nLIGHT (LASR) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: N/A
• Average Volume (3M): 772.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• 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: 535,101
• 30 Day Avg. Volume: 772,557
• 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: 0.73
• Enterprise Value/Revenue: 6.18
• Enterprise Value/Gross Profit: 25.96
• Enterprise Value/Ebitda: -55.87
• 1Y Price Target: $39.75
• Price Target Upside: 10.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $240.26M

• Rating: 61 Neutral
• Price Target: $37.00 ▲(2.44% Upside)

nLIGHT's overall stock score reflects a mix of positive technical momentum and optimistic earnings call guidance, counterbalanced by significant financial performance challenges and a difficult valuation scenario. The company's strong position in the defense sector provides a positive outlook, but persistent financial losses and cash flow issues remain a concern.

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, 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

nLIGHT faces significant financial challenges, with persistent losses and cash flow issues. Despite a strong balance sheet with low leverage, the inability to generate positive net income and cash flow raises concerns about its financial health and sustainability.

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: 36.12
• 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 36.12 is above the 20-day moving average (MA) of 33.66, above the 50-day MA of 32.49, and above the 200-day MA of 21.18, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 80.36 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	74 Outperform	$1.42B	13.68	11.89%	―	-2.04%	8.84%
VECO	70 Neutral	$1.94B	38.93	6.12%	―	-3.90%	-41.66%
HIMX	69 Neutral	$1.65B	26.35	7.17%	4.26%	-3.62%	-20.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LASR	61 Neutral	$1.92B	―	-19.18%	―	12.05%	14.24%
IPGP	58 Neutral	$3.60B	137.29	1.22%	―	-7.49%	―
AAOI	52 Neutral	$2.39B	―	-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.