Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $463.40M
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.55
• Revenue Growth: 4.52%
• EPS Growth: 6.57%
• Country: US
• Employees: 31
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 129,439,990
• 10 Day Avg. Volume: 2,540,927
• 30 Day Avg. Volume: 2,507,884
• 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: 0.29
• Enterprise Value/Revenue: 1.44K
• Enterprise Value/Gross Profit: 1.57K
• Enterprise Value/Ebitda: -7.03
• 1Y Price Target: $2.00
• Price Target Upside: -44.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $2.00 ▼(-44.13% 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 is facing significant financial challenges. Despite some revenue growth, the company remains unprofitable with negative margins and cash flows. The low debt levels provide some financial stability, but the negative return on equity and cash flow issues are concerning. The company needs to address its operational inefficiencies to improve its financial health.

Income Statement

Lightwave Logic's income statement reveals significant challenges. The company has been experiencing negative net profit margins, with a TTM net profit margin of -51.66%. Although there is a slight revenue growth of 7.09% in the TTM, the EBIT and EBITDA margins remain deeply negative, indicating ongoing operational inefficiencies. The company is struggling to achieve profitability, which is a major concern.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.086 in the TTM, suggesting limited leverage and potential financial stability. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is not explicitly calculated, but the low leverage is a positive aspect amidst the broader financial challenges.

Cash Flow

Cash flow analysis indicates ongoing struggles with negative operating cash flow and free cash flow. The TTM free cash flow to net income ratio is positive at 1.19, suggesting some ability to cover net losses with free cash flow. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.36K	95.61K	40.50K	0.00	0.00	0.00
Gross Profit	86.64K	88.21K	37.99K	-1.05M	-878.52K	-784.42K
EBITDA	-19.32M	-20.66M	-19.73M	-16.19M	-17.75M	-5.93M
Net Income	-4.20M	-22.54M	-21.04M	-17.23M	-18.21M	-6.71M
Balance Sheet
Total Assets	32.44M	37.81M	41.78M	29.26M	27.23M	7.37M
Cash, Cash Equivalents and Short-Term Investments	22.11M	27.67M	31.43M	24.10M	23.43M	3.31M
Total Debt	2.69M	2.77M	2.91M	358.25K	536.45K	1.11M
Total Liabilities	3.60M	4.38M	5.35M	1.71M	2.02M	1.59M
Stockholders Equity	28.83M	33.42M	36.43M	27.55M	25.20M	5.78M
Cash Flow
Free Cash Flow	-16.03M	-17.82M	-15.84M	-12.03M	-11.15M	-5.09M
Operating Cash Flow	-13.99M	-15.55M	-12.24M	-10.47M	-10.04M	-4.87M
Investing Cash Flow	-2.05M	-2.70M	-2.96M	-2.21M	-1.12M	-217.98K
Financing Cash Flow	8.94M	14.48M	22.52M	13.35M	31.28M	6.16M

Lightwave Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.58
• 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 3.58 is above the 20-day moving average (MA) of 3.50, above the 50-day MA of 2.82, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 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	429.70M	24.97	9.92%	―	-14.17%	-49.13%
NTIC	68 Neutral	73.90M	25.96	7.60%	2.05%	3.46%	-34.80%
CMT	68 Neutral	185.61M	20.21	6.10%	―	-15.64%	-43.49%
GEVO	56 Neutral	498.19M	-8.35	-12.31%	―	341.75%	20.16%
LWLG	54 Neutral	$463.40M	―	-65.80%	―	4.52%	6.57%
LOOP	54 Neutral	75.39M	-5.65	488.80%	―	8400.76%	31.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.