Revenue Performance - Total revenues for Q4 2025 were $2.2 million, up from $1.3 million in Q4 2024, driven by higher product sales and increased engineering services [3]. - For the full year 2025, total revenues reached $6.3 million, a 9% increase from $5.8 million in 2024, with product revenues increasing by 4% to $4.7 million [5]. Net Loss - The net loss attributable to common shareholders for Q4 2025 was $8.7 million, or $0.12 per share, compared to a loss of $13.7 million, or $0.16 per share, in Q4 2024 [4]. - The full year net loss attributable to common shareholders was $32.3 million, or $0.42 per share, significantly improved from a loss of $73.5 million, or $1.08 per share, in 2024 [9]. Expenses - Research and Development expenses increased by 31% to $12.6 million in 2025, primarily due to higher costs associated with LX1 smart glasses and waveguide product development [7]. - Selling and Marketing expenses decreased by 33% to $5.5 million in 2025, attributed to reduced bad debt expense and lower salary costs due to headcount reductions [8]. - General and Administrative expenses decreased by 32% to $11.6 million in 2025, largely due to a reduction in non-cash stock-based compensation [9]. Cash Flow and Position - The company reduced operating cash usage by approximately $5.0 million in 2025, with net cash flows used in operating activities totaling $18.8 million [2][10]. - As of December 31, 2025, the company had cash and cash equivalents of $21.2 million and a working capital position of $22.3 million [10]. Future Outlook - The company anticipates broader growth opportunities in 2026, particularly in OEM smart glasses programs and defense-related initiatives [11].

Core Insights - Vuzix is focusing on OEM programs and waveguide technology as primary growth engines, with expectations for increased revenue from these areas in 2026 [5][19] - The company reported improved financial results for 2025, including higher revenue, a narrower net loss, and a stronger cash position [5][12] Financial Performance - Q4 2025 revenue was $2.2 million, up from $1.3 million in Q4 2024, driven by higher M400 smart glasses sales and increased engineering services revenue [12] - Full-year 2025 revenue totaled $6.3 million, compared to $5.8 million in 2024, with product sales rising 4% year-over-year [12] - The net loss for 2025 was $32.3 million, significantly improved from a loss of $73.5 million in 2024, with a notable reduction in inventory obsolescence reserves [16][13] Strategic Focus - The company is enhancing its financial discipline and focusing on OEM and waveguide businesses, viewing its branded enterprise products as a strategic enabler for larger opportunities [4][5] - Vuzix is developing custom devices in collaboration with multiple large brands, including a program with a leading auto manufacturer for smart glasses intended for factory use [1][20] Waveguide and OEM Developments - Vuzix is ramping up production of waveguides for AI- and AR-enabled smart glasses, with a strategic investment of $20 million from Quanta validating its roadmap [7][9] - The company expects to see quarter-over-quarter revenue growth in OEM and waveguide segments throughout 2026, potentially surpassing revenue from its branded enterprise business [19] Partnerships and Market Expansion - Vuzix is expanding its relationships within the display ecosystem, collaborating with companies like TCL and Himax to optimize waveguides for specific display needs [10][11] - Engagements with defense and security agencies have progressed to active deliveries and contracted programs, indicating a growing market for Vuzix's products in these sectors [8][20]

Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $2.2 million, a 76% increase from $1.3 million in Q4 2024, primarily due to higher unit sales of M400 smart glasses and increased engineering services sales [20] - For the full year 2025, total revenues reached $6.3 million, up 9% from $5.8 million in 2024, with product sales increasing by 4% year-over-year [21] - The overall gross loss for 2025 was $1.1 million, significantly improved from a loss of $5.6 million in 2024, mainly due to lower inventory obsolescence reserves [21] - The net loss attributable to common shareholders for Q4 2025 was $8.7 million or $0.12 per share, compared to a net loss of $13.7 million or $0.16 per share in Q4 2024 [25] - For the full year 2025, the net loss was $32.3 million or $0.42 per share, down from $73.5 million or $1.08 per share in 2024, with a notable impairment loss recorded in 2024 [26] Business Line Data and Key Metrics Changes - Engineering services sales for 2025 were $1.6 million, an increase of 27% from $1.3 million in 2024, reflecting growth in this segment [21] - Research and development expenses rose 31% to $12.6 million in 2025, driven by increased costs related to the new LX1 smart glasses and waveguide products [22] - Sales and marketing costs decreased by 33% to $5.5 million in 2025, primarily due to reductions in bad debt expense and headcount [23] Market Data and Key Metrics Changes - The enterprise markets are becoming more mature and ROI-driven, with customers focusing on solutions that improve workflow efficiency and enhance safety [17] - The defense and security agencies segment is seeing growth in active programs and discussions, with production orders starting to come in [12] Company Strategy and Development Direction - The company is focusing on its OEM products and waveguide technology as key growth engines, aiming to capitalize on opportunities in enterprise, defense, and consumer markets [7][8] - Vuzix plans to be more selective in investing in branded products, with future product activity driven by OEM customer demand [9] - The company aims to strengthen its position in the waveguide market, which is seen as a significant long-term opportunity [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the OEM business and waveguide technology, expecting revenues from these segments to surpass those from branded enterprise products by the end of 2026 [33] - The company anticipates multiple new business partnerships and orders throughout 2026, indicating a positive outlook for revenue growth [35] Other Important Information - Vuzix completed the second and third tranches of Quanta's investment, totaling $20 million, which validates its waveguide roadmap and manufacturing capabilities [14] - The company ended 2025 with a cash position of $21.2 million and no current or long-term debt, indicating improved financial health [26][27] Q&A Session Summary Question: Expectations for 2026 revenue and significant sources - Management expects OEM and waveguide business revenues to climb throughout 2026, potentially surpassing enterprise branded revenues [33] Question: Anticipation of additional orders and announcements in 2026 - Management indicated that multiple announcements regarding orders and partnerships are expected throughout 2026, contributing to new business opportunities [35]

Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $2.2 million, a 76% increase from $1.3 million in Q4 2024, primarily due to higher unit sales of M400 smart glasses and increased engineering services sales [20] - For the full year 2025, total revenues were $6.3 million, up 9% from $5.8 million in 2024, with product sales increasing by 4% year-over-year [21] - The net loss attributable to common shareholders for Q4 2025 was $8.7 million or $0.12 per share, compared to a net loss of $13.7 million or $0.16 per share in Q4 2024 [25] - For the full year 2025, the net loss was $32.3 million or $0.42 per share, significantly improved from a net loss of $73.5 million or $1.08 per share in 2024 [26] Business Line Data and Key Metrics Changes - Engineering services sales for 2025 were $1.6 million, up 27% from $1.3 million in 2024, indicating growth in this segment [21] - Research and development expenses rose 31% to $12.6 million in 2025, driven by increased costs related to the new LX1 smart glasses and waveguide products [22] - Sales and marketing costs decreased to $5.5 million in 2025 from $8.2 million in 2024, a reduction of 33% [23] Market Data and Key Metrics Changes - The enterprise markets are becoming more mature and ROI-driven, with customers focused on solutions that improve workflow efficiency and enhance safety [17] - The defense and security agencies segment is seeing growth in active programs and discussions, with production orders starting to come in [12] Company Strategy and Development Direction - The company is focusing on its OEM products and waveguide technology as key growth engines, with a strategic shift towards more selective investment in branded products [7][9] - Vuzix aims to leverage its waveguide technology for scalable production, positioning itself for the next generation of AI and AR-enabled smart glasses [8][16] - The company is prioritizing R&D resources towards waveguides, Quanta-related programs, and funded OEM programs to maximize strategic advantages [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, particularly in the OEM and waveguide business, expecting revenues to surpass those from the branded enterprise side [33] - The company anticipates multiple new business partnerships and orders throughout 2026, indicating a robust pipeline of opportunities [35] Other Important Information - Vuzix completed the second and third tranches of Quanta's investment, totaling $20 million, which validates its waveguide roadmap and manufacturing capabilities [14] - The company ended 2025 with a cash position of $21.2 million and no current or long-term debt, indicating improved financial health [26][27] Q&A Session Summary Question: Expectations for 2026 revenue and significant sources - Management expects OEM and waveguide business to grow quarter after quarter, potentially surpassing enterprise branded revenues by year-end [33] Question: Anticipation of additional orders and announcements in 2026 - Management indicated that there would likely be several announcements regarding orders and partnerships throughout 2026, contributing to new business opportunities [35]

Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $2.2 million, a 76% increase from $1.3 million in Q4 2024, primarily due to higher unit sales of M400 smart glasses and increased engineering services sales [20] - For the full year 2025, total revenues were $6.3 million, up 9% from $5.8 million in 2024 [21] - The overall gross loss for 2025 was $1.1 million, significantly improved from a loss of $5.6 million in 2024, mainly due to lower inventory obsolescence reserves [22] - The net loss attributable to common shareholders for Q4 2025 was $8.7 million or $0.12 per share, compared to a net loss of $13.7 million or $0.16 per share in Q4 2024 [26] - For the full year 2025, the net loss was $32.3 million or $0.42 per share, down from $73.5 million or $1.08 per share in 2024 [27] Business Line Data and Key Metrics Changes - Product sales increased by 4% year-over-year, driven by greater unit sales of M400 products [22] - Engineering services sales for 2025 were $1.6 million, up 27% from $1.3 million in 2024 [22] - Research and development expenses rose 31% to $12.6 million in 2025, primarily due to increased external development costs for the new LX1 smart glasses [23] Market Data and Key Metrics Changes - The enterprise markets are becoming more mature and ROI-driven, with customers focused on solutions that improve workflow efficiency and enhance safety [17] - The defense and security agencies segment is seeing growth in active programs and discussions, with a mix of activities including active deliveries and contracted programs [12] Company Strategy and Development Direction - The company is focusing on its OEM products and waveguide technology as key growth engines, with a strategic shift towards more selective investment in branded products [6][9] - The long-term growth strategy is centered around engineering services, with an emphasis on partnerships and customized solutions for large-scale enterprises [8] - The company aims to leverage its waveguide technology for scalable production, positioning itself in the next generation of AI and AR-enabled smart glasses [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the OEM business and waveguide technology, expecting revenues from these areas to surpass those from the branded enterprise side by the end of 2026 [33] - The company anticipates multiple new business partnerships and orders throughout 2026, indicating a strong pipeline of opportunities [35] - Management highlighted the importance of strategic relationships and the value created through improved business structure and operational capabilities [41] Other Important Information - The company ended 2025 with a cash position of $21.2 million, an increase from $18.2 million in 2024, and no current or long-term debt [27][28] - Inventory levels improved, with net inventory declining to $2.2 million as of December 31, 2025, compared to $4.8 million at the end of 2024 [28] Q&A Session Summary Question: Expectations for 2026 revenue and significant revenue sources - Management expects the OEM and waveguide business to grow quarter after quarter, potentially surpassing revenues from the branded enterprise side by year-end [33] Question: Anticipation of additional orders and announcements in 2026 - Management indicated that there would likely be several announcements regarding orders and partnerships throughout 2026, contributing to new business opportunities [35]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35955 Vuzix Corporation (Exact name of registrant as specified in its charter) Delaware 04-3392453 (State of incorporation) (I.R.S. employer identification no.) W ...

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Core Insights - Vuzix Corporation reported modest revenue growth in 2025, with total revenues reaching $6.3 million, up from $5.8 million in 2024, driven by increased sales of M400 smart glasses and engineering services [1][2] - The company reduced operating cash usage by approximately $5 million and achieved significant milestones in its OEM and waveguide initiatives, positioning itself for stronger growth in 2026 [1] - A key partnership with Quanta Computer was highlighted, securing a $20 million equity investment, which is expected to enhance Vuzix's supply and sales relationships [1] Financial Performance - For Q4 2025, total revenues were $2.2 million, compared to $1.3 million in Q4 2024, attributed to higher product sales and engineering services [1] - The net loss for Q4 2025 was $8.7 million, or $0.12 per share, an improvement from a loss of $13.7 million, or $0.16 per share, in Q4 2024 [1] - Full-year 2025 saw a gross loss of $1.1 million, significantly improved from a gross loss of $5.6 million in 2024, with inventory obsolescence provisions decreasing from $4.2 million to $0.5 million [1] Expense Management - Research and Development expenses increased by 31% to $12.6 million in 2025, primarily due to higher costs associated with LX1 smart glasses and waveguide products [1] - Selling and Marketing expenses decreased by 33% to $5.5 million, largely due to reduced bad debt expenses and lower salary-related costs from headcount reductions [1] - General and Administrative expenses also decreased by 32% to $11.6 million, mainly due to a reduction in non-cash stock-based compensation [1] Strategic Outlook - Vuzix aims to evolve its business model to focus more on OEM smart glasses solutions and waveguides, while continuing to support its branded products [2] - The company anticipates growth opportunities in defense and government sectors, leveraging its USA-made waveguide design and manufacturing capabilities [2] - Vuzix plans to invest in waveguide innovation and expand strategic relationships to capitalize on the evolving smart glasses market [2]

Core Viewpoint - Vuzix Corporation will host a conference call on March 12, 2026, to discuss its fourth quarter and full year 2025 financial results and business updates [1] Group 1: Conference Call Details - The conference call is scheduled for March 12, 2026, at 4:30 PM Eastern Time [1] - Participants can join by dialing 877-709-8150 for U.S. and Canadian callers or 201-689-8354 for international callers [1] - A live and archived webcast will be available on the investor relations page of the company's website [1] Group 2: Company Overview - Vuzix is a leading designer, manufacturer, and marketer of AI-powered smart glasses and Augmented Reality (AR) technologies [1] - The company holds over 500 patents and patents pending in optics and AR wearables [1] - Vuzix has received more than 20 Consumer Electronics Show (CES) awards for innovation since 2005 [1]

Core Insights - Vuzix Corporation has launched a new portfolio of integrated enterprise smart glasses deployment kits, named Vuzix Solutions, aimed at enhancing hands-free productivity for frontline workers [1] - The first offering, Remote Assist by Vuzix Solutions, features native support for Microsoft Teams and Zoom, optimized for Vuzix smart glasses [1] - Vuzix aims to simplify the deployment process for enterprise customers by providing a turnkey solution that combines hardware and software [1] Group 1: Product Launch and Features - Vuzix Solutions kits combine ruggedized smart glasses with pre-configured software to facilitate immediate operational impact for organizations [1] - The Remote Assist application is designed specifically for hands-free use, addressing the limitations of traditional video collaboration platforms when adapted to head-mounted displays [1] - The kits are tailored for industries such as field service, logistics, manufacturing, and industrial maintenance, where remote assistance is a critical use case [1] Group 2: Market Position and Future Plans - Vuzix has over 475 patents and numerous IP licenses in optics and augmented reality, positioning itself as a leader in the smart glasses and AR display industry [1] - The company plans to introduce additional workflow-specific kits in the coming months, each designed to meet specific enterprise needs [1] - Vuzix has received multiple awards for innovation, highlighting its commitment to advancing technology in the smart glasses sector [1]