Key Highlights

  • Kopin shares are trading down 6.98% at $3.46 versus a prior close of $3.72.
  • The stock rallied 12.05% on Wednesday after third quarter results.
  • Revenue rose 52% to $18.2 million, up 43% from the second quarter.
  • Backlog is roughly $45 million to $47 million, with about 50% of 2027 Revenue already booked.
  • Drone goggle volumes were delayed by an added program phase.

Kopin (NASDAQ:KOPN) is trading down 6.98% at $3.46, a Penny Stock giving back part of Wednesday's 12.05% rally to $3.72. Third quarter revenue rose 52% to $18.2 million, beating consensus, but drone timing and a per-share miss are weighing. Peer MicroVision (NASDAQ:MVIS) is trading down 3.51%.

Funded Programs Drive Growth

Revenue was up 43% from the second quarter, driven by $5.4 million of Fabric AI development revenue and $3.1 million of color microLED grant revenue. Product revenue was $8.8 million. The operating loss narrowed to $0.5 million, and operations generated about $2.4 million in cash. Nine-month revenue was $41.5 million, up 34%.

Backlog and Production Plans

The color microLED award total reached $34 million after a new $18.6 million award. Backlog is roughly $45 million to $47 million, with about 50% of 2027 revenue already in backlog. The OLED deposition line comes online in early 2027, and U.S. microdisplay Manufacturing is on track to transition to microLED production in mid-2027.

Neural I/O Roadmap

Neural I/O with Fabric AI is on schedule for public demos at CES and SPIE Photonics West in early 2027, showing a pathway to at least 1.6 terabits. First-generation production silicon and commercial revenue are targeted for 2028. Fabric AI is funding up to $15 million of development, of which $9 million has been received. Management cited a government and defense pipeline of well over several hundred million dollars.

Drone Timing Slips

Drone Dominance FPV volumes were delayed by an added Gauntlet 2.5 phase, with Gauntlet 3 expected around February 2027. Management still expects about $10 million of drone goggle revenue in 2027.

Management said fourth quarter GAAP profitability is achievable. Offsetting points include the per-share miss, product revenue down from a year ago and one-time gross Margin benefits.

Analyst View

Stifel reiterated Buy with a $6.50 target, and Oppenheimer reiterated Outperform with a $7 target. All three analysts covering the stock are bullish, with an average target of $7.

Profitability and Drone Orders Decide the Next Move

After the rally, the stock needs fourth quarter proof. Investors will watch whether Kopin reaches GAAP profitability, how fast backlog converts and whether Gauntlet 3 around February 2027 releases the delayed drone volume. The CES and Photonics West demos are the next technical markers.

Product revenue, which fell from a year ago, shows how much growth still depends on funded programs.