nLIGHT, Inc. Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

nLIGHT (LASR) reported its Q4 and full-year 2024 financial results, showing mixed performance across segments. Full-year revenues declined 5.4% to $198.5 million, while Q4 revenues dropped 8.7% to $47.4 million. The company's defense business emerged as a bright spot, growing 20% year-over-year to $110 million and representing 55% of overall sales.

The company experienced significant margin pressure, with full-year gross margin declining to 16.6% from 22.0% in 2023. Q4 gross margin fell sharply to 2.4% from 18.9%, impacted by $6.0 million in inventory reserves. The company reported a full-year GAAP net loss of $60.8 million ($1.27 per share) compared to $41.7 million loss in 2023.

Looking ahead to Q1 2025, nLIGHT expects revenues between $45-51 million, with gross margin projected at 13-17% and Adjusted EBITDA between ($6) million to ($3) million.

Positive

• Defense business grew 20% YoY to $110M
• Record backlog in aerospace and defense segment
• Strong progress in directed energy contracts
• New program wins in laser sensing

Negative

• Full-year revenue declined 5.4% to $198.5M
• Q4 revenue dropped 8.7% to $47.4M
• Gross margin fell to 16.6% from 22.0% in 2023
• Net loss increased to $60.8M from $41.7M in 2023
• Q4 gross margin collapsed to 2.4% from 18.9%
• $6.0M inventory reserves charge in Q4

Insights

Financial Analyst

nLIGHT's Q4 and full-year 2024 results highlight a strategic pivot toward aerospace and defense amid ongoing industrial market weakness. The company's defense revenue grew 20% year-over-year to $110 million, now representing 55% of total sales - a fundamental business transformation that's reshaping nLIGHT's growth trajectory and risk profile.

However, this transition comes with significant near-term financial challenges. Overall revenue declined 5.4% to $198.5 million, while Q4 gross margin collapsed to just 2.4% from 18.9% in the prior year period. The $6 million inventory reserve against industrial products signals management's pessimistic outlook for industrial market recovery in the near term.

The widening losses are concerning - annual GAAP net loss increased to $60.8 million ($1.27 per share) from $41.7 million in 2023, while non-GAAP losses more than doubled to $30.9 million. This divergence between GAAP and non-GAAP metrics primarily reflects significant stock-based compensation and non-recurring charges.

Management's Q1 2025 outlook suggests the challenging environment will persist, with projected revenue of $45-51 million and continued negative Adjusted EBITDA of ($6)-($3) million. The projected 13-17% gross margin indicates ongoing profitability pressure.

For investors, nLIGHT represents a high-risk, potentially high-reward opportunity. The company's record backlog and strengthening position in directed energy and laser sensing programs offer future growth potential, but execution on defense contracts and path to profitability remain key watchpoints. The transformation timeline appears longer than initially expected, requiring patience as defense program revenues gradually offset industrial weakness.

Revenues of $198.5 million for the full year 2024

Revenues of $47.4 million for the fourth quarter of 2024

CAMAS, Wash.--(BUSINESS WIRE)-- nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the aerospace and defense, industrial, and microfabrication markets, today reported financial results for the fourth quarter and full year 2024.

“2024 was a transformative year for nLIGHT as our defense business began to scale, with revenue growing 20% year-over-year to $110 million and representing approximately 55% of our overall sales,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “We made significant progress across multiple large directed energy contracts, while securing new program wins in laser sensing.”

Mr. Keeney continued, “I am optimistic on our business, particularly aerospace and defense, as we head into 2025. We enter the year with good visibility across multiple programs in both directed energy and laser sensing, and combined with record backlog and a healthy balance sheet, we are confident that we are well-positioned for near- and long-term growth in the aerospace and defense market.”

Full Year 2024 Financial Highlights

	Year Ended December 31,
(In thousands, except percentages)		2024				2023			% Change
Revenues	$	198,548			$	209,921			(5.4	)%
Gross margin		16.6	%			22.0	%
Loss from operations	$	(65,636	)		$	(46,766	)		(40.3	)%
Operating margin		(33.1	)%			(22.3	)%
Net loss	$	(60,792	)		$	(41,670	)		(45.9	)%
Adjusted EBITDA(1)	$	(18,788	)		$	(4,093	)		(359.0	)%
(1) A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release.

Revenues of $198.5 million for the full year 2024 were down 5.4% compared to $209.9 million for the full year 2023. Gross margin was 16.6% for the full year 2024 compared to 22.0% for the full year 2023. GAAP net loss for the full year 2024 was $60.8 million, or $1.27 per diluted share, compared to a net loss of $41.7 million, or $0.90 per diluted share, for the full year 2023. Non-GAAP net loss for the full year 2024 was $30.9 million, or $0.65 per diluted share, compared to non-GAAP net loss of $13.6 million, or $0.30 per diluted share, for the full year 2023. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release.

Fourth Quarter 2024 Financial Highlights

	Three Months Ended December 31,
(In thousands, except percentages)		2024				2023			% Change
Revenues	$	47,381			$	51,892			(8.7	)%
Gross margin		2.4	%			18.9	%
Loss from operations	$	(26,429	)		$	(14,342	)		(84.3	)%
Operating margin		(55.8	)%			(27.6	)%
Net loss	$	(24,962	)		$	(13,238	)		(88.6	)%
Adjusted EBITDA(1)	$	(11,301	)		$	(3,297	)		(242.8	)%
(1) A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $47.4 million for the fourth quarter of 2024 were down 8.7% compared to $51.9 million for the fourth quarter of 2023. Gross margin was 2.4% for the fourth quarter of 2024 compared to 18.9% for the fourth quarter of 2023 and includes non-routine charges of approximately $6.0 million related primarily to inventory reserves on products for the Industrial market. GAAP net loss for the fourth quarter of 2024 was $25.0 million, or $0.51 per diluted share, compared to GAAP net loss of $13.2 million or $0.28 per diluted share, for the fourth quarter of 2023. Non-GAAP net loss for the fourth quarter of 2024 was $14.5 million, or $0.30 per diluted share, compared to non-GAAP net loss of $6.0 million, or $0.13 per diluted share, for the fourth quarter of 2023. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.

Outlook

For the first quarter of 2025, nLIGHT expects revenues to be in the range of $45 million to $51 million. The midpoint of $48 million includes Laser Products revenue of approximately $33 million and Advanced Development revenue of approximately $15 million. nLIGHT expects overall gross margin to be in the range of 13% to 17%, with Laser Products gross margin in the range of 16% to 20% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of ($6) million to ($3) million.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Investor Conference Call at 2:00 p.m. Pacific Time, Thursday, February 27, 2025

Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-800-549-8228 (U.S., toll-free) or +1-289-819-1520 (international and toll), with the conference title: nLIGHT Fourth Quarter 2024 Earnings. The call can also be accessed via the web by going to nLIGHT’s Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP metrics presented herein are specific to us and may not be comparable to similar metrics disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by the weighted-average number of shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

Safe Harbor Statement

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “guidance,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to profitably grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; our ability to manage growth and spending during economic downturns; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on third parties to manufacture certain of our products and product components; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors and uncertainties identified in the “Risk Factors” section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and “nLIGHT” are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Camas, Washington, nLIGHT employs approximately 800 people with operations in the United States, Europe and Asia. For more information, please visit www.nlight.net.

nLIGHT, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Revenue:
Products	$	31,699			$	37,864			$	136,659			$	156,666
Development		15,682				14,028				61,889				53,255
Total revenue		47,381				51,892				198,548				209,921
Cost of revenue:
Products		31,475				29,368				108,003				114,181
Development		14,775				12,720				57,526				49,627
Total cost of revenue(1)		46,250				42,088				165,529				163,808
Gross profit		1,131				9,804				33,019				46,113
Operating expenses:
Research and development(1)		11,384				12,114				45,107				46,163
Sales, general, and administrative(1)		11,885				11,215				49,257				45,899
Restructuring		4,291				817				4,291				817
Total operating expenses		27,560				24,146				98,655				92,879
Loss from operations		(26,429	)			(14,342	)			(65,636	)			(46,766	)
Other income:
Interest income, net		360				352				1,668				1,342
Other income, net		506				779				3,100				2,776
Loss before income taxes		(25,563	)			(13,211	)			(60,868	)			(42,648	)
Income tax expense		(601	)			27				(76	)			(978	)
Net loss	$	(24,962	)		$	(13,238	)		$	(60,792	)		$	(41,670	)
Net loss per share, basic	$	(0.51	)		$	(0.28	)		$	(1.27	)		$	(0.90	)
Net loss per share, diluted	$	(0.51	)		$	(0.28	)		$	(1.27	)		$	(0.90	)
Shares used in per share calculations:
Basic and diluted		48,557				46,735				47,900				46,078

(1)Includes stock-based compensation as follows:
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Cost of revenues	$	609			$	535			$	2,438			$	2,406
Research and development		1,671				2,329				7,505				9,866
Sales, general, and administrative		3,720				3,323				15,018				13,560
	$	6,000			$	6,187			$	24,961			$	25,832

nLIGHT, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
	As of December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents	$	65,829			$	53,210
Marketable Securities		34,868				59,672
Accounts receivable, net		34,895				39,585
Inventory		40,800				52,160
Prepaid expenses and other current assets		17,697				15,927
Total current assets		194,089				220,554
Restricted cash		259				256
Lease right-of-use assets		10,822				12,616
Property, plant and equipment, net		46,937				52,300
Intangible assets, net		833				1,652
Goodwill		12,354				12,399
Other assets, net		4,947				7,026
Total assets	$	270,241			$	306,803
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	15,076			$	12,166
Accrued liabilities		13,268				12,556
Deferred revenue		3,577				4,849
Current portion of lease liabilities		2,314				3,181
Total current liabilities		34,235				32,752
Non-current income taxes payable		5,541				5,391
Long-term lease liabilities		9,819				10,978
Other long-term liabilities		4,216				3,263
Total liabilities		53,811				52,384
Stockholders' equity:
Common stock - par value		16				16
Additional paid-in capital		544,842				521,184
Accumulated other comprehensive loss		(3,332	)			(2,477	)
Accumulated deficit		(325,096	)			(264,304	)
Total stockholders’ equity		216,430				254,419
Total liabilities and stockholders’ equity	$	270,241			$	306,803

nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Year Ended December 31,
		2024				2023
Cash flows from operating activities:
Net loss	$	(60,792	)		$	(41,670	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation		12,988				12,401
Amortization		4,608				3,629
(Increase) reduction in carrying amount of right-of-use assets		1,759				1,269
Provision for losses on (recoveries of) accounts receivable		1,489				27
Stock-based compensation		24,961				25,832
Deferred income taxes		(651	)			7
Loss on disposal of property, plant and equipment		194				542
Non-cash restructuring charges		1,185				—
Changes in operating assets and liabilities:
Accounts receivable, net		2,845				(1,677	)
Inventory		11,048				14,890
Prepaid expenses and other current assets		(1,787	)			1,109
Other assets, net		(1,131	)			(1,156	)
Accounts payable		3,231				(4,503	)
Accrued and other long-term liabilities		706				(1,336	)
Deferred revenues		(1,224	)			3,432
Lease liabilities		(1,992	)			(1,449	)
Non-current income taxes payable		204				(1,256	)
Net cash (used in) provided by operating activities		(2,359	)			10,091
Cash flows from investing activities:
Purchases of property, plant and equipment		(7,932	)			(5,339	)
Purchase of marketable securities		(88,643	)			(127,907	)
Proceeds from maturities and sales of marketable securities		113,265				119,146
Net cash provided by (used in) investing activities		16,690				(14,100	)
Cash flows from financing activities:
Proceeds from employee stock plan purchases		2,721				2,469
Proceeds from stock option exercises		500				640
Tax payments related to stock award issuances		(4,524	)			(3,968	)
Net cash used in financing activities		(1,303	)			(859	)
Effect of exchange rate changes on cash		(406	)			256
Net increase (decrease) in cash and cash equivalents and restricted cash		12,622				(4,612	)
Cash and cash equivalents and restricted cash, beginning of period		53,466				58,078
Cash and cash equivalents and restricted cash, end of period	$	66,088			$	53,466
Supplemental disclosures:
Cash paid for interest, net	$	61			$	40
Cash paid for income taxes		716				256
Operating cash outflows from operating leases		4,030				3,850
Right-of-use assets obtained in exchange for lease liabilities		1,336				1,716
Accrued purchases of property, equipment and patents		298				745
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents	$	65,829			$	53,210
Restricted cash		259				256
Total cash and cash equivalents and restricted cash	$	66,088			$	53,466

nLIGHT, Inc.
Reconciliation of GAAP Financial Metrics to Non-GAAP
(In thousands, except per share data)
(Unaudited)
Reconciliation of Net Loss to Adjusted EBITDA
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss	$	(24,962	)		$	(13,238	)		$	(60,792	)		$	(41,670	)
Income tax expense (benefit)		(601	)			27				(76	)			(978	)
Other income, net		(506	)			(779	)			(3,100	)			(2,776	)
Interest income, net		(360	)			(352	)			(1,668	)			(1,342	)
Depreciation and amortization		4,837				4,041				17,596				16,024
Stock-based compensation		6,000				6,187				24,961				25,832
Restructuring charges		4,291				817				4,291				817
Adjusted EBITDA	$	(11,301	)		$	(3,297	)		$	(18,788	)		$	(4,093	)

Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and Diluted
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss	$	(24,962	)		$	(13,238	)		$	(60,792	)		$	(41,670	)
Add back:
Stock-based compensation(1)		6,000				6,187				24,961				25,832
Amortization of purchased intangibles(1)		148				264				594				1,415
Restructuring charges		4,291				817				4,291				817
Non-GAAP net loss	$	(14,523	)		$	(5,970	)		$	(30,946	)		$	(13,606	)
GAAP and non-GAAP weighted-average shares outstanding, basic and diluted		48,557				46,735				47,900				46,078
Non-GAAP net loss per share, basic and diluted	$	(0.30	)		$	(0.13	)		$	(0.65	)		$	(0.30	)

(1)

There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227332470/en/

For more information, contact:

John Marchetti

VP Corporate Development and Investor Relations

nLIGHT, Inc.

(360) 566-4460

john.marchetti@nlight.net

Source: nLIGHT, Inc.

FAQ

What were nLIGHT's (LASR) key financial metrics for full year 2024?

nLIGHT reported full-year 2024 revenues of $198.5 million (down 5.4%), gross margin of 16.6%, and a GAAP net loss of $60.8 million ($1.27 per share).

How did nLIGHT's defense business perform in 2024?

nLIGHT's defense business grew 20% year-over-year to $110 million, representing approximately 55% of overall sales.

What is nLIGHT's revenue guidance for Q1 2025?

nLIGHT expects Q1 2025 revenues between $45-51 million, with Laser Products revenue of $33 million and Advanced Development revenue of $15 million.

What caused nLIGHT's significant gross margin decline in Q4 2024?

Q4 2024 gross margin fell to 2.4% from 18.9%, primarily due to $6.0 million in non-routine charges related to inventory reserves for Industrial market products.