LPTH

• Strategic shift to vertically integrated provider of high-value infrared optics and camera systems leveraging core technologies and acquisitions. - Black Diamond proprietary calcogenide glasses anchor the platform, aligning with NDAA requirements. - Acquisition of G5 Infrared, which has booked over $100 million in new orders in the last year. - Acquisition of Amorphis Materials unlocks ability to produce larger diameter optics, boosting glass production capacity. - Adding capacity across the business, including in glass and downstream processes, assemblies, and camera systems. - Recently added senior leadership in global sales and business development. - Major programs like NGSRI, Navy Spear, Border Tower, County UAS, space programs, and Apache program with various statuses and updates.

• Expect step function in demand over next few months, with growth in cameras and assemblies. - Backlog indicates continued growth trend. - Focus on execution to deliver backlog and fund CapEx and working capital for growth. - Expect margin expansion in coming quarters as a result of investments in manufacturing.

Revenue for the third quarter of fiscal 2026 increased 109% to $19.1 million. Sales of Infrared Components were $6.1 million or 32% of consolidated revenue. Revenue from Visible Components was $4 million or 21% of consolidated revenue. Revenue from assemblies and modules were $8.4 million or 44% of consolidated revenue. Revenue from engineering services was $0.6 million or 3% of consolidated revenue. Gross profit increased 161% to $7 million or 36% of total revenues. The increase in gross margin was primarily driven by the increase in revenue from assemblies and modules with higher margins, and improved margins for infrared components due to favorable mix and resolution of manufacturing yield issues. Adjusted EBITDA for the third quarter was 1.1 million positive compared to an adjusted EBITDA loss of 1.6 million in the same year-ago quarter. Total backlog as of March 31st, 2026, was approximately $110.6 million, an increase of 196% from the prior period.

Q: Do you envision the step function in demand being broad-based or concentrated?

A: Cameras' step function from existing customers growing linearly and many other customers switching over; assemblies' step function from taking market share in areas not previously played in due to new capability.

Q: How many engagements or conversations with customers for space programs?

A: Three customers fully engaged in designing products.

Q: How should we think about CapEx over next 12 months?

A: CapEx is capacity driven, with $6 million approved in Q3 to meet current and future backlog.

Q: Expectation of funding and impact on revenue mix and margin?

A: Funding mostly for assemblies and cameras, which are higher margin; already receiving orders for optical assemblies in drones.

Q: Factors keeping primes from swapping larger diameter germanium lenses with black diamond?

A: Mostly educational, as different design mechanics assumptions are needed due to different material strength.

Q: Revenue ceiling and growth in next quarters?

A: Everything in backlog can be delivered, with focus on second half of next fiscal year for increased expansion.

Q: Timeline for space program decisions?

A: At least a year before meaningful decisions.

Q: View on gross margins with added capacity?

A: Still expect margins to grow, but short-term costs may slow ramp from current 36% to 40%+