nLIGHT (LASR) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• 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: 54,763,280
• 10 Day Avg. Volume: 1,719,694
• 30 Day Avg. Volume: 1,472,593
• 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: 11.54
• Enterprise Value/Gross Profit: 38.67
• Enterprise Value/Ebitda: -355.21
• 1Y Price Target: $66.75
• Price Target Upside: 18.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): $281.50M

• Rating: 64 Neutral
• Price Target: $60.00 ▲(6.78% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

LASR scores in the mid-range primarily due to improving fundamentals (revenue and margin recovery with positive operating/free cash flow) and strong technical momentum. The score is held back by continued GAAP losses/negative returns and a weak valuation signal (negative P/E, no dividend), while the latest earnings call supports the improving trajectory but highlights meaningful execution and backlog/headwind risks.

Positive Factors

Revenue recovery and A&D growth

A durable rebound in revenue, driven by a 60% YoY jump in A&D, signals structural demand in defense and aerospace end markets. This broad-based recovery reduces reliance on volatile segments and supports multi-quarter revenue visibility from funded programs and long-term contracts.

Improving cash generation

Turning operating and free cash flow positive reflects improved operational leverage and cash conversion versus prior years. Sustained positive cash generation enhances funding for capex, new facility build-out, and working capital without relying solely on external financing.

Reinforced balance sheet after capital raise

A sizable equity raise plus conservative leverage (debt-to-equity ~0.16) materially increases liquidity and reduces financial risk. This balance-sheet flexibility supports planned capacity investments, absorption of program timing variability, and positions the company to fund operations and R&D over multiple quarters.

Negative Factors

Persistent GAAP losses

Despite margin and revenue recovery, continued GAAP losses indicate the company hasn't fully converted margin expansion into sustainable profitability. Ongoing net losses constrain retained earnings, reduce return on equity, and limit long-term compounding absent sustained positive net income.

Strategic exit causes material revenue headwind

Deliberate exit of an established product line removes near-term revenue and factory utilization, pressuring top-line continuity. The structural revenue gap requires replacement via new awards or organic growth; failure to replace lost sales would impair margin leverage and capacity economics.

Flat funded backlog and program execution risk

A flat funded backlog limits forward revenue visibility beyond the current year and increases reliance on converting prototypes and government awards. Given noted timing and execution uncertainty on defense programs, backlog stagnation raises the risk of revenue volatility and delayed growth realization.

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 generates revenue primarily through the sale of its laser products, which include high-power fiber lasers and semiconductor lasers. The company has multiple key revenue streams, including direct sales to original equipment manufacturers (OEMs) and end-users in various industries. Additionally, nLIGHT engages in long-term contracts and partnerships with significant players in the aerospace and defense sectors, which provide steady revenue. The company also invests in research and development to create new technologies and applications for its lasers, further expanding its market reach and revenue potential.

nLIGHT Financial Statement Overview

Summary

Financials show a turnaround in progress: revenue rebounded in 2025 and gross margin improved sharply, with operating cash flow and free cash flow turning positive. However, the company remains GAAP unprofitable with negative returns, keeping the overall financial quality moderate despite low leverage.

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	315.21M	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	88.46M	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: 56.19
• 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 56.19 is above the 20-day moving average (MA) of 53.04, above the 50-day MA of 45.75, and above the 200-day MA of 30.70, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 80.47 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	$2.17B	15.96	11.67%	―	-2.04%	8.84%
LASR	64 Neutral	$3.08B	―	-10.59%	―	12.05%	14.24%
IPGP	64 Neutral	$5.55B	180.33	1.50%	―	-7.49%	―
VECO	62 Neutral	$1.85B	51.67	4.32%	―	-3.90%	-41.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	55 Neutral	$1.27B	28.90	4.95%	4.48%	-3.62%	-20.33%
AAOI	54 Neutral	$6.33B	-128.50	-7.94%	―	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.