nLIGHT’s Record Aerospace & Defense Revenue Boosts Margins and Guides to Further Growth in 2025

Another Quarter of Record Aerospace & Defense Sales Drives Margin Expansion

nLIGHT, Inc. (NASDAQ: LASR) delivered a third consecutive quarter of record-breaking Aerospace & Defense (A&D) revenue, cementing its position as a leader in high-power lasers for mission-critical applications. In its Q3 2025 results, the company’s A&D segment generated $45.55 million, surging 50.6% year-over-year and accounting for nearly 68% of total quarterly revenue. This sharp focus on the A&D sector didn’t just fuel top-line growth—it lifted nLIGHT’s overall gross margin to 31.1%, up from 22.4% a year ago, underscoring greater operational efficiency and pricing leverage.

Profitability Metrics Show Meaningful Improvement

Notably, gross profit grew to $20.75 million, and nLIGHT’s Adjusted EBITDA swung to $7.11 million—compared to a loss of nearly $1 million in the same period last year. Management credits the scaling of A&D programs and an enhanced product mix for the improved performance. Losses narrowed considerably: GAAP net loss was $6.87 million (vs. $10.34 million a year ago), and non-GAAP net income reached $4.32 million (vs. a non-GAAP net loss of $3.66 million last year).

Guidance Suggests Continued Momentum—A&D to Exceed 40% Growth in 2025

Management remains optimistic, forecasting Q4 2025 revenue between $72 million and $78 million, driven primarily by ongoing strength in A&D. At the midpoint, the company projects Products revenue around $55 million and Advanced Development revenue near $20 million, with an expected overall gross margin in the 27–32% range. Importantly, nLIGHT now anticipates full-year A&D growth to surpass its prior target of 40% year-over-year.

nLIGHT’s positive trajectory is backed by a strong balance sheet, with $81.11 million in cash and cash equivalents as of September 30, 2025—up significantly from $65.83 million at year-end 2024.

Takeaway: nLIGHT Leverages Defense Demand, Points Toward Profitable Growth

The rapid scaling in the Aerospace & Defense market and consistent improvement in margins point to nLIGHT’s strengthening market position. The sharp swing to positive Adjusted EBITDA and narrowing net losses reinforce management’s message that the company is transitioning from growth to greater profitability. As programs ramp into Q4 and beyond, nLIGHT’s next few quarters will be key for investors monitoring whether margin gains can be sustained as top-line growth continues.

While macro risks and the company’s dependence on A&D cycles remain, nLIGHT’s record revenue and improved operating metrics provide actionable insights for anyone following the laser and defense tech sector. With an investor webcast scheduled for November 6, further clarity on strategy and growth opportunities will be available for those who want a deeper dive.

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