nLIGHT, Inc. Announces Third Quarter 2026 Results

Solid Execution and Continued Strength in Defense Drives Quarterly 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 financial results for the third quarter of 2026. "Solid execution during the third quarter enabled us to deliver revenue above the high end of our guidance range, record product gross margins and strong Adjusted EBITDA despite ongoing supply constraints,” commented Scott Keeney, nLIGHT’s Chairman and Chief Executive Officer. “Demand for our products remains strong and our pipeline of opportunities continues to expand across directed energy, laser sensing and advanced manufacturing. We are making important investments in our manufacturing capacity and supply chain to support this expected growth, and we believe nLIGHT is well positioned as our defense programs increasingly transition from development toward fielding and production.” Third Quarter 2026 Financial Highlights Three Months Ended September 30, (In thousands, except percentages) 2026 2025 % Change Revenues $ 73,763 $ 66,742 10.5 % Gross margin 33.1 % 31.1 % Loss from operations $ (9,219 ) $ (7,299 ) (26.3 )% Operating margin (12.5 )% (10.9 )% Net loss $ (7,176 ) $ (6,874 ) (4.4 )% Adjusted EBITDA (1) $ 11,050 $ 7,109 55.4 % (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. * Not meaningful Revenues of $73.8 million for the third quarter of 2026 were up 10.5% compared to $66.7 million for the third quarter of 2025. Gross margin was 33.1% for the third quarter of 2026 compared to 31.1% for the third quarter of 2025. GAAP net loss for the third quarter of 2026 was $7.2 million, or $0.12 per diluted share, compared to net loss of $6.9 million, or $0.14 per diluted share, for the third quarter of 2025. Non-GAAP net income for the third quarter of 2026 was $10.2 million, or $0.16 per diluted share, compared to non-GAAP net income of $4.3 million, or $0.08 per diluted share, for the third quarter of 2025. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release. Outlook For the fourth quarter of 2026, nLIGHT expects revenues to be in the range of $84 million to $90 million. The midpoint of $87 million includes Products revenue of approximately $63 million and Advanced Development revenue of approximately $24 million. Due to ongoing supply chain constraints, nLIGHT’s fourth quarter revenue guidance excludes approximately $15 million of product revenue that nLIGHT would have expected to ship in the fourth quarter but is now expected to be delivered in the first half of 2027. nLIGHT expects overall gross margin to be in the range of 30% to 36%, with Products gross margin in the range of 40% to 46% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of $12 million to $18 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, November 5, 2026 A webcast to discuss the third quarter results will be held on Thursday, November 5, 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/340012307. Use of Non-GAAP Financial Results In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including non-GAAP gross margin, 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 gross margin, 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, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP gross margin as GAAP gross margin adjusted for stock-based compensation 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, acquisition and integration-related costs, 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 gross margin, 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, our business strategy and opportunities to grow our business, ongoing supply chain challenges, 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 or 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 more than 900 people with operations in the United States, Europe and Asia. The company’s vertically integrated approach enables performance leadership from laser chip through system-level solutions. For more information, please visit www.nlight.net. nLIGHT, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue: Products $ 48,047 $ 47,608 $ 165,612 $ 124,110 Development 25,716 19,134 70,923 56,035 Total revenue 73,763 66,742 236,535 180,145 Cost of revenue: Products 25,289 28,086 93,028 76,915 Development 24,043 17,903 66,838 50,221 Total cost of revenue (1) 49,332 45,989 159,866 127,136 Gross profit 24,431 20,753 76,669 53,009 Operating expenses: Research and development (1) 12,535 11,534 37,511 33,920 Sales, general, and administrative (1) 13,653 14,785 44,906 38,501 Restructuring 7,462 1,733 7,757 1,733 Total operating expenses 33,650 28,052 90,174 74,154 Loss from operations (9,219 ) (7,299 ) (13,505 ) (21,145 ) Other income: Interest income 2,456 1,079 6,492 3,875 Interest expense (25 ) (317 ) (529 ) (753 ) Other income (expense), net (72 ) (64 ) 116 (108 ) Loss before income taxes (6,860 ) (6,601 ) (7,426 ) (18,131 ) Income tax expense 316 273 444 427 Net loss $ (7,176 ) $ (6,874 ) $ (7,870 ) $ (18,558 ) Net loss per share, basic and diluted $ (0.12 ) $ (0.14 ) $ (0.14 ) $ (0.37 ) Shares used in per share calculations: Basic and diluted 57,895 50,288 56,346 49,658 (1) Includes stock-based compensation as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Cost of revenues $ 1,156 $ 615 $ 3,427 $ 1,783 Research and development 2,496 2,560 7,439 6,178 Sales, general, and administrative 6,263 6,187 20,898 13,828 $ 9,915 $ 9,362 $ 31,764 $ 21,789 nLIGHT, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) As of September 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 279,371 $ 98,699 Marketable securities 34,832 34,934 Accounts receivable, net 45,329 50,836 Inventory 59,840 45,407 Prepaid expenses and other current assets 35,127 13,314 Total current assets 454,499 243,190 Restricted cash 322 322 Lease right-of-use assets 17,868 15,020 Property, plant and equipment, net 43,902 42,114 Goodwill 12,420 12,448 Other assets, net 1,061 2,116 Total assets $ 530,072 $ 315,210 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 23,331 $ 20,890 Accrued liabilities 23,403 19,052 Deferred revenues 9,880 1,489 Current portion of lease liabilities 2,362 2,776 Line of credit — 20,000 Total current liabilities 58,976 64,207 Non-current income taxes payable 6,022 5,902 Long-term lease liabilities 16,890 13,431 Other long-term liabilities 4,846 4,921 Total liabilities 86,734 88,461 Stockholders' equity: Common stock - par value 17 16 Additional paid-in capital 803,128 578,360 Accumulated other comprehensive loss (3,374 ) (3,064 ) Accumulated deficit (356,433 ) (348,563 ) Total stockholders’ equity 443,338 226,749 Total liabilities and stockholders’ equity $ 530,072 $ 315,210 nLIGHT, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities: Net loss $ (7,870 ) $ (18,558 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 9,182 9,151 Amortization 414 1,247 (Increase) reduction in carrying amount of right-of-use assets (3,002 ) 784 Provision for losses on (recoveries of) accounts receivable 17 (1,131 ) Stock-based compensation 31,764 21,789 Deferred income taxes 258 101 Loss on disposal of property, plant and equipment — 190 Gain on sale of subsidiary (9 ) — Interest earned on marketable securities not yet received (678 ) (256 ) Non-cash restructuring charges 4,818 1,243 Changes in operating assets and liabilities: Accounts receivable, net 3,554 (13,186 ) Inventory (15,060 ) (10,203 ) Prepaid expenses and other current assets (21,772 ) 5,914 Other assets, net 399 1,099 Accounts payable 2,288 1,886 Accrued and other long-term liabilities 1,543 5,795 Deferred revenues 8,395 (1,247 ) Lease liabilities 3,077 (927 ) Non-current income taxes payable (36 ) 121 Net cash provided by operating activities 17,282 3,812 Cash flows from investing activities: Proceeds from sale of fixed assets — 447 Purchases of property, plant and equipment (11,407 ) (7,444 ) Purchase of marketable securities (43,988 ) (68,697 ) Proceeds from maturities and sales of marketable securities 44,742 68,425 Proceeds from sale of subsidiary, net of cash disposed 396 — Net cash used in investing activities (10,257 ) (7,269 ) Cash flows from financing activities: Proceeds from public offering, net of underwriting discounts 192,194 — Public offering costs (919 ) — Proceeds from line of credit — 20,000 Repayments of line of credit (20,000 ) — Proceeds from employee stock plan purchases 1,668 1,385 Proceeds from stock option exercises 836 196 Tax payments related to stock award issuances (190 ) (3,062 ) Net cash provided by financing activities 173,589 18,519 Effect of exchange rate changes on cash 58 278 Net increase (decrease) in cash, cash equivalents and restricted cash 180,672 15,340 Cash and cash equivalents and restricted cash, beginning of period 99,021 66,088 Cash and cash equivalents and restricted cash, end of period $ 279,693 $ 81,428 Supplemental disclosures: Cash paid for interest, net $ 504 $ 740 Operating cash outflows from operating leases 2,591 2,536 Right-of-use assets obtained in exchange for lease liabilities 2,372 1,208 Accrued purchases of property, equipment and patents 525 426 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents $ 279,371 $ 81,108 Restricted cash 322 320 Total cash and cash equivalents and restricted cash $ 279,693 $ 81,428 nLIGHT, Inc. Reconciliation of GAAP Financial Metrics to Non-GAAP (In thousands, except per share data) (Unaudited) Reconciliation of GAAP to Non-GAAP Gross Profit Three Months Ended September 30, 2026 2025 Products Development Total Products Development Total Revenue $ 48,047 $ 25,716 $ 73,763 $ 47,608 $ 19,134 $ 66,742 Cost of revenue (25,289 ) (24,043 ) (49,332 ) (28,086 ) (17,903 ) (45,989 ) Gross profit $ 22,758 $ 1,673 $ 24,431 $ 19,522 $ 1,231 $ 20,753 Non-GAAP adjustments Stock-based compensation 687 469 1,156 615 — 615 Non-GAAP gross profit $ 23,445 $ 2,142 $ 25,587 $ 20,137 $ 1,231 $ 21,368 Gross margin 47.4 % 6.5 % 33.1 % 41.0 % 6.4 % 31.1 % Non-GAAP gross margin 48.8 % 8.3 % 34.7 % 42.3 % 6.4 % 32.0 % Nine Months Ended September 30, 2026 2025 Products Development Total Products Development Total Revenue $ 165,612 $ 70,923 $ 236,535 $ 124,110 $ 56,035 $ 180,145 Cost of revenue (93,028 ) (66,838 ) (159,866 ) (76,915 ) (50,221 ) (127,136 ) Gross profit $ 72,584 $ 4,085 $ 76,669 $ 47,195 $ 5,814 $ 53,009 Non-GAAP adjustments Stock-based compensation 2,039 1,388 3,427 1,783 — 1,783 Non-GAAP gross profit $ 74,623 $ 5,473 $ 80,096 $ 48,978 $ 5,814 $ 54,792 Gross margin 43.8 % 5.8 % 32.4 % 38.0 % 10.4 % 29.4 % Non-GAAP gross margin 45.1 % 7.7 % 33.9 % 39.5 % 10.4 % 30.4 % Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net loss $ (7,176 ) $ (6,874 ) $ (7,870 ) $ (18,558 ) Income tax expense 316 273 444 427 Other income, net 72 64 (116 ) 108 Interest income (2,456 ) (1,079 ) (6,492 ) (3,875 ) Interest expense 25 317 529 753 Depreciation and amortization 2,892 3,313 9,596 10,398 Stock-based compensation 9,915 9,362 31,764 21,789 Restructuring charges 7,462 1,733 7,757 1,733 Adjusted EBITDA $ 11,050 $ 7,109 $ 35,612 $ 12,775 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 September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net loss $ (7,176 ) $ (6,874 ) $ (7,870 ) $ (18,558 ) Add back: Stock-based compensation (1) 9,915 9,362 31,764 21,789 Amortization of purchased intangibles (1) — 99 — 397 Restructuring charges 7,462 1,733 7,757 1,733 Non-GAAP net income (loss) 10,201 4,320 31,651 5,361 GAAP weighted-average shares outstanding 57,895 50,288 56,346 49,658 Participating securities — — — — Non-GAAP weighted-average number of shares, basic 57,895 50,288 56,346 49,658 Dilutive effect of common stock equivalents 4,259 4,139 5,180 3,259 Non-GAAP weighted-average number of shares, diluted 62,154 54,427 61,526 52,917 Non-GAAP net income per share, basic $ 0.18 $ 0.09 $ 0.56 $ 0.11 Non-GAAP net income per share, diluted $ 0.16 $ 0.08 $ 0.51 $ 0.10 (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 September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Defense & Space $ 52,460 $ 45,554 $ 164,885 $ 118,955 Advanced Manufacturing 21,303 21,188 71,650 61,190 $ 73,763 $ 66,742 $ 236,535 $ 180,145 For more information, contact: John Marchetti Vice President, Corporate Development & Investor Relations nLIGHT, Inc. (360) 566-4460 john.marchetti@nlight.net Source: nLIGHT, Inc.