Kopin Corporation Reports Second Quarter 2026 Financial Results and Highlights Strong Growth Across Key Platforms
Kopin Corporation (Nasdaq: KOPN), a developer of innovative display and application-specific optical technologies, today reported its financial results for the second quarter ended June 27, 2026, and provided an update on progress across its key growth platforms, including MicroLED, FPV drone systems, augmented reality, and Neural I/o™ optical interconnect technology.
Michael Murray, Chief Executive Officer of Kopin, said the Company continued to build momentum across its growth initiatives during the second quarter and into the weeks following the end of the period.
“The second quarter and the weeks that followed demonstrated the significant momentum building across every one of Kopin’s growth platforms,” said Murray. “Subsequent to quarter end, our team delivered three major milestones in our color MicroLED program under the IBAS initiative, keeping us firmly on track to transition to domestic MicroLED product manufacturing in mid-2027.”
According to Murray, the Company believes its MicroLED capabilities could support meaningful revenue opportunities over the life of programs such as SBMC. The U.S. Army has expressed satisfaction with Kopin’s progress, while demand for full-color MicroLED technology is expanding beyond the Army program into additional applications, including head-up displays, weapon sights, and helmet-mounted systems.
Sentinel FPV™ Gains Commercial Momentum
Kopin also continues to see increasing demand for its Sentinel FPV™ technology as it expands its presence in the first-person-view drone market.
Following the end of the second quarter, Kopin announced multiple new prototype orders from customers, including several active participants in the U.S. Government’s Drone Dominance Program. The prototype programs represent potential opportunities for significant volume production, with volume orders expected to begin in late August following the program’s Phase 2 evaluations and awards.
Murray said demand for trusted, U.S.-built FPV technology is accelerating, with Kopin’s Dual Situational Awareness design continuing to differentiate Sentinel FPV in the marketplace.
The Company is also seeing demand from drone customers both inside and outside the Drone Dominance Program. Kopin is currently negotiating several potentially significant production orders for 2027, providing an indication of the growth opportunity management sees in the FPV drone market.
Neural I/o™ Development Continues
Kopin’s Neural I/o™ program remains on schedule, with the Company expecting to demonstrate the technology at CES in January 2027.
The program is being developed around a 1.6-terabit-per-second transceiver solution, providing a path toward commercialization of Kopin’s optical interconnect technology for high-performance computing and AI infrastructure applications.
Commercial interest in Neural I/o is also expanding, with industry participants evaluating both Kopin’s current chipset and its emerging product roadmap. The Company is engaging with U.S. defense and government agencies regarding domestically manufactured Neural I/o solutions and is beginning to see interest from customers in the quantum computing and semiconductor industries.
Second Quarter 2026 Financial Results
Kopin reported total revenue of $12.7 million for the second quarter ended June 27, 2026, representing a 51% increase from $8.5 million in the second quarter ended June 28, 2025.
The year-over-year increase was primarily driven by grant revenue recognized under the Company’s U.S. Government MicroLED award, collaboration revenue from its development program with Fabric.AI, revenue associated with its strategic AR/thermal clip-on partnership, and higher research and development revenue from the Phase 2 Off-the-Visor Heads-Up Display program with the U.S. Army.
Product revenue was $7.6 million, compared with $7.5 million in the prior-year quarter. Higher defense revenue from thermal weapon sight applications and liquid crystal displays was largely offset by lower revenue from industrial applications.
Non-product revenue increased substantially to $5.1 million, compared with $1.0 million in the second quarter of 2025. The increase primarily reflected government grant revenue associated with Kopin’s development of ultra-bright, full-color MicroLED displays for ground-soldier augmented reality applications.
Additional contributors included collaboration revenue from the Company’s program with Fabric.AI to develop and commercialize GPU-to-GPU connectivity technologies, revenue associated with its strategic partnership for next-generation augmented reality and thermal clip-on technology, and higher research and development revenue from the U.S. Army’s Phase 2 Off-the-Visor Heads-Up Display program.
Operating Results
Cost of product revenue was $6.6 million, or 86% of net product revenue, compared with $7.1 million, or 94%, in the second quarter of 2025. The improvement in the percentage of product revenue was primarily attributable to product mix.
Research and development expenses increased to $4.5 million, compared with $1.9 million in the prior-year period. The increase was primarily associated with higher funded research and development costs related to the Company’s government-supported MicroLED development program.
Selling, general and administrative expenses were $5.1 million, compared with $4.9 million in the second quarter of 2025. The increase was primarily driven by higher professional fees and accrued performance-based compensation.
Kopin reported a loss from operations of $3.5 million, an improvement from the $5.5 million operating loss recorded in the second quarter of 2025.
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, in the prior-year quarter.
The year-over-year improvement primarily reflected higher total revenue, a $1.9 million increase in other income, net, driven largely by approximately $2.3 million in gains on investments, and a $2.1 million income tax benefit associated with the expiration of the statute of limitations on an uncertain tax position.
Liquidity and Financial Position
As of June 27, 2026, Kopin had $24.3 million in cash and cash equivalents. Total cash, restricted cash, and marketable securities were $50.3 million, including $26.0 million of restricted cash.
Of the restricted cash balance, $24.2 million collateralizes the supersedeas bond posted in connection with the BlueRadios litigation appeal.
Erich Manz, Chief Financial Officer of Kopin, said the Company continued to demonstrate strong operational discipline during the quarter.
“The second quarter reflected continued operational discipline, including our fourth consecutive quarter of exemplary on-time-in-full delivery and quality performance,” said Manz. “Reflecting the order momentum across the business for 2026, we continue to expect a solid second half, exceeding our prior guidance.”
Looking ahead, Manz said the Company is increasingly optimistic about its trajectory into 2027 as the growth trends emerging in 2026 appear positioned to continue into the following year. He added that Kopin expects to make meaningful progress toward sustainable GAAP profitability in the fourth quarter of 2026.
Earnings Call and Webcast
Kopin hosted an investor conference call at 5:00 p.m. Eastern Time on Monday, August 10, 2026, to discuss its unaudited second-quarter 2026 financial results, provide a corporate update, and conduct a question-and-answer session with investors.
A replay of the conference call is available through August 17, 2026. The webcast replay is also available through the company’s investor resources.
About Kopin Corporation
Kopin Corporation (Nasdaq: KOPN) is a developer and provider of innovative display and application-specific optical solutions serving the defense, AI infrastructure, enterprise, professional, and consumer markets.
The Company’s portfolio includes microdisplays, display modules, eyepiece and projection assemblies, and vehicle- and head-mounted display systems based on liquid crystal, MicroLED, and OLED technologies. Kopin also develops advanced optical systems and low-power custom silicon designed for specialized applications.
Building on its patented bi-directional NeuralDisplay™ architecture, Kopin is developing Neural I/o™ optical interconnects that use programmable MicroLED pixels as ultra-high-speed, low-power optical transceivers for AI data centers.
Through its combination of display technologies, optics, and custom semiconductor solutions, Kopin is focused on addressing demanding applications where high performance, low power consumption, compact form factors, and advanced optical connectivity are critical.
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