LightPath Technologies reported QQ3 2025 revenue of $9.16 million, up 19% year over year and about 23% higher quarter over quarter, driven by a deliberately broadened product mix toward higher-margin assemblies, camera modules, and services. Gross margin expanded to 29.1% from 20.9% a year ago, reflecting a shift toward higher-margin offerings and favorable mix, while operating expenses rose 44% as the company absorbed costs related to the G5 Infrared acquisition and ongoing investments in product development and go-to-market activities. The company posted a net loss of $3.56 million and EBITDA of approximately -$1.86 million for the quarter, underscoring the near-term profitability headwinds associated with the accelerated growth-through-acquisition strategy. Backlog stood at $27.4 million at March 31, 2025, and cash and equivalents were $6.5 million with total debt of $5.5 million, resulting in a net debt position of about $7.9 million.
Management emphasizes a multi-year growth trajectory anchored by defense programs (e.g., NGSRI with Lockheed, SPEIR with L3Harris) and the expansion of BlackDiamond materials to reduce reliance on germanium. The post-merger integration with G5 Infrared is proceeding on schedule, with 90-day bookings of over $19 million since close, and management guiding toward approximately $51 million in revenue in the 12 months following the acquisition and a long-run EBITDA margin target of 15%. Near-term visibility includes Q4 bookings and production ramps that are expected to translate into a better quarterly profit trajectory, though the next two quarters will carry continued non-operating and amortization-related effects from the acquisition.
Investors are exposed to the typical policy and supply-chain risk in the optics sector (e.g., germanium export controls, tariff dynamics, and geopolitical tensions) but benefit from a defensible niche in infrared optics and imaging with a pathway to higher-margin systems as the company scales up its assemblies, cameras, and subsystems. The QQ3 results suggest meaningful top-line leverage from a richer product mix, but profitability will hinge on the pace of production ramp, integration synergies, and the ability to convert a growing backlog into sustained operating earnings.