nLight (NASDAQ:LASR – Get Free Report) announced its earnings results on Thursday. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.01, FiscalAI reports. nLight had a negative return on equity of 3.19% and a negative net margin of 4.02%.The business had revenue of $82.59 million during the quarter, compared to analyst estimates of $78.58 million. During the same quarter in the previous year, the business earned $0.06 earnings per share. The company’s revenue for the quarter was up 33.8% compared to the same quarter last year.
Here are the key takeaways from nLight’s conference call:
- Record second-quarter results included revenue of $82.6 million, up 34% year over year, record product revenue of $59 million, $10.7 million in adjusted EBITDA, and record operating cash flow of $20.7 million.
- nLIGHT won the Joint Laser Weapon System contract, with a ceiling of more than $600 million. The program begins contributing revenue in the third quarter, is expected to ramp in 2027, and management says it should more than offset the expected wind-down of HELSI-2.
- Demand remained strong across defense, laser sensing, additive manufacturing, and microfabrication, while kinetic-weapons programs benefited from global restocking and expanding mission applications.
- Supply-chain delays involving optics and other materials from Chinese suppliers are expected to defer roughly $17 million of product revenue from the third quarter into future periods, primarily affecting commercial products. Third-quarter revenue is guided to $63 million-$73 million, with adjusted EBITDA of only $1 million-$7 million and gross margin of 24%-30%.
- The company is qualifying alternative suppliers, redesigning products where possible, and shifting manufacturing and sourcing outside China, but management said the disruption could resolve quickly or persist for months to quarters.
nLight Stock Performance
LASR traded down $19.29 during trading on Friday, hitting $56.15. The stock had a trading volume of 5,447,556 shares, compared to its average volume of 961,228. The stock has a 50 day simple moving average of $67.70 and a two-hundred day simple moving average of $64.67. nLight has a twelve month low of $23.61 and a twelve month high of $86.95. The company has a market capitalization of $3.17 billion, a PE ratio of -224.60 and a beta of 2.31.
Key Stories Impacting nLight
- Positive Sentiment: Q2 results exceeded expectations. nLIGHT reported adjusted earnings of $0.15 per share versus the $0.14 consensus estimate, while revenue rose 33.8% year over year to $82.59 million, above expectations of approximately $78.6 million. nLIGHT Announces Second Quarter 2026 Results
- Positive Sentiment: Defense and aerospace demand remained strong. Record aerospace and defense revenue, increasing demand for high-power lasers, and gross-margin and adjusted-EBITDA performance at or above company expectations supported the quarter’s results. LASR Q2 Earnings Surpass Estimates on Strong A&D Growth
- Neutral Sentiment: Management will participate in upcoming Needham and Jefferies investor conferences, potentially providing additional updates on defense demand, supply-chain conditions and growth plans. nLIGHT Announces Participation in Upcoming Investor Events
- Negative Sentiment: Supply issues cloud the near-term outlook. China-linked supply delays are expected to affect third-quarter shipments. nLIGHT guided for Q3 revenue of $63 million to $73 million, a range whose midpoint is below the roughly $69.1 million analyst consensus and signals a potential sequential decline despite robust underlying demand. nLIGHT Stock Falls as China-Linked Supply Issues Overshadow Quarterly Beat
- Negative Sentiment: The earnings outlook prompted caution among analysts, including a Zacks Research downgrade from “strong buy” to “hold,” adding pressure to the stock’s valuation and near-term sentiment. LASR Earnings Call Focuses on Defense and Supply Constraints
Wall Street Analyst Weigh In
A number of analysts have recently issued reports on the stock. Stifel Nicolaus boosted their target price on shares of nLight from $75.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Roth Capital restated a “buy” rating and set a $81.00 price objective on shares of nLight in a report on Friday, April 24th. Craig Hallum lifted their target price on nLight from $80.00 to $100.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of nLight in a report on Friday, July 17th. Finally, UBS Group set a $90.00 price target on nLight in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $87.94.
View Our Latest Research Report on nLight
Insider Buying and Selling at nLight
In other nLight news, CFO Joseph John Corso sold 35,476 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $70.40, for a total value of $2,497,510.40. Following the completion of the sale, the chief financial officer owned 177,572 shares of the company’s stock, valued at approximately $12,501,068.80. This trade represents a 16.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Scott H. Keeney sold 46,735 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $68.48, for a total value of $3,200,412.80. Following the sale, the chief executive officer owned 2,375,519 shares in the company, valued at $162,675,541.12. The trade was a 1.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 391,038 shares of company stock worth $28,367,419. 3.10% of the stock is owned by company insiders.
Hedge Funds Weigh In On nLight
Hedge funds and other institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. lifted its stake in nLight by 1,599.1% during the 2nd quarter. Osaic Holdings Inc. now owns 1,835 shares of the company’s stock valued at $36,000 after acquiring an additional 1,727 shares during the period. Sunbelt Securities Inc. increased its stake in shares of nLight by 7,142.9% in the fourth quarter. Sunbelt Securities Inc. now owns 1,014 shares of the company’s stock worth $38,000 after acquiring an additional 1,000 shares during the period. Wexford Capital LP purchased a new position in shares of nLight during the third quarter worth $41,000. Militia Capital Partners LP purchased a new position in shares of nLight during the second quarter worth $71,000. Finally, Quarry LP lifted its position in nLight by 120.5% during the third quarter. Quarry LP now owns 2,509 shares of the company’s stock valued at $74,000 after purchasing an additional 1,371 shares during the period. Institutional investors and hedge funds own 83.88% of the company’s stock.
nLight Company Profile
nLIGHT, Inc designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications.
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