Kopin (KOPN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $18.19M, up 52% YoY and 43% QoQ; operating loss narrowed to $0.51M from $3.5M in Q2.

• Funded development and grant activity supported revenue growth, while net loss included $2.7M of largely non-cash investment losses.

• Color MicroLED and Neural I/O programs advanced alongside domestic manufacturing investments and plans for future production.

Financial highlights

• Q3 revenue was $18.19M vs. $11.96M YoY; nine-month revenue was $41.48M vs. $30.96M.

• Q3 product revenue was $8.8M; non-product revenue was $9.4M, including $5.4M of Fabric.AI R&D revenue and $3.1M of color MicroLED grant revenue.

• Q3 net loss was $3.42M, or $0.02 per share, vs. net income of $4.08M; nine-month net loss was $6.34M vs. $4.20M.

• Q3 operating loss was $0.51M vs. operating income of $4.53M a year earlier; nine-month operating loss was $10.00M vs. income of $4.84M.

• Q3 operating cash flow was $2.4M; nine-month net cash used in operating activities was $2.7M.

Outlook and guidance

• Strong Q4 revenue and progress toward sustainable GAAP profitability expected; Q4 GAAP profitability remains achievable under current projections and spending plans.

• Management expects sustainable profitability through 2027; 2027 revenue visibility is good, with ~50% already in backlog.

• Color MicroLED production remains targeted for mid-2027; Neural I/O production silicon and commercial productization are targeted for 2028.

• Drone goggle revenue is still expected to be ~$10M in 2027; additional Gauntlet 2.5 testing shifted volume timing.

• Remaining 2026 capex is forecast at $1.0M–$1.5M; liquidity is expected to fund operations beyond Q4 2027, though future financing may be considered if needed.