LASR earnings analysis
What we found in LASR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
nLIGHT delivered strong second-quarter growth, with revenue of $82.591 million up 33.8% year over year and gross margin improving to 31.1%, although both gross and operating margins declined sequentially from 33.1% and negative 0.9%, respectively. Laser Products led performance, while Advanced Development revenue grew 11.1% but its segment gross margin fell to 7.5%. Liquidity improved substantially following $191.275 million of net offering proceeds, and operating cash flow reached $30.416 million; however, China customs disruptions, customer concentration, development-margin compression and rising operating expenses remain material risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Grew 33.8% Year Over Year
- Second-quarter revenue was $82.591 million, up $20.856 million, or 33.8%, from $61.735 million a year earlier and up from $80 million in Q1 2026.
- Product Mix Lifted Gross Margin
- Gross margin increased to 31.1% from 29.9% year over year, although it declined from 33.1% in Q1 2026. Management attributed the annual improvement to product mix and higher production volumes improving fixed-cost absorption.
- Operating Loss Improved Year Over Year
- Operating loss narrowed to $3.567 million from $4.236 million a year earlier, improving operating margin to negative 4.4% from negative 6.8%. However, operating margin deteriorated from negative 0.9% in Q1 2026.
- Laser Products Drove Growth
- Laser Products revenue rose 45.4% to $59.363 million, with segment gross margin expanding to 42.4% from 40.0%. Management cited increased unit sales across all end markets.
- Operating Cash Flow Turned Positive
- Net cash provided by operating activities was $30.416 million versus operating cash usage of $1.405 million in the prior-year period. Cash generation included a $9.238 million increase in deferred revenues and $21.849 million of stock-based compensation.
- Liquidity Strengthened Materially
- Cash, cash equivalents and restricted cash increased to $296.083 million from $99.021 million at December 31, 2025, supported by $191.275 million of net public-offering proceeds; the $20.0 million line-of-credit balance was repaid and $40.0 million remained available.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- China Customs Disruptions
- Components from key non-U.S. suppliers and certain nLIGHT shipments were held in China customs. China’s June 2026 requirements increased compliance costs and customs clearance times, and management expects disruptions could materially negatively affect revenue and profitability in future periods.
- Customer Concentration Increased
- The U.S. Government represented 37% of second-quarter revenue, while one customer represented 30% of net customer receivables as of June 30, 2026. This concentration increases exposure to government funding decisions and customer credit or demand changes.
- Development Margin Compression
- Advanced Development gross margin fell to 7.5% from 13.1% year over year, as the revenue mix shifted toward lower-margin cost-plus-fixed-fee contracts. Development gross margin was 5.6% on consolidated development revenue for the quarter, versus 13.1% a year earlier.
- Operating Expense Growth
- Sales, general and administrative expense increased 38.4% to $16.162 million, while research and development expense increased 19.2% to $13.130 million. Stock-based compensation expense rose to $10.963 million from $6.371 million year over year.
- Working Capital Investment
- Inventory increased to $48.230 million from $45.407 million at December 31, 2025, and prepaid expenses and other current assets increased to $21.854 million from $13.314 million. These increases consumed working capital despite the $30.416 million of operating cash flow.
- Equity Compensation and Dilution
- The company disclosed approximately $3.1 million of outstanding performance restricted stock units as of June 30, 2026, and $72.9 million of unrecognized stock-based compensation to be recognized over an average of 2.0 years, creating potential dilution and expense pressure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.02
- Gross margin
- 31.1%
- Operating margin
- -4.4%
- Segment
- Laser Products revenue: $59.363 million, up 45.4% year over year; segment gross margin was 42.4% versus 40.0%.
- Segment
- Advanced Development revenue: $23.228 million, up 11.1% year over year; segment gross margin was 7.5% versus 13.1%.
- Segment
- Aerospace and Defense revenue: $57.298 million, up 40.8% year over year.
- Segment
- Industrial revenue: $12.042 million, up 23.6% year over year.
- Segment
- Microfabrication revenue: $13.251 million, up 17.3% year over year.
What they said about what is next.
No explicit quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that existing liquidity is sufficient for working capital and capital expenditure needs for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- nLIGHT, Inc. reported strong Q1 2026 results, with revenue rising to $80.2 million, up 55.2% year-over-year, and EPS of $0.22, exceeding expectations. Management highlighted growth driven primarily by the Aerospace and…
- 10-K · February 27, 2026
- nLIGHT (LASR) positions itself as a vertically integrated supplier of high‑power semiconductor and fiber lasers across Aerospace & Defense, Industrial and Microfabrication markets, operating in two reportable segments…
- 10-Q · August 8, 2025
- nLIGHT reported Q2 revenue of $61.735M, up 22.2% year-over-year and up ~19.5% sequentially, with gross margin expanding to 29.9% and operating loss narrowing to -6.9% (GAAP loss per share $(0.07)). Balance sheet…
- 10-Q · May 9, 2025
- nLIGHT reported Q1 2025 revenue of $51.668 million, up from $44.527 million in Q1 2024, with gross profit rising to $13.799 million and gross margin improving to ~26.7% (from ~16.8% a year ago). The company narrowed its…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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