Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 11, 2026 · N/A
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Lightwave Logic's progress in silicon photonics foundry integration and its expansion to five Stage 3 customers underscores the accelerating demand for advanced optical interconnects in AI infrastructure. The company's focus on scale-across coherent modulation and back-end-of-line scalability directly addresses the bandwidth and power bottlenecks emerging as AI clusters expand across campuses. Successful wafer delivery and qualification could position Perkinamine as a key enabler of next-generation silicon photonics, potentially benefiting the broader AI infrastructure ecosystem.
Lightwave Logic reported Q2 2026 revenue of approximately $33,000, up from $26,000 in the prior-year period, and a net loss of $6.6 million, or $0.04 per share. The company added a fifth Stage 3 customer, bringing total Stage 3 programs to five, and now has four foundry relationships, with three dedicated runs underway and wafers expected from two of them in August. R&D expense rose to $3.9 million and G&A to $3.4 million, reflecting investments in device development, personnel, and infrastructure. The company ended the quarter with $95.9 million in cash and marketable securities and no debt.
Management reiterated its 2026 priorities and expects the fourth quarter to be very busy for customer-facing technical staff as foundry wafers are processed and tested. They are negotiating a new material supply and licensing agreement with the most advanced customer, with the goal of beginning volume production in the second half of 2027. They are also working with a lead customer to build a scalable back-end-of-line production line for high-volume manufacturing. The company is expanding Perkinamine production in Denver with new equipment and staff, and believes the next foundry devices will validate performance advantages in customer-relevant designs. Management emphasized that foundry capacity constraints persist but expects progress to continue, with a fourth foundry tape-out planned later this year.
“We are not asking the market to build completely new manufacturing systems around us. We are working to make the silicon photonics platform better.”
on Foundry integration strategy
“The conversation is increasingly about how we move together through qualification and into production, not simply whether the technology is interesting.”
on Commercialization progress
“We are not at the finish line, but the next steps are concrete, measurable, and much closer in front of us.”
on Overall progress
What are the biggest bottlenecks inside the foundry ecosystem today? Capacity, process development, yield learning, packaging, or test availability?
Yves LeMaitre cited capacity expansion, new production sites, transition to 300mm wafers, and integration of new materials like electro-optic polymers. He highlighted back-end-of-line (BEOL) processing as a key focus, noting they are working with a lead customer to build a scalable back-end production line for high-volume production.
Does the current cash balance provide enough runway to reach the targeted production ramp, assuming no major change in the development timeline?
Fred Graffam said the company strengthened its balance sheet through capital raises in late 2025 and early 2026, and with no debt and approximately $96 million in cash and marketable securities, they believe they have the financial flexibility to execute on their current organic growth strategy.
What factors are considered when establishing licensing agreements and technology transfer agreements? Given public information and standard industry examples, what should investors expect from these agreements in dollar terms?
Yves LeMaitre declined to provide specific dollar values, explaining that value will depend on pricing for materials, one-time or recurring licensing fees, and royalties. He emphasized that the ultimate value will be created by the success of customers' products and their ability to win market share with hyperscalers and AI networking companies.