LightPath Technologies Reports Strong Fourth Quarter and Full Year Financial Results

LightPath Technologies, a provider of next-generation optics and imaging systems for both defense and commercial applications, reported robust financial results for its fiscal 2026 fourth quarter and full year ended June 30, 2026. The company saw a significant increase in revenue, marking a milestone in its strategic transition and growth.

Revenue for the fourth quarter of fiscal 2026 surged 73% to $21.2 million, compared to $12.2 million in the same period of the previous fiscal year. This growth was driven by higher shipments to defense and industrial customers in the U.S. and Europe, and the addition of infrared materials sales from AML, a company acquired in January 2026. The visible components segment also saw an increase, primarily from sales to U.S. defense customers and industrial clients in Europe and Asia. The assemblies and modules segment, which includes G5 Infrared camera and module deliveries, contributed significantly to the revenue growth.

Gross profit for the quarter climbed 210% to $8.3 million, or 39.4% of revenue, up from $2.7 million or 22.0% of revenue in the same quarter of the previous fiscal year. This improvement was attributed to a favorable product mix, increased throughput, and better absorption on higher production volumes. Additionally, the company noted the absence of an approximately $0.5 million inventory reserve charge in the fourth quarter of fiscal 2025, further boosting gross profit.

Operating expenses for the quarter increased to $12.6 million from $7.2 million in the prior year, a $5.4 million hike. This increase was primarily due to non-cash fair value adjustments to acquisition earnout liabilities, which are being remeasured through operating expenses until fully settled. The final earnout amount was agreed to and accrued in the fourth quarter of fiscal 2026, to be paid in January 2027. The remaining expense increase of $3.4 million was mainly due to increased selling, general, and administrative expenses, reflecting the addition of AML operations, incentive compensation accruals, and higher sales and marketing investments.

Net loss for the quarter narrowed to $4.0 million, or $0.06 per basic and diluted share, from $7.1 million, or $0.16 per basic and diluted share, in the prior year. The improvement in net loss was largely due to the higher gross profit, partially offset by increased operating expenses and the absence of the non-cash charges associated with the warrant liability recorded in the prior year period.

For the full fiscal year 2026, LightPath reported a 93% increase in revenue to $71.7 million, from $37.2 million in the previous fiscal year. The growth was bolstered by a full year of G5 Infrared revenue, acquired in February 2025, and approximately five months of AML revenue. Gross profit increased by 155% to $25.8 million, or 36.0% of revenue, up from $10.1 million, or 27.2% of revenue, in fiscal 2025. Gross margin across all product groups showed improvement, with assemblies and modules contributing 44% of consolidated revenue, up from 23% in the previous year.

Operating expenses for the fiscal year rose to $45.5 million from $22.0 million in the previous year, an increase of $23.5 million. This was driven by non-cash fair value adjustments to acquisition earnout liabilities, reflecting G5 Infrared's strong performance against its earnout targets. The remaining operating expense increase was due to a full year of G5 Infrared operating costs, the addition of AML operating costs, higher sales and marketing spend, increased information technology investment to meet customer security standards, and increased personnel costs associated with executive hires and incentive compensation plans. New product development costs also saw an increase, seen as crucial for the company's strategic execution.

Net loss for fiscal 2026 totaled $20.5 million, or $0.38 per basic and diluted share, compared to $14.9 million, or $0.36 per basic and diluted share, in the previous fiscal year. The wider net loss was primarily due to the $14.1 million year-over-year increase in the non-cash change in fair value of acquisition earnout liabilities, reflecting G5 Infrared's strong performance, and the increase in SG&A and new product development costs, partially offset by the $15.7 million increase in gross profit.

LightPath Technologies ended its fiscal year with a strong balance sheet, holding $93.2 million in cash and cash equivalents, up from $4.9 million in the previous fiscal year. The company also reported a record order backlog of approximately $110.9 million, a 197% increase from $37.4 million at the end of the previous fiscal year. Of this backlog, $85.6 million is scheduled for delivery to customers within the next 12 months.

In an effort to align with onshoring trends and U.S. defense strategies, LightPath signed a definitive agreement to divest its subsidiary, LightPath (Zhenjiang) Optical Instrumentation Co., Ltd., including its manufacturing facility and operations in China, for $4.5 million, payable in installments over five years. This move is part of the company's transition to a fully Western-aligned manufacturing footprint.

President and CEO Sam Rubin commented, "Fiscal 2026 was a year of transition, rewarding the foundation we've spent years building. As companies continue to onshore their