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Lightwave Logic, Inc.
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NASDAQ: LWLG Materials Chemicals 🔎 Screen
$753M
Market Cap
—
P/E
—
PEG
-20.5%
ROCE
-31.9%
ROE
0.02
D/E
-10,020.7%
OPM
98
α RS
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Currency-adjusted total returns for LWLG including FX impact
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📈 Price History
Ratio Health
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About

Lightwave Logic, Inc. focuses on the development and commercialization of electro-optic polymer materials for data communications and other photonic application in the United States and internationally. The company sells electro-optic (EO) polymer materials for integration into silicon photonics and other photonic integrated circuit platforms under the Perkinamine name. It is also involved in intellectual property licensing; and royalty activities. The company serves semiconductor foundries, silicon photonics device designers, and optical module manufacturers, as well as system integrators serving artificial intelligence, cloud computing, data center, and telecommunications markets. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.

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3-Statement Financial Model
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📊 MIXED Lightwave Logic advances electro-optic polymer platform for AI networking; Q1 rev $29k, cash $75M
Revenue & Profitability
Revenue for Q1 2026 was $29,000. Net loss was $6.3 million ($0.04 per share) compared to $4.7 million a year ago. R&D expenses increased to $3.5 million. The company ended Q1 with approximately $75 million in cash, which increased to ~$100 million as of May 11, 2026 after using the shelf facility.
Outlook
Management sees AI as the primary driver of optical interconnect demand. The combined AI and data center optical transceiver TAM for 2028 has expanded from $17 billion to $47 billion. The serviceable addressable market for electro-optic polymer modulators is now estimated at $2 billion-$4 billion. Silicon photonics is expected to grow from 23% market share in 2021 to over 70% by 2030.
Growth Drivers
Key growth levers include AI scale-up (co-packaged optics), scale-out, and scale-across (coherent pluggables) segments. The company has four major Fortune 500 customers at stage 3 (prototyping) and expects one or two more Tier-1 customers to reach stage 3 before Q3 2026. Demand for 1.6T and 3.2T transceivers is accelerating growth.
Balance Sheet & CapEx
The company is setting up a new Perkinamine production line in Denver, commissioning equipment and hiring process and production personnel. No specific capital expenditure numbers were disclosed. The current cash position of ~$100 million provides substantial financial flexibility to support these investments.
Margins
Not discussed in this earnings call.
Key Risks
The primary risk flagged is foundry capacity constraints and longer wafer tape-out and fabrication cycle times due to strong demand for silicon photonics wafers. These constraints are expected to ease over the next 12 months as new investments come online. No other specific risks were highlighted.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (3 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (3)
Q2 2026 Q2 2026 2026-08-11
Q2 2026 saw progress toward commercialization, with five Stage 3 customer programs and multiple foundry engagements advancing. Revenue grew modestly, while investments in R&D and infrastructure increased. Strong cash reserves support the planned production ramp and ongoing customer milestones.
Q1 2026 Q1 2026 2026-05-13
Q1 2026 saw 27% revenue growth and a $6.3M net loss, with strong cash reserves and increased R&D investment. Market opportunities expanded as AI drives demand for photonics, and customer engagement advanced despite foundry constraints.
Q4 2025 Q4 2025 2026-03-05
2025 saw strong execution, improved financials, and deepened customer programs, with revenue up and net loss down year-over-year. The company is well-funded, advancing commercialization, and positioned for growth as silicon photonics becomes dominant in AI networking.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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