Why LightPath Technologies Stock Flashed Green Today

LightPath Technologies (LPTH 13.23%) stock lit up the market this morning, rising 13.5% through 10:10 a.m. ET after hitting analyst targets for fiscal Q4 earnings last night — but missing badly on earnings.

LightPath reported $0.16 per share in losses for Q4 2025, four times worse than the $0.04-per-share loss analysts predicted. Revenue, however, was on target at $12.2 million.

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LightPath’s Q4 earnings

Revenue growth appears to be what’s attracting investors to LightPath today, with the company reporting a 41% year-over-year gain. The bad news is that as fast as revenue grew, operating costs grew faster — up 52%. As a result, LightPath’s losses tripled year over year, to $7.2 million (or $0.16 per share).

So why are investors looking past the earnings miss and bidding up LightPath stock? In a note on The Fly this morning, investment bank Lake Street argued the company will get more efficient over time, and as its revenues grow, its operating leverage will improve, resulting in stronger profits (despite the fact that the exact opposite happened in Q4).

Is LightPath stock a buy?

CEO Sam Rubin did say, though, that the company booked an $18.2 million purchase order for infrared cameras in Q4 that will turn into revenue in 2026, as well as a follow-on $22.1 million order due for delivery in 2027. So the revenue growth part of this equation seems intact, and LightPath does seem to be enjoying success winning military customers for its infrared and other sensors.

What remains to be seen is if LightPath can get its costs down — at least as a percentage of revenue — so that profits can grow. I’m not convinced yet that the stock is a buy, but I’m open to persuasion as the profits picture clears.