Kopin 2025 Q3 Earnings Profitable Turnaround with 217.9% Net Income Surge

Kopin Corp. (KOPN) reported a third-quarter net income of $4.08 million, a dramatic reversal from a $3.46 million loss in the prior-year period. While revenue fell 10.2% to $11.96 million, the company exceeded EPS expectations with $0.02 per share. Strategic partnerships and cost reductions drove the profitability turnaround, though shares declined post-earnings amid broader market volatility.

Revenue

Kopin’s Q3 revenue declined 10.2% year-over-year to $11.96 million, driven by reduced demand in defense applications and research contracts. Net product revenues accounted for $10.69 million, with research and development (R&D) and license revenues contributing $1.20 million and $68,754, respectively. The decline in product sales was attributed to lower helmet and simulation equipment orders, while R&D revenue dropped due to timing of project completions.

Earnings/Net Income

Kopin returned to profitability with a $4.08 million net income, a 217.9% positive swing from a $3.46 million loss in 2024 Q3. Earnings per share (EPS) surged to $0.02 from a $0.03 loss, reflecting reduced litigation costs and improved cost management. The profitability turnaround underscores the company’s strategic focus on defense and R&D partnerships.

Post-Earnings Price Action Review

The stock price of Kopin tumbled 11.43% on the latest trading day, with a 10.58% decline for the week and a 17.70% drop month-to-date. A 30-day holding strategy post-earnings underperformed the market, yielding a 4.5% compounded annual return over three years compared to the S&P 500’s 18.5%. While the approach cushioned against short-term volatility, it failed to capitalize on broader market trends.

CEO Commentary

CEO Michael Murray highlighted strategic partnerships with Theon Sensors, Ondas Holdings, and Unusual Machines, which expand Kopin’s access to international defense markets. A $41 million private placement post-quarter end bolstered liquidity, enabling investments in optical technology and manufacturing. Murray emphasized the company’s $26 million cash balance and $4.1 million net income as milestones in its defense-focused growth strategy.

Guidance

Kopin expects to leverage its expanded defense partnerships to drive international market access and U.S. military applications. While no specific financial targets were disclosed, the company anticipates follow-on orders and new customer projects. The $41 million financing is earmarked for innovation in microdisplay and optical solutions, aligning with rising global defense budgets.

Additional News

Kopin secured a $41 million private placement in late 2025, strengthening liquidity for technology and manufacturing expansion. The company also announced a strategic partnership with Theon International, a leader in thermal imaging and night vision, to co-develop defense applications in Europe and Southeast Asia. CFO Erich Manz joined the leadership team, signaling a focus on financial stability and operational efficiency.