Kopin Reports Q2 Revenue Down 31% to $8.5M, Partners with Theon Sensors, Introduces Optical Automation.

Kopin Corporation reported Q2 2025 revenue of $8.5 million, down from $12.3 million YoY due to order delays. The company formed a strategic partnership with Theon Sensors to expand its presence in European and Southeast Asian markets. Kopin introduced optical automation to enhance throughput and quality while reducing costs. The company's net loss improved to $5.2 million, or $0.03 per share, compared to a net loss of $5.9 million, or $0.05 per share, in the prior year.

Kopin Corporation (KOPN) reported its fiscal 2025 Q2 earnings on August 12, 2025, with a 31.5% drop in revenue to $8.45 million compared to the prior year [1]. The company narrowed its net loss to $5.17 million, or $0.03 per share, from $5.92 million, or $0.05 per share, a 12.8% reduction in losses [1]. While the results fell short of expectations, the company provided guidance for revenue recovery in the second half of 2025.

Kopin’s total revenue for Q2 2025 came in at $8.45 million, a significant decline from $12.34 million in the same period of 2024. The decrease was primarily driven by a sharp drop in product sales, as net product revenues stood at $7.50 million. The company also generated $907,907 from research and development activities and a smaller contribution of $48,540 from licenses and other revenue sources, which together reflected a diminished overall contribution to top-line growth [1].

The company’s earnings showed a modest improvement, with a per-share loss narrowing to $0.03 from $0.05 in the prior year. The net loss also decreased by 12.8% to $5.17 million from $5.92 million. While the company remains unprofitable, the reduction in losses suggests some operational efficiency improvements [1].

Kopin’s stock experienced mixed performance, rising 6.99% during the most recent trading day and 17.06% month-to-date, though it dipped slightly by 0.50% over the past week [1].

CEO Michael Murray attributed Q2 underperformance to government budget delays and postponed customer orders but expressed confidence in a recovery in Q3 and Q4. He emphasized Kopin’s exclusive U.S. manufacturing of four microdisplay types and its strategic partnership with Theon, including a $15 million investment, as pivotal for long-term growth. Murray also highlighted automation efforts expected to cut operating expenses by up to $1.5 million in 2025 [1].

Kopin expects delayed orders to contribute to revenue recovery in the second half of 2025 and anticipates up to $20 million in R&D awards and funded orders to be recognized during the period. The company also expects to begin sales with Theon in Q4, driven by application-specific solutions like DayVAS and DarkWAVE [1].

Kopin recently solidified a strategic partnership with Theon Sensors, including a $15 million investment and collaborative plans to expand market presence in Europe, Southeast Asia, and NATO allies. The deal aims to enhance Kopin’s position in defense and security markets through co-developed solutions. In a broader move, Kopin has also focused on internal automation and quality improvements, aiming to reduce costs and improve operational efficiency. The company's exclusive production of four microdisplay types positions it as a key player in advanced optical technologies, particularly in defense applications. These initiatives are part of Kopin’s broader long-term strategy to strengthen its competitive edge and capture growth in the evolving defense technology landscape [2].

References:
[1] https://www.ainvest.com/news/kopin-2025-q2-earnings-narrowed-losses-revenue-decline-2508/
[2] https://www.ainvest.com/news/kopin-reports-q2-2025-results-partners-theon-sensors-names-cfo-2508/