Kopin's pivot to defense R&D offsets product revenue slump

Kopin (NASDAQ:KOPN) reported first-quarter revenue that remained largely flat compared to a year ago, as a surge in government-funded research and development offset a significant decline in hardware shipments.

The Westborough, Massachusetts-based provider of microdisplays generated $10.6 million in the period ended March 28, 2026, slightly ahead of the $10.5 million reported in the first quarter of 2025.

The results reflect a company in transition.

Non-product revenue, which includes government awards and strategic collaborations, jumped to $5.1 million from $1.3 million a year earlier.

This growth was primarily driven by a U.S. government contract to develop ultra-bright MicroLED displays for soldier-borne augmented reality systems.

Conversely, product revenues fell 41% to $5.4 million, hampered by lower shipments of thermal weapon sight components and liquid crystal displays.

Profitability metrics were pressured by lower production efficiency and increased spending on technical talent.

The cost of product revenues exceeded actual sales, coming in at 103% of net product revenue, compared with 83% in the prior-year period.

Research and development expenses more than doubled to $4.9 million as Kopin accelerated work on its funded MicroLED projects.

Selling, general, and administrative costs also rose to $6 million, driven by higher professional fees and performance-based compensation.

As of March 28, 2026, Kopin held $34.1 million in cash and cash equivalents. \

Total liquidity, including restricted cash related to an ongoing litigation appeal, stood at $59.5 million.