nLIGHT (LASR) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 796.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 9.79%
• EPS Growth: 10.28%
• Country: US
• Employees: 800
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.06
• Shares Outstanding: 49,899,460
• 10 Day Avg. Volume: 646,067
• 30 Day Avg. Volume: 796,811
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 4.12
• Enterprise Value/Gross Profit: 19.46
• Enterprise Value/Ebitda: -21.24
• 1Y Price Target: $28.10
• Price Target Upside: -10.99% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $35.00 ▲(10.86% Upside)

nLIGHT's overall stock score is driven by strong earnings call results, highlighting significant growth in aerospace and defense and improved margins. However, financial performance remains a concern due to negative profitability and cash flow issues. Technical indicators are positive, but valuation metrics are weak, reflecting ongoing challenges.

Positive Factors

Aerospace and Defense Revenue Growth

The significant growth in aerospace and defense revenue highlights nLIGHT's strong position in a lucrative market, driven by defense contracts such as the HELSI-2 program, ensuring sustained demand and revenue stability.

Gross Margin Improvement

Improved gross margins indicate enhanced operational efficiency and a favorable business mix, contributing to better profitability and financial health over the long term.

International Expansion in Directed Energy

International expansion in directed energy opens new markets and revenue streams, enhancing nLIGHT's global footprint and long-term growth prospects.

Negative Factors

Commercial Market Challenges

Declining commercial revenue reflects challenges in industrial applications, potentially impacting overall revenue growth and necessitating strategic adjustments.

Profitability Issues

Ongoing profitability and cash flow issues suggest operational inefficiencies, which could hinder long-term financial stability and investment capacity.

Decline in Manufacturing Operations in China

The exit from China may limit market access and increase costs, affecting competitiveness in the industrial and microfabrication sectors.

nLIGHT Business Overview & Revenue Model

Company Description

nLIGHT, Inc. designs, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. It operates in two segments, Laser Products and Advanced Development. The company also provides fiber amplifiers, and beam combination and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through various independent sales representatives and distributors in Asia, Europe, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.

How the Company Makes Money

nLIGHT generates revenue through the sale of its laser products and systems, which are utilized across multiple industries including manufacturing, aerospace, and defense. The company has established key revenue streams from its semiconductor and fiber laser products, which are in high demand for applications such as cutting, welding, and medical procedures. Additionally, nLIGHT benefits from long-term contracts and partnerships with major corporations and government entities, enhancing its earnings stability. The company also invests in research and development to expand its product offerings and maintain competitive advantages, which further contributes to its revenue growth.

nLIGHT Financial Statement Overview

Summary

nLIGHT faces financial difficulties with declining revenues, persistent losses, and negative cash flows. The company's reliance on equity over debt provides some stability, but the operating inefficiencies and declining asset base present significant risks. Strategic improvements and cost management are essential for sustainable growth.

Income Statement

nLIGHT's financial performance shows a declining trend in revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 19.12%, and the net profit margin stands at -26.80%, indicating significant losses. Revenue decreased by approximately 3.45% from 2023 to 2024 and by 3.44% from 2024 to TTM. The EBIT and EBITDA margins are negative, reflecting consistent operational challenges.

Balance Sheet

The company's balance sheet displays a relatively healthy equity position with a debt-to-equity ratio of 0.15 in TTM. However, stockholders' equity and total assets have been declining. The equity ratio is 73.36%, indicating a strong reliance on equity financing, which provides some financial stability.

Cash Flow

Negative operating cash flow and free cash flow highlight liquidity challenges. The TTM free cash flow is -$22.41 million, showing a worsening trend compared to previous periods. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio is negative, signaling inefficiencies in cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.91M	198.55M	209.92M	242.06M	270.15M	222.79M
Gross Profit	45.94M	33.02M	46.11M	50.82M	77.31M	59.36M
EBITDA	-42.09M	-43.75M	-29.92M	-35.54M	-15.16M	-7.36M
Net Income	-46.98M	-60.79M	-41.67M	-54.58M	-29.67M	-20.93M
Balance Sheet
Total Assets	295.25M	270.24M	306.80M	329.23M	373.62M	283.64M
Cash, Cash Equivalents and Short-Term Investments	113.70M	100.70M	112.88M	108.22M	146.53M	102.28M
Total Debt	32.00M	12.13M	14.16M	15.61M	17.68M	13.05M
Total Liabilities	79.25M	53.81M	52.38M	58.39M	71.48M	63.73M
Stockholders Equity	216.00M	216.43M	254.42M	270.85M	302.13M	219.91M
Cash Flow
Free Cash Flow	-19.81M	-10.29M	4.75M	-36.26M	-29.00M	-11.31M
Operating Cash Flow	-10.91M	-2.36M	10.09M	-14.54M	-7.44M	13.04M
Investing Cash Flow	21.25M	16.69M	-14.10M	-72.38M	-21.85M	-24.54M
Financing Cash Flow	18.98M	-1.30M	-859.00K	-1.31M	73.74M	-3.77M

nLIGHT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LASR, the sentiment is Positive. The current price of 31.57 is above the 20-day moving average (MA) of 31.25, above the 50-day MA of 30.10, and above the 200-day MA of 17.80, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LASR.

nLIGHT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	―	$1.41B	13.55	9.89%	―	-1.79%	-22.58%
HIMX	―	$1.64B	22.21	8.64%	3.95%	-2.16%	-2.77%
VECO	―	$1.75B	28.76	7.83%	―	-0.19%	-28.72%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LASR	―	$1.58B	―	-20.63%	―	9.79%	10.28%
AAOI	―	$2.21B	―	-50.93%	―	77.94%	-75.13%
IPGP	―	$3.55B	―	-9.89%	―	-14.77%	-261.91%

nLIGHT Corporate Events

nLIGHT Approves Special PRSUs for Key Executives

On August 13, 2025, nLIGHT, Inc. announced the approval of special one-time performance-based restricted stock units (Special PRSUs) by its Compensation Committee, aimed at driving stock price growth and addressing retention needs amid business plan transitions. The Special PRSUs, part of the 2018 Equity Incentive Plan, were granted to key executives, including the principal executive officer and principal financial officer, with specific stock price goals set for vesting over a six-year period. Additionally, the company amended the employment agreement of its principal executive officer, Scott Keeney, to incorporate terms of the Special PRSUs and adjust definitions related to employment termination, which could impact severance eligibility and vesting conditions.

The most recent analyst rating on (LASR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on nLIGHT stock, see the LASR Stock Forecast page.

nLIGHT Shines with Record A&D Revenue in Earnings Call

The recent earnings call of nLIGHT, Inc. painted a largely positive picture, with strong performance in the Aerospace and Defense (A&D) segment taking center stage. The company reported record revenue in this area, alongside significant growth in defense products. Improved gross margins and a turnaround in financial performance with positive adjusted EBITDA and non-GAAP net income were also highlighted. However, challenges persist in the commercial markets, which saw a year-over-year decline, and the company continues to experience a GAAP net loss. Despite these challenges, the robust growth and performance in the A&D sector were the standout features of the call.

nLIGHT Reports Strong Q2 2025 Results Driven by Aerospace

nLIGHT, Inc. is a prominent provider of high-power lasers, specializing in mission-critical directed energy, optical sensing, and advanced manufacturing applications, with operations spanning the United States, Europe, and Asia. The company recently announced its second-quarter 2025 financial results, showcasing a notable performance driven by record revenues in the aerospace and defense sector.