nLIGHT (LASR) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record revenue of $80.2 million, up 55% year-over-year, driven by strong Aerospace & Defense (A&D) performance and increased unit sales across all end markets.

• Gross margin improved to 33.1% from 26.7% a year ago, with record product gross margin of 44.6% (non-GAAP), reflecting operational leverage and favorable sales mix.

• Adjusted EBITDA reached $13.9 million, a significant increase from $0.1 million a year ago, highlighting profitability focus.

• Returned to GAAP profitability with net income of $0.6 million, reversing a net loss of $8.1 million in Q1 2025.

• Launched the HADES high-energy laser portfolio, reinforcing leadership in directed energy markets.

Financial highlights

• Q1 revenue reached $80.2 million (+55% y/y, -1% q/q); A&D revenue was $55.1 million (+69% y/y), with record A&D product revenue up 98% year-over-year and 10% sequentially.

• Commercial revenue was $25 million (+32% y/y), with microfabrication at $13 million and industrial at $12 million.

• Total gross margin was 33.1% (up from 26.7%); non-GAAP gross margin was 34.4%; product gross margin at 44.6% (non-GAAP); development/advanced segment gross margin at 7.2%.

• GAAP net income was $0.6 million ($0.01 per share); non-GAAP net income was $11.8 million ($0.20–$0.22 per share).

• Adjusted EBITDA was $13.8–$13.9 million, up from $0.1 million a year ago.

• Operating cash flow was $9.7 million; cash and equivalents totaled $298.2–$333 million at quarter end.

Outlook and guidance

• Q2 2026 revenue expected between $75 million and $81 million, with product revenue ~$58 million and development/advanced revenue ~$20 million at midpoint.

• Q2 gross margin expected at 29%–33%; product gross margin 37%–41%; development/advanced gross margin ~8%.

• Adjusted EBITDA for Q2 projected between $8 million and $12 million.

• Non-GAAP operating expenses anticipated to remain in the $17 million–$19 million range for the year.

• Management expects continued investment in R&D and ongoing volatility in demand due to market cycles and global economic conditions.