Kopin (NASDAQ:KOPN), a developer of application-specific optical systems and high-performance microdisplays, today announced preliminary unaudited financial results for the fourth quarter ended December 27, 2025.
The company’s performance was significantly impacted by external macroeconomic factors, specifically a U.S. government shutdown that deferred critical defense orders, even as Kopin successfully executed a major capital restructuring.
Total revenues for the fourth quarter were $8.4 million, compared to $14.6 million in the prior-year period.
Management attributed the year-over-year decrease primarily to procurement delays and shipment timing issues resulting from the federal shutdown.
Product revenues bore the brunt of these disruptions, falling to $5.6 million from $12.6 million a year ago.
Despite the lower volume, Kopin noted that order flow has since returned to anticipated levels, with new European defense orders currently exceeding initial internal forecasts.
In contrast to the product segment, non-product revenues rose to $2.5 million, up from $1.7 million in the fourth quarter of 2024.
This growth was fueled by the IBAS color MicroLED development program, a key pillar of Kopin's next-generation technology roadmap.
While some research awards were delayed by the same government headwinds affecting product shipments, several new contracts have recently been awarded, providing a clear path for R&D expansion in 2026.
Meanwhile, Kopin’s internal efficiency measures helped mitigate the impact of lower production volumes.
The cost of product revenues as a percentage of net product revenues improved slightly to 83%, down from 84% in 2024.
This stability was driven by automation initiatives and cost-containment actions taken throughout the year.
Operating expenses saw an uptick, with Selling, General, and Administration (SG&A) costs rising to $4.5 million, largely due to professional fees associated with the company's recent strategic transactions.
The defining highlight of the quarter was the substantial strengthening of Kopin’s liquidity.
The company completed $56 million in private placements from a mix of strategic and institutional investors.
As of December 27, 2025, Kopin held cash and cash equivalents of $37.8 million, plus an additional $23 million in bonded cash presented as a long-term asset.