National Vision Holdings, Inc.EYE
National Vision Holdings, Inc. Revenue Disclosure
Revenue from Contracts with Customers
Revenues Recognized at a Point in Time
Owned & Host
Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers.
For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations are satisfied, which generally occurs upon delivery and customer acceptance of the product. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed.
Other revenues
Our dedicated e-commerce website sells contact lenses and optical accessory products to retail customers, and recognizes revenue when products have been delivered to the customer. FirstSight issues individual vision plans in connection with our America’s Best operations in California.
Revenues Recognized Over Time
Within our Owned & Host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eye care club memberships and HMO vision plan fees. We offer extended warranty plans in our Owned & Host segment that generally provide repair and replacement of eyeglasses for primarily a one-year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as Deferred revenue (current and noncurrent portions) in the accompanying Consolidated Balance Sheets.
The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition:
| In thousands | Fiscal Year 2025 | Fiscal Year 2024 | Fiscal Year 2023 | |||||||||||||||||
| Revenues recognized at a point in time | $ | 1,859,291 | $ | 1,696,735 | $ | 1,631,030 | ||||||||||||||
| Revenues recognized over time | 128,197 | 126,585 | 125,341 | |||||||||||||||||
| Total net revenue | $ | 1,987,488 | $ | 1,823,320 | $ | 1,756,371 | ||||||||||||||
Refer to Note 15. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment/category and by product type. As our operating segments are aligned by similar economic factors, trends and customers, the reportable segment view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors.
Deferred RevenueThe following depicts a roll-forward of deferred revenue:
| Fiscal Year 2025 | |||||||||||||||||
| In thousands | Product Protection Plans | Eye Care Clubs | Total | ||||||||||||||
| Beginning of the year | $ | 35,700 | $ | 48,889 | $ | 84,589 | |||||||||||
| Sold | 75,120 | 55,565 | 130,685 | ||||||||||||||
| Revenue recognized | (73,565) | (54,632) | (128,197) | ||||||||||||||
| End of year | $ | 37,255 | $ | 49,822 | $ | 87,077 | |||||||||||
| Current | $ | 36,948 | $ | 27,612 | $ | 64,560 | |||||||||||
| Noncurrent | 307 | 22,210 | 22,517 | ||||||||||||||
| $ | 37,255 | $ | 49,822 | $ | 87,077 | ||||||||||||
| Fiscal Year 2024 | |||||||||||||||||
| In thousands | Product Protection Plans | Eye Care Clubs | Total | ||||||||||||||
| Beginning of the year | $ | 36,419 | $ | 47,907 | $ | 84,326 | |||||||||||
| Sold | 72,135 | 54,713 | 126,848 | ||||||||||||||
| Revenue recognized | (72,854) | (53,731) | (126,585) | ||||||||||||||
| End of year | $ | 35,700 | $ | 48,889 | $ | 84,589 | |||||||||||
| Current | $ | 35,409 | $ | 27,098 | $ | 62,507 | |||||||||||
| Noncurrent | 291 | 21,791 | 22,082 | ||||||||||||||
| $ | 35,700 | $ | 48,889 | $ | 84,589 | ||||||||||||
Unsatisfied Performance Obligations (Contract Liabilities)
During fiscal years 2025 and 2024, we recognized $62.7 million and $62.8 million, respectively, of deferred revenues outstanding at the beginning of each respective period.
Deferred revenue recorded as of the end of fiscal year 2025 is expected to be reflected in future operating results as follows:
| Fiscal Year | In thousands | |||||||
| 2026 | $ | 64,560 | ||||||
| 2027 | 17,156 | |||||||
| 2028 | 5,361 | |||||||
| $ | 87,077 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 4, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2022 | |
| 2021 | Mar 3, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 8, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.