nLIGHT Stock Rebounds 22% as Record Laser Margins and Strong
nLIGHT Stock Rebounds 22% as Record Laser Margins and Strong Defense Outlook Offset Supply Chain Delays

Shares of nLIGHT Inc. jumped 22% on Friday after the laser maker reported record product margins and forecast sharply higher fourth-quarter revenue, driven by demand from U.S. defense programs.

nLIGHT shares rose $6.48, or 22.07%, to $35.82 in Friday trading, valuing the company at about $2.1 billion.

Above guidance

The Camas, Washington-based company, which makes high-power lasers for directed energy, optical sensing and advanced manufacturing, reported its third-quarter results Nov. 5.

Total revenue was $73.8 million, up 11% from $66.7 million a year earlier but down 11% from the prior quarter. The result exceeded the high end of company guidance but came in slightly below the $75.11 million analyst estimate.

Chairman and CEO Scott Keeney struck an upbeat tone. "Demand for our products remains strong," he said, adding that defense programs are increasingly moving from development toward fielding and production.

Record margins

Profitability improved sharply. Products gross margin reached a record 47.4%, compared with 41% a year earlier, and adjusted EBITDA rose to $11.1 million from $7.1 million.

Defense and space revenue was $52.5 million in the quarter, up 15% year over year. Development revenue grew 34.4% to $25.7 million, reflecting expanding government contracts.

Supply constraints

Supply issues remain a challenge. nLIGHT expects fourth-quarter revenue of $84 million to $90 million, but supply constraints delayed about $15 million of product revenue to the first half of 2027.

The sequential decline in defense products revenue reflected a shift in its HELSI-2 program, where the company has largely finished shipping amplifier power and moved to assembling a 1-megawatt laser.

Losses widen

The GAAP net loss widened to $7.2 million, or 12 cents a share, worse than the 8-cent loss analysts expected, though non-GAAP net income was $10.2 million, or 16 cents a share.

Despite Friday's gain, the stock remains about 14% lower than a year ago.