Markets

Kopin Stock Soars 10% After Results — Its Operating Loss Narrows Despite Weaker Product Sales

Revenue rose 52% in the third quarter, while management cautioned that projected AI training gains were modeled results.

Kopin, which makes miniature displays and optical components, soared 10.2% to $3.66 in Wednesday trading, as of 10:26 a.m. ET, adding $61 million in market value. The advance followed preliminary third-quarter results in Tuesday's SEC filing, which showed weaker product sales.

Revenue Grew, Operating Loss Narrowed

A 52% increase from a year earlier brought Kopin's third-quarter revenue to $18.2 million, according to its earnings release. Compared with the second quarter's $3.5 million operating loss, the company recorded a smaller operating loss of $0.5 million.

Approximately $2.7 million in investment losses contributed to the company's $3.4 million net loss. Those investment losses largely stemmed from non-cash valuation changes, distinguishing much of the bottom-line loss from the operating result.

A Strong Year, A Sharp Retreat

Wednesday's advance put Kopin on pace for its third gain of 10% or more this month. Its total market value was about $661 million in Wednesday trading.

The stock entered the session with a substantial year-to-date lead over the S&P 500. At Tuesday's close, Kopin shares were up 42% for the year, compared with the index's 10% gain.

That annual performance concealed a recent retreat: shares had fallen 26% over the previous month through Tuesday's close. The stock was 48% below its highest closing price of the past year.

Defense Business, AI Revenue Target

Kopin's displays, optical components, integrated modules and headsets go into weapon sights, pilot helmets, industrial inspection equipment and surgical headsets. Defense product sales, excluding research and development contracts, made up 74% of total revenue in fiscal 2025.

Its customers span defense contractors, government agencies and industrial, medical and consumer businesses. Kopin earns money through product sales, customer-funded development work, licensing and royalties, serving the Americas, Asia-Pacific and Europe from operations in Massachusetts, Virginia and Scotland.

Management cautioned on Tuesday's earnings call that projected AI training gains were modeled results. For its government AI opportunities, management targeted commercial revenue for 2028.

The 2028 commercial-revenue target places Kopin's government AI opportunities beyond the quarter's reported sales and operating results.