Lightwave Logic (LWLG) AI Stock Analysis

• Market Cap: $479.92M
• Dividend Yield: N/A
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.76
• 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: -13.91
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.00K
• Enterprise Value/Gross Profit: -1.12K
• Enterprise Value/Ebitda: -26.37
• 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: $3.50 ▼(-19.35% Downside)

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

Capital Raise Liquidity

The $32.8M equity raise materially improves near-term liquidity, funding working capital, production scale-up and commercialization initiatives. This capital provides runway for multi-month product development and customer qualification efforts, reducing immediate financing pressure while execution continues.

Conservative Leverage

Very low leverage limits interest burden and preserves borrowing capacity during a capital-intensive commercialization phase. Conservative debt levels provide strategic optionality to finance production or acquisitions without worsening solvency, supporting longer-term operational flexibility despite losses.

Proprietary Photonics Technology

Proprietary electro-optic polymer technology and modulator focus represent durable competitive advantages in high-speed, low-energy optical components. This IP can enable OEM partnerships, licensing and product differentiation as structural data-center and telecom bandwidth demand grows over the medium term.

Negative Factors

Persistent Unprofitability & Cash Burn

Sustained negative gross and operating margins and cash flow mean the business consumes capital to operate and scale. Over months this forces reliance on external funding, increases dilution risk, constrains R&D and commercialization pace, and elevates execution risk until profitability trajectories improve.

Small Scale and Weak Revenue Trend

A very small headcount and declining revenue limit internal capacity to scale manufacturing, sales, customer support and quality processes. For a company aiming to commercialize hardware and production, constrained human and revenue scale raises execution risk, reliance on partners, and slows market penetration.

C-suite Turnover / Leadership Transition

Executive retirements and role changes during a commercialization ramp create governance and operational risks. While internal promotions preserve continuity, simultaneous transitions (President retirement and CFO replacement) can disrupt finance, production ramp and partner negotiations, complicating execution in the medium term.

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

Weak fundamentals: negative net and EBIT margins and negative gross margin signal poor profitability, while operating cash flow and free cash flow are also negative. A low debt-to-equity ratio is a positive, but negative ROE underscores ongoing losses.

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: Negative
• Last Price: 4.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWLG, the sentiment is Negative. The current price of 4.34 is above the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.87, and above the 200-day MA of 2.94, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 7.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$308.33M	14.70	8.75%	―	-4.24%	-23.16%
CMT	65 Neutral	$167.12M	21.23	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NTIC	57 Neutral	$86.00M	-261.13	0.02%	1.33%	-0.97%	-99.67%
GEVO	48 Neutral	$474.93M	-9.93	-9.27%	―	675.75%	42.00%
LOOP	48 Neutral	$58.49M	-22.10	―	―	11013.00%	39.85%
LWLG	47 Neutral	$479.92M	-20.30	-56.26%	―	-11.12%	8.76%

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.