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Lightpath Technologies (LPTH)
NASDAQ:LPTH
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Lightpath Technologies (LPTH) AI Stock Analysis

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LPTH

Lightpath Technologies

(NASDAQ:LPTH)

Rating:47Neutral
Price Target:
$3.00
▼(-39.02% Downside)
Lightpath Technologies faces significant financial hurdles, with ongoing net losses and cash flow issues being the most critical factors. While technical analysis and valuation metrics are not favorable, strategic initiatives and corporate events provide some offsetting positives. The company's recent earnings call reflected growth and strategic progress, but these are tempered by increased expenses and net losses.
Positive Factors
Acquisition Benefits
The acquisition of G5 Infrared has led to meaningful contract awards, suggesting a powerful long-term tailwind for LightPath.
Product Demand
The demand for LightPath's Germanium-free BlackDiamond infrared imaging solutions is increasing due to supply chain issues with competing Germanium-based solutions.
Negative Factors
Export Restrictions
Softer revenue was due to new restrictions in the exporting germanium from China, which were announced in December and are likely to remain a headwind near term.
Financial Performance
Slightly lower revenue, lower gross margin, and higher operating expense resulted in an adjusted EBITDA loss significantly below estimates.

Lightpath Technologies (LPTH) vs. SPDR S&P 500 ETF (SPY)

Lightpath Technologies Business Overview & Revenue Model

Company DescriptionLightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light. Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries. The company sells its products directly to customers in North America, Europe, and Asia, as well as through distributors and catalogs in the United States and internationally. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.
How the Company Makes MoneyLightpath Technologies generates revenue through the sale of its optical products and solutions. The company earns income by supplying precision molded glass optics, infrared optics, and custom-designed optical assemblies to its diverse clientele across multiple industries. Revenue streams include direct sales to OEMs (Original Equipment Manufacturers), as well as through distribution channels. Additionally, Lightpath Technologies may engage in strategic partnerships and collaborations that can lead to additional revenue opportunities, such as joint ventures or co-development agreements. The company's ability to innovate and provide high-quality, reliable optical products contributes significantly to its financial performance.

Lightpath Technologies Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q3-2025)
|
% Change Since: 122.62%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook. While LightPath Technologies is experiencing significant growth and successful integration of G5 Infrared with a strong order backlog and promising demand for innovative products like BlackDiamond glass, it also faces financial challenges with increased net losses and operating expenses, alongside delays in key programs and geopolitical risks.
Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue for the third quarter of fiscal 2025 increased 19.1% to $9.2 million compared to $7.7 million in the same year-ago quarter.
Gross Profit Increase
Gross profit increased 66% to $2.7 million or 29.1% of total revenues, compared to $1.6 million or 20.9% of total revenues in the same year-ago quarter.
G5 Acquisition Success
The acquisition of G5 Infrared is integrating well, with cultural alignment and expected revenue of $51 million in the 12 months following the acquisition.
Strong Order Bookings
In the last 90 days, LightPath booked over $19 million of new orders, indicating strong demand post-G5 acquisition.
BlackDiamond Glass Demand
There is strong growth in demand for BlackDiamond materials, with government funding for capacity expansion, confirming strategic investment success.
Negative Updates
Net Loss Increase
Net loss in the third quarter of fiscal 2025 totaled $3.6 million or $0.09 per share, compared to $2.6 million or $0.07 per share in the same quarter of the prior fiscal year.
Operating Expenses Rise
Operating expenses increased 44% to $6 million, primarily due to legal fees, product development costs, and additional sales and admin costs post-G5 acquisition.
Apache Program Delays
The Apache program is behind schedule due to challenges in meeting timelines and capacity issues with new materials.
Potential Geopolitical Risks
Challenges related to tariffs and supply chain issues, particularly with germanium, pose ongoing risks despite strategic mitigations.
Company Guidance
During the LightPath Technologies Third Quarter Fiscal 2025 Earnings Conference Call, the company provided an optimistic outlook, highlighting significant strategic transformations and financial progress. They reported a 19.1% increase in revenue, reaching $9.2 million, and a 66% rise in gross profit to $2.7 million, reflecting a favorable shift in product mix towards higher-margin offerings like assemblies and modules. Operating expenses increased by 44% to $6 million due to acquisition-related costs and increased investments in product development and sales. The net loss was $3.6 million, or $0.09 per share, with an EBITDA loss of $2 million. The backlog stood at $27.4 million, indicating strong future demand. LightPath’s recent acquisition of G5 Infrared, which contributed significantly to new bookings of $19 million within 90 days, is expected to drive annual revenue to $51 million in the following 12 months. Despite ongoing geopolitical and supply chain challenges, the company remains confident in its strategic shift towards higher-value, vertically integrated solutions in defense and commercial markets, supported by strong interest in its proprietary BlackDiamond optics and incremental growth in defense contracts.

Lightpath Technologies Financial Statement Overview

Summary
Lightpath Technologies is facing significant financial challenges, with declining revenues and negative profitability. The income statement shows deteriorating gross profit margins and significant negative EBIT and net income. The balance sheet reflects moderate leverage but negative returns on equity. Cash flow is negative, indicating liquidity risks.
Income Statement
25
Negative
Lightpath Technologies has experienced declining revenues and negative profitability metrics. The TTM (Trailing-Twelve-Months) data shows significant negative EBIT and net income, indicating challenges in operational efficiency and cost management. The company's gross profit margin has also deteriorated, suggesting rising costs or pricing pressures.
Balance Sheet
40
Negative
The balance sheet shows a moderate debt-to-equity ratio, which indicates some leverage but not excessively high. However, the return on equity is negative due to consistent net losses, which is concerning for investors seeking returns. The equity ratio is relatively stable, reflecting a decent proportion of assets funded by equity.
Cash Flow
20
Very Negative
The cash flow statement reveals negative operating and free cash flow, indicating that the company is burning cash, which could pose liquidity risks. The operating cash flow to net income ratio is unfavorable, reinforcing the company's struggles to generate cash from operations relative to its net losses.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue33.63M31.73M32.93M35.56M38.46M34.97M
Gross Profit9.96M8.63M11.07M11.81M13.45M13.84M
EBITDA-5.12M-3.70M-355.00K1.17M1.47M5.39M
Net Income-10.15M-8.01M-4.05M-3.54M-3.19M866.93K
Balance Sheet
Total Assets81.42M48.09M53.54M50.71M54.61M47.57M
Cash, Cash Equivalents and Short-Term Investments6.48M3.48M4.69M5.51M6.77M5.39M
Total Debt14.33M10.36M12.38M14.73M14.23M7.63M
Total Liabilities31.30M17.89M17.58M20.98M21.03M13.01M
Stockholders Equity50.12M30.20M35.95M29.73M33.58M34.57M
Cash Flow
Free Cash Flow-6.49M-1.66M-5.89M-162.49K1.57M1.29M
Operating Cash Flow-5.62M521.04K-2.81M1.46M4.73M3.73M
Investing Cash Flow-21.11M-2.67M-2.87M-1.63M-3.16M-2.26M
Financing Cash Flow30.18M-1.47M7.46M-636.17K-843.43K-621.71K

Lightpath Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.92
Price Trends
50DMA
3.34
Positive
100DMA
2.86
Positive
200DMA
2.67
Positive
Market Momentum
MACD
0.30
Negative
RSI
74.87
Negative
STOCH
81.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPTH, the sentiment is Positive. The current price of 4.92 is above the 20-day moving average (MA) of 3.67, above the 50-day MA of 3.34, and above the 200-day MA of 2.67, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 74.87 is Negative, neither overbought nor oversold. The STOCH value of 81.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPTH.

Lightpath Technologies Risk Analysis

Lightpath Technologies disclosed 31 risk factors in its most recent earnings report. Lightpath Technologies reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Lightpath Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$132.45M17.2025.98%16.52%50.29%
61
Neutral
$35.62B8.22-10.94%1.88%8.86%-10.36%
59
Neutral
$134.73M303.10-0.73%2.42%6.34%-31.68%
53
Neutral
$268.98M-8.58%6.41%-5.96%49.33%
51
Neutral
$88.73M-15.12%-7.12%-11.00%
47
Neutral
$193.05M-24.86%2.59%-48.02%
46
Neutral
$85.79M-177.60%8.95%14.34%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LPTH
Lightpath Technologies
4.92
3.62
278.46%
GNSS
Genasys
1.87
-1.03
-35.52%
MEI
Methode Electronics
7.64
-1.75
-18.64%
RELL
Richardson Electronics
9.90
-1.66
-14.36%
LINK
Interlink Electronics
8.67
5.01
136.89%
MPTI
M-tron Industries Inc
45.30
9.00
24.79%

Lightpath Technologies Corporate Events

M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Lightpath Technologies Approves Key Proposals in Stockholder Meeting
Positive
Jun 20, 2025

On June 16, 2025, LightPath Technologies held a Special Meeting of Stockholders where several key proposals were approved. The stockholders approved the issuance of shares of Class A Common Stock related to the acquisition of G5 Infrared, LLC and the conversion of Series G Preferred Stock. Additionally, amendments to the 2018 Stock Incentive Compensation Plan and the adoption of the 2025 Employee Stock Purchase Plan were also approved, indicating strategic moves to enhance employee engagement and expand the company’s capital structure.

The most recent analyst rating on (LPTH) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Lightpath Technologies stock, see the LPTH Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025