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Kopin (KOPN)
NASDAQ:KOPN
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Kopin (KOPN) AI Stock Analysis

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KOPN

Kopin

(NASDAQ:KOPN)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$4.00
▲(34.23% Upside)
Action:Reiterated
Date:06/26/26
The score is held down primarily by weak financial performance—especially ongoing negative operating/free cash flow and lack of consistent operating profitability—along with a weak technical setup (below key short-term moving averages with negative MACD). A constructive earnings call with notable contract wins and reiterated guidance provides partial support, but valuation is unfavorable given the extremely high P/E and no dividend yield.
Positive Factors
Strategic Fabric.AI collaboration & equity stake
Owning 19.9% of Fabric.AI and being the exclusive manufacturer for Neural I/o chipsets positions Kopin in a large, structural AI-optical interconnect market. This provides a durable channel to high-margin production, potential equity upside, and multi-year manufacturing revenue beyond consumer cycles.
Negative Factors
Persistent negative operating cash flow
Consistent operating and free cash flow deficits, despite recent net income, indicate weak cash conversion and ongoing burn. Over 2–6 months this raises reliance on financing, constrains capital allocation for production ramps, and increases dilution or liquidity risk if revenue ramps slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic Fabric.AI collaboration & equity stake
Owning 19.9% of Fabric.AI and being the exclusive manufacturer for Neural I/o chipsets positions Kopin in a large, structural AI-optical interconnect market. This provides a durable channel to high-margin production, potential equity upside, and multi-year manufacturing revenue beyond consumer cycles.
Read all positive factors

Kopin (KOPN) vs. SPDR S&P 500 ETF (SPY)

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 display components and integrated display solutions to customers that incorporate these parts into end products. Key revenue streams include: (1) Product revenue from microdisplays (e.g., small, high-resoluti...

Kopin Earnings Call Summary

Earnings Call Date:May 12, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call balanced important strategic and commercial developments (Fabric.AI partnership with equity stake and exclusive manufacturing, a $21.5M follow-on defense award, multiple new orders including Sentinel and DarkWAVE, MicroLED and in-house OLED manufacturing investments, and a solid reported cash position) against near-term financial challenges (product revenue down ~41%, product cost > revenue at 103% of product sales, material increases in R&D and SG&A). Management emphasized conservative 2026 guidance ($52M–$60M), confidence in liquidity through Q2 2027, and operational investments (automation, OLED line) intended to improve throughput and margins over time. Overall, strategic wins and backlog growth present a constructive medium-to-long-term outlook, while short-term margin and product revenue pressures pose execution risks.
Positive Updates
Strategic Fabric.AI Collaboration and Equity Stake
Announced strategic collaboration with Fabric.AI to develop Neural I/o optical interconnects for AI infrastructure; Kopin owns 19.9% of Fabric.AI and is the exclusive manufacturer of Neural I/o chipsets. Initial $15.0M purchase order funds prototype work expected by end of 2026. Identified target market opportunity for AI infrastructure optical transceivers of ~$69B–$90B by 2030.
Negative Updates
Product Revenue Decline
Product revenues fell to $5.4M in Q1 2026 from $9.2M in Q1 2025, a decline of approximately -41.3% year-over-year, primarily due to lower shipments of thermal weapon sight products and LCDs.
Read all updates
Q1-2026 Updates
Negative
Strategic Fabric.AI Collaboration and Equity Stake
Announced strategic collaboration with Fabric.AI to develop Neural I/o optical interconnects for AI infrastructure; Kopin owns 19.9% of Fabric.AI and is the exclusive manufacturer of Neural I/o chipsets. Initial $15.0M purchase order funds prototype work expected by end of 2026. Identified target market opportunity for AI infrastructure optical transceivers of ~$69B–$90B by 2030.
Read all positive updates
Company Guidance
Management reiterated 2026 revenue guidance of $52 million to $60 million (and said this range includes the Fabric.AI order) and described the outlook as conservative; Q1 revenue was $10.6 million (product $5.4M, non‑product $5.2M), cost of product revenues $5.6M (103% of product revenue) vs $7.6M (83%) year‑ago, R&D $4.9M, SG&A $6.0M, and automation investments are expected to save about $1M annually. They highlighted order momentum and awards including a $15M Fabric.AI initial purchase order (Kopin owns 19.9% of Fabric.AI), a $15.4M IBAS MicroLED award, a $1M DarkWAVE development order, European HMD orders of $2.0M and $3.6M (pilot HMD order book now >$10M), a $3.2M initial Sentinel FPV order (up to 40,000 goggles by end‑2028), and a $21.5M follow‑on thermal contract; cash and cash equivalents were $34.0M and total cash/restricted/marketable securities $59.5M (including $25.3M restricted), with liquidity expected through at least end of Q2 2027. Management said OLED deposition CapEx will be roughly $5M this year (similar next year) and indicated MicroLED/Neural I/o could drive at least ~$15M of revenue this year, ~$25M+ next year and potentially larger opportunities thereafter.

Kopin Financial Statement Overview

Summary
Financials are pressured by persistent cash burn (negative operating cash flow and free cash flow across periods, including TTM) and ongoing negative operating profitability. While net income turned positive recently and gross margin improved versus 2022, earnings quality is questioned by weak cash conversion. The balance sheet signals are mixed with notable leverage/equity volatility year-to-year, reducing confidence in stability.
Income Statement
34
Negative
Balance Sheet
42
Neutral
Cash Flow
18
Very Negative
BreakdownTTMDec 2025Mar 2025Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue39.34M38.47M50.34M40.39M47.40M45.67M
Gross Profit13.53M10.63M10.37M15.44M4.56M10.64M
EBITDA3.04M3.64M-17.67M-18.98M-18.46M-12.67M
Net Income1.91M2.61M-43.88M-19.75M-19.33M-13.43M
Balance Sheet
Total Assets102.44M108.39M70.77M49.31M43.75M63.01M
Cash, Cash Equivalents and Short-Term Investments59.49M61.63B35.58M17.40M12.65M29.30M
Total Debt1.32M648.47M2.12M2.48M3.36M3.81M
Total Liabilities34.02M36.72M47.48M19.80M19.76M23.38M
Stockholders Equity68.42M71.67M23.28M29.51M24.16M39.80M
Cash Flow
Free Cash Flow-15.17M-16.98M-15.04M-16.21M-18.52M-11.78M
Operating Cash Flow-12.94M-15.54M-14.23M-15.26M-17.69M-10.75M
Investing Cash Flow12.11M18.00M-10.29M-8.14M-3.31M53.67K
Financing Cash Flow43.92M43.95M33.52M21.34M2.66M20.45M

Kopin Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.98
Price Trends
50DMA
4.69
Negative
100DMA
3.49
Positive
200DMA
3.15
Positive
Market Momentum
MACD
-0.25
Positive
RSI
36.69
Neutral
STOCH
8.36
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 2.98 is below the 20-day moving average (MA) of 5.03, below the 50-day MA of 4.69, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 8.36 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$975.08M34.358.90%1.07%11.42%5.37%
64
Neutral
$824.42M-26.43-41.18%86.66%-97.48%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$565.86M83.273.71%0.79%3.38%
59
Neutral
$1.70B284.871.77%7.51%93.82%
48
Neutral
$707.85M439.084.31%-22.63%
41
Neutral
$96.47M-0.92-139.20%-64.10%31.45%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KOPN
Kopin
3.82
2.29
149.67%
LPTH
Lightpath Technologies
13.13
10.05
326.30%
LYTS
Lsi Industries
26.56
9.71
57.60%
MLAB
Mesa Laboratories
102.42
8.91
9.53%
MVIS
Microvision
0.28
-0.86
-75.53%
VPG
Vishay Precision Group
127.82
99.72
354.88%

Kopin Corporate Events

Business Operations and StrategyM&A Transactions
Kopin Fully Exits LST, LSA, Retains OLED Rights
Neutral
Jun 18, 2026
On June 10, 2026, Kopin Corporation exited its investments in Lightning Silicon Technology and LS Assets by selling back 18,000,000 Series Seed-1 Preferred shares in LST and 18,000,000 common shares in LSA for nominal consideration, with all share...
Business Operations and StrategyPrivate Placements and Financing
Kopin Preferred Shares Converted, Strengthening Theon Equity Stake
Positive
Jun 4, 2026
On October 16, 2025, Kopin Corporation announced a $15 million strategic investment from Theon International Plc, under which Theon acquired a 49% stake in Kopin Europe Ltd. for $8 million and entered licensing, development, and funding agreements...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Kopin Shareholders Approve Expanded Equity Plan and Leadership
Positive
May 28, 2026
On May 21, 2026, Kopin Corporation held its 2026 Annual Meeting of Stockholders, where shareholders approved an amendment and restatement of the 2020 Equity Incentive Plan that increased the number of shares available for issuance and extended the...
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.Date of analysis: Jun 26, 2026