Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $434.84M
• Dividend Yield: N/A
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.75
• Revenue Growth: -11.12%
• EPS Growth: 8.76%
• Country: US
• Employees: 31
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 145,430,620
• 10 Day Avg. Volume: 2,839,035
• 30 Day Avg. Volume: 2,321,446
• PEG Ratio: -2.03
• Price to Book (P/B): 7.60
• Price to Sales (P/S): 2655.65
• P/FCF Ratio: -14.25
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 1.35K
• Enterprise Value/Gross Profit: -302.60
• Enterprise Value/Ebitda: -7.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $3.00 ▲(0.33% Upside)

Lightwave Logic's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the valuation. While the recent capital raise is a positive step, its benefits are yet to be realized.

Positive Factors

Strategic Capital Raise

The capital raise provides financial resources to enhance operational scale and industry positioning, supporting long-term growth initiatives.

Leadership Transition

The leadership transition to Yves LeMaitre aims to continue strategic initiatives for commercial scalability, potentially improving operational efficiency.

Technical Program with Fortune 500

Collaborating with a Fortune 500 company enhances credibility and may lead to significant commercial opportunities, strengthening market position.

Negative Factors

Negative Profitability

Ongoing negative profitability and cash flow issues indicate operational inefficiencies, which could hinder long-term financial stability and growth.

Revenue Decline

Declining revenue growth suggests challenges in product adoption or market competition, potentially impacting future earnings and market share.

Cash Flow Challenges

Negative cash flow highlights liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Lightwave Logic Business Overview & Revenue Model

Company Description

Lightwave Logic, Inc. (LWLG) is a technology company focused on the development and commercialization of advanced photonic devices and materials for the telecommunications and data communications sectors. The company specializes in electro-optic polymers and their applications in high-speed optical communications, aiming to enhance data transfer rates and reduce energy consumption in data centers and telecommunications networks. Lightwave Logic's core products include modulators and other photonic components that leverage its proprietary technology to enable faster and more efficient data transmission.

How the Company Makes Money

Lightwave Logic generates revenue primarily through the sale of its photonic devices and components, which are utilized in telecommunications and data communication systems. The company aims to monetize its technological innovations by entering into partnerships and collaborations with key players in the semiconductor and telecommunications industries, potentially leading to licensing agreements or product sales. Additionally, LWLG may engage in research and development contracts with government entities and private companies, providing further revenue streams. The success of these efforts is bolstered by the growing demand for faster and more efficient communication technologies as global data consumption continues to rise.

Lightwave Logic Financial Statement Overview

Summary

Lightwave Logic faces significant financial challenges, with negative profitability and cash flow metrics. While the company maintains a low debt-to-equity ratio, its inability to generate positive returns on equity and cash flow indicates a need for strategic improvements. Enhancing revenue growth and cost management could help improve financial stability.

Income Statement

Lightwave Logic's income statement reveals significant challenges. The company is experiencing negative net profit margins and EBIT margins, indicating substantial losses relative to revenue. Although there is a modest revenue growth rate of 6.62% TTM, the gross profit margin is negative, highlighting cost inefficiencies. The company needs to improve its profitability metrics to enhance financial health.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.064 TTM, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio is stable, but the company needs to improve its profitability to strengthen its financial position.

Cash Flow

Cash flow analysis indicates negative operating cash flow and free cash flow, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is somewhat aligned with net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.61K	95.61K	40.50K	0.00	0.00	0.00
Gross Profit	-449.15K	88.21K	37.99K	-1.05M	-878.52K	-784.42K
EBITDA	-19.07M	-20.66M	-19.73M	-16.19M	-17.75M	-5.93M
Net Income	-21.00M	-22.54M	-21.04M	-17.23M	-18.63M	-6.72M
Balance Sheet
Total Assets	44.79M	37.81M	41.78M	29.26M	27.23M	7.37M
Cash, Cash Equivalents and Short-Term Investments	34.94M	27.67M	31.43M	24.10M	23.43M	3.31M
Total Debt	2.64M	2.77M	2.91M	358.25K	536.45K	703.45K
Total Liabilities	2.45M	4.38M	5.35M	1.71M	2.02M	1.59M
Stockholders Equity	41.19M	33.42M	36.43M	27.55M	25.20M	5.78M
Cash Flow
Free Cash Flow	-14.95M	-18.25M	-15.84M	-12.10M	-11.42M	-5.09M
Operating Cash Flow	-13.57M	-15.55M	-12.24M	-10.53M	-10.30M	-4.87M
Investing Cash Flow	-1.65M	-2.70M	-2.96M	-2.21M	-1.12M	-217.98K
Financing Cash Flow	23.28M	14.48M	22.52M	13.41M	31.55M	6.16M

Lightwave Logic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWLG, the sentiment is Negative. The current price of 2.99 is below the 20-day moving average (MA) of 3.93, below the 50-day MA of 4.55, and above the 200-day MA of 2.55, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 28.89 is Positive, neither overbought nor oversold. The STOCH value of 8.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LWLG.

Lightwave Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDSN	72 Outperform	$303.17M	14.05	8.75%	―	-4.24%	-23.16%
CMT	65 Neutral	$182.27M	22.91	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GEVO	55 Neutral	$523.39M	-11.23	-9.27%	―	675.75%	42.00%
NTIC	50 Neutral	$74.33M	4,355.56	0.02%	1.28%	-0.97%	-99.67%
LOOP	47 Neutral	$45.64M	-3.88	―	―	11013.00%	39.85%
LWLG	40 Underperform	$434.84M	-17.83	-56.26%	―	-11.12%	8.76%

Lightwave Logic Corporate Events

Lightwave Logic Completes $32.8M Public Stock Offering

On December 15, 2025, Lightwave Logic, Inc. announced an underwritten public offering of 11,666,667 shares of its common stock priced at $3 per share, with an option granted to the underwriter to purchase up to 1,750,000 additional shares for overallotments. The offering closed on December 17, 2025, generating net proceeds of approximately $32.8 million, which the company plans to use for working capital, commercialization acceleration, expanded production capacity, strategic mergers and acquisitions, or investments in complementary technologies, though no agreements or commitments exist currently for such purposes. This initiative aims to enhance Lightwave Logic’s operational scale and industry positioning, with potential value for stakeholders through expanded capabilities and customer partnerships.

Lightwave Logic Ends Purchase Agreement with Lincoln Park

On December 12, 2025, Lightwave Logic, Inc. announced the termination of its Purchase Agreement with Lincoln Park Capital Fund, LLC, effective December 15, 2025. This agreement, initiated on March 17, 2025, allowed Lightwave Logic to sell up to $30 million of its common stock to Lincoln Park over a 36-month period. The termination, which can be executed with one business day’s notice, reflects the company’s strategic decision-making, although certain provisions of the agreement will remain in effect post-termination.

Lightwave Logic Announces President’s Retirement

On December 8, 2025, Lightwave Logic announced the retirement of its President, Tom Zelibor, effective December 31, 2025. Yves LeMaitre, the current CEO, will take over as President on January 1, 2026. During his tenure, Zelibor played a crucial role in positioning the company for commercial scalability by implementing processes to ensure material reliability and acquiring equipment for future production. His leadership has strengthened Lightwave Logic’s internal systems and laid the groundwork for scaling up manufacturing operations.