NLIGHT, INC. recently released its 10-Q report. The company designs, develops, manufactures, and sells semiconductor and fiber lasers used in aerospace and defense, industrial, and microfabrication applications. It operates through two segments, Laser Products and Advanced Development, and sells through direct teams and channel partners across the U.S., Asia, Europe, the Middle East, South America, and other international markets.
In Item 2, management said revenue rose to $162.8 million in the six months ended June 30, 2026, from $113.4 million a year earlier, driven mainly by higher product and development revenue in aerospace and defense. Net loss narrowed to $0.7 million from $11.7 million in the prior-year period. For the quarter ended June 30, 2026, revenue was $82.6 million, up from $61.7 million, while net loss improved to $1.3 million from $3.6 million.
Aerospace and Defense remained the largest end market, contributing $112.4 million, or 69.1% of six-month revenue, compared with $73.4 million, or 64.7%, a year earlier. Management said the gain came mainly from increased unit sales of directed energy laser products, higher sales of laser components for defense programs, and progress on existing research and development contracts. Microfabrication revenue increased to $26.3 million from $21.4 million, while Industrial revenue rose to $24.1 million from $18.6 million.
By segment, Laser Products revenue increased to $117.6 million for the first half of 2026 from $76.5 million, and Advanced Development revenue rose to $45.2 million from $36.9 million. Management attributed the Laser Products increase to higher unit sales across all end markets, while Advanced Development growth reflected progress on existing research and development contracts.
Gross profit improved to 32.1% of revenue for the first six months of 2026 from 28.4% a year earlier. Research and development expense fell to 15.3% of revenue from 19.7%, while sales, general and administrative expense declined to 19.2% from 20.9%. Operating loss narrowed to $4.2 million from $13.8 million.
The company also pointed to trade and customs issues as a risk to operations. It said enhanced Chinese export declaration requirements introduced in June 2026 increased compliance costs and lengthened customs clearance times, and that components from certain suppliers and some shipments to customers outside the U.S. had been held in customs in China. Management said those issues did not materially affect results in the first half, but could raise operational complexity and pressure revenue and profitability if they continue.
Interest income increased to $4.1 million for the six months ended June 30, 2026, from $2.7 million a year earlier, helping offset the operating loss. Income tax expense was $0.1 million in both periods. Today the company's shares have moved -23.91% to a price of $57.40. For more information, read the company's full 10-Q submission here.
