Executive Summary
LightPath Technologies reported QQ3 2025 revenue of $9.16 million, up 19% year over year and about 23% higher quarter over quarter, driven by a deliberately broadened product mix toward higher-margin assemblies, camera modules, and services. Gross margin expanded to 29.1% from 20.9% a year ago, reflecting a shift toward higher-margin offerings and favorable mix, while operating expenses rose 44% as the company absorbed costs related to the G5 Infrared acquisition and ongoing investments in product development and go-to-market activities. The company posted a net loss of $3.56 million and EBITDA of approximately -$1.86 million for the quarter, underscoring the near-term profitability headwinds associated with the accelerated growth-through-acquisition strategy. Backlog stood at $27.4 million at March 31, 2025, and cash and equivalents were $6.5 million with total debt of $5.5 million, resulting in a net debt position of about $7.9 million.
Management emphasizes a multi-year growth trajectory anchored by defense programs (e.g., NGSRI with Lockheed, SPEIR with L3Harris) and the expansion of BlackDiamond materials to reduce reliance on germanium. The post-merger integration with G5 Infrared is proceeding on schedule, with 90-day bookings of over $19 million since close, and management guiding toward approximately $51 million in revenue in the 12 months following the acquisition and a long-run EBITDA margin target of 15%. Near-term visibility includes Q4 bookings and production ramps that are expected to translate into a better quarterly profit trajectory, though the next two quarters will carry continued non-operating and amortization-related effects from the acquisition.
Investors are exposed to the typical policy and supply-chain risk in the optics sector (e.g., germanium export controls, tariff dynamics, and geopolitical tensions) but benefit from a defensible niche in infrared optics and imaging with a pathway to higher-margin systems as the company scales up its assemblies, cameras, and subsystems. The QQ3 results suggest meaningful top-line leverage from a richer product mix, but profitability will hinge on the pace of production ramp, integration synergies, and the ability to convert a growing backlog into sustained operating earnings.
Key Performance Indicators
QoQ: -33.77% | YoY:-28.65%
QoQ: -36.29% | YoY:-37.05%
QoQ: -26.79% | YoY:-21.78%
Key Insights
Revenue: $9.168 million in Q3 2025, up 19.1% YoY and ~23.5% QoQ (Q2 2025 revenue was $7.424 million).
Gross profit: $2.70 million, gross margin 29.1% (vs. 20.9% in the prior-year quarter), YoY gross profit growth +66%.
Operating income: -$3.323 million for Q3 2025, margin -36.25% (vs. prior-year margin around negative mid-30s); QoQ deterioration reflected in higher OpEx.
EBITDA: -$1.86 million in QQ3 2025 (EBITDA margin approximately -20.3%).
Net income: -$3.56 million, diluted EPS -$0.0833.
...
Financial Highlights
Revenue: $9.168 million in Q3 2025, up 19.1% YoY and ~23.5% QoQ (Q2 2025 revenue was $7.424 million).
Gross profit: $2.70 million, gross margin 29.1% (vs. 20.9% in the prior-year quarter), YoY gross profit growth +66%.
Operating income: -$3.323 million for Q3 2025, margin -36.25% (vs. prior-year margin around negative mid-30s); QoQ deterioration reflected in higher OpEx.
EBITDA: -$1.86 million in QQ3 2025 (EBITDA margin approximately -20.3%).
Net income: -$3.56 million, diluted EPS -$0.0833.
Backlog: $27.4 million as of 2025-03-31.
Cash & equivalents: $6.50 million; Total debt: $5.50 million; Net debt: ~$7.85 million.
Backlog progression and new orders: 90-day net new orders of >$19 million since G5 closing; G5 bookings since acquisition: ~$13 million recognized in the period; management expects higher H2 impact with Q4 into Q1/Q2.
Revenue mix (Q3 2025): Infrared components $3.6m (40%), Visible components $2.8m (31%), Assemblies & modules $1.9m (20%), Engineering services $0.8m (9%).
Operational metrics: Current ratio 2.30, quick ratio 1.26, cash ratio 0.53; Days sales outstanding 75.1, days inventory outstanding 175.6, inventory turnover 0.513.
Capital structure: Long-term optimistic path to 15% EBITDA margin; management aims to a combined $51m annual revenue post-acquisition with expanding margins over time.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.17M |
19.08% |
23.48% |
| Gross Profit |
2.66M |
65.86% |
37.97% |
| Operating Income |
-3.32M |
-28.65% |
-33.77% |
| Net Income |
-3.56M |
-37.05% |
-36.29% |
| EPS |
-0.08 |
-21.78% |
-26.79% |
Key Financial Ratios
operatingProfitMargin
-36.2%
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.09
Management Commentary
Strategic repositioning and M&A-driven growth: LightPath describes a transition from pure components to an integrated optics and imaging solutions provider, with G5 Infrared acquisition expanding cooled infrared camera capabilities and a broad defense-oriented pipeline. The company cites a robust defense backdrop (NGSRI, SPEIR) and a material design shift toward BlackDiamond infrared materials as a differentiator and growth driver. Management notes a sizable 90-day order book post-acquisition and government funding to expand manufacturing capacity (capacity expansion funded by DoD).
"The third quarter of 2025 demonstrated our continued transformation from a pure component supplier to a vertically integrated global solution provider for infrared imaging technologies for defense and commercial applications."
â Sam Rubin
"We see this as providing an expedited path to achieving our long-term goal of 15% EBITDA margins, defining LightPath as a platform company focused on discipline and strategy and delivering value to our shareholders as we scale and grow."
â Albert Miranda
Forward Guidance
Management reiterates a forward-looking framework anchored by:
- Post-acquisition revenue target of approximately $51 million over the next 12 months; G5 has added new bookings (~$13 million since February) and most bookings are expected to ship in Q4 through Q2, with the income impact becoming more visible in the latter quarters.
- A long-term EBITDA margin target of 15% as the mix shifts toward higher-margin cameras, assemblies, and subsystems, aided by DoD-funded capacity expansion for BlackDiamond materials.
- Near-term profitability remains challenged by integration-related non-operating costs and amortization, but the company expects gross margin expansion driven by product mix (assemblies and cameras) and a fuller quarterly contribution from assemblies and modules in Q4 and beyond.
- Key risks include Apache program delays, capacity alignment challenges, and macro/geopolitical risks (tariffs, germanium export controls). Investors should monitor: (i) ramp timing and mix of G5 programs, (ii) the success of BD material adoption across programs, (iii) DoD-backed capacity expansion milestones, and (iv) progress on the Apache program and other large programs.â