LightPath Technologies Q4 Earnings Call Highlights

Revenue nearly doubled to $71.7 million, gross margin expanded to 36%, adjusted EBITDA turned positive at $4.2 million, and backlog surged 197% to $110.9 million.

Fourth-quarter revenue reached a record $21.2 million, with a 39.4% gross margin and the fourth consecutive quarter of positive adjusted EBITDA.

Assemblies, modules and cameras represented 43% of fourth-quarter revenue, supporting margin expansion, while Counter-UAS, drone-related optics and camera programs fueled backlog growth. The company also received $24 million in additional orders after year-end.

The company agreed to sell its China subsidiary for $4.5 million and is increasing U.S. and Latvia-based production of Black Diamond glass, optics and camera assemblies. Fiscal 2027 capital spending is expected to rise, funded in part by the company’s $93.2 million cash balance and minimal debt.

LightPath Technologies NASDAQ: LPTH reported record fiscal 2026 results, with revenue nearly doubling, gross margin expanding and adjusted EBITDA turning positive as the company shifted toward higher-value assemblies, modules and camera products. For the fiscal year ended June 30, revenue rose 93% to $71.7 million from $37.2 million a year earlier. Gross margin increased to 36% from 27%, while adjusted EBITDA improved to a $4.2 million profit from a $5.1 million loss in fiscal 2025. The company ended the year with backlog of $110.9 million, up 197% from $37.4 million a year earlier.

Fourth-quarter revenue increased 73% year over year to a company-record $21.2 million. Gross profit grew 210% to $8.3 million, producing a gross margin of 39.4%, compared with 22% in the prior-year quarter. Adjusted EBITDA was $2.1 million, or 10% of revenue, marking the company’s fourth consecutive quarter of positive adjusted EBITDA.

President and CEO Sam Rubin said the fourth-quarter margin expansion reflected product mix and operating execution rather than a one-time contract benefit or price increases. Assemblies, modules and cameras accounted for 43% of fourth-quarter revenue and 44% of full-year revenue, compared with 23% of revenue in fiscal 2025.

“These products ... have both higher prices and higher margins as a result of the significant value add compared to our legacy component business,” Rubin said. During the fourth quarter, infrared components generated $7.1 million in sales, or 34% of consolidated revenue. Visible components contributed $4.2 million, or 20%, while assemblies and modules accounted for $9.1 million, or 43%. Engineering services produced $800,000. For the full year, assemblies and modules revenue climbed 281% to $31.9 million. Infrared component sales rose 52% to $21.2 million, while visible component revenue increased 32% to $15.5 million. Engineering services revenue was roughly unchanged at $3.1 million.

CFO Albert Miranda said higher production volume improved cost absorption, while the year-ago quarter included a $500,000 inventory reserve charge that did not recur in fiscal 2026’s fourth quarter. Reported Loss Reflects Acquisition Earnout Accounting LightPath reported a fourth-quarter net loss of $4.1 million, or $0.06 per basic and diluted share, compared with a $7.1 million loss, or $0.16 per share, a year earlier. Fourth-quarter operating expenses rose to $12.6 million from $7.2 million. Mirand...