Kopin Narrows Operating Loss as Revenue Hits $18.2 Million

The Tip Desk · November 12, 2026 · 4 min read

Third-quarter total revenue rose 52% to $18.2 million as funded MicroLED and Fabric.AI work lifted R&D and grant income, and the company booked an extra $18.6 million IBAS award.

Kopin Corporation (KOPN), a provider of application-specific optical systems and high-performance microdisplays, reported third-quarter revenue of $18.2 million for the period ended September 26, 2026, up 52% from $12.0 million a year earlier and 43% from $12.7 million in the second quarter.

The optical-systems company said the year-over-year increase primarily reflected research and development revenue from its joint development program with Fabric.AI and grant revenue under its U.S. Government color MicroLED award. R&D revenue was $5.68 million, versus $1.20 million a year earlier, and grant income was $3.10 million, versus none. Net product revenues were $8.79 million.

Defense display revenues were $8.46 million. Industrial display revenues were $52,155. License and royalties revenue was $605,900.

Cost of product revenues was $6.4 million, or 73% of net product revenues, compared with 79% a year earlier and 86% in the second quarter. Operating expenses were $12.3 million. Sequentially, those expenses rose 28% while revenue grew 43%, reducing operating expenses to 68% of total revenues, an 800-basis-point sequential decline. Year-over-year, operating expenses rose from $4.1 million in the third quarter of 2025, a period that included an approximately $3.3 million reduction in accrued legal fees.

Loss from operations was $0.5 million, compared with income from operations of $4.5 million a year earlier, which included a $5.1 million gain on legal contingency related to prior litigation matters. Sequentially, the operating loss improved $3.0 million from a $3.5 million loss in the second quarter. Net loss was $3.4 million, or $(0.02) a share, versus net income of $4.1 million, or $0.02 a share, a year earlier. The quarter included approximately $2.7 million of net losses on investments, largely reflecting non-cash changes in the fair value of strategic equity investments.

Chief Executive Officer Michael Murray said third-quarter revenue grew 52%, driven by funded development programs that are setting the stage for future product revenue as they move from R&D into production. Chief Financial Officer Erich Manz said the results reflect the scaling of funded development programs and growing operating leverage, and that the company continues to expect a strong second half and meaningful progress toward sustainable GAAP profitability.

Kopin secured an additional $18.6 million sole-source award from the Office of the Secretary of War through the U.S. Army Contracting Command under the Industrial Base Analysis and Sustainment program, bringing cumulative IBAS funding for color MicroLED technology to $34 million. Murray said the award keeps the company on track for MicroLED product manufacturing in mid-2027.

The company advanced Neural I/o, the MicroLED-based optical interconnect co-developed with Fabric.AI, toward its first public demonstration at CES in January 2027, to be followed by a demonstration at SPIE Photonics West. The companies began initial transmission-link testing and published a white paper modeling as much as 1.6 times greater useful data throughput from the same number of GPUs.

Kopin also received a $2.4 million order for OLED microdisplays from a new international thermal weapon sight manufacturer through Kopin Europe. The company said the customer’s program has entered low-rate initial production, with deliveries scheduled to begin in the fourth quarter of 2026. It was awarded an $800,000 grant through the Massachusetts Manufacturing Innovation Initiative to install advanced capital equipment for domestic manufacturing of MicroLED displays and Neural I/o optical interconnects at its Westborough facility.

Cash and cash equivalents were $25.8 million as of September 26, 2026, up from $24.9 million as of June 27, 2026. Total cash, restricted cash and marketable securities were $51.3 million, inclusive of $25.5 million of restricted cash, of which $24.2 million collateralizes the supersedeas bond posted in connection with a litigation appeal. Cash provided by operating activities was approximately $2.4 million in the third quarter, reducing net cash used in operating activities for the first nine months of 2026 to $2.7 million. Capital expenditures were $1.4 million in the third quarter.