Vuzix revenues decline as R&D spending rises
The smart-glasses maker reported total revenues of $1.1 million for the second quarter ended June 30, 2026.
Vuzix (VUZI), the smart-glasses maker, reported a decline in quarterly revenue and an increase in research spending as it moved several key product programs toward commercial deployment.
Total revenues for the second quarter of 2026 were $1.1 million, a 14% decrease from the $1.3 million reported in the second quarter of 2025. The result also marked a sequential decline from the $1.4 million the company generated in the first quarter of 2026.
The downturn was reflected across both primary revenue streams. Product sales fell 15% year-over-year to $0.9 million. Revenue from engineering services and OEM product sales decreased 8% to $0.2 million.
Operating expenses shifted as the company prioritized technical development. Research and development expenses rose 20% year-over-year to $3.1 million, which the company attributed to increased headcount and higher external development costs. These costs were partially offset by an 11% decrease in selling and marketing expenses to $1.2 million, primarily due to lower non-cash stock-based compensation. General and administrative expenses declined 3% to $2.7 million.
Despite the revenue drop, the company's gross loss improved 15% to $0.6 million, compared to a loss of $0.8 million in the same period last year.
Cash reserves declined to $17.3 million as of June 30, 2026, down from $22.6 million at the end of the third quarter of 2025. Net cash used in operating activities increased to $6.6 million in the second quarter of 2026, up from $4.8 million in the comparable 2025 period.
Vuzix delivered next-generation Ultralite Pro glasses to Amazon for commercial testing during the quarter and moved its program with Collins Aerospace into initial production deployments.