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: -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: 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: 1.35K
• Enterprise Value/Gross Profit: -302.60
• Enterprise Value/Ebitda: -7.13
• 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: 44 Neutral
• Price Target: $4.50 ▲(3.69% Upside)

Lightwave Logic's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow metrics. Technical analysis provides some support with mixed signals, but the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data leaves these areas unaddressed.

Positive Factors

Strategic Partnership

The partnership with a Fortune Global 500 company signifies potential for significant market expansion and product validation, enhancing Lightwave Logic's competitive position in the telecommunications and data communications sectors.

Supply Chain Strategy

A rare-earth-free supply chain reduces dependency on scarce materials, potentially lowering costs and improving sustainability, which is crucial for long-term operational stability and environmental compliance.

Expanded Foundry Relationships

Adding a new foundry partner enhances manufacturing capabilities and scalability, supporting Lightwave Logic's growth objectives and ability to meet increasing demand for its photonic components.

Negative Factors

Negative Profitability

Continued negative profitability indicates challenges in cost management and revenue generation, which could hinder long-term financial health and investment in growth opportunities.

Cash Flow Challenges

Negative cash flow reflects operational inefficiencies and limits the company's ability to fund new projects or weather economic downturns, impacting long-term sustainability.

Revenue Decline

A declining revenue trend suggests potential issues with market demand or competitive positioning, posing risks to future growth and financial performance.

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 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: Neutral
• Last Price: 4.34
• 50DMA: Negative
• 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 Neutral. The current price of 4.34 is below the 20-day moving average (MA) of 4.82, below the 50-day MA of 4.74, and above the 200-day MA of 2.37, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 40.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LWLG.

Lightwave Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDSN	66 Neutral	$296.47M	13.55	8.75%	―	-4.24%	-23.16%
CMT	65 Neutral	$161.81M	20.34	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GEVO	51 Neutral	$518.54M	―	-9.27%	―	675.75%	42.00%
LWLG	44 Neutral	$687.33M	-30.84	-56.26%	―	-11.12%	8.76%
NTIC	44 Neutral	$70.54M	4,133.33	0.02%	1.34%	-0.97%	-99.67%
LOOP	41 Neutral	$75.91M	-6.45	―	―	11013.00%	39.85%

Lightwave Logic Corporate Events

Lightwave Logic Reports Q3 2025 Earnings and Outlook

Lightwave Logic, Inc., a technology platform company specializing in electro-optic polymers for data transmission, has released its latest earnings report. The company, which operates in the telecommunications sector, focuses on creating next-generation photonic devices for faster data transmission.

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.