nLIGHT 2025 Q3 Earnings Beats Expectations with 18.9% Revenue Growth and 33.5% Reduced Net Loss

nLIGHT (LASR) reported fiscal 2025 Q3 earnings on November 7, 2025, with revenue rising 18.9% year-on-year to $66.74 million, surpassing analyst estimates of $63.33 million. The company narrowed its net loss by 33.5% to $-6.87 million and raised Q4 revenue guidance to $72–78 million, 22.8% above expectations.

Revenue

The total revenue of nLIGHT increased by 18.9% to $66.74 million in 2025 Q3, up from $56.13 million in 2024 Q3.

Earnings/Net Income

nLIGHT narrowed losses to $0.14 per share in 2025 Q3 from a loss of $0.21 per share in 2024 Q3 (33.3% improvement). Meanwhile, the company successfully narrowed its net loss to $-6.87 million in 2025 Q3, reducing losses by 33.5% compared to the $-10.34 million net loss reported in 2024 Q3. The EPS improvement and reduced net loss indicate positive momentum, though defense revenue concentration remains a key risk.

Post-Earnings Price Action Review

The strategy of buying LASR when revenues beat and holding for 30 days shows promising potential based on the latest financial data. nLIGHT reported Q3 CY2025 revenues of $66.74 million, surpassing analyst estimates of $63.33 million, with an 18.9% year-on-year growth driven by aerospace and defense segments. The company’s Q4 guidance of $72–78 million, 22.8% above expectations, signals continued growth. Despite the positive results, LASR’s stock declined 5.6% post-announcement, potentially presenting a buying opportunity amid concerns about defense revenue concentration. The aerospace and defense segment’s strength, attributed to a robust backlog of defense contracts, underscores nLIGHT’s growth trajectory. Non-GAAP profit of $0.08 per share exceeded estimates of $0.02, while adjusted EBITDA improved to -$3.99 million, outperforming forecasts. Analysts project 9% revenue growth over the next 12 months, though investors must remain cautious about government spending risks.

CEO Commentary

Scott Keeney, President and CEO, highlighted three consecutive quarters of record Aerospace & Defense (A&D) revenue as a key growth driver, with 3Q 2025 gross margin expanding to 41% and Adjusted EBITDA growth demonstrating operational leverage. He expressed optimism about sequential A&D revenue growth in 4Q 2025 due to ongoing program ramps and projected full-year 2025 A&D revenue growth to exceed the prior 40% year-over-year target. Strategic priorities emphasized operational efficiency and market positioning in mission-critical sectors, reflecting a confident outlook on sustained demand and execution capabilities.

Guidance

nLIGHT expects 4Q 2025 revenue of $72–78 million, with a midpoint of $75 million (Products: ~$55 million, Advanced Development: ~$20 million). Gross margin is projected at 27–32% (Products: 34–39%, Advanced Development: ~8%), and Adjusted EBITDA is forecast at $6–11 million. The company noted it did not reconcile Adjusted EBITDA guidance due to unpredictable foreign exchange impacts. Forward-looking statements align with continued A&D growth and operational scalability, underscoring confidence in market dynamics and execution.

Additional News

Cantor Fitzgerald raised its price target for nLIGHT to $40 from $33.50, citing robust A&D growth and improved operational metrics. The firm maintains an Overweight rating, emphasizing the company’s 50% year-on-year A&D revenue increase and strong gross margin expansion. Meanwhile, Finimize highlighted nLIGHT’s stock trading 8% above Wall Street’s median 12-month target, despite analysts rating it as a “buy” or “hold.” Additionally, the company’s 18.9% revenue beat and $7.11 million adjusted EBITDA exceeded expectations, reinforcing its position in the semiconductor sector.