0001124796-25-000120
SEC filingAerospace & Defense revenue surged 48.6% YoY, driving total revenue up 22.2% in Q2 2025, while net loss narrowed from $11.7M to $5.8M.
For the six months ended June 30, 2025, nLIGHT reported total revenue of $113.4 million, up 19.3% from $95.0 million in the same period of 2024. The increase was led by a 49.4% surge in Aerospace & Defense revenue to $73.4 million, reflecting higher unit sales of directed energy laser products and progress on development contracts. Industrial revenue declined 25.3% to $18.6 million due to lower customer demand, while Microfabrication revenue grew 1.8% to $21.4 million. Gross profit rose to $32.3 million from $19.3 million, with gross margin expanding from 20.3% to 28.4%. The improvement was driven by favorable product mix, higher production volumes, and increased duty reclaim. Operating expenses decreased slightly to $46.1 million from $46.7 million, as reductions in R&D and SG&A were partially offset by higher incentive compensation. Net loss narrowed to $11.7 million from $25.5 million, reflecting improved gross margin and lower operating expenses.
Laser Products revenue increased 19.9% to $76.5 million, while Advanced Development revenue rose 18.2% to $36.9 million. Laser Products gross margin improved to 37.7% from 27.9%, benefiting from sales mix and fixed cost absorption. Advanced Development gross margin increased to 12.4% from 8.8%, driven by a higher proportion of fixed-price contracts. All Advanced Development revenue is tied to Aerospace & Defense, underscoring the segment's strategic importance. The Industrial market decline weighed on Laser Products but was offset by strength in Aerospace & Defense and Microfabrication.
Management noted ongoing macroeconomic uncertainties, including tariffs and supply chain disruptions, but stated these did not materially impact first-half results. The company expects continued investment in R&D to support technology leadership. No specific revenue or earnings guidance was provided. Liquidity remains strong with $114 million in cash and marketable securities, and a $40 million revolving credit facility with $20 million drawn. The company believes existing liquidity is sufficient for at least 12 months.
As of June 30, 2025, nLIGHT held $78.8M in cash and equivalents and $34.9M in marketable securities (U.S. Treasuries), totaling $113.7M in liquid assets. The company drew $20.0M on its $40.0M revolving line of credit during Q1 2025, leaving $20.0M available. Total debt is $20.0M (the LOC). Shareholders' equity remained stable at $216.0M, with accumulated deficit growing to $336.8M. Inventory rose to $48.3M from $40.8M at year-end 2024, driven by raw materials and work-in-process. Deferred revenue (current) was $2.5M, down from $3.6M. Lease liabilities totaled $12.0M (current and long-term).
nLIGHT's primary contractual obligations are operating leases, with total future minimum payments of $13.7M as of June 30, 2025. The weighted-average remaining lease term is 7 years, with a discount rate of 4.3%. No other material purchase commitments (e.g., supply agreements) were disclosed. The company maintains a $3.5M product warranty liability (current and non-current). No litigation contingencies were deemed material.
Capital allocation activity was limited. No share repurchases or dividends were reported. The company drew $20M on its credit line to support working capital. Capital expenditures for H1 2025 were $4.7M (4.1% of revenue), primarily for manufacturing and lab equipment. Stock-based compensation totaled $12.4M in H1 2025, with $47.1M unrecognized as of June 30. The company's only debt is the LOC at 7.0% interest.
Revenue is disaggregated by end market, geography, and timing. Aerospace & Defense was the largest end market (66% of H1 revenue), growing to $73.4M from $49.1M a year ago (+49%). Industrial declined to $18.6M (-25%), while Microfabrication was flat at $21.4M. By geography, North America contributed 72% of H1 revenue ($81.3M). Approximately 65% of revenue was recognized at a point in time (product sales), and 35% over time (development contracts).