Kopin (KOPN) AI Stock Analysis

• Market Cap: $438.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: 3.02%
• EPS Growth: 90.87%
• Country: US
• Employees: 181
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 182,540,800
• 10 Day Avg. Volume: 2,793,933
• 30 Day Avg. Volume: 3,110,187
• PEG Ratio: -0.05
• Price to Book (P/B): 7.76
• Price to Sales (P/S): 3.59
• P/FCF Ratio: -12.01
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 7.91
• Enterprise Value/Gross Profit: 30.36
• Enterprise Value/Ebitda: -70.18
• 1Y Price Target: $4.44
• Price Target Upside: 85.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.50 ▲(4.17% Upside)

Kopin's overall stock score is primarily impacted by its weak financial performance, with significant challenges in profitability and cash flow generation. While strategic partnerships and improved earnings provide some optimism, the negative valuation metrics and legal uncertainties weigh heavily on the stock's attractiveness. Technical indicators suggest potential volatility, adding to the risk profile.

Positive Factors

Strategic Partnerships

These partnerships enhance Kopin's market position in the defense sector, providing long-term growth opportunities and reinforcing its competitive advantage.

Financial Backing

The significant capital raise improves Kopin's cash position, supporting future growth initiatives and providing financial stability.

Market Position in Defense

Kopin's role in defense technologies strengthens its market position, benefiting from increased defense budgets and technological advancements.

Negative Factors

Revenue Decline

The decline in revenue indicates challenges in maintaining sales growth, which could impact long-term profitability and market share.

High Cost of Revenue

Rising costs reduce profit margins, highlighting inefficiencies that could hinder Kopin's ability to achieve sustainable profitability.

Legal Risks

The ongoing legal dispute introduces financial uncertainty and potential liabilities, which could affect Kopin's financial health and operational focus.

Kopin Business Overview & Revenue Model

Company Description

Kopin Corporation (KOPN) is a technology company specializing in the development and manufacturing of advanced microdisplay and wearable technologies. The company operates primarily in the sectors of augmented reality (AR), virtual reality (VR), and heads-up displays (HUDs) for various applications, including defense, industrial, and consumer markets. Kopin's core products include high-resolution microdisplays, optics, and software platforms that enhance visual experiences in both commercial and military applications.

How the Company Makes Money

Kopin generates revenue through multiple streams, primarily by selling its microdisplay technologies and related components to a variety of industries, including defense contractors, industrial equipment manufacturers, and consumer electronics companies. The company's revenue model includes direct product sales, licensing agreements for its intellectual property, and partnerships with other technology firms to integrate its displays into their products. Significant partnerships with major players in the AR and VR markets help bolster its earnings, as they often involve long-term contracts and collaborative development projects that can lead to additional revenue opportunities.

Kopin Financial Statement Overview

Summary

Kopin faces significant financial hurdles, particularly in achieving profitability and positive cash flows. The income statement shows negative net income and EBIT, while the cash flow statement indicates negative operating and free cash flows, suggesting reliance on external financing. The balance sheet is moderately stable but could be strained by ongoing liabilities growth.

Income Statement

Kopin shows a concerning financial trajectory with negative net income and EBIT for the latest year, indicating ongoing operational challenges. Revenue growth is inconsistent, and profit margins are negative, highlighting difficulties in achieving profitability. The significant negative EBITDA suggests operational inefficiencies or high costs that are not covered by revenue.

Balance Sheet

The balance sheet reveals a moderate financial structure with a manageable debt-to-equity ratio, indicating reliance on equity over debt financing. A strong cash position relative to debt provides a buffer, but consistent liabilities growth could pose future risks. The company maintains positive stockholders' equity, suggesting a stable capital base, though profitability challenges might strain this stability.

Cash Flow

Kopin's cash flow situation is critical, with negative operating and free cash flows, indicating challenges in generating cash from core activities. The substantial negative free cash flow suggests an inability to cover capital expenditures without financing, posing a risk to financial sustainability. Positive financing cash flow indicates reliance on external funding, which may not be sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.60M	50.34M	40.39M	47.40M	45.67M	40.13M
Gross Profit	11.88M	10.37M	15.44M	4.56M	10.64M	10.98M
EBITDA	-5.14M	-17.67M	-16.57M	-21.07M	-13.11M	-4.11M
Net Income	-6.15M	-43.88M	-19.75M	-19.33M	-13.43M	-4.41M
Balance Sheet
Total Assets	61.22M	70.77M	49.31M	43.75M	63.01M	47.55M
Cash, Cash Equivalents and Short-Term Investments	26.51M	35.58M	17.40M	12.65M	29.30M	20.75M
Total Debt	2.01M	2.12M	2.48M	3.36M	3.81M	1.80M
Total Liabilities	39.89M	47.48M	19.80M	19.76M	23.38M	19.25M
Stockholders Equity	21.32M	23.28M	29.51M	24.16M	39.80M	28.44M
Cash Flow
Free Cash Flow	-11.10M	-15.04M	-16.21M	-18.52M	-11.78M	-4.96M
Operating Cash Flow	-9.27M	-14.23M	-15.26M	-17.69M	-10.75M	-4.42M
Investing Cash Flow	20.33M	-10.29M	-8.14M	-3.31M	53.67K	11.80M
Financing Cash Flow	921.49K	33.52M	21.34M	2.66M	20.45M	3.69M

Kopin Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.4 is below the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.92, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOPN.

Kopin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	70 Neutral	$574.91M	23.01	11.03%	1.08%	22.35%	2.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VPG	60 Neutral	$514.70M	65.21	2.37%	―	-7.46%	-39.98%
LPTH	53 Neutral	$407.06M	-19.91	-37.93%	―	36.85%	-77.93%
MLAB	51 Neutral	$447.53M	-256.94	-0.92%	0.79%	7.39%	99.34%
KOPN	48 Neutral	$438.10M	-64.00	-27.91%	―	3.02%	90.87%
MVIS	44 Neutral	$287.53M	-2.56	-112.89%	―	-67.66%	13.39%

Kopin Corporate Events

Kopin Amends Certificate for Preferred Stock Issuance

On October 15, 2025, Kopin Corporation filed a Certificate of Designation to amend its Certificate of Incorporation, establishing the terms for its Series A Convertible Preferred Stock. This strategic move allows the company to issue 1,500 shares of preferred stock, which will rank senior to common stock in terms of dividends and liquidation rights, potentially strengthening its financial structure and providing new opportunities for investment.

Kopin Appeals $19.7M Judgment, Secures Loan Agreement

On October 7, 2025, Kopin Corporation filed an appeal against a $19.7 million judgment in the case of Blue Radios Inc. v. Kopin Corporation. To secure the appeal, Kopin entered into loan agreements with its bank, providing a $23 million bond, which includes the judgment, legal expenses, and interest. The bank issued a Letter of Credit to a surety company, which then issued the bond to the court, with provisions allowing the bank to use the deposited funds if necessary.

Kopin Amends Stock Agreement with Theon International

On September 30, 2025, Kopin Corporation and Theon International PLC amended their Series A Convertible Preferred Stock Purchase Agreement, increasing the Mandatory Conversion Price from $4.50 to $5.50 per share. Additionally, a side letter agreement included provisions for the development and commercialization of a μLED micro-display product for Theon, with Theon agreeing to pre-pay $4.0 million in development costs, which could be converted into a loan if the development plan is deemed unjustifiable.

Kopin Secures $41M in Private Equity Financing

On September 29, 2025, Kopin Corporation announced a securities purchase agreement for a private investment in public equity financing, expected to generate approximately $41 million in gross proceeds. The funds will be used to advance the development of color MicroLED technology, Neuraldisplay™ Artificial Intelligence, and other optical solutions, as well as for general corporate purposes. The investment highlights Kopin’s growth potential and strategic value, with key investors like Theon International, Ondas Holdings, and Unusual Machines underscoring confidence in Kopin’s technology and market opportunities. The transaction is set to close on September 30, 2025, subject to customary conditions.