nLIGHT(LASR) - 2025 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Presents unaudited interim consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, equity, cash flows, and notes Consolidated Balance Sheets 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 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 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 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 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] Notes to Consolidated Financial Statements 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 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] - 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] Note 2 - Revenue 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] 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 | [