Core Thesis - nLIGHT, Inc. is positioned strongly in the defense technology market, with significant contract wins and operational execution driving growth [2][3][4] Financial Performance - The company reported record second-quarter revenues, with aerospace and defense sales reaching $40.7 million, accounting for 66% of total revenue, reflecting a 49% year-over-year increase and a 24% sequential increase [3] - Management raised revenue guidance to $66 million for the third quarter and increased 2026 estimates to $271.6 million, indicating robust defense demand and a strong backlog [3] Strategic Developments - nLIGHT secured an unexpected international contract linked to the UK's DragonFire laser program and is benefiting from the U.S. Golden Dome initiative, which may drive long-term growth from 2026 onward [4] - The company continues to enhance its operational capabilities, including advanced amplifier production and quality controls, which support scaling in both defense and industrial applications [4] Market Position - Analysts have responded positively to nLIGHT's performance, with one raising the price target by 22% to $33.50 and reiterating an Overweight rating, highlighting it as a strong opportunity in the sector [3] - The company is not among the top 30 most popular stocks among hedge funds, with 30 hedge fund portfolios holding LASR at the end of the second quarter, up from 17 in the previous quarter [6]