Kopin (KOPN) AI Stock Analysis

• Market Cap: $536.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• 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: 2,204,532
• 30 Day Avg. Volume: 2,832,965
• 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: 0.67
• Enterprise Value/Revenue: 7.91
• Enterprise Value/Gross Profit: 30.36
• Enterprise Value/Ebitda: -70.18
• 1Y Price Target: $4.44
• Price Target Upside: 51.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $3.00 ▲(2.04% Upside)

The score is held back mainly by continued losses and ongoing cash burn, despite a low-leverage balance sheet and improving margins. Technicals are supportive with the stock trading above key moving averages, while valuation remains constrained by negative earnings. The latest earnings call showed progress and strategic momentum, but revenue softness and cost pressure, plus mixed corporate developments, temper the upside.

Positive Factors

Defense partnerships and $1B+ opportunity pipeline

Strategic alliances with defense-focused partners and a disclosed opportunity pipeline north of $1B signal durable demand and validated market fit in military/industrial programs. Long-term contracts and integration work with defense customers support predictable revenue scaling and ecosystem entrenchment.

Improving margins and profitability trajectory

Material improvement in gross margin and a quarter with positive net income reflect better product mix, cost controls and lower SG&A. These trends indicate a credible pathway to sustainable profitability if product-cost pressures are contained and revenue growth resumes, reducing long-term earnings volatility.

Low leverage and recent capital raises strengthen runway

A conservative debt position (debt/equity ~0.09) combined with meaningful recent capital raises and a cash cushion materially reduces insolvency risk. This financial flexibility supports continued R&D, defense program execution, and commercialization without immediate dependence on operating cash flow.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow forces reliance on external financing to fund operations and capex. Even with improvement versus prior year, ongoing cash burn can dilute shareholders, constrain strategic investments, and elevate execution risk if capital markets tighten or dilution-averse financing is unavailable.

High product cost pressure compressing margins

Rising product costs that push cost of goods toward ~80% of product revenue materially limit gross-margin scalability. Unless manufacturing efficiencies, sourcing improvements, or pricing power are achieved, margin recovery is fragile, making sustainable profitability dependent on structural cost reductions or higher-value product mix.

Legal judgment and bonded appeal create contingent risk

A large adverse judgment and the need to post a sizable bond via bank financing ties up capital and creates contingent claims. The arrangement allows the bank to access deposited funds, increasing liquidity and execution risk while management pursues appeal, potentially diverting resources from growth initiatives.

Kopin Business Overview & Revenue Model

Company Description

Kopin Corporation, together with its subsidiaries, invents, develops, manufactures, and sells microdisplays, subassemblies, head-mounted and hand-held systems, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, and internationally. It offers miniature active-matrix liquid crystal displays, liquid crystal on silicon displays/spatial light modulators, organic light emitting diode displays, application specific integrated circuits, backlights, and optical lenses; and headset systems. The company's products are used in soldier, avionic, armored vehicle and training, and simulation defense applications; industrial, public safety, and medical headsets; 3D optical inspection systems; and consumer augmented reality and virtual reality wearable headsets systems. Kopin Corporation was incorporated in 1984 and is headquartered in Westborough, Massachusetts.

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: Positive
• Last Price: 2.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOPN, the sentiment is Positive. The current price of 2.94 is above the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.64, and above the 200-day MA of 2.08, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOPN.

Kopin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	70 Neutral	$593.87M	24.00	11.03%	1.07%	22.35%	2.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VPG	60 Neutral	$553.34M	67.93	2.37%	―	-7.46%	-39.98%
LPTH	55 Neutral	$672.93M	-32.91	-37.93%	―	36.85%	-77.93%
KOPN	52 Neutral	$536.67M	-78.40	-27.91%	―	3.02%	90.87%
MLAB	51 Neutral	$465.42M	-267.22	-0.92%	0.79%	7.39%	99.34%
MVIS	44 Neutral	$288.97M	-2.57	-112.89%	―	-67.66%	13.39%

Kopin Corporate Events

Kopin Grants Significant Equity Awards to Top Executives

On January 5, 2026, Kopin Corporation approved substantial equity awards for Chief Executive Officer and Chairman Michael Murray, granting him 583,658 shares of restricted stock and options to purchase 724,638 shares at a 25% premium to the market price, with four-year cliff vesting for the shares and quarterly vesting over four years for the options, all subject to continued service and double-trigger change-in-control protections. On the same date, the company also granted Chief Operating Officer Paul Baker 72,000 restricted shares with staggered vesting through December 2028, underscoring Kopin’s strategy of aligning executive incentives with long-term shareholder value and providing retention mechanisms for its top management team.

The most recent analyst rating on (KOPN) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Kopin stock, see the KOPN Stock Forecast page.

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.

The most recent analyst rating on (KOPN) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Kopin stock, see the KOPN Stock Forecast page.