ROCHESTER, N.Y—Vuzix Corporation (NASDAQ: VUZI), a leading supplier of AI-powered smart glasses, waveguides, and augmented reality (AR) technologies, yesterday announced its second quarter 2026 financial results. For the three months ended June 30, 2026, total revenues decreased by 14 percent to $1.1 million versus $1.3 million for the comparable period in 2025. Product sales were $0.9 million versus $1.0 million, a decrease of 15 percent, while engineering services and OEM product sales were $0.2 million versus $0.3 million, a decrease of 8 percent.
“Our branded enterprise smart glasses business continues to generate revenue, customer insight and market credibility, while opening new doors for Vuzix in the smart glasses ecosystem as an OEM smart glasses, waveguides and display systems provider,” said Paul Travers, president and CEO of Vuzix. “We continued to make further investments in our waveguide plant and manufacturing equipment to improve throughput, reduce development cycle times, and enable one production line to support development while another supports volume production, positioning Vuzix to execute an increasing number of simultaneous ODM/OEM, defense and waveguide programs.”
In making the announcement, Travers also pointed to recent corporate highlights, including the delivery of next-generation Ultralite Pro glasses to Amazon for live commercial testing, expanded deployments of their M400 smart glasses across fulfillment centers, and delivery of initial waveguide-based systems to a leading global automaker.
Further, the company received initial and follow-on orders from Netherlands-based Augmex for enterprise deployments. Sharing the news earlier this week, Vuxiz noted that the Augmex order includes Vuzix M400 and LX1 smart glasses and continues a series of orders received since December 2024. The latest order is expected to support Augmex’s launch of its solutions in the U.S., the company said, as well as continued deployments across multiple enterprise verticals.
“AI enterprise smart glasses are fundamentally different from a basic remote support application, and we believe AI represents a lasting change in how people interact with computers and how work gets done,” Travers stated on an investor call. “The opportunities we are seeing today are tied to ongoing productivity, operational efficiency and augmenting the frontline workforce, needs that will persist and grow as AI becomes more deeply embedded across the enterprise. All-day wearable smart glasses are a natural interface for making that connection.”
The company reported an overall gross loss of $0.6 million for the quarter, as compared with a gross loss of $0.8 million for the comparable 2025 period, a 15 percent overall improvement. Research and development expenses were $3.1 million for Q2 versus $2.6 million for the comparable 2025 period, an increase of 20 percent, attributed largely to increased external development costs for new products and higher cash salary and benefits related expenses due to headcount increases.
Selling and marketing expenses were $1.2 million for the quarter, versus $1.4 million for the comparable 2025 period, a decrease of 11 percent, while general and administrative expenses for the same period was $2.7 million versus $2.8 million for the comparable 2025 period, a decrease of 3 percent.
Net loss attributable to common shareholders was $7.7 million in the second quarter, compared with a loss of $7.7 million last year. Net cash used in operating activities was $6.6 million for the second quarter of 2026 versus $4.8 million for the comparable 2025 period. As of June 30, 2026, the company had $17.3 million in cash and no current or long-term debt obligations.
“The smart glasses industry is entering a period of dynamic evolution as advances in AI and platform ecosystems support the transformation of the industry and ease application development for customers’ specialized needs,” said Travers. “Usable and deployable applications that can be integrated into existing customer IT environments with relative ease have long been a limiting factor in the enterprise smart glasses market.
“Vuzix intends to continue investing in its waveguide innovation and furthering strategic relationships to better position us to capitalize on these opportunities, while simultaneously opening new opportunities beyond AI and AR applications across our main enterprise, defense and ODM/OEM markets,” Travers concluded.
