nLIGHT (LASR) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $82.6 million, up 34% year-over-year and 3% sequentially, driven by strong demand in defense and advanced manufacturing markets.

• Products revenue reached a record $59.4 million, up 45% year-over-year, with strong margins and adjusted EBITDA of $10.7 million.

• Aerospace & Defense revenue surged 41% year-over-year, supported by robust execution in Directed Energy programs and a major JLWS contract with a ceiling over $600 million.

• Non-GAAP net income was $9.6 million, up from a non-GAAP net loss of $2.9 million in the prior year quarter.

• Gross margin improved to 31.1% from 29.9% year-over-year, reflecting healthy product margins and operational efficiency.

Financial highlights

• Total Q2 2026 revenue: $82.6 million (+34% y/y, +3% q/q); Aerospace & Defense revenue: $57.3 million (+41% y/y); Microfabrication: $13.3 million (+17% y/y); Industrial: $12.0 million (+24% y/y).

• Gross profit for Q2 2026 was $25.7 million; non-GAAP gross margin: 32.6%.

• Adjusted EBITDA: $10.7 million, up from $5.6 million last year.

• Net loss narrowed to $1.3 million ($0.02/share) from $3.6 million loss last year; non-GAAP net income was $9.6 million ($0.15/share).

• Cash and cash equivalents at quarter-end: $295.8 million, up from $98.7 million at year-end 2025.

Outlook and guidance

• Q3 2026 revenue expected between $63 million and $73 million, with product revenue midpoint $43 million and advanced development $25 million.

• Q3 guidance excludes ~$17 million in product revenue delayed due to supply chain issues, mainly affecting commercial products.

• Q3 gross margin expected at 24%-30%; product gross margin 34%-40%; development gross margin ~8%.

• Adjusted EBITDA for Q3 expected between $1 million and $7 million.

• JLWS revenue to ramp up in 2027, more than offsetting HELSI-2 headwinds.