Download PDF

1. Company Snapshot

1.a. Company Description

LightPath Technologies, Inc.designs, develops, manufactures, and distributes optical components and assemblies.The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light.


Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries.The company sells its products directly to customers in North America, Europe, and Asia, as well as through distributors and catalogs in the United States and internationally.LightPath Technologies, Inc.


was founded in 1985 and is headquartered in Orlando, Florida.

Show Full description

1.b. Last Insights on LPTH

LightPath Technologies' recent performance was driven by robust demand for its Germanium-Free optics, which fueled meaningful backlog growth with defense and public safety customers. The company secured significant purchase orders, including an $18.2 million order and a $22.1 million follow-on order, for advanced infrared camera systems. Additionally, the company's transition to a vertically integrated solutions provider, facilitated by the G5 Infrared acquisition, is expected to expand margins and open large-scale program opportunities.

1.c. Company Highlights

2. LightPath Technologies' Q2 2026 Earnings: A Strong Leap Forward

LightPath Technologies reported a significant improvement in its financial performance for Q2 2026, with revenue increasing 120% to $16.4 million compared to $7.4 million in the same year-ago quarter. The company's gross profit also saw a substantial rise of 212% to $6 million, or 37% of total revenues, driven primarily by revenue from assemblies and modules, cameras, which have higher margins. However, the company reported a net loss of $9.4 million, or $0.20 per basic and diluted share, largely due to a $7.6 million fair value adjustment of the G5 earnout liability. Excluding this, the net loss would have been $1.8 million. The actual EPS came out at -$0.20, missing estimates of -$0.04.

Publication Date: Feb -24

📋 Highlights
  • Revenue Surge: Q2 2026 revenue hit $16.4M (+120% YoY) driven by $5M in infrared components and $7.2M in assemblies/modules.
  • Gross Profit Expansion: Gross profit jumped 212% to $6M (37% of revenue), led by higher-margin assemblies/modules and engineering services.
  • Capital Raise: Secured $65M in net proceeds via secondary offering to fund acquisitions, M&A, and growth initiatives.
  • Backlog Growth: Record backlog reached $97.8M, with 2/3 allocated to higher-margin systems/subsystems.
  • Adjusted EBITDA Turnaround: Adjusted EBITDA improved to +$600K in Q2 2026 from -$1.3M in Q2 2025, excluding non-core items.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by a strong performance in its infrared components and assemblies and modules businesses, with sales of $5 million and $7.2 million, respectively. The revenue from legacy LightPath business also grew substantially quarter over quarter. The gross margin expansion was a result of the company's shift towards higher-margin products, such as cameras. Adjusted EBITDA for Q2 2026 was $0.6 million positive, compared to a loss of $1.3 million in the same year-ago quarter.

Order Backlog and Growth Prospects

LightPath Technologies has a record backlog of $97.8 million, with two-thirds of it being higher-margin systems and subsystems. The company is well-positioned to execute on its growth plan, with a detailed operating growth plan segregated into three components: continued support of its existing business, investment in identified growth opportunities, and investments in new business. Analysts estimate the company's revenue growth at 24.8% for the next year.

Valuation Metrics

Looking at the valuation metrics, the company's P/S Ratio stands at 9.26, indicating a relatively high valuation compared to its sales. The EV/EBITDA ratio is -126.9, suggesting that the company's enterprise value is not justified by its EBITDA. The ROE and ROIC are -70.17% and -8.51%, respectively, indicating poor profitability. With a P/B Ratio of 6.75, the company's stock price is trading at a premium to its book value.

Strategic Positioning and Future Plans

The company's strategic positioning is strengthened by its proprietary Black Diamond technology, which is expected to drive growth in the defense and industrial markets. LightPath Technologies plans to utilize its recent capital raise of $65 million to invest in its future, including acquisitions and M&A opportunities. The company is targeting converting all relevant cameras to Black Diamond within the calendar year, which is expected to drive further growth and margin expansion.

3. NewsRoom

Card image cap

LightPath Appoints Two Senior Sales Executives to Drive Defense and Commercial Growth

Apr -08

Source: prnewswire.com

Card image cap

Critical Analysis: LightPath Technologies (NASDAQ:LPTH) vs. Vicor (NASDAQ:VICR)

Apr -08

Source: defenseworld.net

Card image cap

LightPath Technologies Receives Highly Innovative Design Award from The Sterling Council

Apr -06

Source: prnewswire.com

Card image cap

LightPath Technologies, Inc. (NASDAQ:LPTH) Given Consensus Rating of “Moderate Buy” by Analysts

Mar -28

Source: defenseworld.net

Card image cap

Royce Capital Fund-Micro-Cap Portfolio FY 2025: What Worked

Mar -19

Source: seekingalpha.com

Card image cap

LightPath Technologies (NASDAQ:LPTH) Director Sells $2,875,061.73 in Stock

Mar -07

Source: defenseworld.net

Card image cap

Run Strategic Opportunit North Sells 131,281 Shares of LightPath Technologies (NASDAQ:LPTH) Stock

Feb -26

Source: defenseworld.net

Card image cap

LightPath Technologies, Inc. (LPTH) Analyst/Investor Day Transcript

Feb -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.70%)

6. Segments

Infrared

Expected Growth: 10%

Infrared from LightPath Technologies, Inc. growth driven by increasing demand for thermal imaging in industrial, medical, and military applications, coupled with advancements in IR technology, expanding use in autonomous vehicles, and growing need for predictive maintenance and quality control.

Precision Molded Optics

Expected Growth: 12%

LightPath Technologies' Precision Molded Optics growth is driven by increasing demand for high-precision optical components in 5G, IoT, and autonomous vehicles. The company's proprietary molding technology and cost-effective manufacturing process enable high-volume production, supporting growth in the optics industry. Additionally, the trend towards miniaturization and increased functionality in consumer electronics and industrial applications fuels demand for precision optics.

Specialty

Expected Growth: 9%

LightPath Technologies' Specialty segment growth is driven by increasing demand for high-power laser optics, expansion in 5G and telecom markets, and growing adoption of infrared and thermal imaging technologies. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product offerings and capabilities, contributing to its 9% growth.

7. Detailed Products

Aspheric Lenses

LightPath Technologies, Inc. offers a wide range of aspheric lenses that are designed to minimize spherical aberration and provide high-quality imaging. These lenses are used in various applications, including laser systems, spectroscopy, and optical testing.

Gradium Lenses

Gradium lenses are designed to provide a gradual change in refractive index, allowing for the correction of aberrations and distortion in optical systems. LightPath Technologies, Inc. offers a range of Gradum lenses for various applications.

Micro-Optics

LightPath Technologies, Inc. offers a range of micro-optics products, including beam splitters, optical filters, and micro-lenses. These products are designed for use in various applications, including spectroscopy, microscopy, and optical communication systems.

Collimators

LightPath Technologies, Inc. offers a range of collimators that are designed to provide a parallel beam of light. These products are used in various applications, including laser systems, spectroscopy, and optical testing.

Optical Isolators

LightPath Technologies, Inc. offers a range of optical isolators that are designed to prevent back reflections in optical systems. These products are used in various applications, including laser systems, spectroscopy, and optical communication systems.

Infrared Optics

LightPath Technologies, Inc. offers a range of infrared optics products, including lenses, mirrors, and beam splitters. These products are designed for use in various applications, including thermal imaging, spectroscopy, and optical sensing.

8. LightPath Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LightPath Technologies, Inc. is medium due to the availability of alternative fiber-based solutions.

Bargaining Power Of Customers

The bargaining power of customers for LightPath Technologies, Inc. is low due to the company's strong relationships with its customers and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LightPath Technologies, Inc. is medium due to the presence of multiple suppliers in the market, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for LightPath Technologies, Inc. is low due to the high barriers to entry in the fiber-optic industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry for LightPath Technologies, Inc. is high due to the competitive nature of the fiber-optic industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.62%
Debt Cost 3.95%
Equity Weight 74.38%
Equity Cost 11.02%
WACC 9.21%
Leverage 34.44%

11. Quality Control: LightPath Technologies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Data I/O

A-Score: 4.4/10

Value: 8.5

Growth: 1.4

Quality: 4.6

Yield: 0.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
LGL Group

A-Score: 4.3/10

Value: 4.5

Growth: 2.3

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
CPS Technologies

A-Score: 4.1/10

Value: 7.9

Growth: 0.7

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Wrap Tech

A-Score: 3.9/10

Value: 6.2

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
LightPath Technologies

A-Score: 3.7/10

Value: 6.4

Growth: 0.6

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Rogers

A-Score: 3.0/10

Value: 5.1

Growth: 2.7

Quality: 4.1

Yield: 0.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.83$

Current Price

12.83$

Potential

-0.00%

Expected Cash-Flows