LightPath Technologies NASDAQ: LPTH reported fiscal third-quarter 2026 results on May 7, highlighting what management described as continued momentum in revenue growth, backlog expansion, and improving profitability as the company executes a multi-year shift from components to vertically integrated infrared optics and imaging systems.
Management points to record revenue and growing backlog
President and CEO Sam Rubin said the quarter continued the company’s trend of “strong top-line growth,” a continued build in backlog with a “strong book-to-bill ratio,” and improvements in EBITDA and overall financial performance. Rubin attributed the progress to a strategy centered on proprietary infrared materials, optical assemblies, and complete imaging systems, supported by acquisitions.
“The LightPath of today looks very little like the component supplier we were a few years ago,” Rubin said, adding that the company now spans “proprietary materials, optical assemblies, and complete imaging systems.”
Rubin emphasized the role of BlackDiamond, the company’s proprietary chalcogenide glass platform, including technology licensed from the U.S. Naval Research Laboratory. He positioned the material as a domestic supply-chain alternative to germanium and aligned it with U.S. defense procurement trends, citing the fiscal 2026 National Defense Authorization Act (NDAA) requirement for certain U.S. defense programs to move away from glass and optical components sourced from “China, Russia, and other covered nations” by January 1, 2030.
G5 and Amorphous acquisitions tied to capacity and larger-diameter optics
Rubin noted it has been roughly a year since LightPath acquired G5 Infrared, which he described as a maker of long-range infrared cameras for surveillance and counter-UAS. Rubin said that in the last year G5 booked more than $100 million of new orders, citing “border patrol and counter-UAS tailwinds.”
He also said LightPath is redesigning G5 cameras to incorporate BlackDiamond glass and that the company has already seen increased demand for redesigned cameras “even before we have completed those redesigns.” Rubin added that LightPath expects to add capacity to meet demand.
Rubin spent significant time discussing the acquisition of Amorphous Materials in Texas, which he described as a long-standing manufacturer with complementary chalcogenide glass melting technology, particularly for larger-diameter optics. Rubin said LightPath previously could provide BlackDiamond optics up to five inches in diameter, while Amorphous enables sizes “up to as much as 10 inches and more later on.” He said this expands opportunities in long-range imaging systems, including satellites for missile detection and tracking.
Rubin said the acquisition immediately increased glass production capacity, and that combined with internal efforts, LightPath “pretty much doubled our glass capacity,” while noting demand still exceeds supply. He added the company plans to move Amorphous into a larger building near its Visimid uncooled camera operation in the coming months, and that having glass production in both Orlando and Dallas provides flexibility and contingency planning.
Program updates: counter-UAS backlog and timing commentary
Rubin discussed several defense-related programs and cautioned that updates are limited to what customers publicly disclose. He said NGSRI is “fully financed” and accelerating based on the recently released defense budget. Rubin said SPEIR is on schedule and that the company expects new orders following the federal budget release.
On Border Tower, Rubin said the company had been expecting significant orders, but that the Department of Homeland Security had not yet released funding. “That is not an indication in any way of anything changing to the worse or to the better,” he said, describing it as a timing issue.
Rubin also highlighted counter-UAS activity, stating LightPath received multiple new orders tied primarily to Air Force SEWADS programs. He said approximately $30 million of the company’s backlog is related to counter-UAS, primarily those programs. He added that a previously mentioned airborne system using BlackDiamond has completed qualification and that LightPath is “preparing for an award towards the end of the summer or early autumn.”
Regarding space programs, Rubin said the company has “three” customers actively designing satellite camera systems intended to look for missile launches and detection, and clarified they are not free-space communication programs. In the Q&A, Rubin said timelines are uncertain and suggested it could be “at least a year” before there is meaningful clarity. He referenced prior commentary from the company’s February investor day, describing a satellite cost framework and noting LightPath’s role would be limited to the telescope/optical assembly, which he characterized as “in the millions per satellite,” giving an example of “below $5 million per satellite kind of thing.”
Financial results: revenue more than doubled and adjusted EBITDA positive
CFO Al Miranda reported revenue of $19.1 million for fiscal Q3 2026, up 109% from $9.2 million in the year-ago quarter. By category, Miranda broke out revenue as:
- Infrared components: $6.1 million (32% of consolidated revenue)
- Visible components: $4.0 million (21%)
- Assemblies and modules: $8.4 million (44%)
- Engineering services: $0.6 million (3%)
Gross profit rose 161% to $7.0 million, representing 36% of revenue, compared with $2.7 million, or 29% of revenue, in the prior-year quarter. Miranda said the margin improvement was primarily driven by a higher mix of assemblies and modules, which “generally have a higher margin,” and improved infrared component margins due to a more favorable mix and resolution of certain manufacturing yield issues that had impacted the prior fiscal year.
Miranda noted operating expenses included a $3.4 million fair value adjustment related to the G5 earn-out liability, which will continue to be adjusted through operating expenses until fully paid. Excluding that adjustment, operating expenses increased $1.8 million, or 30%, to $7.8 million, driven by G5 and Amorphous integration, higher sales and marketing spend, increased IT spending to meet customer security requirements, and higher SG&A personnel costs tied to executive hiring and incentive compensation accruals.
Net loss for the quarter was $4.1 million, or $0.07 per basic and diluted share, compared with a net loss of $3.6 million, or $0.09 per basic and diluted share, in the year-ago quarter. Miranda attributed the year-over-year change primarily to the fair value change in acquisition liabilities for the G5 earn-out.
Adjusted EBITDA was positive $1.1 million, compared to an adjusted EBITDA loss of $1.6 million in the prior-year quarter, marking what Miranda said was the third consecutive quarter of positive adjusted EBITDA.
Cash and cash equivalents totaled $55.2 million as of March 31, 2026, compared with $4.9 million as of June 30, 2025. Miranda said that since the company’s December capital raise, $7.0 million was used for the Amorphous acquisition and $7.3 million went to the year-one earn-out for G5. He also said GAAP classification of a portion of the earn-out payment as operating cash flow makes operating cash flow “look noisier than reality.” Excluding that “GAAP reporting quirk,” he said operating cash outflow year-to-date would have been $1.3 million, driven by working capital needs such as supplier prepayments for long-lead materials, partially offset by customer prepayments.
Total backlog as of March 31, 2026 was approximately $110.6 million, up 196% from $37.4 million as of June 30, 2025. Miranda added that on a year-to-date basis, revenue increased to $50 million from $25 million in the prior year-to-date period.
In the Q&A, management discussed capacity expansion and capital spending. Miranda said the company approved $6 million of CapEx in Q3 “to be spent in order to not only meet the current backlog, but what we think is gonna be beyond that.” On gross margin, Miranda said the company still expects margins to grow, though rapid scaling may create short-term costs that could slow the pace of improvement from 36% toward 40% by “a quarter or two slip,” while still expecting margins to continue stepping higher.
Rubin closed by reiterating LightPath’s shift to a systems-focused model and emphasized execution priorities for the coming quarters: “Ship on time, move backlog into the P&L, and let margins expand as volume is built.”
About LightPath Technologies NASDAQ: LPTH
LightPath Technologies, Inc designs, manufactures and distributes precision optical components and assemblies for a variety of commercial, industrial, defense and scientific applications. The company's portfolio includes molded glass aspheric lenses, precision glass optics, infrared lenses and assemblies, diamond-turned optics and molded polymer optics. These components are engineered to support imaging, illumination, laser delivery, detection and sensing systems across visible, ultraviolet and infrared wavelengths.
Among its core offerings, LightPath develops infrared optical solutions using materials such as germanium, zinc selenide and chalcogenide glasses for thermal imaging, night-vision devices and spectroscopy.
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