LightPath Technologies shares tumble as losses widen

Investing.com -- LightPath Technologies, Inc. (NASDAQ:LPTH), a provider of next-generation optics and imaging systems, reported fourth-quarter revenue that beat analyst expectations but saw its shares plunge 13.9% in after-hours trading as losses widened significantly.

The company posted revenue of $12.2 million for its fiscal fourth quarter ended June 30, 2025, exceeding the consensus estimate of $11.9 million and representing a 41.4% increase from $8.6 million in the same period last year. However, LightPath reported a loss of $0.16 per share, substantially worse than analysts’ expectations of a $0.03 loss per share.

The significant earnings miss drove the sharp stock decline in extended trading. LightPath’s quarterly net loss ballooned to $7.1 million, compared to a $2.4 million loss in the year-ago quarter, representing a nearly 200% increase in losses.

"Fiscal 2025 closed with a clear validation of our strategy: move away from Germanium optics, scale our proprietary BlackDiamond™ glass into key defense verticals, and push up the value chain into complete IR camera systems," said Sam Rubin, Chief Executive Officer of LightPath.

The company’s revenue growth was primarily driven by its Infrared Components segment, which increased 63% to $4.9 million, and its Assemblies & Modules segment, which surged 203% to $4.2 million. However, gross profit only increased 6.6% to $2.7 million, with gross margin declining to 22% from 29.2% in the prior-year quarter, primarily due to a $0.5 million increase in inventory reserve charges.

Operating expenses jumped 52% to $7.2 million, attributed to the integration of recently acquired G5 Infrared, increased sales and marketing spend, and higher materials costs for new product development.

Despite the widening losses, LightPath highlighted several positive developments, including an $18.2 million purchase order for infrared cameras from a global technology customer and a follow-on $22.1 million order, both expected to be delivered in the coming years.

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