Kopin (KOPN) Q2 2026 earnings summary

Executive summary

• Achieved major milestones in the U.S. Army Color MicroLED program, including record-setting brightness and installation of U.S. bonding capability, advancing domestic manufacturing for mid-2027.

• Secured multiple new prototype orders for Sentinel FPV goggles as part of the U.S. government's Drone Dominance Program, with significant volume opportunities expected in late 2026 and 2027.

• Opened a new optics and photonics design center in Dallas, Texas, to accelerate Neural I/O and AI infrastructure solutions.

• Net income for Q2 2026 was $0.9 million, reversing a $5.2 million loss in Q2 2025, driven by higher defense sales, R&D, and investment gains.

• Maintained strong balance sheet discipline and operational execution, with four consecutive quarters of on-time, in-full delivery and quality performance.

Financial highlights

• Total Q2 2026 revenue was $12.7 million, up 51% year-over-year from $8.5 million, driven by grant, collaboration, and defense revenue.

• Product revenue was $7.6 million, nearly flat year-over-year, with higher defense offset by lower industrial sales.

• Non-product revenue rose to $5.1 million from $1 million, mainly from government grants and collaborations.

• Loss from operations narrowed to $3.5 million from $5.5 million year-over-year; net income was $0.9 million versus a $5.2 million loss.

• Cash and equivalents stood at $24.3 million, with total liquidity of $50.3 million including restricted cash and marketable securities.

Outlook and guidance

• Expects to exceed prior full-year revenue guidance of $52–$60 million, with a strong second half anticipated.

• Forecasts GAAP profitability and positive free cash flow in Q4 2026.

• Anticipates substantial revenue growth in 2027, with $100 million in sight for 2028.

• Main production for Army MicroLED program slated for 2028, with initial production and awards expected in 2027.

• Management expects sufficient liquidity to fund operations into Q4 2027, with $24.9 million in unrestricted cash as of June 27, 2026.