Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $51.7 million, a 16% increase from $44.5 million in Q1 2024 [14] - Aerospace and Defense (A&D) revenue was $32.7 million, up 50.4% year over year and 8.6% sequentially [14] - Gross margin for Q1 2025 was 26.7%, compared to 16.8% in Q1 2024, with a benefit of approximately $1.9 million related to duty reclaim [17] - GAAP net loss for Q1 2025 was $8.1 million or $0.16 per share, improved from a net loss of $13.8 million or $0.29 per share in the same quarter a year ago [19] Business Line Data and Key Metrics Changes - Defense product sales grew more than 150% year over year, primarily due to increased deliveries for the Healthy II direct energy laser program [14][15] - Commercial markets revenue, including industrial and microfabrication, was $19 million, a decrease of 16.8% year over year but up 9.9% sequentially [16] - Product revenue for Q1 was $35.7 million, a 21.5% increase compared to $29.4 million in Q1 2024 [16] Market Data and Key Metrics Changes - The defense sector represented over 63% of total sales in Q1 2025, up from 49% in the same quarter a year ago [4] - The company expects A&D revenue to grow at least 25% year over year in 2025, driven by a strong pipeline of opportunities [10][14] Company Strategy and Development Direction - The company is focused on vertical integration in the directed energy market to deliver high-performing and cost-effective high energy lasers [7] - There is an ongoing effort to respond to RFPs and RFQs related to nonkinetic missile defense capabilities, positioning the company to benefit from U.S. government initiatives [8] - Long-term growth opportunities are anticipated in metal additive manufacturing, particularly in aerospace and defense markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of A&D revenue, citing a strong start to 2025 and a growing pipeline of opportunities [10][13] - The company is navigating uncertainties related to tariffs, with expectations of some margin variability in defense products due to increased material costs [12][22] - Management remains optimistic about the long-term growth potential in A&D, despite challenges in commercial markets [10][11] Other Important Information - The company ended Q1 2025 with total cash and investments of $117 million, having drawn down $20 million from its $40 million line of credit [19][20] - Inventory increased to $43.8 million, primarily to support the forecasted ramp in directed energy products [20] Q&A Session Summary Question: Visibility on A&D product sales beyond Q2 - Management indicated strong visibility on the Healthy II program and increasing orders contributing to the outlook for A&D product revenue [26] Question: Impact of tariffs on different business segments - The CFO noted that the industrial fiber laser business would be most affected by tariffs, particularly those related to input costs from China [28] Question: Changes in A&D outlook and conditions for increasing guidance - Management highlighted traction in both U.S. and international markets for directed energy applications, but noted tariffs add uncertainty to the global environment [35] Question: Update on commercial markets and full-year outlook - The CFO confirmed no significant changes in the commercial markets outlook, with expectations of a decline of 15% to 20% [49] Question: Ability to pass through costs due to tariffs - Management acknowledged some areas where costs could be passed on, but emphasized the complexity of the situation and potential long-term impacts on margins [51][53] Question: Update on funded and unfunded backlog - The CFO stated that there were no major updates on backlog progression, but activity around responding to proposals remains healthy [56]

nLIGHT (LASR) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 I would now like to turn the conference over to John Marchetti, VP of Corporate Development and Head of Investor Relations. Speaker1 Thank you, and good afternoon, everyone. I'm John Marchetti, nLIGHT's VP of Corporate Development and Head of Investor Relations. With me on the call today are Scott Keeney, nLIGHT's Chairman and CEO and Joe Corso, nLIGHT's CFO. Today's discussion will contain forward looking statements, including financial ...

Earnings Presentation Q1 2025 May 8, 2025 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. 2 First Quarter 2025 | Key Messages Q1'25 A&D revenue increased 50%+ year-over-year driven by record A&D product sales Safe Harbor Statement Certain statements in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as am ...

[nLIGHT, Inc. First Quarter 2025 Financial Results](index=1&type=section&id=nLIGHT_Inc_Announces_First_Quarter_2025_Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First_Quarter_2025_Financial_Highlights) nLIGHT reported strong Q1 2025 results with **$51.7 million** revenue, a **16.0% YoY increase**, driven by record aerospace and defense performance, significantly improving gross margin to **26.7%** and reducing GAAP net loss to **$8.1 million**, with Adjusted EBITDA turning positive - Total revenue of **$51.7 million** exceeded guidance, propelled by record aerospace and defense market results[2](index=2&type=chunk) - The company anticipates continued sequential revenue growth in Q2 and projects at least **25% year-over-year growth** for the aerospace and defense business in 2025[2](index=2&type=chunk) Q1 2025 Key Financial Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $51.7 million | $44.5 million | 16.0% | | Gross Margin | 26.7% | 16.8% | +9.9 p.p. | | Loss from Operations | ($9.6 million) | ($14.7 million) | 34.7% improvement | | Net Loss | ($8.1 million) | ($13.8 million) | 41.2% improvement | | Adjusted EBITDA | $0.1 million | ($4.9 million) | NM | [Business Outlook for Q2 2025](index=2&type=section&id=Outlook) For Q2 2025, nLIGHT projects revenues between **$53 million** and **$59 million**, with overall gross margin in the **19% to 25%** range and Adjusted EBITDA between a loss of **$4 million** and a profit of **$1 million** Q2 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenues | $53 million - $59 million | | Products Revenue | ~$38 million | | Advanced Development Revenue | ~$18 million | | Overall Gross Margin | 19% - 25% | | Adjusted EBITDA | ($4) million - $1 million | [Consolidated Financial Statements](index=5&type=section&id=Consolidated_Financial_Statements) The consolidated financial statements detail the company's performance and financial position, showing a **16% revenue increase** and reduced net loss, growth in total assets and liabilities, and near breakeven cash flow from operating activities [Consolidated Statements of Operations](index=5&type=section&id=Consolidated_Statements_of_Operations) In Q1 2025, total revenue grew to **$51.7 million**, driven by a **21.5% increase** in Products revenue, with gross profit nearly doubling to **$13.8 million** and net loss narrowing significantly to **$8.1 million** Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$51,668** | **$44,527** | | Products Revenue | $35,678 | $29,370 | | Development Revenue | $15,990 | $15,157 | | **Gross Profit** | **$13,799** | **$7,488** | | Loss from Operations | ($9,610) | ($14,718) | | **Net Loss** | **($8,093)** | **($13,766)** | | Net Loss per Share (basic & diluted) | ($0.16) | ($0.29) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed_Consolidated_Balance_Sheets) As of March 31, 2025, total assets increased to **$290.0 million** from **$270.2 million**, driven by cash and inventory, while total liabilities grew to **$77.2 million** due to a **$20.0 million** line of credit draw Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $82,196 | $65,829 | | Inventory | $43,793 | $40,800 | | **Total Assets** | **$289,996** | **$270,241** | | Line of credit | $20,000 | $0 | | **Total Liabilities** | **$77,237** | **$53,811** | | **Total Stockholders' Equity** | **$212,759** | **$216,430** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated_Statements_of_Cash_Flows) For Q1 2025, net cash used in operating activities was minimal at **($20) thousand**, a significant decrease from **$11.4 million** provided in Q1 2024, with financing activities providing **$18.8 million** from a new line of credit Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($20) | $11,375 | | Net cash used in investing activities | ($2,433) | ($1,548) | | Net cash provided by (used in) financing activities | $18,765 | ($1,615) | | **Net increase in cash** | **$16,368** | **$8,097** | | **Cash, cash equivalents and restricted cash, end of period** | **$82,456** | **$61,563** | [Reconciliation of GAAP to Non-GAAP Financial Metrics](index=8&type=section&id=Reconciliation_of_GAAP_Financial_Metrics_to_Non-GAAP) This section reconciles non-GAAP measures like Adjusted EBITDA and non-GAAP net loss, adjusting for stock-based compensation, depreciation, and amortization to provide a supplemental view of core operational performance [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation_of_Net_Loss_to_Adjusted_EBITDA) The company reconciled its Q1 2025 GAAP net loss of **$8.1 million** to a positive Adjusted EBITDA of **$0.1 million**, a substantial improvement from Q1 2024, with key adjustments including **$6.1 million** in stock-based compensation Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss** | **($8,093)** | **($13,766)** | | Depreciation and amortization | $3,670 | $4,393 | | Stock-based compensation | $6,056 | $5,431 | | Other adjustments | ($1,517) | ($952) | | **Adjusted EBITDA** | **$116** | **($4,894)** | [Reconciliation of GAAP to Non-GAAP Net Loss](index=8&type=section&id=Reconciliation_of_GAAP_to_Non-GAAP_Net_Loss) Adjusting for stock-based compensation and amortization, the GAAP net loss of **$8.1 million** was reconciled to a non-GAAP net loss of **$1.9 million** for Q1 2025, comparing favorably to Q1 2024 Non-GAAP Net Loss Reconciliation (in thousands, except per share data) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net loss** | **($8,093)** | **($13,766)** | | Stock-based compensation | $6,056 | $5,431 | | Amortization of purchased intangibles | $149 | $149 | | **Non-GAAP net loss** | **($1,888)** | **($8,186)** | | **Non-GAAP net loss per share** | **($0.04)** | **($0.17)** |

Company Overview - nLIGHT, Inc. is a leading manufacturer of high-power semiconductor and fiber lasers globally, serving over 300 customers across various sectors including industrial, microfabrication, aerospace, and defense [1] Strategic Focus - The company is currently shifting most of its efforts towards enhancing its product offerings and market presence in the technology and infrastructure sectors [1] Analyst Background - The analysis is conducted by a financial analyst with a strong foundation in financial modeling, valuation, and data analysis, holding certifications from the Corporate Finance Institute [1] Investment Philosophy - The focus remains on identifying companies with strong fundamentals and growth potential, particularly in technology, infrastructure, and internet services [1]

Financial Performance - The company has experienced recurring net losses since its inception in 2000, highlighting ongoing financial challenges [61]. - Net loss for 2024 was $60.792 million, compared to a net loss of $41.670 million in 2023, reflecting a 45.9% increase in losses [234]. - Net loss per share for 2024 was $1.27, compared to $0.90 in 2023 [231]. - Comprehensive loss for 2024 was $61.647 million, an increase from $41.399 million in 2023 [234]. - Total revenue for 2024 was $198.548 million, a decrease of 5.5% from $209.921 million in 2023 [231]. - Product revenue declined to $136.659 million in 2024, down 12.8% from $156.666 million in 2023 [231]. - Gross profit for 2024 was $33.019 million, representing a gross margin of 16.6%, compared to $46.113 million and 22.0% in 2023 [231]. - Operating expenses increased to $98.655 million in 2024, up 6.5% from $92.879 million in 2023 [231]. - Cash flows from operating activities resulted in a net cash used of $2.36 million in 2024, a significant decrease from net cash provided of $10.09 million in 2023 [239]. - The company reported a loss before income taxes of $60.87 million in 2024, compared to a loss of $42.65 million in 2023, indicating a worsening of approximately 42.6% [305]. Revenue and Sales - Industrial sales decreased to $45.6 million in 2024 from $71.0 million in 2023, a decline of 35.8% [273]. - Aerospace and Defense sales increased to $109.5 million in 2024, up 19.9% from $91.4 million in 2023 [273]. - The U.S. Government accounted for 19% of total revenues in 2024, up from 18% in 2023 [276]. - North America sales were $132.8 million in 2024, slightly up from $129.3 million in 2023 [273]. Assets and Liabilities - Total assets decreased to $270.2 million in 2024 from $306.8 million in 2023, reflecting a decline of about 11.9% [229]. - Total liabilities increased slightly to $53.8 million in 2024 from $52.4 million in 2023, representing a rise of approximately 2.7% [229]. - The accumulated deficit grew to $325.1 million in 2024, up from $264.3 million in 2023, indicating an increase of about 23% [229]. - The company reported inventory of $40.8 million as of December 31, 2024, down from $52.2 million in 2023, indicating a reduction of approximately 21.2% [223]. - Contract assets increased by 99% to $14.5 million in 2024 from $7.3 million in 2023 [273]. - Contract liabilities increased by 7% to $6.8 million in 2024 from $6.4 million in 2023 [273]. Cash and Investments - As of December 31, 2024, cash and cash equivalents totaled $65.8 million, while marketable securities amounted to $34.9 million [207]. - The company had a net cash provided by investing activities of $16.69 million in 2024, contrasting with a net cash used of $14.10 million in 2023 [239]. - Realized gains from marketable securities were $3.4 million for the year ended December 31, 2024, compared to $2.4 million in 2023 [279]. Research and Development - Research and development expenses were $45.107 million in 2024, slightly down from $46.163 million in 2023 [231]. - Research and development costs are expensed as incurred, reflecting the company's commitment to innovation and product development [257]. Employment and Workforce - Approximately 650 out of nearly 800 full-time employees are based in the United States, indicating a strong domestic workforce [51]. - Labor shortages and turnover can impact operational efficiency and increase labor costs, affecting overall business performance [83]. Market and Competition - The laser industry is facing declining average selling prices, necessitating increased volumes and cost reductions to maintain profitability [60]. - Competition in the industry is intense, with larger competitors having greater resources, which may pressure pricing and market share [42]. - The markets served are characterized by rapid technological change, requiring significant research and development expenditures [57]. Risks and Compliance - The company is subject to risks related to U.S. government contracts, including potential termination and changes in government spending, which could impact financial results [90]. - The company faces risks from international operations, including macroeconomic conditions, regulatory changes, and political instability, particularly in China [93]. - The company is exposed to foreign currency risk, which may adversely affect revenues and operating margins due to fluctuations in exchange rates [95]. - The company must comply with U.S. export controls, and failure to obtain necessary export licenses could harm international revenues [99]. - The company faces significant compliance costs related to privacy, data protection, and information security laws, which could adversely affect its financial condition [111]. Tax and Deferred Tax Assets - The company has estimated U.S. federal net operating loss carryforwards (NOLs) of $169.6 million and state NOLs of $52.9 million as of December 31, 2024 [120]. - The company reported U.S. research and development credit carryforwards of $9.9 million, which will also expire between 2025 and 2044 if not utilized [308]. - The total gross deferred tax assets amounted to $84.403 million, an increase from $75.037 million in 2023, reflecting a growth of 12.4% year-over-year [306]. - The net deferred tax assets increased to $710 thousand in 2024, compared to $89 thousand in 2023, indicating significant improvement in tax asset realizability [306]. - The valuation allowance for deferred tax assets saw increases of $9.0 million in 2024, highlighting ongoing uncertainty regarding the realizability of these assets [307]. Inventory and Fixed Costs - The company has high levels of fixed costs and inventory, which may adversely affect gross profits if product demand declines [65]. - The company recorded an adjustment to inventory values due to excess and obsolete inventory, which was assessed at $40.8 million as of December 31, 2024 [223]. - The product warranty liability decreased from $4.47 million in 2023 to $3.47 million in 2024, a decline of about 22.4% [294]. Other Financial Metrics - The company recorded an adjustment to inventory values due to excess and obsolete inventory, which was assessed at $40.8 million as of December 31, 2024 [223]. - The company performed a quantitative test for goodwill impairment in 2024, concluding that the fair value of reporting units significantly exceeded their carrying values, indicating no impairment [247]. - The total restructuring charges for 2024 amounted to $4.29 million, significantly higher than the $0.82 million recorded in 2023 [303].

nLIGHT, Inc. (NASDAQ:LASR) Q4 2024 Earnings Call Transcript February 27, 2025 5:00 PM ET Company Participants John Marchetti - Vice President of Corporate Development and Head of Investor Relations Scott Keeney - Co Founder and Chief Executive Officer Joe Corso - Chief Financial Officer Conference Call Participants Jim Ricchiuti - Needham & Company Greg Palm - Craig Hallum Capital Group Troy Jensen - Cantor Fitzgerald Rodney McFall - North Coast Research Mark Miller - Benchmark Operator Good afternoon, ladi ...

Earnings Presentation Q4 & Fiscal Year 2024 February 27, 2025 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Safe Harbor Statement Certain statements in this presentation 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 L ...

NLight (LASR) came out with a quarterly loss of $0.30 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -42.86%. A quarter ago, it was expected that this laser maker would post a loss of $0.08 per share when it actually produced a loss of $0.08, delivering no surprise.Over the last four quarters, the company has surpassed consensus E ...

Company Overview - nLight (LASR) shares increased by 5.9% to close at $10.46, supported by strong trading volume, contrasting with a 2.3% loss over the past four weeks [1] - The company is experiencing growth in its aerospace and defense sector, driven by rising demand for directed energy systems and laser sensing products [1] Financial Performance - nLight is projected to report a quarterly loss of $0.14 per share, reflecting a year-over-year decline of 7.7% [2] - Expected revenues for the upcoming quarter are $51.15 million, which is a decrease of 1.4% compared to the same quarter last year [2] Earnings Estimates and Stock Movement - The consensus EPS estimate for nLight has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - nLight is part of the Zacks Electronics - Semiconductors industry, where another company, Ambarella (AMBA), saw a 2.7% increase in its stock price, closing at $78.18, with a 9.2% return over the past month [3] - Ambarella's consensus EPS estimate for its upcoming report is -$0.01, which represents a significant year-over-year change of +95.8% [4]