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LightPath Technologies Completes Sale of China Operations

LightPath Technologies said it has completed the sale of its China-based subsidiary, LightPath (Zhenjiang) Optical Instrumentation Co., Ltd., to an entity owned by members of the subsidiary’s management team.

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LightPath Technologies, Inc. (NASDAQ:LPTH) said it completed the sale of its wholly owned China-based subsidiary, LightPath (Zhenjiang) Optical Instrumentation Co., Ltd. (LPOIZ), on October 30, 2026. The transaction included LPOIZ’s manufacturing facility and operations and transferred ownership to an entity controlled by members of its incumbent management team.

Following the closing, LightPath said it no longer has facilities or operations in China. Its manufacturing locations are now in the U.S. and Europe.

#LPOIZ to remain a supplier

Although LPOIZ has been divested, it is expected to continue providing products to LightPath for commercial customers in the U.S. and Europe. The subsidiary will operate as a third-party vendor under its new ownership.

LightPath said this arrangement is expected to support continuity of supply. However, the company identified risks related to whether the purchaser will meet its payment and supply obligations, as well as possible changes to LPOIZ’s operations, business priorities or financial condition.

#Effect on consolidated revenue

Revenue generated by LPOIZ’s third-party customers will no longer be included in LightPath’s consolidated results after the transaction. That revenue averaged approximately $4.5 million annually across fiscal years 2025 and 2026.

#Manufacturing footprint and customer impact

LightPath’s primary manufacturing footprint is in Orlando, Florida, with additional facilities in Texas, New Hampshire and Latvia. The company provides optics and imaging systems for defense and commercial applications, including infrared optical systems, thermal imaging assemblies and chalcogenide-based glass materials sold under exclusive license from the U.S. Naval Research Laboratory.

Chief Executive Officer Sam Rubin said defense contractors and public safety agencies are increasingly focused on where optics are manufactured and who owns the production facilities. He said LightPath believes its non-China footprint positions it for programs that require non-China sourcing.

Rubin also said LightPath does not expect the transaction to have a material effect on the supply, quality or service provided to commercial customers. That expectation is subject to risks including potential disruption at LPOIZ and the purchaser’s ability to fulfil supply obligations.

#Capacity plans and stated risks

LightPath said it remains focused on adding manufacturing capacity to address what it described as growing demand from defense customers. The company cautioned that its ability to expand capacity in a timely and cost-effective manner is subject to risk, including changes in U.S. and allied defense procurement priorities and funding.

Other risks identified by the company include fluctuations in product demand, the availability of raw materials and components, tariffs and other trade restrictions, economic uncertainty, geopolitical tensions and conflicts, and difficulties sustaining profitable sales growth, converting inventory to cash or reducing costs while maintaining competitive prices. LightPath said actual results may differ materially from its forward-looking statements and that further risks are detailed in its filings with the Securities and Exchange Commission.

#Key Takeaways

  • LightPath Technologies closed the sale of LPOIZ and its China operations on October 30, 2026.
  • LPOIZ is expected to continue supplying LightPath’s commercial customers in the U.S. and Europe as a third-party vendor.
  • Revenue from LPOIZ’s third-party customers, which averaged approximately $4.5 million annually across fiscal years 2025 and 2026, will no longer be included in LightPath’s consolidated results.
  • LightPath said it has no remaining facilities or operations in China and is focused on adding manufacturing capacity for defense customers.

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