Core Viewpoint - nLight (LASR) is positioned as a strong growth stock with recent earnings performance indicating potential for significant breakout opportunities [1] Company Overview - nLight, Inc. specializes in semiconductor and fiber lasers for aerospace, defense, industrial, and microfabrication applications, operating through Laser Products and Advanced Development segments [2] Earnings History - nLight has achieved two consecutive earnings beats against the Zacks Consensus Estimate, with an average positive earnings surprise of 50% over the last year [4] - The latest earnings report showed a profit of $0.06, surpassing the consensus estimate of -$0.09, resulting in a positive earnings surprise of 166% [4] Earnings Estimates Revisions - Earnings estimates for nLight have been revised upward, with the 2025 full-year loss estimate improving from $0.28 to $0.16, and the 2026 estimate improving from $0.21 to $0.10 [5] Growth Projections - Analysts project revenue of $234 million for the current fiscal year, reflecting an 18% growth, with expectations of $245 million for the next fiscal year, indicating a 4.6% growth [6] Valuation Metrics - nLight currently has no forward PE ratio due to ongoing losses, but its price-to-book ratio stands at 6.3x, suggesting potential for growth compared to peer averages [7] - The price-to-sales ratio is also at 6.3x [7] Margin Analysis - Operating margins have improved from -28.1% to -14.7%, indicating a trend towards profitability that could significantly impact stock price once positive margins are achieved [8]

PART I—FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20Unaudited%20Interim%20Financial%20Statements) Presents unaudited interim consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, equity, cash flows, and notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$295.3 million** from **$270.2 million**, driven by cash, receivables, and inventory; liabilities rose due to a new line of credit Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Cash and cash equivalents | $78,812 | $65,829 | | Accounts receivable, net | $44,425 | $34,895 | | Inventory | $48,295 | $40,800 | | Total current assets | $222,863 | $194,089 | | Total assets | $295,254 | $270,241 | | Accounts payable | $18,375 | $15,076 | | Accrued liabilities | $16,312 | $13,268 | | Total current liabilities | $39,559 | $34,235 | | Line of credit | $20,000 | — | | Total liabilities | $79,253 | $53,811 | | Total stockholders' equity | $216,001 | $216,430 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Revenue significantly increased for both the three and six months ended June 30, 2025, with net loss substantially decreasing due to higher gross profit and controlled operating expenses Consolidated Statements of Operations Highlights (in thousands, except per share data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $61,735 | $50,511 | $113,403 | $95,038 | | Total cost of revenue | $43,278 | $38,661 | $81,147 | $75,700 | | Gross profit | $18,457 | $11,850 | $32,256 | $19,338 | | Total operating expenses | $22,693 | $24,540 | $46,102 | $46,746 | | Loss from operations | $(4,236) | $(12,690) | $(13,846) | $(27,408) | | Net loss | $(3,591) | $(11,729) | $(11,684) | $(25,495) | | Net loss per share, basic and diluted | $(0.07) | $(0.25) | $(0.24) | $(0.54) | [Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss significantly decreased for both periods, driven by a reduced net loss and positive foreign currency translation adjustments Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(3,591) | $(11,729) | $(11,684) | $(25,495) | | Foreign currency translation adjustments | $745 | $(65) | $1,071 | $(288) | | Change in unrealized gains on available-for-sale securities | $(4) | $147 | $(729) | $258 | | Comprehensive loss | $(2,850) | $(11,647) | $(11,342) | $(25,525) | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity remained relatively stable, with a slight decrease from December 31, 2024, to June 30, 2025, influenced by net loss, stock-based compensation, and cumulative translation adjustments Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Item | Balance, December 31, 2024 | Balance, June 30, 2025 | | :--------------------------------- | :------------------------- | :--------------------- | | Total stockholders' equity | $216,430 | $216,001 | | Net loss (Six Months Ended June 30, 2025) | — | $(11,684) | | Stock-based compensation (Six Months Ended June 30, 2025) | — | $12,427 | | Cumulative translation adjustment, net of tax (Six Months Ended June 30, 2025) | — | $1,071 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net cash outflow from operating activities, but a significant inflow from financing activities, primarily a line of credit draw, led to an overall net increase in cash Consolidated Statements of Cash Flows Highlights (in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(1,405) | $7,145 | | Net cash used in investing activities | $(4,383) | $(8,943) | | Net cash provided by (used in) financing activities | $18,486 | $(1,796) | | Net increase in cash, cash equivalents, and restricted cash | $12,985 | $(3,823) | | Cash, cash equivalents, and restricted cash, end of period | $79,073 | $49,643 | - Proceeds from line of credit for the six months ended June 30, 2025, were **$20.0 million**, compared to **$0** in the prior year[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue, financial instrument fair values, inventory, property, intangible assets, debt, liabilities, warranties, equity, commitments, leases, segment information, and net loss per share [Note 1 - Basis of Presentation and New Accounting Pronouncements](index=11&type=section&id=Note%201%20-%20Basis%20of%20Presentation%20and%20New%20Accounting%20Pronouncements) Unaudited financial statements are prepared under U.S. GAAP; new accounting pronouncements are not expected to materially impact financial position, results, or cash flows, but will require enhanced disclosures - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for fiscal years beginning after December 15, 2024, requiring enhanced jurisdictional and disaggregated disclosures for effective tax rate reconciliation and income taxes paid, with no material effect on financial position, results, or cash flows expected[24](index=24&type=chunk) - ASU 2024-03 (Disaggregation of Certain Income Statement Expenses) is effective for fiscal years beginning after December 15, 2026, requiring incremental disclosures related to purchases of inventory, team member compensation, and depreciation, with no material effect on financial position, results, or cash flows expected, aside from disclosure changes[25](index=25&type=chunk) [Note 2 - Revenue](index=11&type=section&id=Note%202%20-%20Revenue) Revenue is recognized upon transfer of control, with product sales recognized at a point in time and development revenue over time; Aerospace and Defense revenue grew significantly, while Industrial revenue declined - Revenue from products is recognized at a point in time (shipment or delivery), while development revenue is generally recognized over time using a cost-plus contract structure[31](index=31&type=chunk) Sales by End Market (in thousands) | End Market | Six Months Ended June 30, 2025 | % of Revenue 2025 | Six Months Ended June 30, 2024 | % of Revenue 2024 | | :------------------- | :----------------------------- | :---------------- | :----------------------------- | :---------------- | | Aerospace and Defense | $73,401 | 64.7% | $49,135 | 51.7% | | Industrial | $18,602 | 16.4% | $24,890 | 26.2% | | Microfabrication | $21,400 | 18.9% | $21,013 | 22.1% | | **Total** | **$113,403** | **100.0%** | **$95,038** | **100.0%** | Sales by Timing of Revenue (in thousands) | Timing | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :----------------------------- | :----------------------------- | | Point in time | $76,454 | $63,992 | | Over time | $36,949 | $31,046 | | **Total** | **$113,403** | **$95,038** | [

Company Performance - nLight reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, compared to a loss of $0.10 per share a year ago, representing an earnings surprise of +166.67% [1] - The company posted revenues of $61.74 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.11%, and showing an increase from year-ago revenues of $50.51 million [2] - nLight has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Stock Performance - nLight shares have increased approximately 87.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $54.52 million, and for the current fiscal year, it is -$0.28 on revenues of $215.83 million [7] Industry Outlook - The Electronics - Semiconductors industry, to which nLight belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact nLight's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $61.7 million, an increase of 22% compared to $50.5 million in the same quarter last year and up 19.5% compared to the previous quarter [12] - Aerospace and Defense (A&D) revenue reached a record $40.7 million, up 48.6% year over year and 24% sequentially [12] - Gross margin for the second quarter was 29.9%, compared to 23.5% in the same quarter last year and 26.7% in the previous quarter [14] - Non-GAAP net income for the second quarter was $2.9 million, or $0.06 per diluted share, compared to a non-GAAP net loss of $4.6 million, or $0.10 per share in the same quarter last year [18] Business Line Data and Key Metrics Changes - A&D revenue growth was driven by record defense products revenue, which grew 74.5% year over year and 18% compared to the last quarter [12] - Development revenue was $20.9 million, also a record, growing more than 30% both sequentially and year over year [13] - Commercial revenue was $21 million, a decrease of 9% year over year but up 11% sequentially [13] Market Data and Key Metrics Changes - A&D revenue represented approximately 66% of total sales in the quarter, up from 54% in the same quarter a year ago [4] - The company began shipping to a new international customer in the directed energy market, indicating a growing pipeline of global opportunities [9] Company Strategy and Development Direction - The company is well positioned to drive continued growth in A&D with leading high-power laser technology developed over the past two decades [5] - The focus remains on directed energy and laser sensing, aligning with critical priorities of the Department of Defense [5] - The company is rationalizing investments in commercial markets to align resources with growth opportunities, particularly in additive manufacturing [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growing A&D revenues by at least 40% in 2025, supported by a growing pipeline of directed energy programs and laser sensing opportunities [10] - The company expects revenue for 2025 to be in the range of $62 million to $67 million, with A&D revenue expected to grow sequentially and year over year [19] - Management noted that while there were improvements in commercial markets, they do not expect sustained demand growth in the majority of industrial applications [11] Other Important Information - The company ended the second quarter with total cash, cash equivalents, restricted cash, and investments of $114 million [18] - The transition of amplifier products into advanced production is critical for scaling operations and increasing volume [44] Q&A Session Summary Question: What drove the outperformance in A&D? - Management attributed the outperformance to strong execution in existing programs, particularly in amplifier sales [25] Question: Any updates on laser sensing programs? - Management indicated continued success in existing platforms and expected higher volumes as customers restock inventory [29] Question: Insights on gross margin expectations? - Management noted that the high gross margin in Q2 was due to better factory absorption and execution, but a step down is expected in Q3 [31] Question: Initial views on 2026? - Management stated it is too early to provide guidance for 2026 but remains confident in the growth pipeline [39] Question: Details on the amplifier transition? - The transition involves moving amplifier manufacturing from R&D to normal manufacturing groups, which is crucial for scaling production [43]

Q2 2025 Financial Performance - Total revenue reached $61.7 million, a 22% increase year-over-year and a 19% increase quarter-over-quarter[10] - Aerospace & Defense (A&D) revenue hit a record $40.7 million, up 49% year-over-year and 24% quarter-over-quarter[10] - Product revenue in A&D reached a record $19.8 million, a 75% increase year-over-year and 18% quarter-over-quarter[10] - Development revenue reached a record $20.9 million, a 30% increase year-over-year and 31% quarter-over-quarter[10] - Total gross margin was 29.9%, with product gross margin at 38.5%[10] - Adjusted EBITDA was $5.6 million[10] - The company holds a strong balance sheet with $113.7 million in cash and marketable securities[10] Revenue Breakdown by Market - A&D accounted for 66% of total revenue in Q2 2025[12] - Industrial revenue was $9.7 million, a 25% decrease year-over-year but a 10% increase quarter-over-quarter, representing 16% of total revenue[12] - Microfabrication revenue was $11.3 million, an 11% increase year-over-year and a 12% increase quarter-over-quarter, representing 18% of total revenue[12] Q3 2025 Outlook - The company projects Q3 2025 revenues between $62 million and $67 million, with a midpoint of $64.5 million[24] - Q3 2025 gross margin is expected to be between 24% and 30%[24] - Adjusted EBITDA for Q3 2025 is projected to be between $2.0 million and $6.0 million[24]

[Q2 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) nLIGHT reported strong Q2 2025 results, exceeding expectations with revenue of $61.7 million, a 22.2% year-over-year increase, significantly improving gross margin and achieving positive Adjusted EBITDA | Financial Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $61.7M | $50.5M | 22.2% | | **Gross Margin** | 29.9% | 23.5% | - | | **Loss from Operations** | ($4.2M) | ($12.7M) | 66.6% improvement | | **Net Loss (GAAP)** | ($3.6M) | ($11.7M) | 69.4% improvement | | **Adjusted EBITDA** | $5.6M | ($1.6M) | NM* | - The company raised its full-year 2025 growth outlook for the aerospace and defense segment to at least **40% year-over-year**, up from the previous forecast of at least 25%[2](index=2&type=chunk) - Non-GAAP net income for Q2 2025 was **$2.9 million**, or **$0.06 per diluted share**, compared to a non-GAAP net loss of **$4.6 million**, or **$0.10 per diluted share**, in Q2 2024[3](index=3&type=chunk) [Q3 2025 Business Outlook](index=1&type=section&id=Outlook) For Q3 2025, nLIGHT anticipates revenues between $62 million and $67 million, with overall gross margin in the range of 24% to 30% and Adjusted EBITDA between $2.0 million and $6.0 million | Metric | Q3 2025 Guidance Range | | :--- | :--- | | **Revenues** | $62M - $67M | | **Overall Gross Margin** | 24% - 30% | | **Adjusted EBITDA** | $2.0M - $6.0M | - The revenue guidance midpoint of **$64.5 million** is composed of approximately **$45 million from Products** and **$19 million from Advanced Development**[4](index=4&type=chunk) - Guidance for gross margin is broken down into **32% to 36% for Products** and approximately **8% for Advanced Development**[4](index=4&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for nLIGHT, Inc., including the Statements of Operations, Balance Sheets, and Statements of Cash Flows for the periods ended June 30, 2025, and June 30, 2024 [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total revenue increased to $61.7 million from $50.5 million year-over-year, significantly narrowing the loss from operations and net loss | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $61,735 | $50,511 | | **Gross Profit** | $18,457 | $11,850 | | **Loss from Operations** | $(4,236) | $(12,690) | | **Net Loss** | $(3,591) | $(11,729) | | **Net Loss per Share, diluted** | $(0.07) | $(0.25) | - For the six months ended June 30, 2025, total revenue was **$113.4 million**, up from **$95.0 million** in the prior year period[15](index=15&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, nLIGHT's total assets increased to $295.3 million from $270.2 million at year-end 2024, primarily driven by higher cash, receivables, and inventory, alongside increased liabilities due to a line of credit draw | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $222,863 | $194,089 | | **Total Assets** | $295,254 | $270,241 | | **Total Current Liabilities** | $39,559 | $34,235 | | **Total Liabilities** | $79,253 | $53,811 | | **Total Stockholders' Equity** | $216,001 | $216,430 | - Cash and cash equivalents increased to **$78.8 million** from **$65.8 million** at the end of 2024[17](index=17&type=chunk) - The company had **$20.0 million** outstanding on its line of credit as of June 30, 2025, compared to zero at the end of 2024[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $1.4 million, with a net increase in cash, cash equivalents, and restricted cash of $13.0 million, primarily due to financing activities | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(1,405) | $7,145 | | **Net cash used in investing activities** | $(4,383) | $(8,943) | | **Net cash provided by (used in) financing activities** | $18,486 | $(1,796) | | **Net increase (decrease) in cash** | $12,985 | $(3,823) | [Reconciliation of GAAP to Non-GAAP Financial Metrics](index=8&type=section&id=Reconciliation%20of%20GAAP%20Financial%20Metrics%20to%20Non-GAAP) This section provides reconciliations of GAAP net loss to non-GAAP financial measures, showing Adjusted EBITDA of $5.6 million and non-GAAP net income of $2.9 million for Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (Q2) | (In thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | $(3,591) | $(11,729) | | **Adjustments** | $9,141 | $8,130 | | **Adjusted EBITDA** | $5,550 | $(1,599) | Reconciliation to Non-GAAP Net Income (Q2) | (In thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | $(3,591) | $(11,729) | | **Stock-based compensation** | $6,371 | $7,003 | | **Amortization of purchased intangibles** | $149 | $148 | | **Non-GAAP Net Income (Loss)** | $2,929 | $(4,578) | [Supplemental Financial Information](index=9&type=section&id=Supplemental%20Schedule%20of%20Financial%20Information) Revenue breakdown by end market shows significant growth in the Aerospace and Defense sector, while the Industrial market declined and Microfabrication experienced modest growth Revenues by End Market (Three Months Ended June 30, in thousands) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Aerospace and Defense** | $40,695 | $27,390 | | **Industrial** | $9,746 | $12,905 | | **Microfabrication** | $11,294 | $10,216 | | **Total** | $61,735 | $50,511 |

Company Overview - nLight (LASR) shares increased by 7% to close at $20.7, following a trading session with notable volume, contrasting with a 1.7% loss over the past four weeks [1] - The company is experiencing strong growth in its Aerospace and Defense segment, attributed to record defense revenue, increased deliveries for programs like HELSI-2, and expanding opportunities in directed energy and laser sensing markets [1] Financial Performance - nLight is expected to report a quarterly loss of $0.09 per share, reflecting a year-over-year change of +10% [2] - Revenue expectations for the upcoming report are $55.07 million, which is a 9% increase from the same quarter last year [2] Market Sentiment - 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] - nLight currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - nLight operates within the Zacks Electronics - Semiconductors industry, where Lattice Semiconductor (LSCC) also resides [3] - Lattice's consensus EPS estimate for its upcoming report is $0.24, showing a +4.4% change from the previous year, and it also holds a Zacks Rank of 3 (Hold) [4]

Technical Analysis - NLight (LASR) has reached a significant support level, indicating a potential investment opportunity from a technical perspective [1] - The recent breakout of LASR's 50-day simple moving average above its 200-day moving average is identified as a "golden cross," which typically signals a bullish breakout [1] Golden Cross Characteristics - A golden cross consists of three stages: a downtrend that bottoms out, a crossover of the shorter moving average above the longer moving average, and a subsequent upward price movement [2] - This pattern is contrasted with a "death cross," which indicates potential bearish momentum [2] Performance and Outlook - LASR shares have increased by 41.3% over the past four weeks, suggesting strong upward momentum [3] - The company holds a 2 (Buy) rating on the Zacks Rank, indicating a favorable outlook for potential breakout [3] - Positive earnings outlook is supported by three upward revisions in earnings estimates over the past two months, with no estimates decreasing during that period [3] Investment Consideration - Investors are encouraged to monitor LASR for potential gains due to its key technical levels and positive earnings estimate revisions [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: nLight (LASR) - nLight currently holds a Momentum Style Score of B, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, nLight shares have increased by 14.36%, while the Zacks Electronics - Semiconductors industry has declined by 4.62% [6]. - In a longer timeframe, nLight's shares have risen by 96.95% over the past month, compared to the industry's 11.8% [6]. - For the past quarter, nLight shares have surged by 86.06%, and they are up 18.08% over the last year, significantly outperforming the S&P 500, which has moved 1.35% and 13.07% respectively [7]. Trading Volume - nLight's average 20-day trading volume is 637,921 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, four earnings estimates for nLight have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from -$0.50 to -$0.30 [10]. - For the next fiscal year, two estimates have moved up, while one has been revised down [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, nLight is positioned as a solid momentum pick with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11].

Industry Overview - The global market for laser technology is valued at approximately $24 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 8% to nearly $30 billion by 2029 [1] Company Analysis: nLIGHT Inc. - nLIGHT develops semiconductor and fiber lasers and sensors for various applications, including industrial, aerospace, and defense [2] - The company reported a 16% year-over-year (YOY) revenue increase to nearly $52 million in the first quarter, surpassing analyst expectations [3] - Gross margin improved to 26.7%, up from 16.8% in the same quarter last year [3] - Aerospace and defense operations are expected to grow by at least 25% this year, contributing to continued revenue growth [4] - Analysts have a consensus Buy rating for nLIGHT, with a 12-month price target of $14.90, indicating a potential upside of 4.78% from the current price of $14.22 [4] Company Analysis: Coherent Corp. - Coherent manufactures a wide range of lasers and optoelectronic components, with a market cap of $12.3 billion, making it one of the largest laser companies globally [7] - The company experienced a 24% YOY revenue increase in its third-quarter fiscal 2025 earnings, with a gross margin improvement to 35.2% [6] - Coherent's data center business has been a significant growth driver, while its optical networking technologies remain crucial to its operations [7] - Despite a year-to-date share price drop of over 18%, Coherent's price-to-sales ratio is now at 2.21, attracting value investors [8] - The stock has a consensus price target of $102.80, suggesting a potential upside of 30.40% from the current price of $78.84 [5][9] Company Analysis: Cognex Corp. - Cognex specializes in machine vision products aimed at automating manufacturing and distribution across various industries [10] - The company reported a 2.5% YOY sales growth, which is less impressive compared to nLIGHT and Coherent, but remains profitable with an adjusted EPS of 16 cents, reflecting a 41% YOY improvement [10] - Cognex's In-Sight 8900 smart camera utilizes AI to enhance manufacturing automation [11] - The company faces challenges in the automotive and consumer electronics sectors, which may impact future performance [11] - Analysts have a consensus price target of $39.17 for Cognex, indicating a potential upside of 31.04% from the current price of $29.89 [10][12]