Lightpath Technologies (LPTH) AI Stock Analysis

• Market Cap: $388.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• 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: 2,041,591
• 30 Day Avg. Volume: 1,833,209
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00338
• P/FCF Ratio: -0.01
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 17.72
• Enterprise Value/Ebitda: -34.47
• 1Y Price Target: $8.50
• Price Target Upside: -11.46% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $10.00 ▲(4.17% Upside)

Lightpath Technologies is experiencing strong revenue growth and strategic progress, but faces challenges with profitability and cash flow. The technical indicators are positive, suggesting bullish momentum, but valuation concerns and financial pressures weigh on the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Lightpath's products, enhancing its market position and potential for future expansion.

Strategic Investment

The strategic investment supports expansion into the drone market, potentially diversifying revenue streams and strengthening competitive advantage.

Record Backlog Growth

A significant backlog indicates strong future revenue potential and demand for Lightpath's optical solutions, supporting long-term growth.

Negative Factors

Profitability Challenges

Declining gross margins suggest cost pressures and operational inefficiencies, which may hinder profitability and financial performance.

Increased Operating Expenses

Rising operating expenses can strain financial resources, reducing net income and impacting cash flow sustainability.

Net Loss Increase

Increasing net losses highlight ongoing financial pressures, which may affect the company's ability to invest in growth and innovation.

Lightpath Technologies Business Overview & Revenue Model

Company Description

Lightpath Technologies (LPTH) is a leading provider of advanced optical communication solutions and innovative photonic technologies. The company operates primarily in the telecommunications sector, focusing on the development and manufacturing of high-performance fiber optic components and systems. LPTH's core products include optical transceivers, optical amplifiers, and integrated photonic circuits, which are essential for high-speed data transmission and telecommunications infrastructure.

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 shows impressive revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with moderate debt, but operational inefficiencies and liquidity concerns are notable.

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: 9.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 9.6 is above the 20-day moving average (MA) of 7.47, above the 50-day MA of 5.57, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 71.51 is Negative, neither overbought nor oversold. The STOCH value of 80.99 is Negative, 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	78 Outperform	$162.54M	21.21	25.98%	―	16.52%	50.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RELL	59 Neutral	$151.48M	461.30	0.11%	2.02%	6.17%	―
LPTH	55 Neutral	$388.18M	―	-37.15%	―	17.26%	-70.07%
MEI	53 Neutral	$262.37M	―	-7.62%	6.58%	-4.91%	61.77%
LINK	51 Neutral	$114.33M	―	-15.12%	―	-7.12%	-11.00%
GNSS	46 Neutral	$101.15M	―	-177.60%	―	8.95%	14.34%

Lightpath Technologies Corporate Events

Lightpath Technologies Approves Key Proposals in Stockholder Meeting

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.