Lightpath Technologies (LPTH) AI Stock Analysis

• Market Cap: $369.87M
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 17.26%
• EPS Growth: -70.07%
• Country: US
• Employees: 304
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.16
• Shares Outstanding: 44,670,210
• 10 Day Avg. Volume: 2,151,587
• 30 Day Avg. Volume: 2,206,511
• PEG Ratio: -0.12
• Price to Book (P/B): 8.05
• Price to Sales (P/S): 3.38
• P/FCF Ratio: -13.12
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 17.72
• Enterprise Value/Ebitda: -34.47
• 1Y Price Target: $8.50
• Price Target Upside: 2.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $8.50 ▲(2.66% Upside)

Lightpath Technologies' overall score is primarily impacted by its financial challenges, despite strong revenue growth and strategic progress. Technical indicators show positive momentum, but valuation concerns and financial pressures from increased expenses and declining margins weigh heavily on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, essential for long-term business sustainability.

Strategic Investment

The strategic investment supports expansion in the drone market, enhancing growth prospects and competitive positioning.

Record Backlog Growth

A substantial backlog reflects strong future demand and provides revenue visibility, supporting long-term financial stability.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment in growth and innovation, affecting long-term competitiveness.

Gross Margin Decline

Declining gross margins signal cost management issues, potentially impacting future profitability and operational efficiency.

Cash Flow Concerns

Negative cash flow limits the ability to fund operations and growth initiatives, posing risks to financial health and stability.

Lightpath Technologies Business Overview & Revenue Model

Company Description

LightPath 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 Money

Lightpath Technologies generates revenue primarily through the sale of its optical communication products and systems to telecommunications companies, data centers, and other enterprises requiring high-speed data solutions. Key revenue streams include direct sales of optical transceivers and amplifiers, as well as long-term contracts and partnerships with major telecommunications providers that require customized solutions. The company also engages in research and development collaborations with industry partners, further enhancing its product offerings and market reach. Additionally, LPTH benefits from increasing demand for high-bandwidth connectivity driven by the growth of cloud computing, 5G networks, and the Internet of Things (IoT), which adds to its revenue potential.

Lightpath Technologies Financial Statement Overview

Summary

Lightpath Technologies is experiencing rapid revenue growth but struggles with profitability and cash flow management. Despite a moderate debt-to-equity ratio, negative net profit and EBIT margins, along with liquidity concerns, highlight significant financial challenges.

Income Statement

Lightpath Technologies has experienced significant revenue growth, particularly in the latest year, with a remarkable increase of over 110,000%. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is moderate but consistent. The substantial negative EBIT and EBITDA margins indicate operational inefficiencies or high costs relative to revenue.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity base. The equity ratio is healthy, showing that a significant portion of the company's assets is financed by equity, which is a positive sign of financial stability.

Cash Flow

Lightpath Technologies is facing challenges with cash flow, as indicated by negative operating and free cash flows. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but the overall negative cash flow growth and operating cash flow coverage ratio highlight liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.63M	37.20M	31.73M	32.93M	35.56M	38.46M
Gross Profit	9.96M	10.13M	8.63M	11.07M	11.81M	13.45M
EBITDA	-5.12M	-11.80M	-3.70M	-355.00K	1.17M	1.47M
Net Income	-10.15M	-14.87M	-8.01M	-4.05M	-3.54M	-3.19M
Balance Sheet
Total Assets	81.42M	81.51M	48.09M	53.54M	50.71M	54.61M
Cash, Cash Equivalents and Short-Term Investments	6.48M	4.88M	3.48M	4.69M	5.51M	6.77M
Total Debt	14.33M	10.38M	10.36M	12.38M	14.73M	14.23M
Total Liabilities	31.30M	31.63M	17.89M	17.58M	20.98M	21.03M
Stockholders Equity	50.12M	15.64M	30.20M	35.95M	29.73M	33.58M
Cash Flow
Free Cash Flow	-6.49M	-9.59M	-1.66M	-5.89M	-162.49K	1.57M
Operating Cash Flow	-5.62M	-8.33M	521.04K	-2.81M	1.46M	4.73M
Investing Cash Flow	-21.11M	-19.74M	-2.67M	-2.87M	-1.63M	-3.16M
Financing Cash Flow	30.18M	29.30M	-1.47M	7.46M	-636.17K	-843.43K

Lightpath Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.28 is below the 20-day moving average (MA) of 8.48, above the 50-day MA of 7.03, and above the 200-day MA of 3.81, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 55.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPTH.

Lightpath Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPTI	―	$165.05M	21.44	25.98%	―	16.52%	50.29%
RELL	―	$154.88M	503.70	0.11%	2.21%	6.17%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LPTH	―	$369.87M	-23.13	-37.15%	―	17.26%	-70.07%
MEI	―	$233.84M	-4.46	-7.62%	5.84%	-4.91%	61.77%
LINK	―	$95.58M	-46.81	-15.12%	―	-7.12%	-11.02%
GNSS	―	$106.56M	-3.77	-177.60%	―	8.95%	14.34%

Lightpath Technologies Corporate Events

LightPath Technologies’ Earnings Call: Growth Amid Challenges

LightPath Technologies’ recent earnings call presented a mixed bag of achievements and challenges. The company celebrated significant successes in backlog growth, strategic investments, and revenue increases. However, these positive developments were counterbalanced by issues such as declining gross margins, increased operating expenses, and a higher net loss. Despite these financial pressures, LightPath is undergoing a successful transformation.

LightPath Technologies Reports Strong Revenue Growth Amid Losses

LightPath Technologies, Inc. is a leading provider of next-generation optics and imaging systems for defense and commercial applications, known for its proprietary BlackDiamond™ glass technology. The company recently reported its fiscal 2025 fourth quarter and full-year financial results, highlighting a significant increase in revenue driven by robust demand for its Germanium-free optics, particularly in defense and public safety sectors. Key financial metrics showed a 41.4% increase in quarterly revenue to $12.2 million and a 17.4% rise in annual revenue to $37.6 million. However, the company also reported a substantial net loss of $7.1 million for the quarter and $14.9 million for the year, attributed to increased operating expenses and strategic investments. Strategic highlights include securing significant purchase orders for IR cameras, launching new products, and receiving strategic investments to support growth in the drone sector. Looking ahead, LightPath aims to capitalize on the growing demand for Germanium-free solutions and expand its market presence in defense and industrial sectors, focusing on sustainable revenue growth and supply chain security.