openings, partially offset by closed stores.

Current wording

Owned & Host segment net revenue. Net revenue increased $40.5 million, or 9.1%, driven primarily by comparable store sales growth and new store openings, partially offset by closed stores.

Previous wording

Effects of unearned and deferred revenue. Unearned and deferred revenue positively impacted net revenue by $2.4 million in the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily driven by $2.6 million due to the timing of unearned revenue.

Current wording

Effects of unearned and deferred revenue. Unearned and deferred revenue negatively impacted net revenue by $4.7 million in the three months ended September 27, 2025 compared to the three months ended September 28, 2024, primarily driven by $3.7 million due to the timing of unearned revenue.

Previous wording

Costs applicable to revenue of $200.4 million for the three months ended June 28, 2025 increased $6.8 million, or 3.5%, from $193.6 million for the three months ended June 29, 2024. As a percentage of net revenue, costs applicable to revenue decreased from 42.9% for the three months ended June 29, 2024 to 41.2% for the three months ended June 28, 2025. This decrease of 170 basis points as a percentage of net revenue was primarily driven by a margin improvement of 70 basis points of eyeglass frames, lenses and bundled packages and a favorable shift in product and service mix related to average customer ticket of 110 basis points, leveraging of optometrist-related costs of 60 basis points, partially offset by lower growth in eye exam margin and other add-ons revenue margin of 70 basis points.

Current wording

Costs applicable to revenue of $203.2 million for the three months ended September 27, 2025 increased $13.3 million, or 7.0%, from $189.9 million for the three months ended September 28, 2024. As a percentage of net revenue, costs applicable to revenue decreased from 42.1% for the three months ended September 28, 2024 to 41.7% for the three months ended September 27, 2025. This decrease of 40 basis points as a percentage of net revenue was primarily driven by eyeglass mix and margin improvement of 80 basis points related to a successful execution of pricing and product mix initiatives and leveraging of optometrist-related costs of 30 basis points, partially offset by lower contact lens margin of 40 basis points and other mix and margin effects of 30 basis points.

Previous wording

Costs of products as a percentage of net product sales decreased from 30.7% for the three months ended June 29, 2024 to 29.1% for the three months ended June 28, 2025, primarily driven by a margin improvement of eyeglass frames, lenses and bundled packages and a favorable shift in product mix related to average customer ticket.

Current wording

Costs of products as a percentage of net product sales decreased from 29.3% for the three months ended September 28, 2024 to 29.1% for the three months ended September 27, 2025, primarily driven by eyeglass mix and margin improvement related to a successful execution of pricing and product mix initiatives, partially offset by lower contact lens margin.

Previous wording

Owned & Host segment costs of products. Costs of products as a percentage of net product sales decreased from 29.7% for the three months ended June 29, 2024 to 28.3% for the three months ended June 28, 2025, primarily driven by a margin improvement of eyeglass frames, lenses and bundled packages and a favorable shift in product mix related to average customer ticket.

Current wording

Owned & Host segment costs of products. Costs of products as a percentage of net product sales decreased from 28.5% for the three months ended September 28, 2024 to 28.2% for the three months ended September 27, 2025, primarily driven by eyeglass mix and margin improvement related to a successful execution of pricing and product mix initiatives, partially offset by lower contact lens margin.

Previous wording

Owned & Host segment costs of services and plans. Costs of services and plans as a percentage of net sales of services and plans increased from 91.3% for the three months ended June 29, 2024 to 92.6% for the three months ended June 28, 2025, and was driven by lower growth in eye exam margin and other add-ons revenue.

Current wording

Owned & Host segment costs of services and plans. Costs of services and plans as a percentage of net sales of services and plans decreased from 94.2% for the three months ended September 28, 2024 to 93.2% for the three months ended September 27, 2025, and was primarily driven by leverage of optometrist-related costs and growth in eye exam margin, partially offset by lower growth in add-ons revenue.

Previous wording

SG&A of $247.2 million for the three months ended June 28, 2025 increased $15.8 million, or 6.8%, from the three months ended June 29, 2024. As a percentage of net revenue, SG&A decreased from 51.2% for the three months ended June 29, 2024 to 50.8% for the three months ended June 28, 2025. SG&A as a percentage of net revenue was impacted by lower advertising investments of 60 basis points, lower legal and professional fees of 40 basis points, and lower occupancy expenses of 30 basis points, partially offset by higher variable incentive compensation expenses related to revenue and profitability growth of 90 basis points and other operating expenses.

Current wording

SG&A of $252.3 million for the three months ended September 27, 2025 increased $18.3 million, or 7.8%, from the three months ended September 28, 2024. As a percentage of net revenue, SG&A remained flat at 51.8% for the three months ended September 27, 2025 compared to 51.8% for the three months ended September 28, 2024. SG&A as a percentage of net revenue was primarily impacted by 80 basis points for lower payroll, partially offset by higher healthcare costs. SG&A as a percentage of revenue was also impacted by lower advertising investments of 40 basis points, partially offset by higher variable incentive compensation expenses related to revenue and profitability growth of 110 basis points and other operating expenses of 10 basis points.

Previous wording

Owned & Host SG&A. SG&A as a percentage of net revenue decreased from 39.6% for the three months ended June 29, 2024 to 38.1% for the three months ended June 28, 2025, primarily driven by lower advertising investments, occupancy expenses and other operating expenses.

Current wording

Owned & Host SG&A. SG&A as a percentage of net revenue decreased from 40.3% for the three months ended September 28, 2024 to 38.4% for the three months ended September 27, 2025, primarily driven by lower payroll and lower advertising investments, partially offset by higher healthcare costs.

Previous wording

Depreciation and amortization expense of $22.5 million for the three months ended June 28, 2025 decreased $0.2 million, or 0.7%, from $22.7 million for the three months ended June 29, 2024 primarily driven by lower amortization of intangible assets.

Current wording

Depreciation and amortization expense of $22.2 million for the three months ended September 27, 2025 decreased $0.5 million, or 2.2%, from $22.7 million for the three months ended September 28, 2024, primarily driven by fewer new store openings and lower amortization of intangible assets.

Previous wording

We recognized no impairment during the three months ended June 28, 2025, compared to $3.5 million impairment recognized during the three months ended June 29, 2024 for tangible long-lived assets and ROU assets associated with our retail stores. The store asset impairment charge during the three months ended June 29, 2024 is related to our Owned & Host segment and is driven by lower than projected customer sales and profitability in certain stores, and other entity-specific assumptions. We considered multiple factors including, but not limited to: forecasted scenarios related to store performance and the likelihood that these scenarios would be ultimately realized; and the remaining useful lives of the assets. Asset impairment expenses were recognized in corporate and other.

Current wording

We recognized no impairment charges during the three months ended September 27, 2025, compared to $13.7 million impairment charges recognized during the three months ended September 28, 2024 primarily for the Fred Meyer contracts and relationships intangible asset, tangible long-lived assets and ROU assets associated with our retail stores. The store asset impairment charge during the three months ended September 28, 2024 is related to our Owned & Host segment and is driven by lower than projected customer sales and profitability in certain stores, and other entity-specific assumptions. We considered multiple factors including, but not limited to: forecasted scenarios related to store performance and the likelihood that these scenarios would be ultimately realized; and the remaining useful lives of the assets. Asset impairment expenses were recognized in corporate and other.

Previous wording

Interest expense, net, was $4.2 million for the three months ended June 28, 2025, compared to $3.2 million for the three months ended June 29, 2024. The change was primarily a result of lower interest income on cash balances of $1.7 million, partially offset by lower interest expense on our debt of $0.4 million.

Current wording

Interest expense, net, remained flat at $4.1 million for the three months ended September 27, 2025, compared to $4.1 million for the three months ended September 28, 2024, primarily as a result of lower interest income on cash balances of $1.2 million, partially offset by lower interest expense on our debt of $1.1 million.

Previous wording

Our effective tax rates for the three months ended June 28, 2025 and June 29, 2024 were 28.7% and 60.0%, respectively. The change in effective tax rates was primarily driven by thetax impacts of consolidated VIEs, coupled with non-deductible compensation and other effects of permanent items. The change in effective rates was also influenced by using the ETR method duringthe three months ended June 29, 2024 and the AETR method during thethree months ended June 28, 2025.

Current wording

Our effective tax rates for the three months ended September 27, 2025 and September 28, 2024 were 38.6% and 30.1%, respectively. The change in effective tax rates was primarily driven by the tax impacts of consolidated VIEs and other effects of permanent items. The change in effective rates was also influenced by using the ETR method during the three months ended September 28, 2024 and the AETR method during the three months ended September 27, 2025.

Previous wording

The following presents, by segment and by brand, comparable store sales growth, stores open at the end of the period and net revenue from continuing operations for the six months ended June 28, 2025 compared to the six months ended June 29, 2024.

Current wording

The following presents, by segment and by brand, comparable store sales growth, stores open at the end of the period and net revenue from continuing operations for the nine months ended September 27, 2025 compared to the nine months ended September 28, 2024.

Previous wording

(1)We calculate total comparable store sales from continuing operations based on consolidated net revenue from continuing operations excluding the impact of (i) other segments net 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 and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth and net revenue are calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 9. “Segment Reporting” in our unaudited condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q.

Current wording

(1) We calculate total comparable store sales from continuing operations based on consolidated net revenue from continuing operations excluding the impact of (i) other segments 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 and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth and net revenue are calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 9. “Segment Reporting” in our unaudited condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q.

Previous wording

(2)Percentages reflect line item as a percentage of net revenue, adjusted for rounding.

Current wording

(2) Percentages reflect line item as a percentage of net revenue, adjusted for rounding.

Previous wording

Total net revenue of $996.7 million for the six months ended June 28, 2025 increased $62.2 million, or 6.7%, from $934.5 million for the six months ended June 29, 2024. Of the $62.2 million increase, approximately 80% was driven by Adjusted Comparable Store Sales Growth from continuing operations and approximately 50% of the increase was driven by growth from new store sales, partially offset by approximately 20% from closed stores and approximately 10% by effects of unearned revenue for the period. Net revenue includes a negative (0.5)% impact from the timing of unearned revenue for the six months ended June 28, 2025 as compared to six months ended June 29, 2024.

Current wording

Total net revenue of $1,484.1 million for the nine months ended September 27, 2025 increased $98.0 million, or 7.1%, from $1,386.0 million for the nine months ended September 28, 2024. Of the $98.0 million increase, approximately 90% was driven by Adjusted Comparable Store Sales Growth from continuing operations and approximately 40% of the increase was driven by growth from new store sales, partially offset by approximately 20% from closed stores and approximately 10% by effects of unearned revenue for the period. Net revenue includes a negative (0.6)% impact from the timing of unearned revenue for the nine months ended September 27, 2025 as compared to nine months ended September 28, 2024.

Previous wording

Comparable store sales growth from continuing operations and Adjusted Comparable Store Sales Growth from continuing operations for the six months ended June 28, 2025 were 5.2% and 5.7%, respectively, both reflecting a higher average ticket, a slight increase in customer traffic and continued strength in the Company’s managed care cohort.

Current wording

Comparable store sales growth from continuing operations and Adjusted Comparable Store Sales Growth from continuing operations for the nine months ended September 27, 2025 were 5.7% and 6.4%, respectively, both reflecting a higher average ticket and continued strength in the Company’s managed care cohort, while customer traffic was relatively flat.

Previous wording

In the six months ended June 28, 2025, we opened 17 new America’s Best stores, closed nine Fred Meyer stores and eight America’s Best stores. We also converted four Eyeglass World stores to America’s Best stores from June 29, 2024 to June 28, 2025. Overall, store count grew 2.0% from June 29, 2024 to June 28, 2025 (exclusive of the aforementioned conversions, we had 38 net new America’s Best stores, nine net closures of Fred Meyer stores, four net closures of Eyeglass World stores, and one net closure of a Military store).

Current wording

In the nine months ended September 27, 2025, we opened 21 new America’s Best stores, and closed 11 Fred Meyer stores and eight America’s Best stores. Two of the Fred Meyer stores closed as a result of the host partner’s decision to cease its overall operations at these locations. We also converted four Eyeglass World stores to America’s Best stores from September 28, 2024 to September 27, 2025. Overall, store count grew 0.9% from September 28, 2024 to September 27, 2025 (exclusive of the aforementioned conversions, we had 26 net new America’s Best stores, 11 net closures of Fred Meyer stores and four net closures of Eyeglass World stores).

Previous wording

Net product sales comprised 81.0% and 80.3% of total net revenue for the six months ended June 28, 2025 and June 29, 2024, respectively. Net product sales increased $57.3 million, or 7.6%, in the six months ended June 28, 2025 compared to the six months ended June 29, 2024, primarily due to pricing and product mix initiatives in eyeglass sales of $51.5 million, contact lens sales of $4.6 million and other add-on sales.

Current wording

Net product sales comprised 80.9% and 80.3% of total net revenue for the nine months ended September 27, 2025 and September 28, 2024, respectively. Net product sales increased $87.6 million, or 7.9%, in the nine months ended September 27, 2025 compared to the nine months ended September 28, 2024, primarily due to pricing and product mix initiatives in eyeglass sales of $76.6 million, contact lens sales of $9.3 million and other add-on sales.

Previous wording

Net sales of services and plans for the six months ended June 28, 2025 increased $4.9 million, or 2.7%, compared to the six months ended June 29, 2024, driven primarily by higher exam revenues of $5.3 million, or 4.4%.

Current wording

Net sales of services and plans for the nine months ended September 27, 2025 increased $10.4 million, or 3.8%, compared to the nine months ended September 28, 2024, driven primarily by higher exam revenues of $10.8 million, or 6.1%.

Previous wording

Owned & Host segment net revenue. Net revenue increased $72.8 million, or 7.9%, driven primarily by comparable store sales growth and new store openings, partially offset by closed stores.

Current wording

Owned & Host segment net revenue. Net revenue increased $113.3 million, or 8.3%, driven primarily by comparable store sales growth and new store openings, partially offset by closed stores.

Previous wording

Effects of unearned and deferred revenue. Unearned and deferred revenue negatively impacted net revenue by $5.6 million in the six months ended June 28, 2025 compared to the six months ended June 29, 2024, primarily driven by $4.6 million due to the timing of unearned revenue.

Current wording

Effects of unearned and deferred revenue. Unearned and deferred revenue negatively impacted net revenue by $10.3 million in the nine months ended September 27, 2025 compared to the nine months ended September 28, 2024, primarily driven by $8.3 million due to the timing of unearned revenue.

Previous wording

Costs applicable to revenue of $405.6 million for the six months ended June 28, 2025 increased $16.4 million, or 4.2%, from $389.1 million for the six months ended June 29, 2024. As a percentage of net revenue, costs applicable to revenue decreased from 41.6% for the six months ended June 29, 2024 to 40.7% for the six months ended June 28, 2025. This decrease of 90 basis points as a percentage of net revenue was primarily driven by a margin improvement of 60 basis points for eyeglass frames, lenses and bundled packages, a favorable shift in product and services mix related to average customer ticket of 80 basis points and leveraging of optometrist-related costs of 20 basis points, partially offset by lower growth in eye exam margin and other add-ons revenue margin of 60 basis points and a 10 basis point decrease in margins of contact lenses.

Current wording

Costs applicable to revenue of $608.8 million for the nine months ended September 27, 2025 increased $29.7 million, or 5.1%, from $579.1 million for the nine months ended September 28, 2024. As a percentage of net revenue, costs applicable to revenue decreased from 41.8% for the nine months ended September 28, 2024 to 41.0% for the nine months ended September 27, 2025. This decrease of 80 basis points as a percentage of net revenue was primarily driven by eyeglass mix and margin improvement of 120 basis points related to a successful execution of pricing and product mix initiatives and leveraging of optometrist-related costs of 20 basis points, partially offset by lower contact lens margin of 20 basis points and other mix and margin effects of 40 basis points.

Previous wording

Owned & Host segment costs of products. Costs of products as a percentage of net product sales decreased from 28.9% for the six months ended June 29, 2024 to 27.8% for the six months ended June 28, 2025, primarily driven by margin improvement of eyeglass frames, lenses and bundled packages, partially offset by a slight decrease in margins of contact lenses.

Current wording

Owned & Host segment costs of products. Costs of products as a percentage of net product sales decreased from 28.8% for the nine months ended September 28, 2024 to 27.9% for the nine months ended September 27, 2025, primarily driven by eyeglass mix and margin improvement related to a successful execution of pricing and product mix initiatives, partially offset by lower contact lens margin.

Previous wording

Owned & Host segment costs of services and plans. Costs of services and plans as a percentage of net sales of services and plans increased from 88.3% for the six months ended June 29, 2024 to 90.4% for the six months ended June 28, 2025. The increase was primarily driven by lower growth in eye exam margin and other add-ons revenue.

Current wording

Owned & Host segment costs of services and plans. Costs of services and plans as a percentage of net sales of services and plans increased from 90.2% for the nine months ended September 28, 2024 to 91.3% for the nine months ended September 27, 2025. The increase was primarily driven by lower growth in eye exam margin and add-ons revenue.

Previous wording

SG&A of $502.7 million for the six months ended June 28, 2025 increased $31.2 million, or 6.6%, from the six months ended June 29, 2024. As a percentage of net revenue, SG&A decreased from 50.5% for the six months ended June 29, 2024 to 50.4% for the six months ended June 28, 2025. SG&A as a percentage of net revenue was impacted by lower advertising investments of 60 basis points and a non-recurring litigation settlement from prior year of 50 basis points and other expenses of 10 basis points, partially offset by increases in variable incentive compensation expenses of 60 basis points primarily related to revenue and profitability growth and an increase in stock-based compensation of 50 basis points.

Current wording

SG&A of $755.0 million for the nine months ended September 27, 2025 increased $49.6 million, or 7.0%, from the nine months ended September 28, 2024. As a percentage of net revenue, SG&A remained flat at 50.9% for the nine months ended September 27, 2025 as compared to 50.9% for the nine months ended September 28, 2024. SG&A as a percentage of net revenue was primarily impacted by lower advertising investments of 50 basis points and other expenses of 70 basis points, partially offset by increases in variable incentive compensation expenses of 80 basis points primarily related to revenue and profitability growth and an increase in stock-based compensation of 40 basis points.

Previous wording

Owned & Host SG&A. SG&A as a percentage of net revenue decreased from 38.6% for the six months ended June 29, 2024 to 37.3% for the six months ended June 28, 2025, driven primarily by lower advertising investments and other operating expenses.

Current wording

Owned & Host SG&A. SG&A as a percentage of net revenue decreased from 39.1% for the nine months ended September 28, 2024 to 37.7% for the nine months ended September 27, 2025, driven primarily by lower advertising investments and other operating expenses.

Previous wording

Depreciation and amortization expense of $45.5 million for the six months ended June 28, 2025 decreased $0.4 million, or 0.9%, from $45.9 million for the six months ended June 29, 2024 primarily driven by lower amortization of intangible assets.

Current wording

Depreciation and amortization expense of $67.7 million for the nine months ended September 27, 2025 decreased $0.9 million, or 1.3%, from $68.6 million for the nine months ended September 28, 2024, primarily driven by fewer new store openings and lower amortization of intangible assets.

Previous wording

We recognized $0.5 million primarily for impairment related to tangible long-lived assets and ROU assets associated with our retail stores during the six months ended June 28, 2025, compared to $4.0 million impairment recognized during the six months ended June 29, 2024 for tangible long-lived assets and ROU assets associated with our retail stores. The store asset impairment charge is related to our Owned & Host segment and is driven by lower than projected customer sales and profitability in certain stores, and other entity-specific assumptions. We considered multiple factors including, but not limited to: forecasted scenarios related to store performance and the likelihood that these scenarios would be ultimately realized; and the remaining useful lives of the assets. Asset impairment expenses were recognized in corporate and other.

Current wording

We recognized $0.5 million impairment charges during the nine months ended September 27, 2025, primarily for tangible long-lived assets and ROU assets associated with our retail stores. We recognized $17.7 million of impairment charges during the nine months ended September 28, 2024, primarily for the Fred Meyer contracts and relationships intangible asset and tangible long-lived assets and ROU assets associated with our retail stores. The store asset impairment charge is related to our Owned & Host segment and is driven by lower than projected customer sales and profitability in certain stores, and other entity-specific assumptions. We considered multiple factors including, but not limited to: forecasted scenarios related to store performance and the likelihood that these scenarios would be ultimately realized; and the remaining useful lives of the assets. Asset impairment expenses were recognized in corporate and other.