Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $687.33M
• Dividend Yield: N/A
• Average Volume (3M): 2.32M
• 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: 2,839,035
• 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: 0.20
• Enterprise Value/Revenue: 1.44K
• Enterprise Value/Gross Profit: 1.57K
• Enterprise Value/Ebitda: -7.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $5.50 ▲(8.91% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including negative profitability and cash flow issues. However, positive technical indicators provide some optimism, suggesting potential short-term bullish momentum. The valuation remains unattractive due to the negative P/E ratio and lack of dividend yield.

Lightwave Logic Business Overview & Revenue Model

Company Description

Lightwave Logic (LWLG) is a technology company focused on developing advanced photonic devices and materials for the telecommunications and data communications sectors. The company's core product offerings include electro-optic polymers and devices that leverage these materials to enhance the speed and efficiency of data transmission. LWLG aims to revolutionize the optical networking landscape by providing solutions that enable higher bandwidth and lower energy consumption, positioning itself at the forefront of the growing demand for faster and more efficient communication technologies.

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.

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: 5.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.05 is above the 20-day moving average (MA) of 5.00, above the 50-day MA of 4.32, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 54.11 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	69 Neutral	$376.86M	13.44	8.75%	―	-4.24%	-23.16%
NTIC	67 Neutral	$77.88M	27.35	4.18%	1.23%	3.46%	-34.80%
CMT	65 Neutral	$163.18M	20.71	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LWLG	54 Neutral	$687.33M	-30.84	-65.80%	―	4.52%	6.57%
GEVO	52 Neutral	$522.37M	―	-11.71%	―	341.75%	20.16%
LOOP	48 Neutral	$75.91M	-6.45	―	―	11013.00%	39.85%

Lightwave Logic Corporate Events

Lightwave Logic Extends CEO Contract Amid Leadership Changes

On September 12, 2025, Lightwave Logic, Inc. signed a new employment agreement with CEO Yves LeMaitre, extending his term until December 31, 2028. The agreement includes a base salary of $500,000, potential bonuses, and equity awards. Additionally, CFO and COO Jim Marcelli announced his retirement effective December 31, 2025, prompting the company to begin searching for his replacement. These leadership changes are significant for Lightwave Logic as it continues to advance its position in the silicon photonics industry.

The most recent analyst rating on (LWLG) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lightwave Logic stock, see the LWLG Stock Forecast page.