LightPath (LPTH) investor relations material

Executive summary

• Achieved record $90 million backlog, over four times higher than a few months ago, driven by large orders in border surveillance and counter-UAS systems.

• Strategic transformation from component manufacturing to subsystems and systems, leveraging proprietary BlackDiamond glass to address supply chain risks and margin erosion.

• Integration of G5 Infrared and investments from Ondas and Unusual Machines support expansion in drone and defense markets.

Financial highlights

• Q4 2025 revenue rose 41.4% year-over-year to $12.2 million; gross profit increased 6.6% to $2.7 million.

• Gross margin declined to 22% from 29.2% due to a $0.5 million inventory reserve charge and other one-time items.

• Operating expenses increased 52% to $7.2 million, mainly from G5 integration, higher sales/marketing, and acquisition-related costs.

• Net loss widened to $7.1 million ($0.16/share) from $2.4 million ($0.06/share) year-over-year, driven by non-cash and acquisition expenses.

• Adjusted EBITDA loss was $1.9 million, compared to $1.1 million loss in the prior year.

• Cash and equivalents at $4.9 million; total debt at $5 million as of June 30, 2025.

Outlook and guidance

• Expect continued significant growth, with margin expansion anticipated in fiscal 2026 as product mix shifts to higher-value systems.

• Gross margin targeted to rise from current ~30% (adjusted) to 35% in the next few quarters, and potentially 40% mid-term.

• EBITDA profitability expected at higher revenue levels, with margin improvements likely in the second half of fiscal 2026.