nLIGHT reported third‑quarter 2025 revenue of $66.7 million, an 18.9% year‑over‑year increase that surpassed the consensus estimate of roughly $63 million. The company also posted an adjusted earnings per share of $0.08, beating the $0.02 estimate by $0.06, a 300% surprise that reflects the company’s successful shift toward high‑margin defense contracts and disciplined cost management.
nLIGHT’s gross margin expanded to 31.1% from 22.4% a year earlier, while product gross margin climbed to 41.0% versus 28.8% in Q3 2024. The lift is driven by a higher volume of defense‑grade laser products, a favorable product mix, and scale‑related cost efficiencies that offset the lower‑margin commercial business.
The company posted a net loss of $6.9 million, but adjusted EBITDA rose to $7.1 million from a $0.99 million loss a year earlier. The turnaround is largely attributable to improved operating leverage, the elimination of one‑time restructuring charges, and the stronger contribution from the Aerospace & Defense segment.
Segment analysis shows that Aerospace & Defense revenue grew 50% YoY to a record $X million, while Microfabrication and Industrial revenues fell 19% and 17% respectively. The defense surge offsets commercial headwinds and underscores the company’s strategic pivot to high‑margin defense markets.
For the fourth quarter, nLIGHT guided revenue to $72–$78 million, gross margin to 27–32%, and adjusted EBITDA to $6–$11 million. Management expressed confidence that the continued ramp of defense programs will sustain the margin expansion and that cost controls will remain in place.
CEO Scott Keeney highlighted the quarter as “another solid execution period” driven by record defense revenue and praised the expansion of product gross margin and adjusted EBITDA, noting that demand in commercial markets remains challenging but that the company’s focus on defense positions it for continued growth.
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