LightPath Technologies (LPTH) Stock Forecast & Price Target

LightPath Technologies Inc. is poised for significant revenue growth in FY27, primarily driven by increased product demand across its various optical solutions markets. The company plans to bolster its sales and marketing efforts, as well as invest in product development, which are expected to fuel future revenue despite the potential for higher near-term expenses. Furthermore, anticipated improvements in gross margin alongside rising revenue estimates indicate a promising trajectory toward consistent profitability and operational leverage.

LightPath Technologies has reported a significant decline in gross margin, with the figure dropping to 22.0% from 29.2% in the same period last year, indicating deteriorating profitability. The company also experienced an EBITDA loss of $2.0 million, diverging considerably from the expected positive EBITDA of $0.4 million, reflecting underlying financial challenges. Furthermore, operating expenses were notably higher at $7.2 million, surpassing the forecast of $5.7 million, primarily driven by changes in acquisition liabilities, which adds to the negative financial outlook.