Kopin (KOPN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $10.6 million, nearly flat compared to $10.5 million in Q1 2025, driven by new government awards, strategic collaborations, and expanded defense order book in the U.S. and Europe.

• Announced strategic partnership with Fabric.AI to develop Neural I/O optical interconnects for AI infrastructure, supported by a $15 million order and a 19.9% equity stake.

• Entered FPV drone market with Sentinel FPV, securing a $3.2 million initial order and targeting large-scale U.S. government drone programs.

• Brought OLED microdisplay manufacturing in-house to meet surging U.S. defense demand, enhancing speed, flexibility, and cost efficiency.

• Kopin Europe Ltd. was deconsolidated in October 2025 after a 49% stake was sold to Theon International Plc.

Financial highlights

• Q1 2026 revenue was $10.6 million, with product revenues declining to $5.4 million from $9.2 million and non-product revenues rising to $5.1 million from $1.3 million.

• Net loss attributable to common stockholders was $3.8 million, compared to $3.1 million in the prior year quarter.

• Gross margin on product revenues was negative 3% due to reduced production efficiency and lower volumes.

• Cash and cash equivalents stood at $34.1 million as of March 28, 2026; total liquidity including restricted cash and marketable securities was $59.5 million.

• Working capital was $25.6 million at quarter end, down from $33.6 million at year end.

Outlook and guidance

• Reiterated 2026 revenue guidance of $52 million–$60 million, including Fabric.AI order, described as conservative with potential upside.

• Management expects improvements in product margins in future periods due to customer price increases and production efficiency gains.

• Liquidity is expected to be sufficient to fund operations through at least Q2 2027, with ongoing monitoring of capital markets for potential fundraising.

• CapEx for OLED deposition line expected to be ~$5 million in 2026 and similar in 2027.