Nasdaq:LYTS
LSI INDUSTRIES INC
A leading designer of electronic components for automotive and industrial applications with strong cash flow generation.
Key Metrics
Investment Thesis
Bull Case
LSI Industries is an attractive buy due to its impressive 20% revenue recovery in 2025 and consistent profitability despite industry headwinds. The company's strong operational cash flow provides flexibility for strategic investments or shareholder returns without relying on excessive debt issuance. Its niche focus on automotive electronics offers a stable growth trajectory as electric vehicle adoption accelerates.
Bear Case
Investors should be cautious given the stagnation in net income over the last three years, which suggests margin pressure or efficiency issues. The company has been aggressive with debt management, repaying nearly $200M while issuing less than $195M, indicating potential liquidity tightening or refinancing risks. High accounts receivable relative to revenue could signal collection challenges or aggressive sales recognition practices.
About LSI INDUSTRIES INC
LSI Industries Inc. designs and manufactures high-performance electronic components primarily for automotive, industrial, and telecommunications markets. The company leverages its proprietary technology to deliver reliable semiconductor solutions that support critical infrastructure and consumer electronics. With a diverse product portfolio, LSI serves global clients across multiple sectors requiring robust and efficient electronic systems.
Analysis
Management Discussion
The company reported a significant revenue jump to $573.4M in 2025, reversing previous years of decline, while maintaining stable net income around $24.4M. Strong operating cash flow of $38.1M demonstrates robust liquidity despite capital expenditures and debt repayments exceeding $200M. The balance sheet remains healthy with current assets at $194.2M against total liabilities of $165.6M.
Industry Overview
The electronic components industry is highly competitive and cyclical, driven by demand from automotive electrification, industrial automation, and 5G infrastructure deployment. Companies in this space face constant pressure to innovate while managing complex global supply chains and volatile raw material prices. Market leaders differentiate themselves through proprietary technology and long-term partnerships with key end-users.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $497.0M | $469.6M | $573.4M |
| Cost of Revenue | $360.0M | $336.0M | $431.4M |
| Gross Profit | $136.9M | $133.2M | $141.8M |
| Operating Expenses | $99.9M | $97.7M | $106.0M |
| Operating Income | $37.0M | $35.5M | $35.8M |
| R&D | $3.4M | $3.5M | $3.3M |
| G&A | $99.9M | $97.6M | $105.9M |
| Stock-Based Comp | $3.7M | $3.8M | $4.2M |
| D&A | $9.7M | $10.0M | $12.6M |
| Depreciation | $4.9M | $5.0M | $6.7M |
| Amortization | $4.8M | $5.0M | $5.8M |
| Other OpEx | $-3.4M | $-3.5M | $-3.2M |
| Non-Operating Income | $-3.7M | $-2.4M | $-2.7M |
| Interest Expense | $3.7M | $2.2M | $3.1M |
| Pre-Tax Income | $33.3M | $33.1M | $33.0M |
| Income Tax | $7.6M | $8.1M | $8.7M |
| Continuing Ops | $25.8M | $25.0M | $24.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $25.8M | $25.0M | $24.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $25.8M | $25.0M | $24.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $149.9M | $162.5M | $194.2M |
| Cash & Equivalents | $1.8M | $4.1M | $3.5M |
| Accounts Receivable | $77.7M | $78.6M | $104.3M |
| Inventory | $63.7M | $70.9M | $79.8M |
| Prepaid Expenses | $3.5M | $5.7M | $6.5M |
| Other Current Assets | $3.1M | $3.2M | $0 |
| Long-Term Assets | $146.3M | $186.3M | $202.2M |
| Intangibles | $63.2M | $73.9M | $78.3M |
| Goodwill | $45.0M | $57.4M | $64.5M |
| Operating Leases | $8.9M | $15.9M | $17.2M |
| Other LT Assets | $29.1M | $39.1M | $42.2M |
| Total Assets | $296.1M | $348.8M | $396.4M |
| Current Liabilities | $76.6M | $79.2M | $97.3M |
| Accounts Payable | $29.2M | $32.2M | $48.5M |
| Current Debt | $3.6M | $3.6M | $3.6M |
| Current Leases | $3.6M | $5.6M | $6.0M |
| Deferred Revenue | $5.4M | $8.5M | $4.1M |
| Taxes Payable | $0 | — | $1.8M |
| Other Current Liab | $-9.0M | $-14.0M | $-12.0M |
| Long-Term Liabilities | $42.0M | $65.2M | $68.3M |
| Long-Term Debt | $31.6M | $50.7M | $45.0M |
| LT Operating Leases | $6.0M | $11.3M | $12.0M |
| Other LT Liab | $4.4M | $3.3M | $11.3M |
| Total Liabilities | $118.6M | $144.4M | $165.6M |
| Shareholders' Equity | $177.6M | $204.4M | $230.7M |
| Retained Earnings | $28.5M | $47.8M | $66.2M |
| AOCI | $339.0K | $202.0K | $829.0K |
| Total L&E | $296.1M | $348.8M | $396.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $25.8M | $25.0M | $24.4M |
| Non-Cash Adjustments | $28.4M | $45.2M | $-32.3M |
| Working Capital Changes | $-4.6M | $-26.8M | $46.1M |
| Cash from Operations | $49.6M | $43.4M | $38.1M |
| Capital Expenditures | $3.2M | $5.4M | $3.5M |
| Cash from Investing | $-3.2M | $-55.3M | $-28.0M |
| Debt Issuances | $153.9M | $158.9M | $194.1M |
| Debt Repayments | $198.3M | $139.9M | $199.8M |
| Dividends Paid | $5.4M | $5.7M | $6.0M |
| Cash from Financing | $-47.1M | $14.3M | $-11.4M |
| FX Effect | $130.0K | $-165.0K | $627.0K |
| Net Change in Cash | $-634.0K | $2.3M | $-653.0K |
| Beginning Cash | $2.5M | $1.8M | $4.1M |
| Ending Cash | $1.8M | $4.1M | $3.5M |
Frequently Asked Questions
How does LSI INDUSTRIES INC make money?
Automotive Electronics, Industrial Components, Telecommunications Solutions, Consumer Electronics
What are the main risks for LYTS?
Fluctuations in raw material costs impacting gross margins, exposure to cyclical demand in the automotive sector, potential supply chain disruptions affecting production capacity, and intense competition from larger tech firms.
What is LYTS's competitive advantage?
Proprietary semiconductor technology enabling high-efficiency power management, established global supply chain resilience, and deep integration with major automotive OEMs.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.