Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $390.91M
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.52
• Revenue Growth: 4.52%
• EPS Growth: 6.57%
• Country: US
• Employees: 31
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 129,439,990
• 10 Day Avg. Volume: 3,844,309
• 30 Day Avg. Volume: 2,048,697
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 1.54K
• Enterprise Value/Gross Profit: -355.68
• Enterprise Value/Ebitda: -6.79
• 1Y Price Target: $2.00
• Price Target Upside: -38.84% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $2.00 ▼(-38.84% Downside)

Lightwave Logic's overall stock score is primarily influenced by its financial challenges, which weigh heavily on its performance. However, the recent breakthrough in material reliability provides a positive outlook, potentially enhancing market positioning. Technical indicators are mixed, with some bullish signs, but the valuation remains unattractive due to ongoing unprofitability.

Lightwave Logic Business Overview & Revenue Model

Company Description

Lightwave Logic, Inc., a development stage company, focuses on the development of photonic devices and non-linear optical polymer materials systems for fiber-optic data communications and optical computing markets in the United States. The company is involved in designing and synthesizing organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which converts data from electric signals to optical signals for transmission over fiber-optic cables; and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip. In addition, the company provides the ridge waveguide modulator, a modulator that fabricates the waveguide within a layer of its electro-optic polymer system. It focuses on selling its products to electro-optic device manufacturers, such as telecommunications component and systems manufacturers, networking and switching suppliers, semiconductor companies, Web 2.0 media, computing companies, aerospace companies, and government agencies. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.

How the Company Makes Money

Lightwave Logic generates revenue primarily through the licensing of its proprietary electro-optic materials and technologies to telecommunications and data communication companies. The company also engages in the sale of its photonic devices, which are designed to improve data transmission capabilities. Additionally, LWLG may benefit from strategic partnerships and collaborations with industry leaders, which can provide funding, resources, and market access. This combination of product sales, licensing agreements, and partnerships forms the core of the company's revenue model, allowing it to capitalize on the increasing demand for high-speed data solutions.

Lightwave Logic Financial Statement Overview

Summary

Lightwave Logic faces significant financial challenges, characterized by persistent losses and operational inefficiencies. Despite some revenue growth, profitability remains elusive, and cash flow issues suggest liquidity constraints. The company's reliance on equity and manageable debt levels offer some stability, but enhancing operational performance is crucial for long-term sustainability.

Income Statement

The company exhibits a negative net profit margin and EBIT margin, indicating significant losses relative to revenue. Although there is a substantial revenue growth rate from previous periods, the sustained negative gross profit margin highlights ongoing cost challenges. Overall, the income statement reflects financial distress with limited revenue generation and high operational losses.

Balance Sheet

While the debt-to-equity ratio remains low, indicating manageable leverage, the company relies heavily on equity to finance its assets. The return on equity is negative due to consistent net losses, which undermines shareholder value. However, the equity ratio suggests a stable capital structure with a reasonable proportion of assets funded by equity. The balance sheet shows moderate financial stability but significant profitability challenges.

Cash Flow

The cash flow statement reflects negative free cash flow, indicating the company is not generating sufficient cash from operations to cover capital expenditures. Although financing activities provide some liquidity, the operating cash flow to net income ratio is unfavorable, highlighting operational inefficiencies. The cash flow position suggests liquidity concerns and a need for improved operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.11K	95.61K	40.50K	0.00	0.00	0.00
Gross Profit	-382.12K	88.21K	37.99K	-1.05M	-878.52K	-784.42K
EBITDA	-20.03M	-20.66M	-19.73M	-16.19M	-17.75M	-5.93M
Net Income	-4.55M	-22.54M	-21.04M	-17.23M	-18.21M	-6.71M
Balance Sheet
Total Assets	35.64M	37.81M	41.78M	29.26M	27.23M	7.37M
Cash, Cash Equivalents and Short-Term Investments	25.05M	27.67M	31.43M	24.10M	23.43M	3.31M
Total Debt	2.73M	2.77M	2.91M	358.25K	536.45K	1.11M
Total Liabilities	4.09M	4.38M	5.35M	1.71M	2.02M	1.59M
Stockholders Equity	31.55M	33.42M	36.43M	27.55M	25.20M	5.78M
Cash Flow
Free Cash Flow	-17.04M	-17.82M	-15.84M	-12.03M	-11.15M	-5.09M
Operating Cash Flow	-14.27M	-15.55M	-12.24M	-10.47M	-10.04M	-4.87M
Investing Cash Flow	-2.77M	-2.70M	-2.96M	-2.21M	-1.12M	-217.98K
Financing Cash Flow	10.57M	14.48M	22.52M	13.35M	31.28M	6.16M

Lightwave Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.27 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.16, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 58.75 is Neutral, 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	74 Outperform	$452.40M	26.29	7.22%	―	-14.17%	-49.13%
CMT	72 Outperform	$166.52M	18.45	6.22%	―	-15.64%	-43.49%
NTIC	70 Outperform	$72.86M	24.49	4.18%	2.07%	3.46%	-34.80%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
GEVO	58 Neutral	$394.20M	―	-11.71%	―	341.75%	20.16%
LWLG	54 Neutral	$390.91M	―	-65.80%	―	4.52%	6.57%
LOOP	54 Neutral	$80.17M	―	-406.97%	―	8400.76%	31.02%

Lightwave Logic Corporate Events

Lightwave Logic Achieves Breakthrough in Material Reliability

On July 31, 2025, Lightwave Logic announced a significant breakthrough in the reliability of their Perkinamine® materials, which passed the Telcordia GR-468 85/85 environmental stress test. This achievement validates the long-term reliability of their thin-film devices, enhancing customer confidence and positioning the company favorably in the market for silicon photonics and AI connectivity solutions. The company is preparing to integrate its fourth-generation encapsulation material into silicon photonics foundries, aiming to capitalize on emerging markets such as co-packaged optics and AI data centers.