LightPath Technologies Reports 19% Revenue Growth in Q3, Net Loss Increases

LightPath Technologies, Inc. reported its financial results for the third quarter and nine months ended March 31, 2025, revealing a revenue increase of 19% to approximately $9.2 million compared to $7.7 million in the same period last year. For the nine months, revenue rose 8% to $25.0 million from $23.1 million. The growth was primarily driven by increased sales in engineering services and assemblies and modules, alongside slight increases in visible components. However, revenue from infrared components decreased by 15% year-to-date, largely due to a reduction in sales against a significant annual contract for Germanium-based products, which was not renewed.

The company reported a net loss of approximately $3.6 million for the third quarter, or $0.09 per share, compared to a loss of $2.6 million, or $0.07 per share, in the prior year. For the nine-month period, the net loss was approximately $7.8 million, or $0.19 per share, compared to $5.7 million, or $0.15 per share, in the same period last year. The increase in net loss was attributed to higher selling, general, and administrative (SG&A) expenses, which rose by 40% in the third quarter due to increased legal and consulting fees related to business development initiatives and acquisition costs associated with the recent acquisition of G5 Infrared.

In terms of strategic developments, LightPath completed the acquisition of G5 Infrared in February 2025 for approximately $27.6 million, which included cash, stock, and potential earnout considerations. This acquisition is expected to enhance LightPath's portfolio by adding cooled infrared cameras and advanced thermal imaging technology. The company also acquired Visimid Technologies in July 2023, further expanding its capabilities in engineered solutions. The integration of these acquisitions is anticipated to drive future revenue growth and improve profitability.

Operationally, LightPath's total backlog increased by 25% year-over-year to approximately $27.4 million as of March 31, 2025, bolstered by the addition of $5.6 million from G5 Infrared. The company reported a significant increase in engineering services revenue, which rose by 221% year-to-date, driven by contracts with major defense contractors. However, challenges remain, particularly in the supply chain for Germanium, which has been affected by geopolitical tensions and trade restrictions, prompting the company to pivot towards its proprietary BlackDiamond materials.

Looking ahead, LightPath anticipates continued growth in its engineering services and assemblies and modules product groups, while navigating the complexities of the current market environment. The company remains focused on leveraging its technological advancements and strategic acquisitions to enhance its competitive position in the optics industry.