Lightpath’s Q3 revenue grows nearly 6% on strong hyperscaler wins

Lightpath’s Q3 revenue grows nearly 6% on strong hyperscaler wins
The service provider has been expanding its fiber reach into new markets to address AI-centric data center opportunities.

LightPath, Optimum’s business and wholesale line, remained a bright star in its third quarter results, growing almost 6% as it secures more wins with data center providers for its fiber services.   

The provider’s timing to extend its fiber to more data centers in key markets reflects the segment’s growing fiber needs. A recent joint Fiber Broadband and RVA study revealed that AI data centers will require an additional 213 million fiber miles.

Speaking to investors during its third-quarter earnings call, Dennis Matthew, CEO of Optimum, the parent company of Lightpath, noted continued gains in the hyperscaler market.

“We continue to expand our network with total new passings, expansions, and additional hyperscaler contracts awarded at LightPath,” he said.  

Gaining hyperscaler share

Over the past year, Lightpath has continued to expand its share in the hyperscaler market.

At the end of 2024, the service provider announced more than $100 million in awarded contracts.

Marc Sirota, CFO of Optimum, said that since the end of 2024, “we've meaningfully increased both the total value of awarded deals and opportunities in the pipeline.”

Lightpath’s aggressive hyperscaler push is also driving Optimum to raise its capex spending projections. Optimum projected its full-year 2025 capital expenditures of approximately $1.3 billion, up from its prior outlook of about $1.2 billion.

Sirota said, “The increase reflects incremental investment at Lightpath to support continued hyperscaler build activity, which is now expected to be at the higher end of the Lightpath capital range of $200 million to $250 million.”