LightPath Technologies seem to be a little known photonics and infrared imaging company seeking to advance into one of the key players in the defense market.

The Product

In previous years LightPath developed the ‘BlackDiamond chalcogenide glass’. Typically infrared systems rely on germanium optics. These have high costs, scarce supply for the demand and China controls a significant proportion of the global production for it. BlackDiamond is reportedly lighter weight, cheaper, has a solid supply security and a more simplified design maintaining strong performance.

Recent acquisitions

In 2025 LightPath acquired G5 infrared, their biggest step yet in advancing their business into more than a lens manufacturer. They are now able to produce whole camera systems. This allows them to strengthen their relationships with recurring buyers and allows for many more opportunities to secure larger contracts. It is also expected to bring along higher margins and higher revenue per unit.

Along with this acquisition in January 2026 Lightpath also acquired Amorphous Materials. This allowed them to increase their production capacity of chalcogenide glass and increase production in the US. Another strategic reason for this acquisition is the ability to produce larger diameter optics, strength their value proposition. This reduces the reliance of outside suppliers making the company safer.

How is the technology used?

This technology is widely used in drone sensors, thermal imaging systems, border security systems and military surveillance, targeting and detection systems. This gives them a major market for countries looking for innovative and cost effective defense systems.

How do their financials look?

In Q3 this fiscal year LightPath demonstrated bullish earnings with a revenue of $19.1 million, up 109% year over year. With a gross profit of $7 million and an adjusted EBITDA of 1.1 million they remained with a net loss of $4.1 million. Investors are more focused on the improvements in operating and revenue rather than making a net profit. LightPath’s key selling point for investors is their $110.6 million backlog. This was up 196% from beginning of the fiscal year and the largest backlog in company history.

What makes this an exciting choice?

With political tensions rising globally countries are stocking up on their defense. This is both good and for LightPath. A war could mean increased spending on drones and infrared sensing systems, but they may not be able to supply this demand if their supply chain is disrupted.

Their profit is not consistent with net losses continuing, there is still a big question mark over their ability to execute the proposed ideas and their valuation heavily depends on how well they covert the backlog to sales which may deter potential investors.

LightPath is trying to become a big infrared imaging and defense platform but a significant portion of their future growth depends on their ability to secure defense contracts and their proprietary materials. With its small cap and huge upside potential could this be my next 10 bagger?

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