Kopin (KOPN)
NASDAQ:KOPN
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Kopin
(NASDAQ:KOPN)
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Rating:55Neutral
Price Target:
$6.50
▲(118.12% Upside)
Action:Reiterated
Date:06/05/26
The score is held back primarily by weak financial performance (persistent cash burn and negative operating profitability) and very high valuation (P/E ~605). These are partially offset by strong technical momentum (price above major moving averages) and a moderately constructive earnings-call outlook supported by reiterated revenue guidance, notable order wins, and stated liquidity runway—though near-term margin and product revenue pressures remain a key risk.
Positive Factors
Fabric.AI strategic collaboration & equity stake
Owning equity in Fabric.AI and exclusive manufacturing rights ties Kopin to a large, structural AI-optical market. This creates multi-year revenue optionality from Neural I/o transceivers, strengthens OEM lock-in through proprietary manufacturing, and aligns incentives for longer-term R&D and capacity investment.
Negative Factors
Persistent negative operating cash flow
Consistent cash burn despite episodic net income raises sustainability concerns. Negative operating and free cash flow limit self-funding for capex and ramp investments, increasing reliance on financing or equity dilution and heightening execution risk across multi‑year program ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Fabric.AI strategic collaboration & equity stake
Owning equity in Fabric.AI and exclusive manufacturing rights ties Kopin to a large, structural AI-optical market. This creates multi-year revenue optionality from Neural I/o transceivers, strengthens OEM lock-in through proprietary manufacturing, and aligns incentives for longer-term R&D and capacity investment.
Read all positive factors
Kopin (KOPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.17B
Dividend YieldN/A
Average Volume (3M)12.15M
Price to Earnings (P/E)534.0
Beta (1Y)2.68
Revenue Growth-22.63%
EPS GrowthN/A
CountryUS
Employees181
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)<0.01
Shares Outstanding182,920,300
10 Day Avg. Volume7,932,015
30 Day Avg. Volume12,154,537
Financial Highlights & Ratios
PEG Ratio-1.50
Price to Book (P/B)5.69
Price to Sales (P/S)10.60
P/FCF Ratio-24.01
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue25.07
Enterprise Value/Gross Profit72.92
Enterprise Value/Ebitda-60.97
Forecast
1Y Price Target
$7.63Price Target Upside155.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$57.10M
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 th...
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
Positive
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
Income Statement
34
Negative
Balance Sheet
42
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.34M | 38.47M | 50.34M | 40.39M | 47.40M | 45.67M |
| Gross Profit | 13.53M | 10.63M | 10.37M | 15.44M | 4.56M | 10.64M |
| EBITDA | -16.18M | -14.12M | -17.67M | -16.57M | -21.07M | -13.11M |
| Net Income | 1.91M | 2.61M | -43.88M | -19.75M | -19.33M | -13.43M |
Balance Sheet | ||||||
| Total Assets | 102.44M | 108.39M | 70.77M | 49.31M | 43.75M | 63.01M |
| Cash, Cash Equivalents and Short-Term Investments | 59.49M | 61.63B | 35.58M | 17.40M | 12.65M | 29.30M |
| Total Debt | 1.32M | 648.47M | 2.12M | 2.48M | 3.36M | 3.81M |
| Total Liabilities | 34.02M | 36.72M | 47.48M | 19.80M | 19.76M | 23.38M |
| Stockholders Equity | 68.42M | 71.67M | 23.28M | 29.51M | 24.16M | 39.80M |
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 Flow | 12.11M | 18.00M | -10.29M | -8.14M | -3.31M | 53.67K |
| Financing Cash Flow | 43.92M | 43.95M | 33.52M | 21.34M | 2.66M | 20.45M |
Kopin Technical Analysis
Positive
2.98
Price Trends
4.08
Positive
3.25
Positive
2.97
Positive
Market Momentum
0.53
Positive
54.38
Neutral
61.85
Neutral
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 2.98 is below the 20-day moving average (MA) of 5.41, below the 50-day MA of 4.08, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.85 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $849.52M | 29.78 | 8.90% | 1.07% | 11.42% | 5.37% | |
64 Neutral | $1.11B | -37.31 | -41.18% | ― | 86.66% | -97.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $602.94M | 85.81 | 4.99% | 0.79% | 3.38% | ― | |
60 Neutral | $1.71B | 264.12 | 1.77% | ― | 7.51% | 93.82% | |
55 Neutral | $1.17B | 534.05 | 4.31% | ― | -22.63% | ― | |
44 Neutral | $142.63M | -1.32 | -139.20% | ― | -64.10% | 31.45% |
* Technology Sector Average
KOPN
Kopin
5.46
3.99
271.43%
LPTH
Lightpath Technologies
14.93
11.94
399.33%
LYTS
Lsi Industries
22.55
6.44
39.98%
MLAB
Mesa Laboratories
103.89
0.69
0.67%
MVIS
Microvision
0.39
-0.75
-65.79%
VPG
Vishay Precision Group
117.51
89.49
319.38%
Kopin Corporate Events
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.