Kopin posts Q3 net loss and falls below analysts expectations 

Overview

• US microdisplay maker's preliminary Q3 revenue grew 52% yr/yr, beating analyst expectations

• Q3 loss per share and net loss both missed analyst expectations

• Company posts a Q3 net loss compared to a profit last year

• Revenue growth driven by funded development and grant programs, especially MicroLED and R&D collaborations

Outlook

• Company expects MicroLED product manufacturing to begin in mid-2027

• Company says Neural I/o™ remains on schedule for first public demonstration at CES in January 2027

• Company expects a strong second half and progress toward sustainable GAAP profitability

Result Drivers

• FUNDED DEVELOPMENT PROGRAMS - Co said revenue growth was primarily driven by funded development programs, including joint development with Fabric.AI and U.S. government MicroLED grants

• INCREASED OPERATING LEVERAGE - Co said improved operating leverage contributed to narrowing loss from operations, as revenue growth outpaced operating expense increases

• NEW ORDERS AND GRANTS - Co received a $2.4 mln OLED microdisplay order from a new customer and an $800,000 manufacturing grant, supporting future revenue and production capacity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Kopin Corp is $7.00, about 107.1% above its November 9 closing price of $3.38

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)