LightPath Technologies rose about 16 percent today, its biggest one-day jump in months, and is now trading at a new high for the year. We think this is mostly a delayed reaction to a string of big defense contract wins and the company's move to exit China.
Our view
The business is at its strongest point in years as it becomes a key supplier for U.S. drone defense, but the stock price has run up so fast it now looks a bit stretched. If you already own it, there is nothing to do but sit tight and let the growth play out.
Piper Sandler set a price target of 15 dollars for the stock. This is roughly in line with where the shares are currently trading. Because this is a new target without a rating change from a major firm, it is a routine update for the stock's page.
LightPath signed an agreement to sell its entire business in China. This move is intended to create a manufacturing footprint that is fully based in Western countries, which helps the company qualify for more sensitive military contracts.
By removing its ties to China, LightPath is leaning into its role as a trusted supplier for the U.S. government. This shift is important because many defense programs now require parts that do not come from geopolitical rivals.
New 13 million dollar order for drone defense systems
LightPath won 13 million dollars in new orders to provide optical parts for counter-drone systems. These systems are used to detect and stop unmanned aircraft, a field that is seeing rapid growth in military spending.
This is a follow-on order, meaning the customer is returning for more of the same parts. It shows that LightPath is successfully moving from selling simple lenses to providing more complex assemblies that are built into critical defense equipment.
Analysts have consistently maintained their positive outlook on the company over the past year. All 10 analysts rate the stock a buy, with an average price target of $16 that suggests the price is currently near its fair value.
Average target$15.50+2%vs $15.17 today
TodayAvg price
Low $15High $16.50
Strong Buy10 analysts
0Bearish
0Neutral
10Bullish
FirmRatingPrice TargetDate
Piper Sandler
Overweight
$15
8/12/2026
Canaccord Genuity
Buy
$15.50→$16.50
5/11/2026
Lake Street
Buy
$14→$15
5/8/2026
Canaccord Genuity
Buy
$15→$15.50
2/12/2026
H.C. Wainwright
—
$10→$15
2/12/2026
UBS
Buy
$15
1/29/2026
Canaccord Genuity
Buy
$15
1/29/2026
Lake Street
Buy
$10→$14
1/6/2026
Lake Street
Buy
$4→$7.50
9/26/2025
H.C. Wainwright
—
$7→$8
9/26/2025
Craig-Hallum
Buy
$5.50
4/28/2025
Loop Capital Markets
—
$3
9/20/2024
LightPath Technologies earnings
The company has beaten analyst expectations for four straight quarters while more than doubling its revenue, showing that management is successfully turning a massive backlog into real sales.
Earnings history
EstimateBeatMiss
LightPath Technologies past earnings results
Expected
Actual
Surprise
EPS
$-0.02
$-0.02
+0.0%
Revenue
$17M
$19M
+12.4%
Key highlights
Massive revenue growth: Total sales rose 109% to $19.1 million compared to $9.2 million a year ago, driven by a surge in demand for complex camera assemblies and modules. This shift toward complete imaging systems is a key part of the plan to move beyond selling individual lens components.
Record order backlog: The company ended the quarter with $110.6 million in total orders waiting to be filled, which is nearly triple the $37.4 million it had at the start of the fiscal year. This record level of business shows that the company is winning much larger contracts for U.S. defense programs.
Profitability from operations: Adjusted EBITDA, a measure that shows the cash profit from running the business, reached $1.1 million compared to a loss of $1.6 million last year. This is the third quarter in a row of positive results, proving the company can make money as it scales its new manufacturing sites.
Assembly sales exploding: Revenue from the assemblies and modules division grew 355% to $8.4 million, making it the largest part of the business at 44% of total sales. These products carry higher profit margins and help the company integrate its own specialized infrared glass into finished systems.
Ambitious long term target: Management set a goal to reach $300 million in annual revenue within five years, which would be more than five times its current yearly pace. This growth relies on a new U.S. law that requires the Department of War to stop using foreign-made optical glass by January 1, 2030.
Our take: This was an exceptionally strong quarter that proves the company's shift into higher-end defense systems is working. The 109% jump in revenue and record $110.6 million backlog show that LightPath is successfully capturing the move away from foreign-sourced optics. It significantly strengthens the long-term case for the business as a vital domestic supplier.
LightPath Technologies’s next earnings date
Q4 2026
SEP
24
Expectation
EPS
$-0.02
Revenue
$21M
Metrics we are tracking
Metric
Expectations
Status
Order Backlog
Maintaining a total backlog above $100 million
$110.6M in Q3 FY2026
Gross Margin
Sustaining gross margins above 35%
36% in Q3 FY2026
Revenue Growth
Growing quarterly revenue at 25% YoY or higher
109% YoY in Q3 FY2026
Adjusted EBITDA
Remaining positive for four consecutive quarters
$1.1M in Q3 FY2026
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