Laser Photonics Reports Strong Q1 2025 Revenue Growth Driven by Strategic CMS Integration and Multi-Sector Growth

Rhea-AI Summary

Laser Photonics (NASDAQ:LASE) reported exceptional Q1 2025 results, with revenue surging 208% year-over-year to $2.3 million. The growth was primarily driven by the successful integration of Control Micro Systems (CMS) acquisition and expansion across defense, medical, and industrial sectors.

Key highlights include repeat orders from the U.S. Navy for DefenseTech systems, a fourth CleanTech system order from Acuren, and significant CMS orders in dental and manufacturing applications. The company also demonstrated innovative laser-cleaning robotic crawlers at Pearl Harbor Naval Shipyard, targeting the Navy's $23 billion annual corrosion challenge.

Looking ahead to Q2 2025, LASE expects year-over-year revenue growth compared to Q2 2024's $0.7 million. The company has implemented cost-cutting initiatives aimed at reducing annual expenses by $2 million.

Positive

• Revenue grew 208% year-over-year to $2.3 million in Q1 2025
• Secured repeat orders from U.S. Navy and Acuren, demonstrating strong product validation
• Successfully integrated CMS acquisition, expanding into new market segments
• Implemented cost-cutting measures to reduce annual expenses by $2 million
• Developed innovative laser-cleaning robotic crawler targeting $23B naval maintenance market

Negative

• Company remains in investment phase, indicating continued expenses for growth
• Still working towards achieving sustainable profitability

Insights

Financial Analyst

LASE reports 208% revenue growth to $2.3M, implementing cost cuts, though still in investment phase before profitability.

Laser Photonics delivered impressive 208% year-over-year revenue growth in Q1 2025, reaching $2.3 million, primarily fueled by their strategic acquisition of Control Micro Systems (CMS). This acquisition has clearly expanded their market reach beyond industrial cleaning applications into defense, medical, and precision manufacturing sectors.

The company's growth strategy is showing tangible results through repeat orders that validate their technology. Notable wins include a fourth CleanTech system from Acuren, a second Navy order for DefenseTech systems, and multiple new CMS orders across dental and manufacturing applications. The continued defense sector penetration is particularly promising, as their partnership with Boston Engineering addresses the Navy's massive $23 billion annual corrosion challenge.

While the revenue growth is substantial, management's language indicates the company remains unprofitable as they characterized themselves in an "investment phase." This is common for growing technology companies prioritizing market share over immediate profitability. However, they've implemented cost-cutting measures expected to reduce annualized expenses by $2 million through headcount reductions and lower marketing spend, signaling a balanced approach to growth and operational efficiency.

The forward outlook appears positive, with management expecting continued year-over-year revenue growth in Q2 2025 compared to the $0.7 million reported in Q2 2024. The diversified revenue streams across multiple sectors provide some insulation against sector-specific downturns, though the company's relatively small revenue base makes it vulnerable to customer concentration risks.

Revenue Surges 208% Year-Over-Year to $2.3 Million as Company Capitalizes on Expanding Market Opportunities Across Defense, Medical and Industrial Sectors

Cost cutting initiatives to reduce run rate expenses by $2 million, gross, on an annualized basis

ORLANDO, FLORIDA / ACCESS Newswire / July 7, 2025 / Laser Photonics Corporation (NASDAQ:LASE), ("Laser Photonics" or "the Company") $LASE, a leading global developer of CleanTech laser systems for laser cleaning and other material applications, today announced results for its first quarter ended March 31, 2025.

Wayne Tupuola, CEO of Laser Photonics, commented:

"The first quarter demonstrated the potential of our strategic transformation, with revenue growth of over 200% year-over-year highlighting the success of our Control Micro Systems ("CMS") acquisition and multi-sector expansion strategy. Our expanded capabilities are resonating strongly with customers seeking advanced laser solutions. The fourth CleanTech system order from Acuren, second Navy order for our DefenseTech systems and multiple new CMS orders across dental, manufacturing and other precision applications validate our technology and support a growing market presence.

"We're particularly excited about the medium- to long-term potential of our strategic partnerships, including the revolutionary laser-enabled robotic crawler demonstrated with Boston Engineering at Pearl Harbor Naval Shipyard. This breakthrough technology addresses the Navy's $23 billion annual corrosion challenge and represents the type of innovative solutions that position Laser Photonics at the forefront of next-generation industrial applications."

Carlos Sardinas, Chief Financial Officer of Laser Photonics, added:

"Our first quarter results reflect the successful progress we've made to date on the integration of CMS and the revenue growth opportunities this acquisition has created. While, as a company, we're in an investment phase to capture the significant market potential ahead of us, we remain focused on improving operational efficiency and the path to sustainable profitability."

Business Highlights

DefenseTech: Building on strong Q4 2024 momentum, Laser Photonics secured additional orders from the U.S. Navy through distribution partner Incredible Supply & Logistics (ISL). The repeat order for the DefenseTech MRLS Portable Finishing Laser (DTMF-1020) handheld cleaning system validates the technology's reliability and effectiveness for naval maintenance applications. Additionally, the Company's strategic partnership with Boston Engineering showcased revolutionary laser-cleaning-enabled robotic crawlers at Pearl Harbor Naval Shipyard, demonstrating transformational potential for naval MRO processes.

CleanTech Industrial: Laser Photonics secured its fourth CleanTech system order from Acuren, a leading provider of asset protection services. The Company also received repeat orders from Bruce Power for additional CleanTech 500-CTHD laser cleaning systems for use at North America's largest operational nuclear power plant, highlighting the safety and environmental advantages of laser cleaning technology in critical infrastructure applications.

Medical and Precision Manufacturing: CMS continued to demonstrate strong market traction with significant orders from a prominent global dental implant provider for robotic-feed dental drill bit marking systems and a leading U.S. high-performance bicycle manufacturer for advanced laser engraving systems. These wins highlight CMS's technological prowess in precision applications and the strategic value of the acquisition in expanding Laser Photonics' addressable markets.

2^nd Quarter 2025 Outlook

Laser Photonics entered the second quarter of 2025, which ended June 30, 2025, with strong momentum and expects to report year-over-year revenue growth from the $0.7 million it reported in Q2 2024. The Company also took steps to reduce costs, mainly through headcount reductions and lower marketing spend, by a gross annualized run rate of $2 million.

About Laser Photonics Corporation

Laser Photonics is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. Laser Photonics seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. Laser Photonics' new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental and regulatory issues associated with old methods. As a result, Laser Photonics quickly gained a reputation as an industry leader in industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aviation, aerospace, automotive, defense, energy, maritime, nuclear and space-exploration industries are using Laser Photonics' "unique-to-industry" systems. For more information, visit https://www.laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.

Laser Photonics Investor Relations Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
laser@haydenir.com

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
(unaudited)

		As of March 31, 2025 (Unaudited)				As of December 31, 2024 (Audited)
Assets
Current Assets:
Cash and Cash Equivalents		$	179,091			$	533,871
Accounts Receivable, Net			904,155				973,605
Accounts Receivable			-				-
Contract Assets			639,108				759,658
Inventory			2,001,760				2,338,759
Other Assets			271,813				58,567
Total Current Assets			3,995,927				4,664,460
Property, Plant, & Equipment, Net			1,780,036				1,872,034
Intangible Assets, Net			5,350,900				5,458,522
Other Long Term Assets			316,378				316,378
Operating Lease Right-of-Use Asset			4,592,058				4,840,753
Total Assets		$	16,035,299			$	17,152,147
Liabilities & Stockholders' Equity
Current Liabilities:
Accounts Payable		$	1,211,407			$	531,268
Account payable related parties			80,771				27,988
Short term loan			825,000				-
Account payable							27,988
Deferred Revenue			470,493				55,383
Contract Liabilities			1,337,963				1,042,090
Current Portion of Operating Lease			472,882				649,989
Accrued Expenses			474,189				266,717
Total Current Liabilities			4,872,705				2,573,435
Long Term Liabilities:
Lease liability - less current			4,314,889				4,366,419
Total Long Term Liabilities			4,314,889				4,366,419
Total Liabilities			9,187,594				6,939,854
Stockholders' Equity:
Preferred stock Par value $0.001: 10,000,000 shares authorized. 0 Issued: 0 shares were outstanding as of March 31, 2025 and December 31, 2024			-				-
Common Stock Par Value $0.001: 100,000,000 shares authorized; 14,301,087 issued and 14,276,150 outstanding as of March 31, 2025 and 14,282,395 issued and 14,257,458 outstanding as of December 31, 2024			14,276				14,257
Additional Paid in Capital			16,302,275				17,886,159
Retained Earnings (Deficit)			(9,435,036	)			(7,754,313	)
Shares to be issued			-				100,000
Treasury Stock			(33,810	)			(33,810	)
Total Stockholders' Equity			6,847,705				10,212,293
Total Liabilities & Stockholders' Equity		$	16,035,299			$	17,152,147

 

STATEMENTS OF PROFIT AND LOSS
(in thousands, except per share data)
(unaudited)

		March 31, 2025 (Unaudited)				March 31, 2024 (Unaudited)
Net Sales		$	2,290,282			$	742,991
Cost of Sales			1,150,516				357,123
Gross Profit			1,139,766				385,868
Operating Expenses:
Sales & Marketing			617,699				136,610
General & Administrative			900,034				356,265
Depreciation & Amortization			237,011				185,316
Payroll Expenses			840,861				208,455
Research and Development Cost			116,686				47,691
Total Operating Expenses			2,712,291				934,337
Operating Income (Loss)			(1,572,525	)			(548,469	)
Other Income (Expenses):
Other Income			1,451				30
Other Expenses			(109,649	)			2,730
Total Other Income (Loss)			(108,198	)			2,760
Income (Loss) Before Tax			(1,680,723	)			(545,709	)
Tax Provision			-				-
Net Income (Loss)		$	(1,680,723	)		$	(545,709	)
Loss per Share:
Basic		$	(0.12	)		$	(0.06	)
Fully diluted		$	(0.12	)		$	(0.06	)
WASO			14,271,581				9,234,650

 

Statement of Cash Flows
(in thousands)
(unaudited)

		Quarter Ended March 31
		2025 (Unaudited)				2024 (Unaudited)
OPERATING ACTIVITIES
Net Loss/Gain		$	(1,680,723	)			(545,709	)
Adjustments to Reconcile Net Loss to Net Cash Flow from Operating Activities:
Bad Debt			10,651				-
Shares issued for compensation							33,336
Distribution to affiliate			(1,683,865	)			(1,019,687	)
Impairment			-
Depreciation & Amortization			237,011				185,316
Net Change, Right-of-Use Asset & Liabilities			20,059				-
Change in Operating Assets & Liabilities:
Accounts Receivable			58,800				373,055
Contract Assets			120,550				-
Inventory			322,167				110,816
Prepaids & Other Current Assets			(213,247	)			(75,565	)
Accounts Payable			732,922				83,261
Contract Liabilities			295,873
Accrued Expenses			207,475				(82,531	)
Deferred Revenue			415,107				71,452
Net Cash Used in Operating Activities			(1,157,220	)			(866,256	)
INVESTING ACTIVITIES
Purchase of Property, Plant an Equipment			(22,560	)			(161,755	)
Net Cash Used in Investing Activities			(22,560	)			(161,755	)
FINANCING ACTIVITIES
Borrowings on debt			825,000				-
Net Cash provided by (used in) Financing Activities			825,000				-
Net Cash Flow for Period			(354,780	)			(1,028,011	)
Cash and Cash Equivalents - Beginning of Period			533,871				6,201,137
Cash and Cash Equivalents- End of Period		$	179,091				5,173,126
NON-CASH INVESTING AND FINANCING ACTIVITIES
Shares issued for Investment			100,000				-
Transfer demo inventory to PPE			14,833				-
SUPPLEMENTARY CASH FLOW INFORMATION			-
Cash Received / Paid During the Period for:			-
Income Taxes			-				-
Interest			-				-

SOURCE: Laser Photonics Corp.

View the original press release on ACCESS Newswire

FAQ

What was Laser Photonics (LASE) revenue growth in Q1 2025?

Laser Photonics reported 208% year-over-year revenue growth in Q1 2025, reaching $2.3 million.

How much cost reduction is LASE targeting through its new initiatives?

LASE is implementing cost-cutting measures, primarily through headcount reductions and lower marketing spend, targeting $2 million in gross annualized run rate expense reduction.

What major orders did Laser Photonics receive in Q1 2025?

LASE received significant orders including a repeat order from the U.S. Navy for DefenseTech systems, a fourth CleanTech system from Acuren, and multiple CMS orders for dental and manufacturing applications.

What is the market opportunity for LASE's naval maintenance solutions?

LASE is targeting the U.S. Navy's $23 billion annual corrosion challenge with its innovative laser-cleaning robotic crawler technology demonstrated at Pearl Harbor Naval Shipyard.

What is LASE's revenue guidance for Q2 2025?

LASE expects to report year-over-year revenue growth compared to Q2 2024's $0.7 million, indicating continued growth momentum.