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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260226244753/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 Record Fourth Quarter and Full Year 2025 Results