- Vuzix Causeway Optical Interconnection Platform: Within 90 days since the announcement was issued, evaluation samples were sent out, a letter of intent for joint development was signed, and continuous contact was maintained with over 10 companies within the AI Optical Interconnection ecosystem.
- Defense Business: As of the fourth quarter, we have received new OEM defense orders worth just under one million US dollars; the SHRIKE defense display platform has now begun shipping for customer evaluation.
- Manufacturing: The Rochester Waveguide Factory upgrade has been put into operation, high refractive index material processing has also been launched, and functional monochromatic waveguides have been delivered to customers for evaluation.
Rochester, New York, November 12, 2026 / PRNewswire / -- Vuzix ® Corporation (Nasdaq: VUZI) (hereinafter referred to as “Vuzix” or “the Company”) is a supplier of AI driver products and related augmented reality technologies for smart glasses, smart glass waveguides, and co-packaged optical data center interconnects. The Company today announced its financial results for the third quarter ended September 30, 2026.
Vuzix, President and CEO, stated: "In the third quarter, Vuzix continued to advance its transformation towards a business that is more focused on OEM. This business is built on advanced waveguide technology, optical engineering, and our manufacturing capabilities in the United States. Although we saw a year-over-year decline in sales of our enterprise-level smart glasses products, which reflect the models that we will discontinue by the end of 2025, we have seen new and tangible progress in defense and other customer-oriented opportunities. Our defense business is becoming an increasingly important part of this strategy. We have recently received new orders worth just under one million dollars, and more anticipated defense opportunities are entering the bidding and contracting process. We are also continuing production and next-generation development work with Collins Aerospace. The recently launched SHRIKE defense display platform, along with our expanded domestic manufacturing capabilities, further enhances our ability to meet professional defense and security needs."
The following table compares some data from the company's unaudited condensed consolidated financial statements for the three-month periods ending September 30, 2026, and September 30, 2025:
Financial Performance for the Third Quarter of 2026
Within the three months ending September 30, 2026, total revenue decreased by 38% year-over-year to $700,000; in the same period last year, it was $1.2 million. Product sales amounted to $500,000, which is a 45% decrease from $900,000 in the same period of the previous year. Engineering services and OEM product sales were $200,000, a 17% decline from $300,000 in the same period last year.
Within the three months ending September 30, 2026, the total gross loss amounted to $900,000; in the same period of the previous year, the gross loss was $400,000.
Within the three months ending September 30, 2026, research and development expenses amounted to $3.3 million; in the same period of the previous year, they were $2.9 million, representing a growth of 13%. The company stated that this increase was mainly due to higher external consulting fees related to the new waveguide-based optical interconnect components being developed by the company for the CPO solution.
Within the three months ending September 30, 2026, sales and marketing expenses amounted to $1.6 million; in the same period of the previous year, they were $1.1 million, representing a growth of 43%. The company stated that this increase was mainly due to higher external consulting fees related to the new waveguide-based optical interconnect components being developed by the company for the CPO solution.
Within the three months ending September 30, 2026, management expenses amounted to 2.5 million US dollars; in the same period of the previous year, they were 2.6 million US dollars, representing a decrease of 3%.
For the third quarter as of September 30, 2026, the net loss attributable to common shareholders was $8.4 million, resulting in a loss of $0.10 per share; in the third quarter of 2025, the loss was $7.4 million, with a loss of $0.09 per share.
In the third quarter of 2026, net cash used for operating activities was $6.7 million; in the same period of the previous year, it was $5 million. As of September 30, 2026, the company held $9.2 million in cash and had no current or long-term debt obligations.
Total operating expenses for the third quarter of 2026 were $7.6 million, which included approximately $1 million in external consulting costs related to the Vuzix Causeway platform. The company expects that these costs will not recur. Excluding these costs, operating expenses amounted to about $6.6 million, which is approximately 7% lower than in the third quarter of 2025. The company expects operating expenses in the fourth quarter to be in the mid-$6 million range.
Management Outlook
Travers indicates: "We are encouraged by the expanding scope and pace of progress of our various growth initiatives. In the defense and security market, we are executing the projects that have been entrusted to us, as well as pursuing additional opportunities involving advanced research, specialized optical systems, and initial production projects. We have also begun shipping the first batch of SHRIKE display platform units for customers to evaluate and integrate into their products."
"In terms of OEM, customers are approaching Vuzix with more defined use cases, specific technical requirements, and clearer business milestones. Our global automotive OEM customers have progressed to the stage of production validation systems and procurement contract negotiations, while other customers are still evaluating our various Ultralite OEM platform solutions. These developments reflect a clear shift in the business towards customer-driven projects with clearer commercialization paths."
The Vuzix Causeway optical interconnection platform has developed rapidly over the past 90 days, from its release to the provision of physical evaluation samples, to active engagement with more than a dozen companies within the AI optical interconnection ecosystem. This momentum highlights that our waveguide technology now has the potential to meet the emerging optical connection needs in AI data centers. Our next focus is on characterizing the performance of integrated links and transforming these technical engagements into development projects funded by customers, thereby establishing potential pathways for future mass production opportunities.
We believe that the opportunities emerging around optical interconnection and co-packaged optics are worth continued strategic investment, as we are moving Causeway from preliminary evaluation to integrated system demonstration. The third quarter included one-time external market evaluation and consulting costs of approximately $1 million, which we expect not to recur; while advancing Causeway, we do not anticipate a significant increase in development expenditures. By leveraging our existing expertise in waveguides, intellectual property, and manufacturing infrastructure, we are confident that we can make meaningful technical and commercial progress while maintaining a prudent capital allocation.
"We have completed the installation and upgrade of the Rochester waveguide manufacturing plant, including improvements to the processing, handling, and production processes. At the same time, we have advanced the processing of high-index materials and functional monochromatic waveguides to the customer certification stage," summarized Travers. "These capabilities, combined with our mature optical technology and intellectual property, provide a common foundation for us to seize significant opportunities in defense, OEM smart glasses, and AI optical interconnects. We believe that the progress made today is laying the groundwork for stronger financial performance and long-term shareholder value."
Telephone Conference Arrangement
Date: Thursday, November 12, 2026
Time: 4:30 PM Eastern Time, USA
For listeners in the United States and Canada: dial 877-709-8150
International listeners dialing from outside the United States and Canada: 201-689-8354
The investor relations page on the company's website will provide live and archived web broadcasts of the teleconference: https :// ir.vuzix.com, or you can directly visit: https :// event.choruscall.com mediaframe webcast.html ? webcastid = o9t06kZp.
Those attending the teleconference include President and CEO Paul Travers as well as Chief Financial Officer Grant Russell. They will discuss the operational and financial highlights for the quarter ending September 30, 2026.
To participate in the live telephone conference, please dial the above phone number 5 to 10 minutes before the scheduled start time.
The phone call replay will begin at approximately 5:30 p.m. Eastern Time on November 12, 2026, and will be available for 30 days. To listen to the replay, call 877-660-6853 from within the United States or Canada, or 201-612-7415 internationally. The meeting replay ID is ID, which is 13763592.
About Vuzix Corporation
Vuzix is a leading company in the design, manufacturing, and marketing of AI smart glasses. It also supplies waveguides and advanced optical components to OEM and ODM customers, which are used in defense, security, medical, and AI glasses markets, as well as in optical interconnection components for AI computing applications. Founded in 1997, the company holds over 500 authorized and pending patents, as well as multiple intellectual property licenses covering optics, head-mounted displays, and augmented reality wearable devices. It has won more than 20 awards at consumer electronics exhibitions for its innovations. The company is listed on NASDAQ with the stock code VUZI and operates in Rochester, New York, and Japan. For more information, please visit the Vuzix website, X, and Facebook pages.
Forward-looking Statements Disclaimer
Certain statements contained in this press release are considered “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These forward-looking statements include, but are not limited to: the timing of the release of new products, improvements in the company’s Waveguide and its manufacturing capabilities in AI glasses and optical interconnection applications, existing and new defense engineering service projects and their eventual transformation into mass-produced OEM projects, award of defense orders and contracts, the development of the Vuzix Causeway platform and customer engagement, anticipated operating and capital expenditures, future revenue and operating results, as well as the company’s leadership position in the smart glasses and AR display industry. Such statements are typically identified by words or phrases such as “believes,” “may,” “expects,” “anticipates,” “should,” and similar expressions. Readers should not rely excessively on these forward-looking statements, as they are based on the company’s beliefs and assumptions as of the date of this press release. Due to risk factors and other matters described in more detail in the company’s annual reports and other documents submitted to the U.S. Securities and Exchange Commission and applicable Canadian securities regulatory authorities, the company’s actual results may differ significantly from these statements (copies of relevant documents are available at www.sedarplus.ca or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. Except as required by law, the company explicitly states that it has no obligation or intention to update or revise these forward-looking statements as a result of events or circumstances that occur after the release of this press release.
Investor Relations Contact Person
Ed McGregor, Director of Investor Relations
Vuzix Corporation
Email: [ email protected ]
Telephone: (585) 359-5985
Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA
Investor Information: [ email protected ] www.vuzix.com
