nLIGHT (LASR) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 979.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 9.79%
• EPS Growth: 10.28%
• Country: US
• Employees: 800
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): 0.06
• Shares Outstanding: 49,899,460
• 10 Day Avg. Volume: 801,300
• 30 Day Avg. Volume: 979,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 4.12
• Enterprise Value/Gross Profit: 19.46
• Enterprise Value/Ebitda: -21.24
• 1Y Price Target: $28.79
• Price Target Upside: 0.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: $31.00 ▲(8.13% Upside)

nLIGHT's overall stock score is driven by strong earnings call results and technical momentum, offset by weak financial performance and valuation concerns. The company's success in the defense sector and international expansion are positive, but financial challenges and valuation issues need addressing.

Positive Factors

Aerospace and Defense Revenue Growth

Strong growth in the A&D sector indicates robust demand and strategic positioning in high-value markets, supporting long-term revenue stability.

Gross Margin Improvement

Improved gross margins suggest enhanced operational efficiency and cost management, which can lead to sustained profitability over time.

International Expansion

Expanding international presence diversifies revenue streams and reduces dependence on any single market, enhancing long-term growth prospects.

Negative Factors

Commercial Market Challenges

Declining commercial revenue highlights challenges in industrial applications, potentially impacting overall growth if not addressed.

Negative Cash Flow

Negative cash flow indicates liquidity issues, which can constrain investment and operational flexibility, affecting long-term financial health.

Profitability Issues

Ongoing profitability challenges suggest inefficiencies that could hinder the company's ability to generate sustainable earnings.

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 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 financial difficulties with declining revenues, persistent losses, and negative cash flows. The company's reliance on equity over debt provides some stability, but the operating inefficiencies and declining asset base present significant risks. Strategic improvements and cost management are essential for sustainable growth.

Income Statement

nLIGHT's financial performance shows a declining trend in revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 19.12%, and the net profit margin stands at -26.80%, indicating significant losses. Revenue decreased by approximately 3.45% from 2023 to 2024 and by 3.44% from 2024 to TTM. The EBIT and EBITDA margins are negative, reflecting consistent operational challenges.

Balance Sheet

The company's balance sheet displays a relatively healthy equity position with a debt-to-equity ratio of 0.15 in TTM. However, stockholders' equity and total assets have been declining. The equity ratio is 73.36%, indicating a strong reliance on equity financing, which provides some financial stability.

Cash Flow

Negative operating cash flow and free cash flow highlight liquidity challenges. The TTM free cash flow is -$22.41 million, showing a worsening trend compared to previous periods. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio is negative, signaling inefficiencies in cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.91M	198.55M	209.92M	242.06M	270.15M	222.79M
Gross Profit	45.94M	33.02M	46.11M	50.82M	77.31M	59.36M
EBITDA	-42.09M	-43.75M	-29.92M	-35.54M	-15.16M	-7.36M
Net Income	-46.98M	-60.79M	-41.67M	-54.58M	-29.67M	-20.93M
Balance Sheet
Total Assets	295.25M	270.24M	306.80M	329.23M	373.62M	283.64M
Cash, Cash Equivalents and Short-Term Investments	113.70M	100.70M	112.88M	108.22M	146.53M	102.28M
Total Debt	32.00M	12.13M	14.16M	15.61M	17.68M	13.05M
Total Liabilities	79.25M	53.81M	52.38M	58.39M	71.48M	63.73M
Stockholders Equity	216.00M	216.43M	254.42M	270.85M	302.13M	219.91M
Cash Flow
Free Cash Flow	-19.81M	-10.29M	4.75M	-36.26M	-29.00M	-11.31M
Operating Cash Flow	-10.91M	-2.36M	10.09M	-14.54M	-7.44M	13.04M
Investing Cash Flow	21.25M	16.69M	-14.10M	-72.38M	-21.85M	-24.54M
Financing Cash Flow	18.98M	-1.30M	-859.00K	-1.31M	73.74M	-3.77M

nLIGHT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.67 is above the 20-day moving average (MA) of 28.30, above the 50-day MA of 23.80, and above the 200-day MA of 14.41, indicating a bullish trend. The MACD of 1.47 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 55.38 is Neutral, 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
LASR	62 Neutral	$1.43B	―	-20.63%	―	9.79%	10.28%
Sector *	61 Neutral	$36.85B	12.13	-10.22%	1.85%	8.52%	-7.53%
IPGP	59 Neutral	$3.38B	―	-9.89%	―	-14.77%	-261.91%
INDI	55 Neutral	$838.75M	―	-36.20%	―	-7.49%	-64.33%
NVTS	50 Neutral	$1.31B	―	-32.05%	―	-25.65%	-130.95%
XPER	49 Neutral	$278.95M	―	-0.92%	―	-6.09%	97.33%
WOLF	41 Neutral	$364.58M	―	-739.86%	―	-6.14%	-63.68%

nLIGHT Corporate Events

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.

nLIGHT Concludes Annual Stockholders Meeting with Key Decisions

On June 10, 2025, nLIGHT, Inc. held its annual meeting of stockholders where 87.79% of the shares entitled to vote participated. During the meeting, the election of Class I directors was completed, the appointment of KPMG LLP as the independent registered public accounting firm was ratified, and the compensation for named executive officers was approved.

nLIGHT Appoints Mark Hartman to Board of Directors

On June 12, 2025, nLIGHT, Inc. announced the resignation of Douglas Carlisle from its Board of Directors, where he served since 2001, and the appointment of Mark Hartman as a Class III director with a term expiring in 2027. Hartman, a retired CFO from Woodward Inc., brings extensive experience in financial management and the aerospace and defense sectors, aligning with nLIGHT’s focus on growth opportunities in these markets.