10-Q · May 7, 2026
LightPath Technologies reported a robust Q3 for fiscal 2026 with revenue of $19.1 million, well above the estimated $17.1 million. However, the net loss widened to $4.1 million, translating to a loss per share of $0.07,…
Earnings analysis · 10-K
LPTH earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
LightPath delivered a strong growth year, with revenue up 93% to $71.7 million, gross margin rising to 36%, adjusted EBITDA turning positive at $4.2 million, and backlog reaching $110.9 million. Growth was concentrated…
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LightPath delivered a strong growth year, with revenue up 93% to $71.7 million, gross margin rising to 36%, adjusted EBITDA turning positive at $4.2 million, and backlog reaching $110.9 million. Growth was concentrated in higher-value assemblies and modules, particularly G5 camera programs, supporting the company’s strategy of vertically integrated engineered solutions. However, GAAP losses worsened to $20.5 million, operating cash flow remained negative, customer concentration increased, and the LPOIZ divestiture introduces both visible-revenue pressure and greater third-party supply dependence.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.38
What stood out
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Revenue and underlying profitability inflected
Fiscal 2026 revenue increased 93% to $71.7 million from $37.2 million, while gross margin expanded to 36% from 27%. Adjusted EBITDA improved to $4.2 million, or 6% of revenue, from a $5.1 million loss.
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Assemblies drove mix improvement
Assemblies and modules were the primary growth engine, rising 281% to $31.9 million. Approximately $23.1 million of the increase came from G5 Infrared camera and module sales, including large defense and security programs.
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Backlog supports near-term growth
Backlog reached a record $110.9 million at June 30, 2026, up $73.6 million, or 197%, from June 30, 2025. Approximately $85.6 million was requested for delivery within one year, while approximately $58.0 million of the increase came from a leading global technology customer’s infrared camera-system orders.
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Strategy targets integrated solutions
Management’s strategy is to shift toward engineered solutions and design-win annuity revenue. The company is vertically integrating optics, infrared materials, assemblies and cameras through G5 Infrared and AML, while investing $3.8 million in new product development during fiscal 2026.
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Balance sheet strengthened
Fiscal 2026 cash and cash equivalents increased to $93.2 million from $4.9 million, supported by $120.2 million of net equity proceeds. The company also redeemed its acquisition notes and reduced loans payable to approximately $0.2 million at year-end.
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International demand expanded
International sales increased to 48% of net revenue from 38% in fiscal 2025, with revenue growth across the United States, United Kingdom, Israel, China and other European and Asian markets. U.K. revenue rose to $15.0 million from $3.4 million, although much of it relates to a customer that integrates products in the U.K. and returns them to U.S. customers.
What to watch
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LPOIZ sale creates supply dependence
The July 2026 LPOIZ divestiture is expected to reduce visible-components revenue after closing in September 2026. LightPath will become more dependent on LPOIZ’s new owners for supply, with products initially priced at cost plus 10%; the markup can rise to cost plus 30% after the $4.5 million purchase price is paid.
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Customer concentration increased
Customer concentration materially increased: the three largest customers represented 37% of fiscal 2026 revenue and 44% of June 30, 2026 accounts receivable, versus 23% and 28%, respectively, in fiscal 2025. One customer alone represented 24% of annual revenue.
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Germanium restrictions threaten supply
Germanium sourcing remains exposed to China’s export controls. Restrictions include licensing requirements and continuing prohibitions on exports to U.S. military users or military end uses; redesign and qualification of Germanium alternatives can take up to two years for complex defense and airborne systems.
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GAAP losses and earnout costs remain elevated
The company remains loss-making despite the operating improvement: fiscal 2026 net loss was $20.5 million versus $14.9 million in fiscal 2025, and accumulated deficit reached approximately $251.3 million. The increase was driven substantially by a $14.1 million increase in acquisition-liability fair-value expense.
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Expansion requires continued cash investment
Operating cash use increased to $10.2 million from $8.3 million, while capital expenditures rose to $6.3 million from $1.3 million. Management expects higher capital expenditures in fiscal 2027 to support backlog and capacity, increasing funding requirements despite $93.2 million of year-end cash.
Management's outlook
No formal fiscal 2027 revenue or EPS guidance was provided. Management expects higher fiscal 2027 capital expenditures to support backlog and capacity, and expects continued improvement in operating cash flow as sales and gross margins improve.
Earlier filings 4
10-Q · February 11, 2026
LightPath reported strong top-line growth and gross margin expansion in Q2 (Dec 31, 2025) with revenue of $16.35M and gross margin of 36.8%, driven in part by acquisitions and equity financing. However, operating loss…
10-Q · May 20, 2025
LightPath reported Q3 FY2025 revenue of approximately $9.2 million, up $1.5 million or 19% year-over-year, with gross profit of ~$2.6 million (29% margin). Despite top-line and mix improvements, net loss widened to…
10-K · September 19, 2024
LightPath’s 10-K emphasizes a strategic pivot from component manufacturing to higher-value imaging subsystems and systems (LightPath 2.0/3.0), leveraging proprietary BlackDiamond glass and proprietary molding…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.