nLIGHT(US:LASR)2025-11-07 21:38Revenue and Profitability - Revenues increased to $180.1 million for the nine months ended September 30, 2025, compared to $151.2 million for the same period in 2024, primarily driven by increased product and development revenue from the Aerospace and Defense market [84]. - The net loss for the nine months ended September 30, 2025, was $18.6 million, an improvement from a net loss of $35.8 million for the same period in 2024 [84]. - Revenue from the Aerospace and Defense market increased by 49.8% to $118.955 million for the nine months ended September 30, 2025, compared to $79.413 million in 2024 [95]. - The gross profit margin improved to 29.4% for the nine months ended September 30, 2025, compared to 21.1% for the same period in 2024 [93]. - Laser Products revenue accounted for 68.9% of total revenue for the nine months ended September 30, 2025, with a total of $124.110 million, up from $104.960 million in 2024 [96]. - Advanced Development revenue increased by 21.3% to $56.035 million for the nine months ended September 30, 2025, compared to $46.207 million in 2024 [96]. - North America generated $46.682 million in revenue, representing 69.9% of total revenue for the three months ended September 30, 2025, an increase from 64.7% in 2024 [97]. - North America revenue increased by $27,242 million (27.1%) to $127,938 million for the nine months ended September 30, 2025, compared to $100,696 million in 2024 [98]. - EMEA revenue rose by $4,988 million (24.8%) to $25,137 million for the nine months ended September 30, 2025, compared to $20,149 million in 2024 [98]. Cost and Expenses - The cost of revenue decreased to 70.6% of total revenue for the nine months ended September 30, 2025, down from 78.9% in 2024 [93]. - Research and development expenses increased by $206 million (1.8%) to $11,534 million for the three months ended September 30, 2025, compared to $11,328 million in 2024 [104]. - Sales, general, and administrative expenses rose by $1,764 million (13.5%) to $14,785 million for the three months ended September 30, 2025, compared to $13,021 million in 2024 [105]. - The company implemented restructuring plans resulting in employee termination costs of $942 million for the three months ended September 30, 2025 [106]. Cash Flow and Liquidity - For the nine months ended September 30, 2025, net cash provided by operating activities was $3.8 million, compared to $1.5 million in the same period of 2024, reflecting an increase of 149% [118]. - Net cash used in investing activities was $7.3 million, a decrease from $10.9 million in the prior year, indicating improved cash management [120]. - Net cash provided by financing activities was $18.5 million, significantly higher than the net cash used of $2.4 million in 2024 [121]. - Cash and cash equivalents, along with restricted cash, increased by $15.2 million from December 31, 2024, to $81.4 million as of September 30, 2025 [116]. - The company drew $20 million from its $40 million revolving line of credit (LOC) to support working capital, with an outstanding balance of $20 million as of September 30, 2025 [124]. - Cash collected from customers and the draw on the LOC are the principal sources of liquidity, expected to meet working capital needs for at least the next 12 months [117]. - The company experienced a $10.2 million increase in inventory and a $13.2 million increase in accounts receivable during the nine months ended September 30, 2025 [119]. - Non-cash expenses totaled $33.1 million, primarily due to depreciation, amortization, and stock-based compensation [119]. Financial Risks and Future Outlook - The company continues to invest heavily in research and development to enhance its technology and product offerings [87]. - The company faces risks from fluctuating demand, competitive pressures, and potential impacts from global economic conditions and trade policies [91]. - The effective tax rate may vary based on changes in estimated taxable income or loss by jurisdiction, with a noted increase in foreign income contributing to a rise in income tax expense for the three months ended September 30, 2025 [113]. - The company may explore additional financing sources, including equity and debt financing arrangements, to support future capital requirements [117]. - There have been no material changes to contractual obligations other than the draw on the LOC, as disclosed in the previous Annual Report [125]. - Interest income surged by $658 million (156.3%) to $1,079 million for the three months ended September 30, 2025, compared to $421 million in 2024 [108]. - Interest expense increased to $317 million for the three months ended September 30, 2025, compared to $27 million in 2024 [110]. - The LOC bears an interest rate of 6.25% as of September 30, 2025, based on the Prime Rate, with a potential $0.1 million change in obligations for a 10% interest rate fluctuation [128].