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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
▲(11.73% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily held down by weak underlying financial quality—especially persistent negative operating/free cash flow and ongoing operating losses—alongside an extremely high P/E valuation. Offsetting these are moderately constructive technicals and an earnings call that outlined improving momentum and clearer profitability/FCF targets, but with meaningful timing risk given dependence on nonproduct revenue and longer-dated production ramps.
Positive Factors
MicroLED technical milestone & onshoring
Demonstrated >150k nits and installed custom bonding equipment, de‑risking the mid‑2027 shift to U.S. microLED manufacturing. That positions Kopin as a trusted domestic supplier for defense programs, strengthening long‑term contractability and strategic differentiation versus offshore competitors.
Negative Factors
Consistent negative cash flow
Operating cash flow and free cash flow have been negative across all reported periods and remain negative in TTM. Persistent cash burn limits the company's ability to self‑fund capex and scale production, increasing reliance on financing or balance sheet actions and creating dilution/liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
MicroLED technical milestone & onshoring
Demonstrated >150k nits and installed custom bonding equipment, de‑risking the mid‑2027 shift to U.S. microLED manufacturing. That positions Kopin as a trusted domestic supplier for defense programs, strengthening long‑term contractability and strategic differentiation versus offshore competitors.
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 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
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
Financials are pressured by consistently negative operating cash flow and free cash flow (cash burn persists even in TTM), while operating profitability remains negative despite a recent swing to positive net income. The balance sheet metrics also show notable volatility in leverage/equity across periods, 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 Revenue43.62M38.47M50.34M40.39M47.40M45.67M
Gross Profit18.29M10.63M10.37M15.44M4.56M10.64M
EBITDA6.85M3.64M-17.67M-18.98M-18.46M-12.67M
Net Income7.91M2.61M-43.88M-19.75M-19.33M-13.43M
Balance Sheet
Total Assets106.26M108.39M70.77M49.31M43.75M63.01M
Cash, Cash Equivalents and Short-Term Investments24.88M61.63B35.58M17.40M12.65M29.30M
Total Debt1.16M648.47M2.12M2.48M3.36M3.81M
Total Liabilities37.05M36.72M47.48M19.80M19.76M23.38M
Stockholders Equity69.21M71.67M23.28M29.51M24.16M39.80M
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-4.98M18.00M-10.29M-8.14M-3.31M53.67K
Financing Cash Flow42.95M43.95M33.52M21.34M2.66M20.45M

Kopin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.58
Price Trends
50DMA
4.28
Positive
100DMA
4.11
Positive
200DMA
3.32
Positive
Market Momentum
MACD
0.26
Negative
RSI
66.11
Neutral
STOCH
81.04
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 3.58 is below the 20-day moving average (MA) of 4.07, below the 50-day MA of 4.28, and above the 200-day MA of 3.32, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$912.67M32.158.90%0.86%11.42%5.37%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$593.39M123.302.59%0.66%3.04%
53
Neutral
$1.01B-30.54-41.18%86.66%-97.48%
52
Neutral
$968.66M242.301.08%11.28%
48
Neutral
$1.02B124.4313.72%-7.12%
45
Neutral
$53.17M-0.41-221.31%11.15%7.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KOPN
Kopin
5.50
3.56
183.51%
LPTH
Lightpath Technologies
15.17
11.12
274.57%
LYTS
Lsi Industries
24.86
6.11
32.55%
MLAB
Mesa Laboratories
106.04
38.16
56.21%
MVIS
Microvision
2.24
-14.72
-86.81%
VPG
Vishay Precision Group
72.72
45.04
162.72%

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: Aug 11, 2026