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nLIGHT Inc (LASR)
NASDAQ:LASR
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nLIGHT
(NASDAQ:LASR)
Rating:61Neutral
Price Target:
$18.50
▲(4.93%Upside)
Positive Factors
Revenue Growth
LASR turned an encouraging Q1 report, reflecting stronger growth and much better bottom-line results.
Sales Performance
Aided by record Aerospace/Defense sales and higher than expected margins nLIGHT reported a smaller than expected loss.
Strategic Partnerships
LASR is believed to be working with key players in Israel on the Iron Beam system, indicating strategic partnerships in directed energy weapons.
Negative Factors
Commercial Business Decline
The Commercial business declined 17% y/o/y in Q1 and is expected to decline 15%-20% in 2025, consistent with prior expectations.
Execution Challenges
The overall lower revenue was due to several factors, including continued weakness in its industrial markets and execution challenges in its microfabrication business.
Industrial Sales Decline
Industrial sales were down 26% y/y.
nLIGHT (LASR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$870.13M
Dividend YieldN/A
Average Volume (3M)710.56K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth2.66%
EPS Growth-11.35%
CountryUS
Employees800
SectorTechnology
Sector Strength84
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding49,439,472
10 Day Avg. Volume946,101
30 Day Avg. Volume710,564
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.78
Price to Sales (P/S)0.00
P/FCF Ratio-37.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.25Price Target Upside-7.83% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering5
nLIGHT Business Overview & Revenue Model
Company DescriptionnLIGHT, 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 MoneynLIGHT generates revenue by selling its high-performance laser products to a diverse range of industries. The company's primary revenue streams include direct sales of semiconductor and fiber lasers to industrial manufacturers, microfabrication companies, and aerospace and defense contractors. These lasers are utilized in various applications, including welding, cutting, engraving, and 3D printing. nLIGHT also engages in partnerships and collaborations with key players in these sectors, which can contribute to its earnings through joint development projects and supply agreements. Additionally, the company may offer service and maintenance contracts for its laser systems, providing a recurring revenue stream.
nLIGHT Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 104.76%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in the defense segment, contributing to overall revenue growth and improved gross margins. However, there are ongoing challenges in the commercial markets and uncertainties related to tariffs that could impact future performance.Q1-2025 Updates
Positive Updates
Record Defense Revenue
Defense revenue represented more than 63% of total sales in the quarter, up from 49% in the same quarter a year ago, with defense product sales growing over 50% year over year.
Significant Growth in A&D Segment
Aerospace and defense revenue was $32.7 million in the quarter, up 50.4% year over year and 8.6% sequentially.
Improved Gross Margin
Total gross margin in the first quarter was 26.7%, compared to 16.8% in the first quarter of 2024. The improvement was due to higher product volumes, favorable mix, and duty reclaim.
Positive Adjusted EBITDA
Adjusted EBITDA for the first quarter was $116,000 compared to a loss of $4.9 million in the first quarter of 2024.
Strong Financial Position
Ended the first quarter with total cash, cash equivalents, restricted cash, and investments of $117 million.
Negative Updates
Decline in Commercial Revenue
First quarter revenue from commercial markets, including industrial and microfabrication, was $19 million, a decrease of 16.8% year over year.
Tariff-Related Uncertainty
Significant uncertainty about the impact of high tariffs on the overall economy, demand from customers, and material costs for products.
Ongoing Challenges in Industrial Markets
Industrial and microfabrication markets remain challenging, with demand expected to remain weak through the remainder of the year.
Company Guidance
In the first quarter of 2025, nLIGHT, Inc. reported robust financial results, surpassing the high end of its guidance for revenue, gross margin, and adjusted EBITDA. The company achieved total revenue of $51.7 million, marking a 16% increase from the previous year. Aerospace and defense (A&D) revenue reached $32.7 million, reflecting a 50.4% year-over-year growth, driven by record defense product revenue, which surged more than 150%. This growth was primarily due to increased deliveries for the HEL-TD direct energy laser program. For the second quarter, nLIGHT projects revenue between $53 million and $59 million, with A&D revenue expected to rise sequentially and year over year. The total gross margin for the first quarter was 26.7%, benefiting from a $1.9 million duty reclaim, which without this would have been approximately 23%. Operating expenses were $23.4 million, and the company ended the quarter with $117 million in cash and investments, drawing $20 million from its line of credit to bolster its balance sheet amid tariff uncertainties. Looking forward, nLIGHT anticipates at least a 25% revenue increase in the A&D sector for the full year, despite ongoing challenges in the industrial and microfabrication markets.nLIGHT Financial Statement Overview
Summary
nLIGHT is experiencing financial difficulties with declining revenues, persistent losses, and negative cash flows. The company's strong equity base provides some financial stability, but profitability and cash flow challenges pose significant risks.Income Statement
nLIGHT's income statement shows a declining revenue trend, with a significant decrease from $242M in 2022 to $198M in 2024. The company has been operating at a loss, with negative EBIT and net profit margins over the years, indicating profitability challenges. Gross profit margin has also declined from 21.0% in 2023 to 16.6% in 2024, reflecting cost pressures or inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 80.1% in 2024, indicating low leverage and financial stability. However, the company has been facing declining stockholders' equity and total assets over time. The debt-to-equity ratio remains low, suggesting manageable debt levels despite the profitability issues.60
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow in 2024, with a concerning decrease from $4.75M in 2023 to -$10.29M in 2024. Operating cash flow has also turned negative, indicating potential liquidity challenges. The free cash flow to net income ratio is unfavorable, further highlighting cash flow management issues.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 198.55M | 209.92M | 242.06M | 270.15M | 222.79M | Gross Profit |
| 33.02M | 46.11M | 50.82M | 77.31M | 59.36M | EBIT |
| -65.64M | -45.95M | -51.21M | -30.22M | -21.05M | EBITDA |
| -43.75M | -29.92M | -35.54M | -15.16M | -7.36M | Net Income Common Stockholders |
| -60.79M | -41.67M | -54.58M | -29.67M | -20.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.70M | 112.88M | 108.22M | 146.53M | 102.28M | Total Assets |
| 270.24M | 306.80M | 329.23M | 373.62M | 283.64M | Total Debt |
| 12.13M | 14.16M | 15.61M | 17.68M | 13.05M | Net Debt |
| -53.70M | -39.05M | -42.22M | -128.86M | -89.23M | Total Liabilities |
| 53.81M | 52.38M | 58.39M | 71.48M | 63.73M | Stockholders Equity |
| 216.43M | 254.42M | 270.85M | 302.13M | 219.91M |
| Cash Flow | Free Cash Flow | |||
| -10.29M | 4.75M | -36.26M | -29.00M | -11.31M | Operating Cash Flow |
| -2.36M | 10.09M | -14.54M | -7.44M | 13.04M | Investing Cash Flow |
| 16.69M | -14.10M | -72.38M | -21.85M | -24.54M | Financing Cash Flow |
| -1.30M | -859.00K | -1.31M | 73.74M | -3.77M |
nLIGHT Technical Analysis
Positive
17.63
Price Trends
10.56
Positive
10.28
Positive
10.68
Positive
Market Momentum
2.03
Negative
81.79
Negative
80.21
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 17.63 is above the 20-day moving average (MA) of 14.84, above the 50-day MA of 10.56, and above the 200-day MA of 10.68, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 81.79 is Negative, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LASR.
nLIGHT Risk Analysis
nLIGHT disclosed 35 risk factors in its most recent earnings report. nLIGHT reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
nLIGHT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.93B | ― | -9.17% | ― | -20.08% | -218.29% | |
62 Neutral | $11.80B | 10.31 | -7.45% | 2.91% | 7.43% | -7.78% | |
61 Neutral | $870.13M | ― | -24.12% | ― | 2.66% | -11.35% | |
60 Neutral | $357.73M | ― | -4.71% | ― | -4.77% | 84.82% | |
60 Neutral | $1.19B | ― | -26.43% | ― | -16.95% | -2.47% | |
55 Neutral | $609.91M | ― | -32.43% | ― | -7.09% | -53.23% | |
42 Neutral | $216.32M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
LASR
nLIGHT
17.63
5.58
46.31%
WOLF
Wolfspeed
1.45
-27.05
-94.91%
IPGP
IPG Photonics
69.26
-15.98
-18.75%
INDI
indie Semiconductor
3.03
-4.32
-58.78%
NVTS
Navitas Semiconductor
7.30
2.76
60.79%
XPER
Xperi Inc
7.95
0.14
1.79%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.