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

nLIGHT, Inc. Announces Record Fourth Quarter and Full Year 2025 Results February 26, 2026 Revenues of $261.3 million for the full year 2025 increased 32% year-over-year Record revenues of $81.2 million for the fourth quarter of 2025 increased 71% year-over-year 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 For more information, contact: John Marchetti VP Corporate Development and Investor Relations nLIGHT, Inc. (360) 566-4460 [email protected] Source: nLIGHT, Inc.