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Kopin
(NASDAQ:KOPN)
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Rating:49Neutral
Price Target:
$3.50
▼(-27.54% Downside)
Action:Reiterated
Date:10/17/26
The score is held back mainly by weak cash flow/FCF and still-negative operating profitability, alongside bearish technicals and a high P/E. Offsetting these, the latest earnings call showed improving results and upbeat, metric-driven guidance with notable product and program milestones, but much of the larger revenue opportunity appears back-end loaded into 2027–2028.
Positive Factors
Revenue and Order Momentum
Strong quarterly growth and more than $45 million of year-to-date orders indicate improving demand and program traction. If converted into production revenue, this commercial momentum could broaden Kopin’s revenue base and support more consistent growth over the next several quarters.
Negative Factors
Persistent Cash Burn
Persistently negative operating and free cash flow means reported progress has not yet translated into internally generated liquidity. Continued cash consumption could constrain investment capacity or require additional funding if production ramps and margin improvements take longer than planned.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Order Momentum
Strong quarterly growth and more than $45 million of year-to-date orders indicate improving demand and program traction. If converted into production revenue, this commercial momentum could broaden Kopin’s revenue base and support more consistent growth over the next several quarters.
Read all positive factors
Kopin (KOPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$631.97M
Dividend YieldN/A
Average Volume (3M)3.43M
Price to Earnings (P/E)76.9
Beta (1Y)2.98
Revenue Growth-7.12%
EPS GrowthN/A
CountryUS
Employees145
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.04
Shares Outstanding185,872,620
10 Day Avg. Volume3,155,936
30 Day Avg. Volume3,433,631
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)5.69
Price to Sales (P/S)10.60
P/FCF Ratio-24.01
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue15.70
Enterprise Value/Gross Profit37.44
Enterprise Value/Ebitda99.92
Forecast
1Y Price Target
$6.75Price Target Upside39.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$60.61M
Kopin Business Overview & Revenue Model
Company Description
Kopin Corporation, together with its subsidiaries, develops, manufactures, and sells microdisplays, subassemblies, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, an...
How the Company Makes Money
Kopin makes money primarily by selling microdisplay components and display-related subsystems to customers who integrate them into head-mounted and wearable devices. Key revenue streams generally include: (1) Product revenue from microdisplays (e....
Kopin Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful technical and commercial milestones (microLED brightness >150k nits, new manufacturing equipment, Sentinel FPV prototype traction, Fabric.AI collaboration, Dallas design center) and showed strong top-line growth (+51% YoY) and a GAAP net income swing to $0.9M. However, much of the revenue growth was driven by grant and collaboration (nonproduct) revenue, product revenue remained flat, operating losses persist, R&D costs spiked as development ramps, and several major production revenue streams are scheduled outside the near term (major production in 2028). Balance sheet restrictions and legacy litigation add some overhang. On balance, the company demonstrated positive momentum and milestones that meaningfully de-risk long-term opportunities while still facing near-term execution and timing risks.Positive Updates
Strong Revenue Growth Driven by Grants and Collaborations
Total revenue of $12.7M in Q2 2026 vs $8.5M in Q2 2025, a 51% year-over-year increase driven largely by grant revenue from the U.S. government microLED award and collaboration revenue (Fabric.AI and strategic AR/thermal partnerships). Nonproduct revenue rose to $5.1M from $1.0M a year ago (~410% increase), highlighting success in winning development and grant funding.
Negative Updates
Product Revenue Flat Year-over-Year
Product revenue was $7.6M in Q2 2026 vs $7.5M in Q2 2025 — effectively flat, indicating that top-line growth was driven primarily by grants/collaboration income rather than organic product sales growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth Driven by Grants and Collaborations
Total revenue of $12.7M in Q2 2026 vs $8.5M in Q2 2025, a 51% year-over-year increase driven largely by grant revenue from the U.S. government microLED award and collaboration revenue (Fabric.AI and strategic AR/thermal partnerships). Nonproduct revenue rose to $5.1M from $1.0M a year ago (~410% increase), highlighting success in winning development and grant funding.
Read all positive updates
Company Guidance
Guidance from the call was optimistic and metric-driven: management expects a stronger second half of 2026 that will exceed prior full-year guidance of $52–$60 million, with GAAP profitability and positive free cash flow beginning in Q4 2026; they reported Q2 revenue of $12.7 million (up 51% YoY), product revenue $7.6 million, nonproduct $5.1 million, cost of product revenues $6.6 million (86% of net product revenues vs. 94% a year ago), R&D $4.5 million, SG&A $5.1 million, loss from operations narrowed to $3.5 million, and net income attributable to common of $0.9 million (≈ $0.00 per share); order intake exceeded $45 million YTD and total cash + restricted + marketable securities stood at $50.3 million (cash & equivalents $24.3 million; $26 million restricted, $24.2 million of which collateralizes a bond). Operational and product milestones tied to guidance include optical automation savings of ~ $1 million annually, transition to microLED manufacturing targeted mid‑2027 (150,000 nits achieved), an in‑house OLED deposition line coming online early 2027 (projected ~15 percentage‑point gross margin benefit), Sentinel FPV volume demand starting late Q4 with potential tens of thousands of goggles and “tens of millions” of revenue in 2027, and Neural I/o progress (chiplet demo by end of 2026, CES transceiver demo Jan 2027 targeting a 1.6 Tb/s solution and potential $20–30 million development orders in 2027, with production revenue expected in 2028).Kopin Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.62M | 38.47M | 50.34M | 40.39M | 47.40M | 45.67M |
| Gross Profit | 18.29M | 10.63M | 10.37M | 15.44M | 4.56M | 10.64M |
| EBITDA | 6.85M | 3.64M | -17.67M | -18.98M | -18.46M | -12.67M |
| Net Income | 7.91M | 2.61M | -43.88M | -19.75M | -19.33M | -13.43M |
Balance Sheet | ||||||
| Total Assets | 106.26M | 108.39M | 70.77M | 49.31M | 43.75M | 63.01M |
| Cash, Cash Equivalents and Short-Term Investments | 24.88M | 61.63M | 35.58M | 17.40M | 12.65M | 29.30M |
| Total Debt | 1.16M | 1.48M | 2.12M | 2.48M | 3.36M | 3.81M |
| Total Liabilities | 37.05M | 36.72M | 47.48M | 19.80M | 19.76M | 23.38M |
| Stockholders Equity | 69.21M | 71.67M | 23.28M | 29.51M | 24.16M | 39.80M |
Cash Flow | ||||||
| Free Cash Flow | -18.42M | -16.98M | -15.04M | -16.21M | -18.52M | -11.78M |
| Operating Cash Flow | -13.11M | -15.54M | -14.23M | -15.26M | -17.69M | -10.75M |
| Investing Cash Flow | -4.98M | 18.00M | -10.29M | -8.14M | -3.31M | 53.67K |
| Financing Cash Flow | 42.95M | 43.95M | 33.52M | 21.34M | 2.66M | 20.45M |
Kopin Technical Analysis
Negative
4.83
Price Trends
4.43
Negative
4.36
Negative
3.77
Negative
Market Momentum
-0.33
Positive
35.35
Neutral
14.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOPN, the sentiment is Negative. The current price of 4.83 is above the 20-day moving average (MA) of 4.09, above the 50-day MA of 4.43, and above the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOPN.
Kopin Risk Analysis
Kopin disclosed 40 risk factors in its most recent earnings report. Kopin reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kopin Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $726.74M | 151.01 | 2.59% | 0.49% | 3.04% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $520.37M | -18.54 | -22.17% | ― | 92.79% | -11.98% | |
52 Neutral | $768.85M | 29.73 | 7.51% | 0.97% | 20.23% | -15.15% | |
52 Neutral | $721.03M | 180.43 | 1.08% | ― | 11.28% | ― | |
49 Neutral | $631.97M | 76.92 | 13.72% | ― | -7.12% | ― | |
43 Neutral | $38.54M | -0.23 | -221.31% | ― | 11.15% | 7.27% |
* Technology Sector Average
KOPN
Kopin
3.76
0.22
6.21%
LPTH
Lightpath Technologies
8.37
-0.07
-0.83%
LYTS
Lsi Industries
20.76
-2.52
-10.84%
MLAB
Mesa Laboratories
129.25
51.84
66.97%
MVIS
Microvision
1.24
-16.61
-93.05%
VPG
Vishay Precision Group
58.98
21.91
59.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.