Earnings release
Page 1
nLIGHT nLIGHT , Inc. Announces Second Quarter 2026 Results Record revenues of $ 82.6 million increased 34 % year - over - year Record quarterly Products revenue of $ 59.4 million increased 45 % year - over - year CAMAS , Wash . , August 6 , 2026 - 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 second quarter of 2026 . " Our second quarter results represent another strong quarter of execution for nLIGHT with total revenue , gross margin and Adjusted EBITDA at or above our expectations , driven by continued strength in our key defense and advanced manufacturing markets , " commented Scott Keeney , nLIGHT's Chairman and Chief Executive Officer . " Our pipeline of new opportunities in directed energy continues to expand , with the Department of War's Joint Laser Weapon Systems contract as the latest example . Our laser sensing and advanced manufacturing opportunities also continue to grow , providing us with a broad base of new and existing programs that we expect will continue to provide attractive long - term growth opportunities for nLIGHT . ” Second Quarter 2026 Financial Highlights ( In thousands , except percentages ) Revenues Gross margin Loss from operations Operating margin Net loss Adjusted EBITDA ( 1 ) Three Months Ended June 30 , 2026 2025 % Change $ 82,591 $ 61,735 33.8 % 31.1 % 29.9 % ( 3,567 ) $ ( 4,236 ) 15.8 % ( 4.4 ) % ( 6.8 ) % ( 1,339 ) $ ( 3,591 ) 62.7 % $ 10,731 $ 5,550 NM * ( 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 Record revenues of $ 82.6 million for the second quarter of 2026 were up 33.8 % compared to $ 61.7 million for the second quarter of 2025. Gross margin was 31.1 % for the second quarter of 2026 compared to 29.9 % for the second quarter of 2025. GAAP net loss for the second quarter of 2026 was $ 1.3 million , or $ 0.02 per diluted share , compared to net loss of $ 3.6 million , or $ 0.07 per diluted share , for the second quarter of 2025. Non - GAAP net income for the second quarter of 2026 was $ 9.6 million , or $ 0.17 per diluted share , compared to non - GAAP net loss of $ 2.9 million , or $ 0.06 per diluted share , for the second 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 third quarter of 2026 , nLIGHT expects revenues to be in the range of $ 63 million to $ 73 million . The midpoint of $ 70 million includes Products revenue of approximately $ 43 million and Advanced Development revenue of approximately $ 25 million . Due to supply chain challenges , nLIGHT's third quarter revenue guidance excludes approximately $ 17 million of product revenue that nLIGHT would have expected to ship in the third quarter but is now expected to be delivered in future quarters . nLIGHT expects overall gross margin to be in the range of 24 % to 30 % , with Products gross margin in the range of 34 % to 40 % and Advanced Development gross margin of approximately 8 % . nLIGHT expects Adjusted EBITDA to be in the range of $ 1 million to $ 7 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 .
Page 2
Investor Webcast at 2:00 p.m. Pacific Time, Thursday, August 6, 2026 A webcast to discuss the second quarter results will be held on Thursday, August 6, 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/189677464. 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 incl ude, 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 comp ete 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
Page 3
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 800 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. For more information, contact: John Marchetti Vice President, Corporate Development & Investor Relations nLIGHT, Inc. (360) 566-4460 john.marchetti@nlight.net
Page 4
nLIGHT, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue: Products $ 59,363 $ 40,824 $ 117,565 $ 76,502 Development 23,228 20,911 45,207 36,901 Total revenue 82,591 61,735 162,772 113,403 Cost of revenue: Products 34,929 25,105 67,739 48,829 Development 21,937 18,173 42,795 32,318 Total cost of revenue(1) 56,866 43,278 110,534 81,147 Gross profit 25,725 18,457 52,238 32,256 Operating expenses: Research and development(1) 13,130 11,012 24,976 22,386 Sales, general, and administrative(1) 16,162 11,681 31,253 23,716 Restructuring — — 295 — Total operating expenses 29,292 22,693 56,524 46,102 Loss from operations (3,567) (4,236) (4,286) (13,846) Other income: Interest income 2,474 1,108 4,036 2,796 Interest expense (204) (388) (504) (436) Other income (expense), net 33 (58) 188 (44) Loss before income taxes (1,264) (3,574) (566) (11,530) Income tax expense 75 17 128 154 Net loss $ (1,339) $ (3,591) $ (694) $ (11,684) Net loss per share, basic and diluted $ (0.02) $ (0.07) $ (0.01) $ (0.24) Shares used in per share calculations: Basic and diluted 56,983 49,581 55,560 49,338 (1)Includes stock-based compensation as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenues $ 1,217 $ 598 $ 2,271 $ 1,168 Research and development 2,682 1,834 4,943 3,618 Sales, general, and administrative 7,064 3,939 14,635 7,641 $ 10,963 $ 6,371 $ 21,849 $ 12,427
Page 5
nLIGHT, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) As of June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 295,761 $ 98,699 Marketable securities 34,686 34,934 Accounts receivable, net 46,825 50,836 Inventory 48,230 45,407 Prepaid expenses and other current assets 21,854 13,314 Total current assets 447,356 243,190 Restricted cash 322 322 Lease right-of-use assets 13,571 15,020 Property, plant and equipment, net 42,687 42,114 Goodwill 12,425 12,448 Other assets, net 1,228 2,116 Total assets $ 517,589 $ 315,210 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 23,946 $ 20,890 Accrued liabilities 17,289 19,052 Deferred revenues 10,725 1,489 Current portion of lease liabilities 2,787 2,776 Line of credit — 20,000 Total current liabilities 54,747 64,207 Non-current income taxes payable 5,833 5,902 Long-term lease liabilities 12,056 13,431 Other long-term liabilities 5,050 4,921 Total liabilities 77,686 88,461 Stockholders' equity: Common stock - par value 17 16 Additional paid-in capital 792,595 578,360 Accumulated other comprehensive loss (3,452) (3,064) Accumulated deficit (349,257) (348,563) Total stockholders’ equity 439,903 226,749 Total liabilities and stockholders’ equity $ 517,589 $ 315,210
Page 6
nLIGHT, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net loss $ (694) $ (11,684) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 6,322 6,220 Amortization 382 865 Reduction in carrying amount of right-of-use assets 1,411 169 Provision for losses on (recoveries of) accounts receivable (36) (895) Stock-based compensation 21,849 12,427 Deferred income taxes 9 23 Loss on disposal of property, plant and equipment 47 98 Interest earned on marketable securities not yet received (536) (597) Non-cash restructuring charges 50 — Changes in operating assets and liabilities: Accounts receivable, net 4,039 (8,546) Inventory (2,974) (6,949) Prepaid expenses and other current assets (8,496) 1,285 Other assets, net 499 955 Accounts payable 2,997 3,461 Accrued and other long-term liabilities (2,180) 3,165 Deferred revenues 9,238 (1,132) Lease liabilities (1,327) (252) Non-current income taxes payable (184) (18) Net cash provided by (used in) operating activities 30,416 (1,405) Cash flows from investing activities: Proceeds from sale of fixed assets — 443 Purchases of property, plant and equipment (6,963) (4,674) Purchase of marketable securities (34,173) (34,288) Proceeds from maturities and sales of marketable securities 34,918 34,136 Net cash used in investing activities (6,218) (4,383) 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 217 162 Tax payments related to stock award issuances (190) (3,061) Net cash provided by financing activities 172,970 18,486 Effect of exchange rate changes on cash (106) 287 Net increase (decrease) in cash, cash equivalents and restricted cash 197,062 12,985 Cash and cash equivalents and restricted cash, beginning of period 99,021 66,088 Cash and cash equivalents and restricted cash, end of period $ 296,083 $ 79,073 Supplemental disclosures: Cash paid for interest, net $ 486 $ 423 Operating cash outflows from operating leases 1,711 1,738 Right-of-use assets obtained in exchange for lease liabilities (32) 1,222 Accrued purchases of property, equipment and patents 408 332 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents $ 295,761 $ 78,812 Restricted cash 322 261 Total cash and cash equivalents and restricted cash $ 296,083 $ 79,073
Page 7
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 June 30, 2026 2025 Products Development Total Products Development Total Revenue $ 59,363 $ 23,228 $ 82,591 $ 40,824 $ 20,911 $ 61,735 Cost of revenue (34,929) (21,937) (56,866) (25,105) (18,173) (43,278) Gross profit $ 24,434 $ 1,291 $ 25,725 $ 15,719 $ 2,738 $ 18,457 Non-GAAP adjustments Stock-based compensation 762 455 1,217 598 — 598 Non-GAAP gross profit $ 25,196 $ 1,746 $ 26,942 $ 16,317 $ 2,738 $ 19,055 Gross margin 41.2 % 5.6 % 31.1 % 38.5 % 13.1 % 29.9 % Non-GAAP gross margin 42.4 % 7.5 % 32.6 % 40.0 % 13.1 % 30.9 % Six Months Ended June 30, 2026 2025 Products Development Total Products Development Total Revenue $ 117,565 $ 45,207 $ 162,772 $ 76,502 $ 36,901 $ 113,403 Cost of revenue (67,739) (42,795) (110,534) (48,829) (32,318) (81,147) Gross profit $ 49,826 $ 2,412 $ 52,238 $ 27,673 $ 4,583 $ 32,256 Non-GAAP adjustments Stock-based compensation 1,352 919 2,271 1,168 — 1,168 Non-GAAP gross profit $ 51,178 $ 3,331 $ 54,509 $ 28,841 $ 4,583 $ 33,424 Gross margin 42.4 % 5.3 % 32.1 % 36.2 % 12.4 % 28.4 % Non-GAAP gross margin 43.5 % 7.4 % 33.5 % 37.7 % 12.4 % 29.5 %
Page 8
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ (1,339) $ (3,591) $ (694) $ (11,684) Income tax expense 75 17 128 154 Other income, net (33) 58 (188) 44 Interest income (2,474) (1,108) (4,036) (2,796) Interest expense 204 388 504 436 Depreciation and amortization 3,335 3,415 6,704 7,085 Stock-based compensation 10,963 6,371 21,849 12,427 Restructuring charges — — 295 — Adjusted EBITDA $ 10,731 $ 5,550 $ 24,562 $ 5,666 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ (1,339) $ (3,591) $ (694) $ (11,684) Add back: Stock-based compensation(1) 10,963 6,371 21,849 12,427 Amortization of purchased intangibles(1) — 149 — 298 Restructuring charges — — 295 — Non-GAAP net income (loss) 9,624 2,929 21,450 1,041 GAAP weighted-average shares outstanding 56,983 49,581 55,560 49,338 Participating securities — — — — Non-GAAP weighted-average number of shares, basic 56,983 49,581 55,560 49,338 Dilutive effect of common stock equivalents 5,325 1,573 5,261 1,568 Non-GAAP weighted-average number of shares, diluted 62,308 51,154 60,821 50,906 Non-GAAP net income per share, basic $ 0.17 $ 0.06 $ 0.39 $ 0.02 Non-GAAP net income per share, diluted $ 0.15 $ 0.06 $ 0.35 $ 0.02 (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.
Page 9
nLIGHT, Inc. Supplemental Schedule of Financial Information (In thousands) (Unaudited) Revenues by End Market Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Aerospace and Defense $ 57,298 $ 40,695 $ 112,425 $ 73,401 Industrial 12,042 9,746 24,067 18,602 Microfabrication 13,251 11,294 26,280 21,400 $ 82,591 $ 61,735 $ 162,772 $ 113,403