LASR nLIGHT Inc

Revenues of $198.5 million for the full year 2024 Revenues of $47.4 million for the fourth quarter of 2024

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