Aeluma Inc. (ALMU) experienced a sharp reversal in after-hours trading Wednesday, with shares falling 16.3% to $26.35 after the semiconductor company reported a third-quarter net loss of $1.8 million and narrowed its revenue forecast for fiscal 2026. The stock had closed the regular session up 16.2% at $31.49, but the after-market selloff erased those gains, reflecting investor disappointment with the company's near-term financial trajectory.
For the quarter ended March 31, Aeluma posted revenue of $1.2 million, below the consensus estimate of $1.35 million. The company attributed the shortfall to delayed contract signings and government shutdowns that have postponed the start of several projects. The GAAP net loss of $1.8 million, or $0.10 per share, compared with an adjusted EBITDA loss of $911,000. The non-GAAP loss per share of $0.04 matched analyst expectations, but the revenue miss and lower guidance weighed on sentiment.
Aeluma now expects full-year revenue of $4.2 million to $4.6 million, tighter than the previous range of $4 million to $6 million. The revised outlook reflects slower-than-expected contract execution and ongoing disruptions from government closures. Despite the near-term headwinds, the company continues to position itself as a key player in the AI photonics supply chain, leveraging its heterogeneous integration technology to address the growing demand for faster chip-to-server connections in AI data centers.
Founder and CEO Jonathan Klamkin emphasized the scale mismatch between the AI buildout and the photonics supply chain, stating that Aeluma's technology is attracting customer interest to fill near-term gaps. The company's method of attaching compound semiconductors to larger wafers, a process known as heterogeneous integration, is central to its value proposition. However, commercial traction remains limited, with the company still in the development phase and not yet fully qualified by any specific customer.
Cash and cash equivalents stood at $37.8 million at quarter-end, down from $38.6 million three months earlier, as operating expenses more than doubled to $9.7 million for the first nine months. Revenue for the nine-month period rose 16% to $3.9 million, with government contracts contributing $3.8 million and other products and services just $41,000. The company has secured six new development deals totaling $5 million, including over $4 million in U.S. government contracts for quantum materials and lasers, as well as a NASA award for integrated quantum dot lasers.
Competition in the optical tech space is intensifying, with Nvidia recently announcing $2 billion investments each in Lumentum and Coherent. While Aeluma operates at a smaller scale, it is targeting the same bottleneck: expanding optical power for AI infrastructure. The company has partnered with Tower Semiconductor and Sumitomo Chemical Advanced Technologies to ramp up wafer production and fabrication, but commercial revenue from product sales has yet to materialize.
Executives are scheduled to meet with investors at conferences in Los Angeles, London, and at a Northland event in the coming month, as they seek to convert engineering samples and government contracts into customer wins. The immediate challenge for Aeluma is to achieve customer qualification and secure commercial orders before its cash burn accelerates.
