LightPath Technologies, Inc. reported fiscal second‑quarter revenue of $16.4 million, a 120% year‑over‑year increase from $7.4 million in Q2 2025 and a 34% rise from $12.2 million in Q4 2025. The jump was driven by strong demand for high‑margin assemblies and modules, which now account for a larger share of the company’s product mix.
Gross profit reached $6.0 million, up 212% from the prior year, and the company posted an adjusted EBITDA of $0.6 million – the first positive figure in recent quarters. The improvement reflects a higher mix of high‑margin contracts and better operating leverage, offsetting the impact of increased sales and marketing spend.
Operating expenses climbed to $14.6 million, largely due to a $7.6 million quarterly fair‑value adjustment of the G5 Infrared earnout liability. Integration costs from the February 2025 acquisition of G5 Infrared and additional marketing investments also contributed to the expense increase.
GAAP earnings per share were $‑0.20, missing the consensus estimate of $‑0.04. The loss was driven by the earnout adjustment; a non‑GAAP EPS of $‑0.03, closer to expectations, was also reported. The company’s cash position rose to $73.6 million after a $60 million equity raise in December 2025.
The company’s order backlog stood at $97.8 million, underscoring continued momentum in its defense‑focused infrared systems business. Management guided for fiscal 2026 revenue of $61.9 million and fiscal 2027 revenue of $77 million, signaling confidence in sustained growth and the ability to convert backlog into revenue.
CEO Sam Rubin highlighted the company’s transformation from a component supplier to a vertically integrated provider of infrared optics and camera systems, emphasizing the strategic importance of its proprietary BlackDiamond chalcogenide glass and alignment with the National Defense Authorization Act’s domestic‑glass mandate.
Market reaction was mixed: investors praised the revenue beat and first positive adjusted EBITDA, but the GAAP EPS miss and the sizable earnout adjustment tempered enthusiasm. The company’s focus on high‑margin defense applications and its expanding backlog were viewed as tailwinds, while the accounting charge remained a headwind for short‑term profitability.
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