LightPath Technologies (LPTH) Q2 Loss Narrowing Tests Bearish Earnings Narrative

LightPath Technologies (LPTH) just posted its latest quarterly update with Q2 2026 revenue of about US$15.1 million and a basic EPS loss of US$0.07, alongside trailing twelve month revenue of US$43.9 million and a basic EPS loss of US$0.39. Over recent periods the company has seen revenue move from US$8.6 million in Q4 2024 to US$12.2 million in Q4 2025. Quarterly EPS losses ranged between US$0.04 and US$0.16, which gives you a sense of how the top line has scaled against still pressured margins. For investors, this set of results keeps the focus firmly on how quickly those losses can be contained and whether margins can eventually turn the corner.

See our full analysis for LightPath Technologies.

With the latest numbers on the table, the key question is how they line up with the dominant stories around LightPath. Next we will set these results against the widely followed narratives to see which views hold up and which start to look stretched.

See what the community is saying about LightPath Technologies

Revenue Run Rate Doubles Versus Early 2025

• Total revenue has moved from US$7.4 million in Q2 2025 to US$15.1 million in Q2 2026, with trailing twelve month revenue at US$43.9 million.
• Supporters of the bullish view point to catalysts like the G5 Infrared acquisition and higher value systems as potential drivers for this revenue base. However, the latest trailing twelve month net loss of US$16.1 million means any bullish case has to balance those growth ambitions against the reality that losses have been sizeable over the past year.
  • The bullish narrative expects revenue growth to be helped by recurring defense contracts and higher average selling prices. At the same time, the reported trailing twelve month loss shows the business is still in an investment heavy phase.
  • Bulls also talk about a shift up the value chain into assemblies and cameras. The current trailing twelve month EPS loss of US$0.39 highlights that, so far, the higher revenue run rate has not translated into profitability.

Bulls argue that these revenue numbers could be the foundation for a very different earnings profile if margins improve and defense programs scale as expected. However, the gap between that story and today’s losses is still wide enough that it pays to read the full bullish case before deciding how persuasive it is. 🐂 LightPath Technologies Bull Case

Losses Persist Despite Q2 EPS Improvement

• Net loss was US$2.9 million in Q2 2026 compared with US$7.1 million in Q4 2025, and on a trailing twelve month basis net loss sits at US$16.1 million with trailing EPS at a loss of US$0.39.
• Bears focus on that loss profile plus the data point that earnings have declined at about 42.3% per year over the past five years. They argue that even with recent revenue progress, the business has a history of widening losses that makes the path to sustainable profitability uncertain in their view.
  • The risk summary flags persistent unprofitability and a 42.3% annual decline in earnings over five years as major issues. This lines up with the current trailing twelve month loss of US$16.1 million.
  • Critics also highlight that forecasts provided here do not show a move to profitability within the next three years, so the recent quarter’s smaller loss does not yet overturn the longer multi year pattern they are watching.

Skeptics warn that a single quarter with a smaller loss does not change a five year trend of deteriorating earnings. If you are weighing the cautious view it is worth seeing exactly how bears frame that risk versus the current share price of US$12.48. 🐻 LightPath Technologies Bear Case

Rich P/S Multiple Against Rising Dilution

• The company is trading on a P/S of 15.2x versus a peer average of 3.5x and a US Electronic industry average of 2.9x, while shareholders have also seen substantial dilution over the past year.
• Consensus narrative talks about growth helped by acquisitions and higher value products. However, the combination of a 15.2x P/S multiple and trailing twelve month losses means investors who agree with that balanced view still have to reconcile a premium sales valuation and dilution with a business that is unprofitable today.
  • Analysts in the consensus view expect revenue growth over the next few years. At the same time, the risk summary notes there are no specific reward items flagged in the trailing twelve month data, which keeps the current premium P/S in sharp focus.
  • On top of that, significant shareholder dilution over the past year means any future earnings recovery would be spread across more shares. Consensus minded investors often weigh this alongside valuation ratios such as the 15.2x P/S.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for LightPath Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If you think the figures tell another story, shape your own view in just a few minutes and share it with the community. Do it your way

A great starting point for your LightPath Technologies research is our analysis highlighting 4 important warning signs that could impact your investment decision.

See What Else Is Out There

LightPath is still reporting sizeable losses, a premium 15.2x P/S multiple and shareholder dilution, which together leave little room for error around its current story.

If those ongoing losses and premium pricing make you cautious, it might be time to size up alternatives with stronger value support using our 55 high quality undervalued stocks today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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