Kopin Q2 Earnings Call Highlights

Revenue rose 51% year over year to $12.7 million , driven primarily by government-funded MicroLED development, collaborations and defense programs. Kopin narrowed its operating loss and reported $0.9 million in net income, helped by investment gains and a tax benefit. Management expects a stronger second half and projects GAAP profitability and positive free cash flow in the fourth quarter of 2026 . The company ended June with $24.3 million in cash and $50.3 million in total cash, restricted cash and marketable securities. Kopin advanced several growth initiatives, including Color MicroLED milestones for Army applications, Sentinel FPV drone headset evaluations, in-house OLED production planned for early 2027 and a $15 million Fabric.AI development program for AI connectivity technology.

Kopin Corp is the Technology Seen Behind Smart AR Glasses Kopin NASDAQ: KOPN reported second-quarter 2026 revenue growth of 51% year over year, driven by government-funded MicroLED development work, its collaboration with Fabric.AI, an augmented-reality thermal clip-on partnership and Army research programs. The company also outlined progress in its Color MicroLED, first-person-view drone, OLED manufacturing and AI infrastructure initiatives. Total revenue for the quarter ended June 27 reached $12.7 million, compared with $8.5 million a year earlier. Product revenue was largely flat at $7.6 million, versus $7.5 million in the prior-year quarter, as higher defense revenue from thermal weapon sights and liquid-crystal displays was mostly offset by lower industrial sales. Non-product revenue increased to $5.1 million from $1 million, reflecting grant, collaboration and funded research-and-development revenue.

Cost of product revenue was $6.6 million, or 86% of net product revenue, improving from $7.1 million, or 94% of net product revenue, in the year-earlier period. Chief Financial Officer Erich Manz attributed the improvement primarily to product mix. Research and development expense increased to $4.5 million from $1.9 million, largely because of funded R&D costs associated with the government award for ultra-bright, full-color MicroLED displays. Selling, general and administrative expense rose modestly to $5.1 million from $4.9 million, reflecting higher professional fees and accrued performance-based compensation.

Loss from operations narrowed to $3.5 million from $5.5 million. Net income attributable to common stockholders was $0.9 million, or $0.00 per share, compared with a net loss of $5.2 million, or $0.03 per share, a year earlier. Manz said the improvement reflected revenue growth, a $1.9 million rise in other income that included approximately $2.3 million of investment gains, and a $2.1 million income-tax benefit tied to the expiration of a statute of limitations on an uncertain tax position. At the end of June, Kopin had $24.3 million of cash and cash equivalents and $50.3 million of total cash, restricted cash and marketable securities. That total included $26 million of restricted cash, including $24.2 million collateralizing a supersedeas bond related to the BlueRadios litigation appeal. The company said it does not expect a further update on the federal appeal until approximately mid-2027.

Management maintained its expectation for a stronger second half that exceeds its prior guidance, though it did not provide a new numerical range. Manz said Kopin expects to begin generating GAAP profitability and positive free cash flow in the fourth quarter of 2026.