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…
Earnings analysis · 10-Q
LASR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.02
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.