nLIGHT (LASR) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 805.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 12.05%
• EPS Growth: 14.24%
• Country: US
• Employees: 800
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.08
• Shares Outstanding: 50,786,007
• 10 Day Avg. Volume: 1,128,152
• 30 Day Avg. Volume: 805,874
• PEG Ratio: -0.20
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 2.53
• P/FCF Ratio: -48.83
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 6.18
• Enterprise Value/Gross Profit: 25.96
• Enterprise Value/Ebitda: -55.87
• 1Y Price Target: $39.75
• Price Target Upside: 38.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $240.26M

• Rating: 51 Neutral
• Price Target: $31.00 ▲(8.16% Upside)

nLIGHT's overall stock score is primarily influenced by its financial challenges, including persistent losses and cash flow issues. While the earnings call provided an optimistic outlook with strong growth in aerospace and defense, the negative valuation metrics and mixed technical indicators weigh down the score.

Positive Factors

Aerospace and Defense Growth

Strong growth in aerospace and defense sectors indicates robust demand and strategic positioning, enhancing long-term revenue stability.

Product Gross Margin Expansion

Improved gross margins reflect operational efficiency and a favorable product mix, supporting sustainable profitability.

New Contracts

New contracts in laser sensing enhance revenue streams and reinforce market leadership in high-tech applications.

Negative Factors

Profitability Challenges

Persistent profitability issues indicate operational inefficiencies, which could hinder long-term financial health and growth.

Cash Flow Issues

Negative cash flow highlights liquidity challenges, potentially limiting the company's ability to invest in growth opportunities.

Decline in Commercial Markets

Declining commercial revenue suggests weakening demand in this segment, which may affect overall revenue diversification.

nLIGHT Business Overview & Revenue Model

Company Description

nLIGHT (LASR) is a leading provider of high-performance laser technology, primarily serving the industrial, aerospace, and defense sectors. The company specializes in designing and manufacturing advanced laser systems and components, including semiconductor lasers, fiber lasers, and laser modules. nLIGHT’s innovative products are used in various applications such as material processing, medical devices, and telecommunications, positioning the company at the forefront of the fast-evolving laser market.

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 significant financial challenges, with persistent losses and cash flow issues. While the company maintains a strong balance sheet with low leverage, its inability to generate positive net income and cash flow raises concerns about its financial health and sustainability in the competitive semiconductor industry.

Income Statement

nLIGHT's income statement reveals a challenging environment with consistent net losses and negative profit margins. Despite a slight revenue growth in the TTM period, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins. The gross profit margin has improved over the years, but the net profit margin remains negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, highlighting inefficiencies in generating profits from shareholders' equity. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE is a concern for investors.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting income into cash. The free cash flow to net income ratio is high due to negative net income, but this is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	227.53M	198.55M	209.92M	242.06M	270.15M	222.79M
Gross Profit	54.14M	33.02M	46.11M	50.82M	77.31M	59.36M
EBITDA	-25.16M	-43.75M	-29.92M	-35.51M	-15.16M	-7.36M
Net Income	-43.52M	-60.79M	-41.67M	-54.58M	-29.67M	-20.93M
Balance Sheet
Total Assets	298.69M	270.24M	306.80M	329.23M	373.62M	283.64M
Cash, Cash Equivalents and Short-Term Investments	115.79M	100.70M	112.88M	108.22M	146.53M	102.28M
Total Debt	31.31M	12.13M	14.16M	15.61M	17.68M	13.05M
Total Liabilities	80.20M	53.81M	52.38M	58.39M	71.48M	63.73M
Stockholders Equity	218.49M	216.43M	254.42M	270.85M	302.13M	219.91M
Cash Flow
Free Cash Flow	-10.14M	-10.29M	4.75M	-36.26M	-29.00M	-11.31M
Operating Cash Flow	-75.00K	-2.36M	10.09M	-14.54M	-7.44M	13.04M
Investing Cash Flow	20.34M	16.69M	-14.10M	-72.38M	-21.85M	-24.54M
Financing Cash Flow	19.59M	-1.30M	-859.00K	-1.31M	73.74M	-3.77M

nLIGHT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 28.66 is below the 20-day moving average (MA) of 31.68, below the 50-day MA of 30.97, and above the 200-day MA of 19.42, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 16.06 is Positive, 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
VECO	70 Neutral	$1.66B	31.83	6.12%	―	-3.90%	-41.66%
PLAB	65 Neutral	$1.21B	11.49	9.89%	―	-1.79%	-22.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	61 Neutral	$1.26B	20.04	7.17%	5.34%	-3.62%	-20.33%
IPGP	58 Neutral	$3.19B	120.59	1.22%	―	-7.49%	―
LASR	51 Neutral	$1.50B	―	-19.18%	―	12.05%	14.24%
AAOI	42 Neutral	$1.43B	―	-40.43%	―	101.25%	-56.11%

nLIGHT Corporate Events

nLIGHT’s Earnings Call Highlights Robust Growth Amid Challenges

In the recent earnings call, nLIGHT, Inc. expressed a generally positive sentiment, highlighting strong revenue growth, particularly in the aerospace and defense sectors, alongside significant margin expansion. While challenges persist in the commercial markets and restructuring efforts in China, the overall outlook remains optimistic, buoyed by robust defense sector contracts and progress in key programs.

nLIGHT Reports Strong Q3 2025 Performance

nLIGHT, Inc. is a prominent provider of high-power lasers, catering to mission-critical applications in directed energy, optical sensing, and advanced manufacturing sectors. Headquartered in Camas, Washington, the company operates globally with a workforce of approximately 800 employees.

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.