nLIGHT(LASR) - 2025 Q1 - Quarterly Results

nLIGHT, Inc. First Quarter 2025 Financial Results 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] - 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] 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 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 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 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 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 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 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 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 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) |