Kopin Corp.

Total revenue was $12.7 million for Q2 2026, up 51% year over year from $8.5 million. Product revenue was $7.6 million versus $7.5 million a year ago, while nonproduct revenue rose to $5.1 million from $1.0 million. Cost of product revenues was $6.6 million, or 86% of net product revenues, versus $7.1 million, or 94%, in the prior-year quarter. R&D expense was $4.5 million versus $1.9 million, SG&A was $5.1 million versus $4.9 million, and loss from operations narrowed to $3.5 million from $5.5 million. Net income attributable to common stockholders was $0.9 million, or $0.00 per share, compared with a net loss of $5.2 million, or $(0.03) per share, in Q2 2025. As of June 2026, cash and cash equivalents were $24.3 million, and total cash, restricted cash, and marketable securities were $50.3 million, including $26 million of restricted cash. For outlook, management said it expects the second half to exceed prior guidance, expects GAAP profitability and positive free cash flow in Q4, and is increasingly optimistic about 2027 revenue trends continuing from 2026.

Michael Murray focused on execution across four growth areas: color microLED for the U.S. Army, Sentinel FPV for drone programs, Neural I/o for AI infrastructure, and domestic OLED capacity. He emphasized that Kopin is building these capabilities in the U.S. and framed that as a competitive advantage, especially for defense and trusted-supply-chain customers. His tone was strongly optimistic, with repeated comments that the company is on schedule, seeing strong demand signals, and moving toward longer-duration revenue opportunities.

Erich Manz highlighted that Q2 revenue growth came from grant revenue, Fabric.AI collaboration revenue, the strategic AR thermal clip-on partnership, and higher R&D revenue on OptiVISOR. He noted product cost improved to 86% of net product revenue from 94% a year ago, R&D rose to $4.5 million, SG&A was relatively stable at $5.1 million, and operating loss narrowed to $3.5 million. He also said cash and cash equivalents were $24.3 million and total cash, restricted cash, and marketable securities were $50.3 million, and reiterated expectations for a solid second half, GAAP profitability, and positive free cash flow in Q4.

Analysts pressed for more detail on Neural I/o, with management saying the CES 2027 demo will show real-time bit transmission and receive capability in a full transceiver tile, and that customer reaction to the first optical data pull has been very positive. Questions also focused on IBAS follow-on catalysts, where management said three more milestones are expected this year and that further IBAS funding for other devices is under active discussion. On Sentinel FPV, management said the main investment is the OLED deposition tool, under a $10 million number, and said it expects a strong order book by the end of Q4; on the revenue timing questions, management said Sentinel could mean tens of millions of dollars in 2027, while Neural I/o likely generates development revenue in 2027 but not production revenue until 2028.