Lsi Industries (LYTS)
NASDAQ:LYTS
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Lsi Industries
(NASDAQ:LYTS)
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Rating:68Neutral
Price Target:
$21.50
▲(7.45% Upside)
Action:DowngradedDate:03/25/26
LYTS scores as moderately attractive: the biggest positives are solid financial quality (improved leverage and strong recent free cash flow) and a constructive earnings outlook with segment momentum and improving orders. The main constraints are weak technicals (below key moving averages with negative MACD) and only average valuation support, with added execution risk from the Royston acquisition financing and integration.
Positive Factors
Free cash flow strength
Consistent positive operating and free cash flow provides durable internal funding for capital expenditure, dividend support, debt paydown, and M&A. Strong FCF increases resilience to cyclical dips in end markets and reduces reliance on external financing over the next 2–6 months.
Negative Factors
Top-line volatility and recent revenue decline
A meaningful TTM revenue decline and mixed momentum indicate dependency on uneven project timing and event-driven demand. Persistent top-line variability can limit predictable operating leverage and makes sustaining margin expansion and cash conversion more challenging over a multi-quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Consistent positive operating and free cash flow provides durable internal funding for capital expenditure, dividend support, debt paydown, and M&A. Strong FCF increases resilience to cyclical dips in end markets and reduces reliance on external financing over the next 2–6 months.
Read all positive factors
Lsi Industries (LYTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$611.77M
Dividend Yield1.07%
Average Volume (3M)281.36K
Price to Earnings (P/E)22.2
Beta (1Y)1.28
Revenue Growth22.35%
EPS Growth2.59%
CountryUS
Employees2,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.26
Shares Outstanding31,133,196
10 Day Avg. Volume235,678
30 Day Avg. Volume281,357
Financial Highlights & Ratios
PEG Ratio-4.49
Price to Book (P/B)2.20
Price to Sales (P/S)0.89
P/FCF Ratio14.68
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit4.52
Enterprise Value/Ebitda13.11
Forecast
1Y Price Target
$29.33Price Target Upside46.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.12
Revenue Forecast (FY)$606.49M
Lsi Industries Business Overview & Revenue Model
Company Description
LSI Industries Inc. manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia, and Latin America. It operates in two segments, Lighting and Display Solutions. The Lighting segment ...
How the Company Makes Money
LSI Industries makes money primarily by selling products and project-based solutions through two main operating areas: (1) Lighting and (2) Display Solutions (graphics/signage). In Lighting, revenue is generated from the design, manufacture, and s...
Lsi Industries Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful operational and financial progress: strong free cash flow, debt reduction, margin expansion, and continued momentum in the Lighting segment along with improving order trends and backlog in Display Solutions. Challenges remain on the top line (consolidated revenue flat year-over-year) due to tough prior-year comps and some softness/uncertainty in the QSR vertical and seasonally weak Q3 visibility. Management emphasized integration progress, cross-selling opportunities, and balance sheet optionality for M&A, supporting a constructive outlook.Positive Updates
Consolidated Revenue Stable
Revenue of $147.0 million in Q2 was essentially flat year-over-year (0% change), meeting management expectations despite difficult prior-year comparisons.
Negative Updates
No Top-Line Growth
Consolidated revenue was flat year-over-year at $147.0 million (0% growth), indicating limited top-line expansion this quarter versus the prior-year period that included exceptional, event-driven demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Stable
Revenue of $147.0 million in Q2 was essentially flat year-over-year (0% change), meeting management expectations despite difficult prior-year comparisons.
Read all positive updates
Company Guidance
Management guided to continued progress in fiscal 2026 with growth in Q3 and the second half and an expectation to grow above the market, with activity expected to remain elevated into fiscal and calendar 2027; supporting metrics included Q2 revenue of $147.0 million (flat YoY), adjusted EBITDA of $13.4 million, adjusted EPS of $0.26, and strong cash flow/free cash flow of $23.0 million used to reduce total debt by $22.7 million to a net leverage ratio of 0.4 and maintain cash and availability of roughly $100 million. Segment-level indicators underpinning the outlook were lighting sales up 15% YoY (third consecutive quarter of double-digit growth), lighting orders +10% YoY with book‑to‑bill above 1, lighting adjusted operating income +29% and gross margin up ~190 bps; Display grocery orders were up double digits with a grocery book‑to‑bill of 1.2 and Display Q2 adjusted gross margin +30 bps, and management said it expects grocery sales growth in FY26 and improving backlog and order trends overall.Lsi Industries Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 591.80M | 573.38M | 469.64M | 496.98M | 455.12M | 315.61M |
| Gross Profit | 149.50M | 141.78M | 133.17M | 136.94M | 109.21M | 78.97M |
| EBITDA | 51.52M | 48.74M | 45.25M | 46.68M | 31.17M | 16.32M |
| Net Income | 25.67M | 24.38M | 24.98M | 25.76M | 15.03M | 5.87M |
Balance Sheet | ||||||
| Total Assets | 396.31M | 396.36M | 348.80M | 296.15M | 311.08M | 286.82M |
| Cash, Cash Equivalents and Short-Term Investments | 6.41M | 3.46M | 4.11M | 1.83M | 2.46M | 2.28M |
| Total Debt | 58.84M | 66.64M | 72.02M | 45.96M | 90.63M | 82.28M |
| Total Liabilities | 148.21M | 165.64M | 144.44M | 118.57M | 163.31M | 155.65M |
| Stockholders Equity | 248.10M | 230.72M | 204.35M | 177.58M | 147.77M | 131.17M |
Cash Flow | ||||||
| Free Cash Flow | 37.75M | 34.65M | 38.00M | 46.38M | -5.99M | 25.78M |
| Operating Cash Flow | 42.04M | 38.12M | 43.39M | 49.59M | -3.86M | 28.01M |
| Investing Cash Flow | -28.52M | -27.97M | -55.25M | -3.20M | -1.57M | -92.96M |
| Financing Cash Flow | -12.66M | -11.43M | 14.31M | -47.15M | 5.63M | 63.58M |
Lsi Industries Technical Analysis
Negative
20.01
Price Trends
21.02
Negative
20.07
Negative
20.07
Negative
Market Momentum
-0.49
Negative
47.56
Neutral
69.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYTS, the sentiment is Negative. The current price of 20.01 is below the 20-day moving average (MA) of 20.09, below the 50-day MA of 21.02, and below the 200-day MA of 20.07, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYTS.
Lsi Industries Risk Analysis
Lsi Industries disclosed 25 risk factors in its most recent earnings report. Lsi Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lsi Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $611.77M | 22.22 | 10.90% | 1.07% | 22.35% | 2.59% | |
68 Neutral | $1.01B | 93.63 | 9.64% | ― | -6.13% | -76.92% | |
64 Neutral | $165.62M | -268.55 | 0.51% | 2.25% | 6.17% | ― | |
62 Neutral | $2.03B | 61.39 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $568.73M | 96.46 | 2.37% | ― | -7.46% | -39.98% | |
47 Neutral | $194.87M | -4.46 | -9.42% | 5.93% | -9.51% | 29.57% |
* Technology Sector Average
LYTS
Lsi Industries
20.01
2.34
13.27%
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Lsi Industries Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
LSI Industries Closes Royston Acquisition and New Credit Facility
Positive
Mar 24, 2026
On March 24, 2026, LSI Industries entered into a new senior secured credit facility of up to $350 million, comprising a $200 million five-year term loan and a $150 million revolving credit line, secured by substantially all of the company’s ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
LSI Industries Prices Equity Offering to Fund Growth
Positive
Mar 2, 2026
On February 26, 2026, LSI Industries Inc. entered an underwriting agreement with Oppenheimer Co. and other underwriters to issue and sell 4,600,000 shares of common stock at $19.75 per share, with closing expected on March 2, 2026, and the underw...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
LSI Industries Announces Transformational Acquisition of Royston Group
Positive
Feb 25, 2026
On February 20, 2026, LSI Industries agreed to acquire privately held SRR Holdings’ Royston Group for $325 million, with $320 million to be paid in cash and $5 million in LSI stock, subject to working capital adjustments. The deal, announced...
Business Operations and StrategyDividendsFinancial Disclosures
LSI Industries Reports Solid Q2 Results and Dividend
Positive
Jan 22, 2026
On January 22, 2026, LSI Industries reported fiscal 2026 second-quarter results for the period ended December 31, 2025, posting flat year-on-year sales of $147.0 million while absorbing the fade-out of prior-year, event-driven grocery revenues, an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.