Kopin revenue jumps 52% to $18.2 million in third quarter
Key Facts
Kopin said preliminary, unaudited revenue was $18.2 million for the quarter ended September 26, 2026, up 52% from $12.0 million a year earlier and 43% from the previous quarter. The company said the annual increase primarily reflected research and development revenue from its joint development program with Fabric.AI, along with revenue from a U.S. government grant for color MicroLED technology. Revenue growth coincided with funded development programs moving from research and development toward stages closer to production, the company said. In contrast, Kopin reported a net loss of $3.4 million, or $0.02 per share, after net income of $4.1 million, or $0.02 per share, in the year-earlier period. The company did not cite an analyst estimate for the per-share loss.
The third-quarter net loss included about $2.7 million in investment losses, which Kopin said resulted largely from non-cash changes in the fair value of its strategic equity investments. The operating loss was $0.5 million, compared with operating income of $4.5 million a year earlier. The year-over-year comparison was affected, however, by a $5.1 million gain in the third quarter of 2025 from a reduction in the litigation liability provision. On a quarterly basis, the operating loss improved by $3.0 million. Operating expenses were $12.3 million, up 28% from the previous quarter, while revenue rose 43%. Operating expenses as a share of revenue fell by 800 basis points to 68%.
The company said the annual revenue increase was linked to the joint development program with Fabric.AI, which began under an agreement signed on April 27, 2026, and to revenue from a U.S. Army grant to develop color MicroLEDs. Kopin announced an additional $18.6 million in funding from the Army’s IBAS program, bringing cumulative funding for its color technology to $34 million. The government funding places part of the period’s revenue growth within development and grant activities, alongside the company’s commercial programs. In the third quarter, operating activities provided about $2.4 million in cash. For the first nine months of 2026, net cash used in operations was $2.7 million, according to the company’s filing.
In a product-related development, Kopin said it received a $2.4 million order for micro OLED displays from a new customer. The program, associated with a thermal weapon sight, had entered initial low-rate production, with deliveries scheduled to begin in the fourth quarter of 2026. The order comes as the company works to move other technologies from development into manufacturing. It said manufacturing of MicroLED products remains targeted for mid-2027. That target makes mid-2027 production a later milestone for the grant program and Army funding, while deliveries under the OLED order are due to start earlier.
Neural I/o, which Kopin is developing with Fabric.AI, has begun initial transmission-link testing, the company said. It said the program remains on schedule for its first public demonstration at CES in January 2027, followed by a presentation at the SPIE Photonics West conference. The demonstration is scheduled after the joint program began in April 2026, while the targeted manufacturing trial for MicroLED products remains set for mid-2027. On liquidity, cash and cash equivalents stood at $25.8 million on September 26, compared with $24.9 million on June 27. Total cash, restricted cash and marketable securities were $51.3 million at quarter-end.
KOPN shares closed at $3.32 in the November 10 session, down 1.78%, and fell to $3.313 in after-hours trading, a further decline of 0.21%, according to Investing.com data. The site said quarterly revenue of $18.19 million was above the consensus estimate of $16.12 million. It reported that the $0.02 per-share loss was $0.01 worse than analysts’ estimate of a $0.01 loss. Before the session, EL7 data showed the stock closing at $3.38 on November 9. The next operational milestones set by the company are the start of OLED order deliveries in the fourth quarter of 2026, the Neural I/o demonstration in January 2027, and the targeted MicroLED manufacturing in mid-2027.