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Lightpath Technologies (LPTH)
NASDAQ:LPTH
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Lightpath Technologies
(NASDAQ:LPTH)
Rating:48Neutral
Price Target:
$2.50
▲( 5.49% Upside)
Positive Factors
Acquisition Impact
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
Financial Performance
Slightly lower revenue, lower gross margin, and higher operating expense resulted in an adjusted EBITDA loss significantly below estimates.
Revenue Challenges
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.
Lightpath Technologies (LPTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.67M
Dividend YieldN/A
Average Volume (3M)120.63K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth2.59%
EPS Growth-48.02%
CountryUS
Employees304
SectorTechnology
Sector Strength76
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.09
Shares Outstanding42,898,937
10 Day Avg. Volume154,541
30 Day Avg. Volume120,629
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio>-0.01
Enterprise Value/Market Cap31.07K
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.42
Enterprise Value/Ebitda-0.37
Forecast
1Y Price Target
$4.38Price Target Upside84.81% 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 Financial Statement Overview
Summary
Lightpath Technologies faces significant financial challenges across its income statement, balance sheet, and cash flow statement. The company is struggling with profitability and cash flow generation, while its balance sheet shows moderate leverage but negative returns on equity. These issues highlight the need for strategic improvements in operational efficiency and cost management to stabilize and improve financial performance.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 | ||||
| 24.99T | 31.73M | 32.93M | 35.56M | 38.46M | 34.97M | Gross Profit |
| 7.44T | 8.63M | 11.07M | 11.81M | 13.45M | 13.84M | EBIT |
| -7.18T | -7.83M | -3.55M | -2.44M | -2.03M | 2.15M | EBITDA |
| -8.45T | -3.70M | -355.00K | 1.17M | 1.47M | 5.46M | Net Income Common Stockholders |
| -7.80T | -8.01M | -4.05M | -3.54M | -3.19M | 866.93K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.48T | 3.48M | 4.69M | 5.51M | 6.77M | 5.39M | Total Assets |
| 81.42T | 48.09M | 53.54M | 50.71M | 54.61M | 47.57M | Total Debt |
| 9.64T | 10.36M | 12.38M | 14.73M | 14.23M | 7.63M | Net Debt |
| 3.16T | 6.88M | 7.70M | 9.22M | 7.46M | 2.24M | Total Liabilities |
| 31.45T | 17.89M | 17.58M | 20.98M | 21.03M | 13.01M | Stockholders Equity |
| 15.57T | 30.20M | 35.95M | 29.73M | 33.58M | 34.57M |
| Cash Flow | Free Cash Flow | ||||
| -5.96T | -1.66M | -5.89M | -162.49K | 1.57M | 1.29M | Operating Cash Flow |
| -5.37T | 521.04K | -2.81M | 1.46M | 4.73M | 3.73M | Investing Cash Flow |
| -20.82T | -2.67M | -2.87M | -1.63M | -3.16M | -2.26M | Financing Cash Flow |
| 29.27T | -1.47M | 7.46M | -636.17K | -843.43K | -621.71K |
Lightpath Technologies Technical Analysis
Neutral
2.37
Price Trends
2.18
Positive
2.55
Negative
2.08
Positive
Market Momentum
0.06
Positive
51.16
Neutral
28.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPTH, the sentiment is Neutral. The current price of 2.37 is below the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.18, and above the 200-day MA of 2.08, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
57 Neutral | $56.97M | ― | -37.98% | ― | 62.28% | 44.68% | |
54 Neutral | $79.66M | ― | -24.87% | ― | -20.12% | -660.05% | |
51 Neutral | $79.55M | ― | -1.63% | ― | -19.52% | 64.89% | |
48 Neutral | $101.67M | ― | -24.86% | ― | 2.59% | -48.02% | |
40 Underperform | $93.40M | ― | -138.61% | ― | 14.08% | -9.61% |
* Technology Sector Average
Performance Comparison
LPTH
Lightpath Technologies
2.37
1.07
82.31%
QUIK
QuickLogic
5.03
-8.22
-62.04%
SOL
Emeren Group
1.55
-0.30
-16.22%
REFR
Research Frontiers
1.70
-0.46
-21.30%
WBX
Wallbox
0.32
-1.21
-79.08%
Lightpath Technologies Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q3-2025)
| % Change Since: 7.24%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.