Executive Summary
LightPath posted QQ1 2025 revenue of $8.40 million, up 4% year over year, with gross profit of $2.844 million and a gross margin of 33.9%. The quarter delivered a continued margin uplift driven by a higher mix of higher-margin visible components and assemblies, yet the company remains in a net loss position as operating expenses rose 23% to $3.30 million and non-operating items contributed to the bottom line. Management emphasized a strategic pivot from a pure component supplier to a subsystem and system-level solutions provider across three growth pillars: (1) proprietary cameras and optics, (2) government/defense programs, and (3) new commercial applications (notably automotive). The defense strategy gained traction via DoD-related activity and the European defense license, broadening addressable markets in Europe. A marquee optionality remains the Lockheed Martin missile program, which could transform scale to $50–$100 million in annual revenue in full production if won. In addition, LightPath is expanding its camera and imaging portfolio (e.g., MANTIS, OGI) and integrating Visimid Technologies for thermal cameras, positioning the company in a growing $9B TAM for thermal imaging. Near-term catalysts include DoD qualification progress, BD Glass substitutions for germanium, and accelerating European defense opportunities, with a potential ramp in 2025 as programs transition from development to production. The balance sheet shows constructive liquidity but a modest cash burn with net debt of approximately $8.51 million and a backlog of $21 million, suggesting revenue visibility but requiring successful execution to convert backlog and win rate into sustained profitability.
Key Performance Indicators
QoQ: 37.69% | YoY:-10.09%
QoQ: 31.06% | YoY:-20.89%
QoQ: 32.34% | YoY:-14.21%
Key Insights
Revenue: $8.40 million, +4.0% YoY; QoQ change approx. -2.7%.
Gross Profit: $2.844 million, 33.86% gross margin, +21.99% YoY, +12.65% QoQ.
Operating Income (loss): -$1.3768 million, margin -16.39% (YoY change -10.09%); QoQ improvement of 37.69% in operating income margin.
Net Income (loss): -$1.6227 million, net margin -19.32%; YoY change -20.89%; QoQ improvement +31.06% in net margin terms.
EPS (diluted): -$0.041; weighted average shares: 39.56 million.
EBITDA (non-GAAP): -$0.468 million; EBITDA...
Financial Highlights
Revenue: $8.40 million, +4.0% YoY; QoQ change approx. -2.7%.
Gross Profit: $2.844 million, 33.86% gross margin, +21.99% YoY, +12.65% QoQ.
Operating Income (loss): -$1.3768 million, margin -16.39% (YoY change -10.09%); QoQ improvement of 37.69% in operating income margin.
Net Income (loss): -$1.6227 million, net margin -19.32%; YoY change -20.89%; QoQ improvement +31.06% in net margin terms.
EPS (diluted): -$0.041; weighted average shares: 39.56 million.
EBITDA (non-GAAP): -$0.468 million; EBITDA margin around -5.6%.
R&D Expenses: $0.476 million; SG&A: $3.2706 million; total operating expenses: $4.2212 million (approx.), driven by legal/consulting and higher sales/marketing spend tied to new product initiatives.
Backlog: $21.0 million; cash and cash equivalents: $4.30 million; total debt: $3.90 million; net debt: $8.51 million.
Operating cash flow: -$1.7002 million; free cash flow: -$1.7799 million.
Backlog aging: most camera-related backlog tends to recognize within 12–15 months; non-camera orders typically 12–15 months, with some camera subassemblies shipped quickly (2–3 weeks) on a book-and-turn basis.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.40M |
4.00% |
-2.71% |
| Gross Profit |
2.84M |
21.99% |
12.65% |
| Operating Income |
-1.38M |
-10.09% |
37.69% |
| Net Income |
-1.62M |
-20.89% |
31.06% |
| EPS |
-0.04 |
-14.21% |
32.34% |
Key Financial Ratios
operatingProfitMargin
-16.4%
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.05
Management Commentary
Theme: Strategy and growth pillars
- Quote: Sam Rubin described the QQ1 2025 results as part of LightPath's transformation from a pure component supplier to a system provider, driven by three growth pillars: proprietary cameras/optics, government/defense solutions, and new commercial applications. This underpins the rationale for higher ASPs and margin dollars over time. "The first is our proprietary cameras and optics. Second, our solutions for government and defense; and the third on new commercial applications."
If Lockheed Martin wins against Raytheon, which they are competing against, we could expect to see revenues of between $50 million to $100 million a year once in full production.
— Sam Rubin
Obtaining the European defense license now opens the door for us to grow our defense business in Europe, too.
— Sam Rubin
Forward Guidance
Management did not publish formal numeric guidance for 2025. Key catalysts to monitor:
- Lockheed Martin missile program progress and potential revenue ramp to $50–$100 million per year in full production if won; timelines suggest early production discussions within 12–24 months.
- European defense license deployment and DoD BD Glass qualification (Phase 2) with potential production implications as glasses move into DoD systems.
- Growth in the camera business (MANTIS and OGI platforms) and automotive thermal imaging adoption ahead of 2029 NDAA mandates; the management commentary indicates camera-related revenue could comprise up to roughly 50% of the mix in the coming quarters as the commercial and defense channels scale.
- Backlog to revenue conversion and backlog aging; a portion of camera orders is book-and-turn and can ship quickly, supporting near-term revenue flow, while larger programs stay longer in qualification and ramp.
Overall outlook: constructive but contingent on successful program wins, timely qualification, and the ability to scale operations to support defense and commercial demand. Investors should monitor program awards, European licensing progress, and the pace of camera-related revenue relative to historic component-only business.