LASR Q3 Deep Dive: Defense Demand and New Contracts Drive Strong Results, Margin Expansion

Core Insights - nLIGHT reported Q3 CY2025 revenue of $66.74 million, exceeding analyst expectations of $63.33 million, representing an 18.9% year-on-year growth [1][6] - The company provided a Q4 revenue guidance of $75 million at the midpoint, which is 22.8% above analyst estimates of $61.07 million [1][6] - Non-GAAP profit was $0.08 per share, significantly above the consensus estimate of $0.02 [1][6] Performance Highlights - The strong performance was attributed to momentum in aerospace and defense, with defense product revenue growing over 70% year-over-year due to major government contracts [3][5] - Improved gross margins were noted, benefiting from a favorable product mix and manufacturing scale [3][5] - Adjusted EBITDA for Q3 was -$3.99 million, missing analyst estimates of $3.30 million, indicating a -6% margin [6] Future Outlook - Management expressed optimism about sustained growth in aerospace and defense, anticipating continued contract wins and market expansion [4] - The company is focused on leveraging vertically integrated technology and capturing opportunities in directed energy and sensing applications [4][5] - CFO emphasized ongoing efforts to optimize manufacturing and control costs, with a full pipeline to backfill potential revenue gaps [4]