Core Insights - nLIGHT reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 18.9% year-on-year to $66.74 million, surpassing analyst estimates of $63.33 million by 5.4% [1][7] - The company provided a strong revenue guidance for Q4 CY2025 at $75 million at the midpoint, which is 22.8% above analysts' expectations of $61.07 million [1][7] - nLIGHT's non-GAAP profit was $0.08 per share, significantly above the consensus estimate of $0.02, indicating strong operational performance [1][7] Company Overview - nLIGHT, founded by Scott Keeney, specializes in semiconductor and fiber lasers for industrial, aerospace & defense, and medical sectors [4] Revenue Growth - Over the last five years, nLIGHT's sales grew at a sluggish compounded annual growth rate of 2.6%, which is considered below industry standards [5] - The company's annualized revenue growth of 2.9% over the last two years aligns with its five-year trend, suggesting consistently weak demand [6] Financial Performance - Adjusted EBITDA for Q3 CY2025 was $7.11 million, significantly beating analyst estimates of $3.30 million, with a margin of 10.7% [7] - Operating margin improved to -10.9%, up from -21% in the same quarter last year, indicating operational improvements [7] - Free cash flow margin decreased to 3.7%, down from 29.6% in the same quarter last year [7] Segment Analysis - nLIGHT's revenue is primarily derived from two segments: Laser Products (71.3% of revenue) and Advanced Developments (28.7% of revenue) [8] - Laser Products revenue has averaged a decline of 4.1% year-on-year over the last two years, while Advanced Developments revenue has averaged a growth of 19.1% [8]