Earnings Presentation Q3 2025 November 6, 2025 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Safe Harbor Statement Certain statements in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Refor ...

Financial Performance - Revenue increased by 8% year-over-year to $250.8 million[3,10], or 11% excluding divestitures[3] - Adjusted EBITDA increased by 33% year-over-year to $37.0 million[3,10] - Adjusted EPS increased by 9% year-over-year to $0.35[3,10] - Gross margin was 39.5%[10] Application and Geography - Welding accounted for 37% of full year 2024 revenue[5,6], showing improvement sequentially and year-over-year[4] - Cutting accounted for 21% of full year 2024 revenue[5,6], with demand stabilizing and new laser shipments beginning[4] - North America sales improved year-over-year, driven by medical and advanced applications[9] - Asia sales increased, driven by growth in welding and additive manufacturing[9] Outlook and Balance Sheet - Q4 2025 revenue is projected to be between $230 million and $260 million[15] - Q4 2025 adjusted gross margin is expected to be between 36% and 39%[15] - The company's cash and short-term investments stand at $870 million[12]

Q2 2025 Financial Performance - Revenue reached $250.7 million[3], a decrease of 3% year-over-year compared to $257.6 million in Q2 2024[14] - Adjusted EBITDA was $31.5 million[3], down 20% from $39.4 million in Q2 2024[14] - Adjusted EPS was $0.30[3], a 42% decrease compared to $0.52 in Q2 2024[14] - Gross margin was 37.3%[14], consistent with Q2 2024 but down from 39.4% in Q1 2025[14] Business Highlights - The company shipped $10 million of the $15 million in orders impacted by tariffs[3] - The company bought back $30 million of shares[3] - Sales in North America improved sequentially, driven by higher revenue in cutting, cleaning, medical, and advanced applications[13] - Sales in Asia increased due to growth in welding, cutting, and advanced applications[13] Q3 2025 Outlook - Revenue is projected to be between $225 million and $255 million[18] - Adjusted gross margin is expected to be between 36% and 38%[18] - Adjusted EPS is forecasted to be between $0.05 and $0.35[18] - Adjusted EBITDA is expected to be between $22 million and $36 million[18]

Financial Performance - Revenue decreased by 10% year-over-year, with Q1 2025 revenue at $2278 million compared to $2520 million in Q1 2024[3, 4] - GAAP gross margin increased by 70 basis points year-over-year to 394% in Q1 2025[3, 21] - GAAP operating income significantly decreased by 91% year-over-year, from $191 million in Q1 2024 to $18 million in Q1 2025[4] - Net income decreased by 84% year-over-year, from $241 million in Q1 2024 to $38 million in Q1 2025[4] - Earnings per diluted share (EPS) decreased by 83% year-over-year, from $052 in Q1 2024 to $009 in Q1 2025[3, 4] - Adjusted EBITDA decreased by 19% year-over-year, from $403 million in Q1 2024 to $327 million in Q1 2025[3, 4, 24] - Adjusted EPS decreased by 38% year-over-year, from $050 in Q1 2024 to $031 in Q1 2025[3, 4, 26] Revenue and Market Trends - Emerging growth products accounted for 51% of total revenue[3] - Sales declined year-over-year in North America due to lower revenue in cutting and welding applications[10] - European sales declined primarily due to lower demand in cutting and welding applications and exit from Russia[10] Financial Guidance - The company expects Q2 2025 revenue to be between $210 million and $240 million[15]