nLIGHT (LASR) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: 12.05%
• EPS Growth: 14.24%
• Country: US
• Employees: 800
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.14
• Shares Outstanding: 55,791,320
• 10 Day Avg. Volume: 2,168,418
• 30 Day Avg. Volume: 2,105,628
• PEG Ratio: 1.31
• Price to Book (P/B): 8.43
• Price to Sales (P/S): 7.31
• P/FCF Ratio: 155.34
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 14.89
• Enterprise Value/Gross Profit: 49.92
• Enterprise Value/Ebitda: -458.58
• 1Y Price Target: $74.08
• Price Target Upside: 8.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $280.25M

• Rating: 66 Neutral
• Price Target: $74.00 ▲(7.97% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by improving fundamentals (revenue/margin recovery and positive free cash flow) and supportive technical momentum. Offsetting these positives are continued GAAP losses (negative P/E) and execution risk noted in guidance, including the cutting/welding exit headwind and reliance on converting defense program awards.

Positive Factors

Revenue and margin recovery

nLIGHT’s 2025 top-line recovery (+32%) and material gross margin improvement to ~30% reflect structural improvements in product mix and pricing leverage. Sustained revenue growth with expanding gross margins supports durable operating scalability and better absorption of fixed costs over the next 2–6 months.

Improved cash generation

The shift to positive operating and free cash flow signals stronger cash conversion from operations versus prior years. Reliable cash generation enhances funding for capex, backlog fulfillment and working capital, reducing short-term liquidity reliance and supporting execution on defense contracts and capacity investments.

Stronger balance sheet after capital raise

A sizable equity raise and cash balance materially improve financial flexibility and lower refinancing risk while leverage remains modest. This stronger liquidity profile supports planned factory build-out, program investments and weathering timing variability in government award receipts over the coming quarters.

Negative Factors

Persistent GAAP losses

Despite margin and revenue improvements, continued GAAP losses indicate the company has not yet translated operational gains into sustained profitability. Ongoing losses limit retained earnings compounding, constrain return metrics and prolong the need for external capital if improvements stall.

Revenue headwind from business exit

Strategic exit of the cutting/welding business reduces near-term revenue and narrows market diversification. A $25M–$30M recurring headwind meaningfully pressures 2026 topline targets and raises dependence on A&D program wins to sustain growth, increasing execution stakes for the company.

Execution and backlog risk

Growth relies on converting technical government prototypes into production; management flagged execution and timing uncertainty and backlog held essentially flat at ~$162M. Flat funded backlog plus program timing risk can delay revenue recognition and strains predictability of multi-quarter growth.

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 primarily makes money by selling laser sources and photonic components to customers in two main end markets: Industrial and Aerospace & Defense. In Industrial, revenue is generated through sales of high-power fiber lasers and related components that are integrated into customers’ materials processing systems (e.g., cutting, welding, additive manufacturing). In Aerospace & Defense, revenue is generated by supplying laser technologies and components for defense applications, including directed energy and other mission-oriented systems, typically sold to defense prime contractors, government-related programs, and their supply chains. Revenue is generally recognized from product shipments under customer purchase orders and longer-cycle program deliveries in defense; the company’s earnings are influenced by mix between industrial demand cycles and defense program timing and funding. Specific material partnerships or customer concentration details are not available: null.

nLIGHT Financial Statement Overview

Summary

Financials show a clear turnaround: revenue and gross margin improved materially in 2025 and both operating cash flow and free cash flow turned positive. Offsetting this, the company remains GAAP unprofitable with negative returns, keeping overall quality in the “improving but not yet proven” range.

Income Statement

Revenue rebounded strongly in 2025 (up ~14.9% to $261.3M) after declines in 2022–2024, and gross margin improved sharply to ~29.8% from ~16.6% in 2024. However, profitability remains weak with continued losses (2025 net loss of ~$23.5M; net margin ~-9.0%), indicating the company has not yet converted the improved top-line and gross profit into sustained operating profitability.

Balance Sheet

The balance sheet looks relatively conservative with low leverage (2025 debt-to-equity ~0.16; total debt ~$36.2M versus equity ~$226.7M). That said, returns remain negative (2025 return on equity ~-10.3%) and equity has trended down versus earlier years, reflecting ongoing losses and limiting balance-sheet compounding despite the modest debt load.

Cash Flow

Cash generation improved meaningfully in 2025 with positive operating cash flow (~$21.3M) and positive free cash flow (~$12.3M), a notable turnaround from negative free cash flow in 2024. The key weakness is volatility—free cash flow growth is sharply negative year-over-year (from a rebound off a weak 2024 base), and historical swings between positive and negative cash flow suggest cash conversion is not yet consistently durable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	261.33M	198.55M	209.92M	242.06M	270.15M
Gross Profit	77.96M	33.02M	46.11M	50.82M	77.31M
EBITDA	-19.95M	-43.75M	-29.92M	-35.51M	-15.16M
Net Income	-23.47M	-60.79M	-41.67M	-54.58M	-29.67M
Balance Sheet
Total Assets	318.11M	270.24M	306.80M	329.23M	373.62M
Cash, Cash Equivalents and Short-Term Investments	133.63M	100.70M	112.88M	108.22M	146.53M
Total Debt	36.21M	12.13M	14.16M	15.61M	17.68M
Total Liabilities	91.36M	53.81M	52.38M	58.39M	71.48M
Stockholders Equity	226.75M	216.43M	254.42M	270.85M	302.13M
Cash Flow
Free Cash Flow	12.30M	-10.29M	4.75M	-36.26M	-29.00M
Operating Cash Flow	21.33M	-2.36M	10.09M	-14.54M	-7.44M
Investing Cash Flow	-8.77M	16.69M	-14.10M	-72.38M	-21.85M
Financing Cash Flow	20.11M	-1.30M	-859.00K	-1.31M	73.74M

nLIGHT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 68.54 is above the 20-day moving average (MA) of 62.38, above the 50-day MA of 52.80, and above the 200-day MA of 34.01, indicating a bullish trend. The MACD of 4.39 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.41 is Negative, 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	78 Outperform	$2.18B	12.15	11.84%	―	-2.04%	8.84%
LASR	66 Neutral	$3.95B	-81.41	-10.74%	―	12.05%	14.24%
VECO	62 Neutral	$1.90B	47.89	4.13%	―	-3.90%	-41.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	60 Neutral	$1.57B	32.53	4.96%	4.48%	-3.62%	-20.33%
IPGP	60 Neutral	$5.18B	98.08	1.48%	―	-7.49%	―
AAOI	57 Neutral	$7.66B	-54.88	-7.54%	―	101.25%	-56.11%

nLIGHT Corporate Events

nLIGHT Announces Underwritten Public Offering of Common Stock

On February 3, 2026, nLIGHT, Inc. entered into an underwriting agreement with a syndicate of investment banks for an underwritten public offering of 3,977,273 shares of its common stock at $44.00 per share to the public, with underwriters purchasing at $42.02 per share. The deal, which includes a 30‑day option for underwriters to buy up to an additional 596,590 shares, is expected to generate approximately $166.5 million in net proceeds, or about $191.5 million if the option is fully exercised, to be used for working capital, capital expenditures and other general corporate purposes, and is scheduled to close around February 5, 2026, subject to customary conditions; the agreement also contains standard indemnification, closing conditions and 60‑day lock‑up arrangements for the company’s executives and directors, underscoring a structured capital‑raising move that may bolster nLIGHT’s balance sheet while temporarily restricting insider share sales.

The most recent analyst rating on (LASR) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on nLIGHT stock, see the LASR Stock Forecast page.

nLIGHT Appoints Gerald Haines II to Board, Audit Committee

On January 5, 2026, nLIGHT, Inc. appointed Gerald M. Haines II to its board of directors as a Class I director, with a term running through the 2028 annual meeting of stockholders, and named him to the board’s audit committee. Haines, a veteran finance and operations executive with prior CFO roles at Metabolon and Impulse Dynamics and extensive experience driving growth, acquisitions, and operational scaling at Mercury Systems and other technology-focused companies, joins nLIGHT under standard director compensation and indemnification terms, bolstering the company’s financial oversight and governance capabilities without any related-party transactions or special selection arrangements disclosed.

The most recent analyst rating on (LASR) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on nLIGHT stock, see the LASR Stock Forecast page.