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nLIGHT, Inc. Announces Record Fourth Quarter and Full Year 2025 Results

businesswire.com

nLIGHT, Inc. Announces Record Fourth Quarter and Full Year 2025 Results CAMAS, Wash.--( BUSINESS WIRE)--nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power lasers for mission critical directed energy, optical sensing, and advanced manufacturing applications, today reported record financial results for the fourth quarter and full year 2025.

“2025 was an exceptional year for nLIGHT, with strong revenue growth driven by continued strength in our A&D markets as we executed well against existing programs and won new awards that helped drive additional growth,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “Importantly, our accelerated revenue growth drove significant year-over-year improvement in our gross margins and Adjusted EBITDA, demonstrating the leverage that is inherent in our model. As I look forward to 2026, I am confident that our growth will continue and believe we are well positioned for new contract wins in our key markets of directed energy, laser sensing and advanced manufacturing.”

Full Year 2025 Financial Highlights

Year Ended

December 31,

(In thousands, except percentages)

2025

2024

% Change

Revenues

$

261,330

$

198,548

31.6

%

Gross margin

29.8

%

16.6

%

Loss from operations

$

(26,550

)

$

(65,636

)

59.5

%

Operating margin

(10.2

)%

(33.1

)%

Net loss

$

(23,467

)

$

(60,792

)

61.4

%

Adjusted EBITDA (1)

$

23,466

$

(18,788

)

224.9

%

(1) A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release.

Revenues for the full year 2025 were a record $261.3 million, an increase of 31.6% compared to $198.5 million for the full year 2024. GAAP gross margin was 29.8% for the full year 2025 compared to 16.6% for the full year 2024. Non-GAAP gross margin was 30.8% for the full year 2025 compared to 17.9% for the full year 2024. GAAP net loss for the full year 2025 was $23.5 million, or $0.47 per diluted share, compared to a net loss of $60.8 million, or $1.27 per diluted share, for the full year 2024. Non-GAAP net income for the full year 2025 was $13.1 million, or $0.24 per diluted share, compared to non-GAAP net loss of $30.9 million, or $0.65 per diluted share, for the full year 2024.

Fourth Quarter 2025 Financial Highlights

Three Months Ended

December 31,

(In thousands, except percentages)

2025

2024

% Change

Revenues

$

81,185

$

47,381

71.3

%

Gross margin

30.7

%

2.4

%

Loss from operations

$

(5,405

)

$

(26,429

)

79.5

%

Operating margin

(6.7

)%

(55.8

)%

Net loss

$

(4,909

)

$

(24,962

)

80.3

%

Adjusted EBITDA (1)

$

10,691

$

(11,301

)

194.6

%

(1) A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Record revenues of $81.2 million for the fourth quarter of 2025 were up 71.3% compared to $47.4 million for the fourth quarter of 2024. GAAP gross margin was 30.7% for the fourth quarter of 2025 compared to 2.4% for the fourth quarter of 2024. Non-GAAP gross margin was 31.6% for the fourth quarter of 2025 compared to 3.7% for the fourth quarter of 2024. GAAP net loss for the fourth quarter of 2025 was $4.9 million, or $0.10 per diluted share, compared to GAAP net loss of $25.0 million or $0.51 per diluted share, for the fourth quarter of 2024. Non-GAAP net income for the fourth quarter of 2025 was $7.8 million, or $0.14 per diluted share, compared to non-GAAP net loss of $14.5 million, or $0.30 per diluted share, for the fourth quarter of 2024.

Outlook

For the first quarter of 2026, nLIGHT expects revenues to be in the range of $70 million to $76 million. The midpoint of $73 million includes Laser Products revenue of approximately $54 million and Advanced Development revenue of approximately $19 million. nLIGHT expects overall gross margin to be in the range of 27% to 32%, with Laser Products gross margin in the range of 34% to 39% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of $5 million to $10 million.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Investor Webcast at 2:00 p.m. Pacific Time, Thursday, February 26, 2026

A webcast to discuss the fourth quarter and full year results will be held on Thursday, February 26, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The audio webcast will be available on the investor relations section of the company's web site at http://investors.nlight.net. A replay of the webcast will be available shortly after the conclusion of the call.

The webcast can also be accessed directly at https://events.q4inc.com/attendee/292266527.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP metrics presented herein are specific to us and may not be comparable to similar metrics disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, restructuring charges, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, restructuring charges, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by the weighted-average number of shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

Safe Harbor Statement

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “guidance,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; our ability to manage growth and spending during economic downturns; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on third parties to manufacture certain of our products and product components; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors and uncertainties identified in the “Risk Factors” section of nLIGHT's most recent Annual Report on Form 10-K and subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and “nLIGHT” are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power lasers for mission critical directed energy, optical sensing, and advanced manufacturing applications. Headquartered in Camas, Washington, nLIGHT employs approximately 850 people with operations in the United States, Europe and Asia. For more information, please visit www.nlight.net.

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenue:

Products

$

55,126

$

31,699

$

179,236

$

136,659

Development

26,059

15,682

82,094

61,889

Total revenue

81,185

47,381

261,330

198,548

Cost of revenue:

Products

34,539

31,475

111,454

108,003

Development

21,692

14,775

71,913

57,526

Total cost of revenue (1)

56,231

46,250

183,367

165,529

Gross profit

24,954

1,131

77,963

33,019

Operating expenses:

Research and development (1)

14,052

11,384

47,972

45,107

Sales, general, and administrative (1)

15,692

11,885

54,193

49,257

Restructuring

615

4,291

2,348

4,291

Total operating expenses

30,359

27,560

104,513

98,655

Loss from operations

(5,405

)

(26,429

)

(26,550

)

(65,636

)

Other income:

Interest income

1,031

398

4,906

1,773

Interest (expense)

(331

)

(38

)

(1,084

)

(105

)

Other (expense) income, net

68

506

(40

)

3,100

Loss before income taxes

(4,637

)

(25,563

)

(22,768

)

(60,868

)

Income tax expense (benefit)

272

(601

)

699

(76

)

Net loss

$

(4,909

)

$

(24,962

)

$

(23,467

)

$

(60,792

)

Net loss per share, basic and diluted

$

(0.10

)

$

(0.51

)

$

(0.47

)

$

(1.27

)

Shares used in per share calculations:

Basic and diluted

50,931

48,557

49,979

47,900

(1) Includes stock-based compensation as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Cost of revenues

$

687

$

609

$

2,470

$

2,438

Research and development

3,103

1,671

9,281

7,505

Sales, general, and administrative

7,832

3,720

21,660

15,018

$

11,622

$

6,000

$

33,411

$

24,961

nLIGHT, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

As of December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$

98,699

$

65,829

Marketable Securities

34,934

34,868

Accounts receivable, net

50,836

34,895

Inventory

45,407

40,800

Prepaid expenses and other current assets

13,314

17,697

Total current assets

243,190

194,089

Restricted cash

322

259

Lease right-of-use assets

15,020

10,822

Property, plant and equipment, net

42,114

46,937

Intangible assets, net

833

Goodwill

12,448

12,354

Other assets, net

2,116

4,947

Total assets

$

315,210

$

270,241

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

20,890

$

15,076

Accrued liabilities

19,052

13,268

Deferred revenue

1,489

3,577

Current portion of lease liabilities

2,776

2,314

Line of credit

20,000

Total current liabilities

64,207

34,235

Non-current income taxes payable

5,902

5,541

Long-term lease liabilities

13,431

9,819

Other long-term liabilities

4,921

4,216

Total liabilities

88,461

53,811

Stockholders' equity:

Common stock - par value

16

16

Additional paid-in capital

578,360

544,842

Accumulated other comprehensive loss

(3,064

)

(3,332

)

Accumulated deficit

(348,563

)

(325,096

)

Total stockholders’ equity

226,749

216,430

Total liabilities and stockholders’ equity

$

315,210

$

270,241

nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended December 31,

2025

2024

Cash flows from operating activities:

Net loss

$

(23,467

)

$

(60,792

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation

12,330

12,988

Amortization

1,927

4,608

(Increase) reduction in carrying amount of right-of-use assets

(4,062

)

1,759

Provision for losses on (recoveries of) accounts receivable

(1,115

)

1,489

Stock-based compensation

33,411

24,961

Deferred income taxes

159

(651

)

Loss on disposal of property, plant and equipment

160

194

Accrued interest earned on marketable securities

(500

)

Non-cash restructuring charges

1,425

1,185

Changes in operating assets and liabilities:

Accounts receivable, net

(14,703

)

2,845

Inventory

(4,151

)

11,048

Prepaid expenses and other current assets

4,447

(1,787

)

Other assets, net

1,408

(1,131

)

Accounts payable

5,888

3,231

Accrued and other long-term liabilities

6,059

706

Deferred revenues

(2,103

)

(1,224

)

Lease liabilities

3,940

(1,992

)

Non-current income taxes payable

277

204

Net cash provided by (used in) operating activities

21,330

(2,359

)

Cash flows from investing activities:

Proceeds from sale of fixed assets

542

Purchases of property, plant and equipment

(9,032

)

(7,932

)

Purchase of marketable securities

(78,599

)

(88,643

)

Proceeds from maturities and sales of marketable securities

78,318

113,265

Net cash provided by (used in) investing activities

(8,771

)

16,690

Cash flows from financing activities:

Proceeds from line of credit

20,000

Proceeds from employee stock plan purchases

2,895

2,721

Proceeds from stock option exercises

281

500

Tax payments related to stock award issuances

(3,066

)

(4,524

)

Net cash provided by (used in) financing activities

20,110

(1,303

)

Effect of exchange rate changes on cash

264

(406

)

Net increase in cash and cash equivalents and restricted cash

32,933

12,622

Cash and cash equivalents and restricted cash, beginning of period

66,088

53,466

Cash and cash equivalents and restricted cash, end of period

$

99,021

$

66,088

Supplemental disclosures:

Cash paid for interest, net

$

1,071

$

61

Operating cash outflows from operating leases

3,458

4,030

Right-of-use assets obtained in exchange for lease liabilities

6,640

1,336

Accrued purchases of property, equipment and patents

409

298

Reconciliation of cash and cash equivalents and restricted cash:

Cash and cash equivalents

$

98,699

$

65,829

Restricted cash

322

259

Total cash and cash equivalents and restricted cash

$

99,021

$

66,088

nLIGHT, Inc.

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net loss

$

(4,909

)

$

(24,962

)

$

(23,467

)

$

(60,792

)

Income tax expense (benefit)

272

(601

)

699

(76

)

Other (expense) income, net

(68

)

(506

)

40

(3,100

)

Interest income

(1,031

)

(398

)

(4,906

)

(1,773

)

Interest expense

331

38

1,084

105

Depreciation and amortization

3,859

4,837

14,257

17,596

Stock-based compensation

11,622

6,000

33,411

24,961

Restructuring charges

615

4,291

2,348

4,291

Adjusted EBITDA

$

10,691

$

(11,301

)

$

23,466

$

(18,788

)

Reconciliation of GAAP to Non-GAAP Net Income (Loss), and GAAP to Non-GAAP Net Income (Loss) per Share, Basic and Diluted

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net loss

$

(4,909

)

$

(24,962

)

$

(23,467

)

$

(60,792

)

Add back:

Stock-based compensation (1)

11,622

6,000

33,411

24,961

Amortization of purchased intangibles (1)

436

148

833

594

Restructuring charges

615

4,291

2,348

4,291

Non-GAAP net income (loss)

$

7,764

$

(14,523

)

$

13,125

$

(30,946

)

GAAP weighted-average shares outstanding

50,931

48,557

49,979

47,900

Dilutive effect of common stock equivalents

4,587

3,702

Non-GAAP weighted-average number of shares, diluted

55,518

48,557

53,681

47,900

Non-GAAP net income (loss) per share, basic

$

0.15

$

(0.30

)

$

0.26

$

(0.65

)

Non-GAAP net income (loss) per share, diluted

$

0.14

$

(0.30

)

$

0.24

$

(0.65

)

(1) There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.

nLIGHT, Inc.

Supplemental Schedule of Financial Information

(In thousands)

(Unaudited)

Revenues by End Market

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Aerospace and Defense

$

56,298

$

30,127

$

175,253

$

109,540

Industrial

10,668

9,137

38,847

45,615

Microfabrication

14,219

8,117

47,230

43,393

$

81,185

$

47,381

$

261,330

$

198,548