nLIGHT Inc (NASDAQ:LASR), a developer of high-power lasers for defense and industrial applications, reported financial results for the fourth quarter and full year 2025 that significantly exceeded analyst expectations. Despite the strong performance, the company's shares traded lower in after-hours activity following the announcement.
Earnings and Revenue Performance vs. Estimates
The company delivered a decisive beat on both top and bottom-line estimates for the final quarter of 2025. The results highlight a period of accelerating growth and improving profitability.
- Revenue: nLIGHT reported Q4 revenue of $81.19 million, a substantial 71.3% increase year-over-year. This comfortably surpassed the analyst consensus estimate of approximately $78.25 million.
- Earnings Per Share (Non-GAAP): The company posted a non-GAAP profit of $0.14 per share, beating the average analyst estimate of $0.1122 per share by 27.3%.
- Full-Year Context: The strong quarter capped off a record year. Full-year 2025 revenue reached $261.3 million, up 31.6% from 2024. The company also demonstrated significant operating leverage, with gross margin improving to 29.8% for the year from 16.6% in the prior year.
Market Reaction and Forward Guidance
Despite the earnings beat, nLIGHT's stock was down approximately 8.2% in after-market trading. This reaction may reflect a "sell the news" dynamic after a strong recent run—the stock was up nearly 37% over the past month ahead of the report—or investor focus on the company's outlook for the current quarter.
The company provided guidance for the first quarter of 2026 that, at its midpoint, exceeds current analyst expectations.
- Q1 2026 Revenue Outlook: nLIGHT expects revenue between $70 million and $76 million. The midpoint of this range, $73 million, is approximately 6.3% higher than the analyst consensus estimate of $68.63 million for the quarter.
- Profitability Outlook: Management expects Adjusted EBITDA to be in a range of $5 million to $10 million for Q1 2026.
Key Takeaways from the Earnings Release
The press release emphasized a transformative year driven by strength in aerospace and defense markets. CEO Scott Keeney stated that execution on existing programs and new contract wins fueled growth, which in turn drove "significant year-over-year improvement in our gross margins and Adjusted EBITDA."
The financial improvements were stark, particularly when viewed through the lens of Adjusted EBITDA, a non-GAAP metric the company uses to measure core operational performance. For the full year 2025, Adjusted EBITDA was a positive $23.5 million, a dramatic swing from a loss of $18.8 million in 2024.
Conclusion
nLIGHT's fourth-quarter results clearly demonstrate strong execution and robust demand in its core defense and advanced manufacturing markets. The company not only beat estimates for the past quarter but also issued forward-looking guidance that suggests the momentum is expected to continue into 2026, albeit at a more moderated pace sequentially.
The negative after-hours price action appears disconnected from the fundamental results reported, potentially indicating profit-taking or heightened sensitivity to the company's quarterly cadence after a significant pre-earnings rally. Investors will likely focus on the company's ability to maintain its improved margin profile and secure new program wins as outlined by management.
For a detailed breakdown of historical earnings and future analyst estimates for nLIGHT Inc, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, nor a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
