LightPath Technologies, Inc. recently released its 10-K report. The company designs, develops, manufactures and distributes optical systems and assemblies, including precision molded glass aspheric optics, infrared lenses, spherical lenses and other optical components. It also sells cooled and uncooled camera systems and modules, provides engineering services, and serves customers in defense, security, medical, industrial, telecommunications, machine vision and related markets, with direct sales into Europe and Asia.
In Item 7, management said fiscal 2026 revenue rose to about $71.7 million from $37.2 million in fiscal 2025, an increase of 93%. The company broke revenue into four groups: infrared components, visible components, assemblies and modules, and engineering services.
Infrared components revenue increased to about $21.2 million from roughly $13.9 million, up 52%. Management said about $1.3 million of the increase came from a full year of coating services at G5 Infrared, about $2.2 million came from AML after its January 2026 acquisition, and the remaining $3.8 million came mainly from higher sales to defense and industrial customers in Europe.
Visible components revenue rose to about $15.5 million from $11.7 million, up 32%. The company said the gain was driven mainly by higher sales to industrial customers in the U.S., Asia and Europe, including several new programs.
Assemblies and modules revenue jumped to about $31.9 million from $8.4 million, up 281%. Management said about $23.1 million of that increase came from higher G5 Infrared sales of cameras and modules, including previously announced large defense and security programs.
Engineering services revenue was essentially flat year over year. The company said the line included Visimid’s contract with Lockheed Martin and other non-recurring engineering projects, and that revenue can move around because delivery timing and contract values are uneven.
Gross profit increased to about $25.8 million from $10.1 million. Gross margin improved to 36% from 27%, helped by higher sales across nearly all product groups, better margins in each group, a full year of G5 Infrared revenue, and a larger mix of assemblies and modules, which represented 44% of revenue in fiscal 2026 versus 23% in fiscal 2025.
Cost of sales increased to about $45.9 million from $27.1 million. SG&A rose to about $24.7 million from $15.9 million, up 56%, with management citing a full year of G5 Infrared SG&A, $1.0 million from AML including acquisition-related costs, higher sales and marketing spending, higher IT spending for customer security requirements and integration projects, and higher personnel costs tied to vacant executive roles and incentive compensation accruals.
New product development costs increased to about $3.8 million from $3.1 million. Management said the increase reflected G5 Infrared development costs and additional engineering personnel, partly offset by lower outside services and materials tied to project timing.
Amortization of intangible assets increased by about $0.4 million because of the G5 Infrared and AML acquisitions. The change in fair value of acquisition liabilities increased by $14.1 million, mainly because earnouts tied to the G5 Infrared acquisition ended up higher than the values recorded at acquisition.
Interest income, net, was about $0.01 million in fiscal 2026, compared with interest expense, net, of about $1.1 million in fiscal 2025. The company said fiscal 2026 benefited from interest earned on cash after the December and June offerings, partly offset by finance lease interest and interest and amortization of loan issuance costs on the Acquisition Notes until redemption in December 2025.
The company recorded a $0.5 million loss on extinguishment of debt in fiscal 2026, compared with a $0.4 million loss in fiscal 2025. Other expense, net, was about $0.1 million in both years, mainly foreign exchange losses.
Income tax expense was about $0.3 million in fiscal 2026, compared with $0.04 million in fiscal 2025, mainly tied to operations in China and withholding taxes on intercompany dividends. Net loss widened to about $20.5 million, or $0.38 per share, from $14.9 million, or $0.36 per share, despite the higher gross profit, because of the larger acquisition-liability remeasurement and higher operating costs.
Weighted-average shares outstanding were 53.4 million in fiscal 2026, up from 40.9 million in fiscal 2025. Management attributed the increase to the December and June offerings, 3.47 million shares issued on warrant exercises, 8.69 million shares issued on conversion of Series G preferred stock, 524,124 shares issued in connection with the Visimid, G5 Infrared and AML acquisitions, and shares issued under the employee stock purchase plan and vested equity awards.
At June 30, 2026, LightPath reported working capital of about $103.7 million and cash and cash equivalents of about $93.2 million. About 4% of cash was held by foreign subsidiaries in China and Latvia. The company said it repatriated about $0.2 million from China in fiscal 2026, versus $1.2 million in fiscal 2025, and that it had about $0.7 million in retained earnings available for repatriation at LPOIZ as of June 30, 2026.
Loans payable at year-end consisted of the 2023 Equipment Loan in Latvia, with an outstanding balance of about 164,000 euros, or roughly $0.2 million. The loan was originally used to finance equipment prepayments, is payable over 48 months, and carried interest at six-month EURIBOR plus 2.84%, or 5.20% at June 30, 2026.
The company also said it entered a securities purchase agreement on June 1, 2026 for the sale of 7,142,800 shares of Class A common stock to North Run Strategic Opportunities Fund I, LP and certain institutional investors. Following these announcements, the company's shares moved -0.72%, and are now trading at a price of $9.61. For the full picture, make sure to review LIGHTPATH TECHNOLOGIES INC's 10-K report.
