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Lightpath (LPTH)
:LPTH
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Lightpath Technologies
(NASDAQ:LPTH)
Rating:57Neutral
Price Target:
$3.50
▼(-0.28%Downside)
Positive Factors
Acquisition Impact
The acquisition of G5 Infrared is seen as a positive move, adding scale and complementing LightPath’s product portfolio.
Market Opportunity
Market overreaction to acquisition financing creates opportunity for investors.
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.
Stock Reaction
The stock's reaction, declining 19%, is believed to be due to the changes in the capital structure rather than the acquisition or financial results.
Lightpath Technologies (LPTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.43M
Dividend YieldN/A
Average Volume (3M)159.37K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth2.59%
EPS Growth-48.02%
CountryUS
Employees304
SectorTechnology
Sector Strength93
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.09
Shares Outstanding42,898,937
10 Day Avg. Volume150,346
30 Day Avg. Volume159,368
Financial Highlights & Ratios
PEG Ratio3.15
Price to Book (P/B)2.66
Price to Sales (P/S)0.00
P/FCF Ratio-21.89
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit15.04
Enterprise Value/Ebitda-8.64
Forecast
1Y Price Target
$4.38Price Target Upside24.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Lightpath Technologies Business Overview & Revenue Model
Company DescriptionLightpath Technologies (LPTH) is a leading provider in the field of optics and photonics, specializing in the design, manufacture, and distribution of precision molded glass aspheric optics, infrared optics, and custom optical assemblies. The company serves various markets, including industrial, defense, telecommunications, and medical sectors, providing advanced optical solutions to enhance the performance of complex systems.
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: 58.82%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Neutral
LightPath Technologies demonstrated significant growth and strategic advancement, particularly with the successful acquisition and integration of G5 Infrared, leading to increased bookings and revenue. However, the company faced substantial operating expense increases, project delays, and ongoing net losses. The balance between strong strategic moves and existing financial challenges results in a neutral sentiment.Q3-2025 Updates
Positive Updates
Acquisition of G5 Infrared
LightPath Technologies completed the acquisition of G5 Infrared, which has led to significant growth in new categories of cameras, assemblies, and subsystems. This acquisition is expected to significantly enhance LightPath's capabilities in the defense space.
Increased Revenue and Gross Profit
Revenue for the third quarter of fiscal 2025 increased by 19.1% to $9.2 million compared to the same period in the previous year. Gross profit increased by 66% to $2.7 million, attributed to a favorable product mix.
Strong Demand for BlackDiamond Materials
There has been a very strong growth in demand for BlackDiamond materials, especially BDNL materials, due to their technical advantages and supply chain independence from China.
Successful Integration of G5 Infrared
The post-merger integration of G5 Infrared is going well, with a strong cultural fit and alignment in goals between the two companies.
Record Bookings
In the last 90 days since the G5 acquisition, LightPath booked over $19 million in new orders, indicating strong demand and future revenue potential.
Negative Updates
Increased Operating Expenses
Operating expenses increased by 44% to $6 million in the third quarter, primarily due to acquisition-related expenses, product development costs, and increased sales and marketing spend.
Apache Program Delays
LightPath encountered delays in the Apache program due to capacity constraints and the complexity of the project, resulting in a temporary setback.
Net Loss
The company reported a net loss of $3.6 million for the third quarter, compared to a $2.6 million loss in the same quarter of the prior fiscal year.
Challenges in Optical Gas Imaging
The optical gas imaging segment faces challenges due to delays in formal qualification tests required by the EPA, impacting the adoption of these products.
Potential Supply Chain Risks
While supply chain issues have improved, there are still potential risks related to geopolitical and economic conditions that could impact material availability.
Company Guidance
During the third quarter fiscal 2025 earnings call for LightPath Technologies, significant guidance was provided regarding the company's growth and strategic direction. CEO Sam Rubin highlighted a 19.1% increase in revenue to $9.2 million compared to the same quarter the previous year, driven by their transformation into a solutions provider with a focus on infrared imaging technologies. The acquisition of G5 Infrared and the ongoing demand for their BlackDiamond materials, particularly in defense and commercial markets, were pivotal to their growth. The company's backlog stood at $27.4 million, reflecting strong order bookings, including $19 million in new orders in the last 90 days. With a shift in product mix, assemblies, and modules now account for a more significant portion of revenue, contributing to an increase in gross profit margin from 20.9% to 29.1%. The company also noted the impact of geopolitical events on their supply chain, emphasizing their strategic shift to mitigate risks associated with tariffs and supply constraints from China. Looking ahead, LightPath expects continued growth, driven by key defense programs and increased adoption of their proprietary materials, while projecting combined company revenues of $51 million in the 12 months following the G5 acquisition.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
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.25
Negative
Balance Sheet
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.40
Negative
Cash Flow
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.20
Very Negative
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.63M | 31.73M | 32.93M | 35.56M | 38.46M | 34.97M |
| Gross Profit | 9.96M | 8.63M | 11.07M | 11.81M | 13.45M | 13.84M |
| EBITDA | -5.12M | -3.70M | -355.00K | 1.17M | 1.47M | 5.39M |
| Net Income | -10.15M | -8.01M | -4.05M | -3.54M | -3.19M | 866.93K |
Balance Sheet | ||||||
| Total Assets | 81.42M | 48.09M | 53.54M | 50.71M | 54.61M | 47.57M |
| Cash, Cash Equivalents and Short-Term Investments | 6.48M | 3.48M | 4.69M | 5.51M | 6.77M | 5.39M |
| Total Debt | 14.33M | 10.36M | 12.38M | 14.73M | 14.23M | 7.63M |
| Total Liabilities | 31.30M | 17.89M | 17.58M | 20.98M | 21.03M | 13.01M |
| Stockholders Equity | 50.12M | 30.20M | 35.95M | 29.73M | 33.58M | 34.57M |
Cash Flow | ||||||
| Free Cash Flow | -6.49M | -1.66M | -5.89M | -162.49K | 1.57M | 1.29M |
| Operating Cash Flow | -5.62M | 521.04K | -2.81M | 1.46M | 4.73M | 3.73M |
| Investing Cash Flow | -21.11M | -2.67M | -2.87M | -1.63M | -3.16M | -2.26M |
| Financing Cash Flow | 30.18M | -1.47M | 7.46M | -636.17K | -843.43K | -621.71K |
Lightpath Technologies Technical Analysis
Positive
3.51
Price Trends
2.85
Positive
2.48
Positive
2.39
Positive
Market Momentum
0.15
Negative
68.56
Neutral
84.06
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 3.51 is above the 20-day moving average (MA) of 3.12, above the 50-day MA of 2.85, and above the 200-day MA of 2.39, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 84.06 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $34.26B | 5.42 | -11.67% | 1.85% | 5.30% | -18.55% | |
57 Neutral | $151.43M | ― | -24.86% | ― | 2.59% | -48.02% | |
55 Neutral | $98.54M | ― | -1.63% | ― | -19.52% | 64.89% | |
55 Neutral | $98.66M | ― | -24.87% | ― | -20.12% | -660.05% | |
51 Neutral | $55.63M | ― | -37.98% | ― | 62.28% | 44.68% | |
44 Neutral | $146.57M | ― | -138.61% | ― | 14.08% | -9.62% |
* Technology Sector Average
Performance Comparison
LPTH
Lightpath Technologies
3.51
2.22
172.09%
QUIK
QuickLogic
6.25
-5.21
-45.46%
SOL
Emeren Group
1.93
0.10
5.46%
REFR
Research Frontiers
1.79
-0.19
-9.60%
WBX
Wallbox
5.97
-23.03
-79.41%
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.