LightPath Technologies, Inc.

Fourth-quarter revenue increased 73% year over year to $21.2 million from $12.2 million, with gross profit of $8.3 million and gross margin of 39.4% versus $2.7 million and 22% a year ago. Q4 net loss was $4.1 million, or $0.06 per share, versus a $7.1 million loss, or $0.16 per share, last year; adjusted EBITDA was $2.1 million, or 10% of revenue, versus a $2.0 million loss. Full-year FY26 revenue increased 93% to $71.7 million from $37.2 million, with gross margin at 36%; adjusted EBITDA improved to a $4.2 million profit from a $5.1 million loss. Backlog was $110.9 million at June 30, up 197% from $37.4 million, and approximately $85.6 million was requested for delivery within 12 months. FY26 CapEx was $6.3 million, including $4.4 million in Q4, and cash ended at $93.2 million with effectively no debt. Management did not provide formal next-quarter or full-year revenue/EPS guidance, but said FY27 CapEx will be higher than FY26 and that the company is expanding capacity to meet backlog and demand.

CEO Shmuel Rubin framed FY26 as the year LightPath’s transformation became visible in the financials, pointing to higher revenue, better margins, positive adjusted EBITDA, and a much larger backlog. He emphasized that the margin improvement came from a richer mix of assemblies, modules, and cameras plus better execution, not price increases or a one-time benefit. His tone was confident and expansionary, with a strong focus on defense programs moving from qualification into production, new capacity builds, and a fully Western manufacturing footprint after the China divestiture.

CFO Albert Miranda highlighted the quarter’s mechanics: Q4 revenue of $21.2 million, gross profit of $8.3 million, operating expenses of $12.6 million, net loss of $4.1 million, and adjusted EBITDA of $2.1 million. He called out the major noncash fair value adjustment to earn-out liabilities, including a $15.6 million charge in FY26 tied largely to G5’s outperformance, and said most of that accounting impact is behind the company now. He also underscored balance sheet strength, citing $93.2 million of cash, no debt, FY26 CapEx of $6.3 million, and a larger FY27 investment plan to expand all locations and get ahead of demand.

Analysts focused on the $85.6 million of backlog slated for 2027, the two July contracts, and whether the Army’s timeline push on NGSRI signaled risk; management said the July deals are already in production and likely recurring, while the NGSRI delay is more of a timing issue than a loss of confidence. Questions also covered border surveillance demand, Navy SPEIR camera shipments, and the timeline for G5 redesigns; management said overseas tower/camera demand is mostly foreign military sales, the Navy has 5 more cameras in dispatch, and the G5 redesign is behind schedule mainly because of supply chain and glass-melting complexity. On germanium, management said it may have more time than previously thought because new capacity announcements still look too small to solve the supply problem.