A maker of precision optical and infrared lenses and cameras, LightPath Technologies supplies thermal-imaging systems used in defense, border security, and counter-drone work. Founded in 1985 and based in Orlando, Florida, it grew from a component supplier into a vertically integrated optics house through acquisitions like G5 Infrared. Its signature material is BlackDiamond, a chalcogenide glass made in the U.S. that substitutes for germanium, the usual infrared optic material that China dominates.
Q3 FY2026 revenue rose 109% to $19.1M as G5 Infrared and AML acquisitions lifted backlog to $110.6M
more than doubled for the third straight quarter. Revenue rose 109% to $19.1M and expanded to 36% as the G5 Infrared and AML acquisitions shifted mix toward higher-margin assemblies, while net loss widened to $4.1M on a $3.4M non-cash earnout charge. The company holds $55.2M cash after a $65.2M offering and a $110.6M , leaving it funded through its integration phase.
Key takeaways
rose 109% to $19.1M, led by a 355% increase in assemblies and modules to $8.4M from G5 Infrared camera sales, with infrared components up 69% to $6.1M including $0.9M from G5 coatings and $1.0M from newly acquired AML.
improved to 36% from 29% a year earlier, driven by a higher mix of higher-margin assemblies and modules and improved infrared product margins.
Net loss widened to $4.1M from $3.6M, largely due to a $3.4M from the change in fair value of G5 Infrared .
Section summaries
Management's Discussion and Analysis
Revenue more than doubled to $19.1M in Q3 FY2026, driven by G5 Infrared and AML acquisitions, with gross margin expanding to 36%.
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Total Q3 FY2026 rose 109% to $19.1M, led by a 355% surge in assemblies and modules to $8.4M, primarily from G5 Infrared camera sales.
Total rose 196% from fiscal year-end to $110.6M, including $80.6M from G5 Infrared, after a $65.2M left cash and equivalents at $55.2M.
SG&A increased 42% to $6.3M from added G5 Infrared and AML costs, higher sales and marketing spend, and increased personnel costs.
What changed
Q1 FY2026 flagged whether the $86.0M including $64M from G5 converts: backlog rose to $110.6M by Q3 including $80.6M from G5, and rose 109% to $19.1M with G5 and AML contributing.
Q2 FY2026 flagged SG&A trajectory as G5 integration spend phases: SG&A rose 42% to $6.3M in Q3, up from $5.9M in Q2, still reflecting added G5 and AML costs.
Q2 FY2026 flagged sequential after 37%: margin was 36% in Q3, down 0.5pt QoQ from 36.8% but up from 29% a year ago.
Q2 FY2026 flagged net loss movement as earnout liability charge evolves: net loss was $4.1M in Q3 versus $9.4M in Q2, with the non-cash earnout charge at $3.4M versus $7.6M.
FY2025 flagged after $8.3M use: Q3 operating cash flow was -$1.1M and nine-month use was $6.8M, with the $65.2M offering covering the gap rather than further debt.
What to watch
Whether the $110.6M including $80.6M from G5 Infrared converts to over the next two quarters as management expects.
Sequential SG&A as G5 Infrared and AML integration and promotional spend phase through Q4 FY2026 from the $6.3M Q3 level.
Quarter-to-quarter net loss as the G5 Infrared earnout liability fair-value charge moves from the $3.4M Q3 print.
trajectory as G5 mix and infrared yields hold against the 36% Q3 level.
Infrared components grew 69% to $6.1M, with $0.9M from G5 Infrared coatings and $1.0M from the newly acquired AML.
improved to 36% from 29% a year ago, driven by a higher mix of higher-margin assemblies and modules and improved infrared product margins.
increased 42% to $6.3M due to added costs from G5 Infrared and AML, higher sales and marketing spend, and increased personnel costs.
Net loss widened to $4.1M from $3.6M, largely due to a $3.4M non-cash charge from the change in fair value of G5 Infrared liabilities.
Cash and equivalents stood at $55.2M after a $65.2M public offering, with total surging 196% from fiscal year-end to $110.6M, including $80.6M from G5 Infrared.
Quantitative and Qualitative Disclosures About Market Risk
Because we are allowed to comply with the disclosure obligations applicable to a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act, with respect to this Quarterly Report on Form 10-Q, we are not required to provide the information required by this Item.
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Because we are allowed to comply with the disclosure obligations applicable to a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act, with respect to this Quarterly Report on Form 10-Q, we are not required to provide the information required by this Item.
The Company is subject, from time to time, to various legal proceedings that are incidental to the conduct of its business. The Company is not involved in any pending legal proceeding that it believes would reasonably be expected to have a material adverse effect on its financia…
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The Company is subject, from time to time, to various legal proceedings that are incidental to the conduct of its business. The Company is not involved in any pending legal proceeding that it believes would reasonably be expected to have a material adverse effect on its financial condition or results of operations.
Our business, operations, and financial condition are subject to various risks and uncertainties. The risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K, for the year ended June 30, 2025, should be carefully considered, together with the…
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Our business, operations, and financial condition are subject to various risks and uncertainties. The risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K, for the year ended June 30, 2025, should be carefully considered, together with the other information contained or incorporated by reference in this Quarterly Report on Form 10-Q and in our other filings with the SEC in connection with evaluating us, our business, and the forward-looking statements contained in this Quarterly Report on Form 10-Q. During the nine months ended March 31, 2026, there have been no material changes from the risk factors previously disclosed under Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K, for the year ended June 30, 2025.