Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $616.63M
• Dividend Yield: N/A
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: -11.12%
• EPS Growth: 8.76%
• Country: US
• Employees: 31
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• 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: 0.73
• Enterprise Value/Revenue: 4.46K
• Enterprise Value/Gross Profit: -998.95
• Enterprise Value/Ebitda: -23.53
• 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: 47 Neutral
• Price Target: $4.00 ▲(33.78% Upside)

The score is primarily constrained by weak financial performance (losses and negative cash flow), with only partial offset from constructive price trends. Valuation remains challenging due to continued losses, while the recent capital raise modestly improves liquidity but adds dilution risk.

Positive Factors

Conservative leverage

A very low debt-to-equity ratio reduces financial risk and preserves flexibility over multiple quarters. With limited leverage the company can prioritize commercialization investments or absorb shocks without high interest burdens, supporting a more durable funding runway as revenue scales.

Fresh liquidity for commercialization

The $32.8M public offering materially strengthens near-term cash resources to fund working capital, production capacity and commercialization. This funding reduces immediate refinancing pressure and enables execution on scaling plans that can drive durable revenue growth and product-market traction.

Proprietary electro-optic technology

Owning electro-optic polymer IP targets structural demand for higher-speed, lower-power data center and telecom optics. This differentiated tech can create sustainable competitive advantages if commercialized, enabling partnerships, licensing or component sales as global data traffic grows over years.

Negative Factors

Negative margins and profitability

Persistently negative gross and operating margins indicate the business is not yet converting revenue into sustainable profit. Even with modest revenue growth, loss-making unit economics constrain reinvestment capacity and require significant margin improvement to support long-term commercialization and shareholder returns.

Negative operating and free cash flow

Consistent negative operating and free cash flow create dependency on external financing and limit the company's ability to self-fund scale-up. Over a multi-month horizon this increases execution and dilution risk, constraining investments in manufacturing, customer development, and long-term R&D.

Financing uncertainty and small scale

Terminating an equity purchase facility reduces a previously available financing channel, leaving the company more reliant on discrete raises like the recent offering. Combined with a very small team (31 employees), this raises execution risk for commercialization and increases the probability of future dilutive financings.

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. Despite a low debt-to-equity ratio, the company struggles with negative returns on equity and cash flow, indicating a need for strategic improvements.

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: Positive
• Last Price: 2.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWLG, the sentiment is Positive. The current price of 2.99 is below the 20-day moving average (MA) of 3.53, below the 50-day MA of 4.19, and above the 200-day MA of 2.70, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$305.32M	14.15	8.75%	―	-4.24%	-23.16%
CMT	65 Neutral	$168.49M	21.18	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NTIC	56 Neutral	$82.39M	-257.86	0.02%	1.33%	-0.97%	-99.67%
GEVO	48 Neutral	$482.19M	-10.34	-9.27%	―	675.75%	42.00%
LWLG	47 Neutral	$616.63M	-25.28	-56.26%	―	-11.12%	8.76%
LOOP	47 Neutral	$53.33M	-4.53	―	―	11013.00%	39.85%

Lightwave Logic Corporate Events

Lightwave Logic Appoints New Principal Financial Officer

On January 6, 2026, Lightwave Logic, Inc.’s board appointed Snizhana “Ana” Quan as Principal Financial Officer and Principal Accounting Officer, following the previously announced retirement of former CFO and COO, and director, James S. Marcelli effective December 31, 2025. Quan, 47, has been the company’s Corporate Controller since October 2023 and brings an extensive background in corporate accounting, SEC reporting, and financial leadership from prior roles at Stolle Machinery Company, Frontier Airlines, NTT America, Western Union, The Comex Group, and KPMG. A certified public accountant in Colorado with a Bachelor of Science in Business Administration – Accounting/Finance from the University of Colorado, Quan’s appointment reflects an internal succession plan and continuity in financial stewardship, with the company noting there are no special arrangements, family relationships, or related-party transactions associated with her promotion.

The most recent analyst rating on (LWLG) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on Lightwave Logic stock, see the LWLG Stock Forecast page.

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.

The most recent analyst rating on (LWLG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lightwave Logic stock, see the LWLG Stock Forecast page.

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.

The most recent analyst rating on (LWLG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lightwave Logic stock, see the LWLG Stock Forecast page.

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.

The most recent analyst rating on (LWLG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lightwave Logic stock, see the LWLG Stock Forecast page.