nLIGHT 2025 Q2 Earnings Strong Performance with Net Loss Narrowing by 69.4%

nLIGHT (LASR) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025, delivering results that exceeded expectations. The company reported a significant reduction in its net loss, raised guidance, and showed strong revenue growth. This performance positions nLIGHT for a potentially stronger second half of the year.

nLIGHT's second-quarter results surpassed expectations, with revenue growing by 22.2% year-over-year to $61.73 million and net losses narrowing by 69.4% to $-3.59 million. The company also raised its 2025 aerospace and defense growth forecast from at least 25% to at least 40% year-over-year.

Revenue
The company’s revenue was driven by robust performance across its business segments. Product revenue reached $40.82 million, while Advanced Development revenue contributed $20.91 million, bringing total revenue to $61.73 million. This 22.2% increase from $50.51 million in the same period last year highlights nLIGHT’s strong execution and growing market demand.

Earnings/Net Income
The company significantly narrowed its net loss to $-3.59 million for 2025 Q2, down from $-11.73 million in the prior-year quarter, representing a 69.4% reduction. On a per-share basis, the loss also decreased to $0.07 from $0.25, marking a 72.0% improvement. This trend indicates a positive shift in the company’s financial health.

Price Action
The stock of nLIGHT has experienced mixed performance in recent sessions. It fell by 3.15% during the latest trading day, but rebounded with a 30.03% surge during the most recent full trading week and a 39.47% increase month-to-date.

Post-Earnings Price Action Review
A post-earnings trading strategy involving buying LASR after a beat and selling 30 days later yielded a poor return of -49.20%, significantly underperforming the benchmark by 120.89%. The strategy also exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.41, underscoring its high risk and negative returns, making it an ineffective investment approach.

CEO Commentary
Scott Keeney, President and CEO of nLIGHT, emphasized the company's "solid quarter of execution," noting that Q2 2025 results exceeded expectations in revenue, gross margin, and Adjusted EBITDA. The increased demand for directed energy products and laser sensing solutions is providing the company with “better visibility into the second half of the year.”

Guidance
For Q3 2025, nLIGHT expects revenue in the range of $62 million to $67 million, with Products revenue projected at approximately $45 million and Advanced Development revenue at around $19 million. The company anticipates a gross margin between 24% and 30%, with Products gross margin expected to range from 32% to 36% and Advanced Development gross margin near 8%. Adjusted EBITDA is forecasted to be between $2.0 million and $6.0 million.

Additional News
On Aug 08, 2025, Nigerian newspaper *Punch* reported a range of news, with a focus on political and social developments. In Akwa Ibom State, police arrested a ritualist suspected of providing charms to armed robbers. Elsewhere, the Nigerian stock market shed N516 billion in value after a weeks-long bullish rally. In entertainment news, Nigerian artists such as Davido, Teni, and Adekunle Gold were featured at a high-profile pre-wedding event in Miami. Additionally, a prominent Nigerian political figure, former minister and ex-PDP chairman Audu Ogbeh, passed away at the age of 78.