Revenues of $198.5 million for the full year 2024

Revenues of $47.4 million for the fourth quarter of 2024

nLIGHT, Inc. (NASDAQ:LASR), a leading provider of high-power semiconductor and fiber lasers used in the aerospace and defense, industrial, and microfabrication markets, today reported financial results for the fourth quarter and full year 2024.

"2024 was a transformative year for nLIGHT as our defense business began to scale, with revenue growing 20% year-over-year to $110 million and representing approximately 55% of our overall sales," commented Scott Keeney, nLIGHT's President and Chief Executive Officer. "We made significant progress across multiple large directed energy contracts, while securing new program wins in laser sensing."

Mr. Keeney continued, "I am optimistic on our business, particularly aerospace and defense, as we head into 2025. We enter the year with good visibility across multiple programs in both directed energy and laser sensing, and combined with record backlog and a healthy balance sheet, we are confident that we are well-positioned for near- and long-term growth in the aerospace and defense market."

Full Year 2024 Financial Highlights

	Year Ended December 31,
(In thousands, except percentages)		2024			2023		% Change
Revenues	$	198,548		$	209,921		(5.4	)%
Gross margin		16.6	%		22.0	%
Loss from operations	$	(65,636	)	$	(46,766	)	(40.3	)%
Operating margin		(33.1	)%		(22.3	)%
Net loss	$	(60,792	)	$	(41,670	)	(45.9	)%
Adjusted EBITDA⁽¹⁾	$	(18,788	)	$	(4,093	)	(359.0	)%
⁽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 of $198.5 million for the full year 2024 were down 5.4% compared to $209.9 million for the full year 2023. Gross margin was 16.6% for the full year 2024 compared to 22.0% for the full year 2023. GAAP net loss for the full year 2024 was $60.8 million, or $1.27 per diluted share, compared to a net loss of $41.7 million, or $0.90 per diluted share, for the full year 2023. Non-GAAP net loss for the full year 2024 was $30.9 million, or $0.65 per diluted share, compared to non-GAAP net loss of $13.6 million, or $0.30 per diluted share, for the full year 2023. 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.

Fourth Quarter 2024 Financial Highlights

	Three Months Ended December 31,
(In thousands, except percentages)		2024			2023		% Change
Revenues	$	47,381		$	51,892		(8.7	)%
Gross margin		2.4	%		18.9	%
Loss from operations	$	(26,429	)	$	(14,342	)	(84.3	)%
Operating margin		(55.8	)%		(27.6	)%
Net loss	$	(24,962	)	$	(13,238	)	(88.6	)%
Adjusted EBITDA⁽¹⁾	$	(11,301	)	$	(3,297	)	(242.8	)%
⁽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.

Revenues of $47.4 million for the fourth quarter of 2024 were down 8.7% compared to $51.9 million for the fourth quarter of 2023. Gross margin was 2.4% for the fourth quarter of 2024 compared to 18.9% for the fourth quarter of 2023 and includes non-routine charges of approximately $6.0 million related primarily to inventory reserves on products for the Industrial market. GAAP net loss for the fourth quarter of 2024 was $25.0 million, or $0.51 per diluted share, compared to GAAP net loss of $13.2 million or $0.28 per diluted share, for the fourth quarter of 2023. Non-GAAP net loss for the fourth quarter of 2024 was $14.5 million, or $0.30 per diluted share, compared to non-GAAP net loss of $6.0 million, or $0.13 per diluted share, for the fourth quarter of 2023. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.

Outlook

For the first quarter of 2025, nLIGHT expects revenues to be in the range of $45 million to $51 million. The midpoint of $48 million includes Laser Products revenue of approximately $33 million and Advanced Development revenue of approximately $15 million. nLIGHT expects overall gross margin to be in the range of 13% to 17%, with Laser Products gross margin in the range of 16% to 20% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of ($6) million to ($3) 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 Conference Call at 2:00 p.m. Pacific Time, Thursday, February 27, 2025

Parties interested in listening to nLIGHT's quarterly conference call may do so by dialing 1-800-549-8228 (U.S., toll-free) or +1-289-819-1520 (international and toll), with the conference title: nLIGHT Fourth Quarter 2024 Earnings. The call can also be accessed via the web by going to nLIGHT's Investor Relations page at http://investors.nlight.net.

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, acquisition and integration-related costs, 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 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 profitably 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 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 semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Camas, Washington, nLIGHT employs approximately 800 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,
		2024			2023			2024			2023
Revenue:
Products	$	31,699		$	37,864		$	136,659		$	156,666
Development		15,682			14,028			61,889			53,255
Total revenue		47,381			51,892			198,548			209,921
Cost of revenue:
Products		31,475			29,368			108,003			114,181
Development		14,775			12,720			57,526			49,627
Total cost of revenue⁽¹⁾		46,250			42,088			165,529			163,808
Gross profit		1,131			9,804			33,019			46,113
Operating expenses:
Research and development⁽¹⁾		11,384			12,114			45,107			46,163
Sales, general, and administrative⁽¹⁾		11,885			11,215			49,257			45,899
Restructuring		4,291			817			4,291			817
Total operating expenses		27,560			24,146			98,655			92,879
Loss from operations		(26,429	)		(14,342	)		(65,636	)		(46,766	)
Other income:
Interest income, net		360			352			1,668			1,342
Other income, net		506			779			3,100			2,776
Loss before income taxes		(25,563	)		(13,211	)		(60,868	)		(42,648	)
Income tax expense		(601	)		27			(76	)		(978	)
Net loss	$	(24,962	)	$	(13,238	)	$	(60,792	)	$	(41,670	)
Net loss per share, basic	$	(0.51	)	$	(0.28	)	$	(1.27	)	$	(0.90	)
Net loss per share, diluted	$	(0.51	)	$	(0.28	)	$	(1.27	)	$	(0.90	)
Shares used in per share calculations:
Basic and diluted		48,557			46,735			47,900			46,078

⁽¹⁾Includes stock-based compensation as follows:
	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Cost of revenues	$	609	$	535	$	2,438	$	2,406
Research and development		1,671		2,329		7,505		9,866
Sales, general, and administrative		3,720		3,323		15,018		13,560
	$	6,000	$	6,187	$	24,961	$	25,832

nLIGHT, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	As of December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents	$	65,829		$	53,210
Marketable Securities		34,868			59,672
Accounts receivable, net		34,895			39,585
Inventory		40,800			52,160
Prepaid expenses and other current assets		17,697			15,927
Total current assets		194,089			220,554
Restricted cash		259			256
Lease right-of-use assets		10,822			12,616
Property, plant and equipment, net		46,937			52,300
Intangible assets, net		833			1,652
Goodwill		12,354			12,399
Other assets, net		4,947			7,026
Total assets	$	270,241		$	306,803

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	15,076		$	12,166
Accrued liabilities		13,268			12,556
Deferred revenue		3,577			4,849
Current portion of lease liabilities		2,314			3,181
Total current liabilities		34,235			32,752
Non-current income taxes payable		5,541			5,391
Long-term lease liabilities		9,819			10,978
Other long-term liabilities		4,216			3,263
Total liabilities		53,811			52,384
Stockholders' equity:
Common stock - par value		16			16
Additional paid-in capital		544,842			521,184
Accumulated other comprehensive loss		(3,332	)		(2,477	)
Accumulated deficit		(325,096	)		(264,304	)
Total stockholders' equity		216,430			254,419
Total liabilities and stockholders' equity	$	270,241		$	306,803

nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Year Ended December 31,
		2024			2023
Cash flows from operating activities:
Net loss	$	(60,792	)	$	(41,670	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation		12,988			12,401
Amortization		4,608			3,629
(Increase) reduction in carrying amount of right-of-use assets		1,759			1,269
Provision for losses on (recoveries of) accounts receivable		1,489			27
Stock-based compensation		24,961			25,832
Deferred income taxes		(651	)		7
Loss on disposal of property, plant and equipment		194			542
Non-cash restructuring charges		1,185			—
Changes in operating assets and liabilities:
Accounts receivable, net		2,845			(1,677	)
Inventory		11,048			14,890
Prepaid expenses and other current assets		(1,787	)		1,109
Other assets, net		(1,131	)		(1,156	)
Accounts payable		3,231			(4,503	)
Accrued and other long-term liabilities		706			(1,336	)
Deferred revenues		(1,224	)		3,432
Lease liabilities		(1,992	)		(1,449	)
Non-current income taxes payable		204			(1,256	)
Net cash (used in) provided by operating activities		(2,359	)		10,091
Cash flows from investing activities:
Purchases of property, plant and equipment		(7,932	)		(5,339	)
Purchase of marketable securities		(88,643	)		(127,907	)
Proceeds from maturities and sales of marketable securities		113,265			119,146
Net cash provided by (used in) investing activities		16,690			(14,100	)
Cash flows from financing activities:
Proceeds from employee stock plan purchases		2,721			2,469
Proceeds from stock option exercises		500			640
Tax payments related to stock award issuances		(4,524	)		(3,968	)
Net cash used in financing activities		(1,303	)		(859	)
Effect of exchange rate changes on cash		(406	)		256
Net increase (decrease) in cash and cash equivalents and restricted cash		12,622			(4,612	)
Cash and cash equivalents and restricted cash, beginning of period		53,466			58,078
Cash and cash equivalents and restricted cash, end of period	$	66,088		$	53,466
Supplemental disclosures:
Cash paid for interest, net	$	61		$	40
Cash paid for income taxes		716			256
Operating cash outflows from operating leases		4,030			3,850
Right-of-use assets obtained in exchange for lease liabilities		1,336			1,716
Accrued purchases of property, equipment and patents		298			745
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents	$	65,829		$	53,210
Restricted cash		259			256
Total cash and cash equivalents and restricted cash	$	66,088		$	53,466

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,
		2024			2023			2024			2023
Net loss	$	(24,962	)	$	(13,238	)	$	(60,792	)	$	(41,670	)
Income tax expense (benefit)		(601	)		27			(76	)		(978	)
Other income, net		(506	)		(779	)		(3,100	)		(2,776	)
Interest income, net		(360	)		(352	)		(1,668	)		(1,342	)
Depreciation and amortization		4,837			4,041			17,596			16,024
Stock-based compensation		6,000			6,187			24,961			25,832
Restructuring charges		4,291			817			4,291			817
Adjusted EBITDA	$	(11,301	)	$	(3,297	)	$	(18,788	)	$	(4,093	)

*Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and Diluted*

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net loss	$	(24,962	)	$	(13,238	)	$	(60,792	)	$	(41,670	)
Add back:
Stock-based compensation⁽¹⁾		6,000			6,187			24,961			25,832
Amortization of purchased intangibles⁽¹⁾		148			264			594			1,415
Restructuring charges		4,291			817			4,291			817
Non-GAAP net loss	$	(14,523	)	$	(5,970	)	$	(30,946	)	$	(13,606	)

GAAP and non-GAAP weighted-average shares outstanding, basic and diluted		48,557			46,735			47,900			46,078

Non-GAAP net loss per share, basic and diluted	$	(0.30	)	$	(0.13	)	$	(0.65	)	$	(0.30	)

⁽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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227332470/en/

For more information, contact:

John Marchetti

VP Corporate Development and Investor Relations

nLIGHT, Inc.

(360) 566-4460

john.marchetti@nlight.net

nLIGHT, Inc. Announces Fourth Quarter and Full Year 2024 Results