nLIGHT Reports Revenue Decline to $198.5 Million and Increased Net Loss for Fiscal Year 2024

nLIGHT, Inc., a provider of high-power semiconductor and fiber lasers, reported a decrease in revenue for the fiscal year ending December 31, 2024, totaling $198.5 million, down from $209.9 million in 2023. The company experienced a net loss of $60.8 million, compared to a loss of $41.7 million in the previous year. The decline in revenue was primarily attributed to a significant drop in sales within the Laser Products segment, which fell by 12.8% to $136.7 million, while the Advanced Development segment saw an increase of 16.2% to $61.9 million, driven by heightened activity on development contracts.

The company's performance was influenced by various market conditions, including decreased demand in the Industrial and Microfabrication markets, which saw revenue declines of 35.8% and 8.6%, respectively. Conversely, the Aerospace and Defense market experienced a revenue increase of 19.9%, reflecting higher unit sales and increased average selling prices (ASPs). The overall revenue decline was also impacted by the erosion of ASPs typical in the laser industry, as well as competitive pressures and changing customer requirements.

In terms of operational developments, nLIGHT's customer base remains concentrated, with the top ten customers accounting for approximately 72% of total revenues in 2024. The company reported a backlog of $167 million as of December 31, 2024, up from $108.4 million in 2023, indicating a positive outlook for future revenue generation. The company also noted a significant restructuring effort, including the cessation of manufacturing activities in China, which was part of a broader strategy to streamline operations and reduce costs.

nLIGHT's workforce consisted of nearly 800 full-time employees as of the end of 2024, with approximately 650 based in the United States. The company continues to invest in research and development, with expenses totaling $45.1 million in 2024, a slight decrease from $46.2 million in 2023. The focus remains on advancing technologies in directed energy and laser sensing, which are critical to maintaining competitive advantages in the aerospace and defense sectors.

Looking ahead, nLIGHT anticipates that its existing liquidity sources, including cash and cash equivalents of $66.1 million, will be sufficient to meet operational needs for at least the next 12 months. The company plans to continue its investment in R&D and explore potential acquisitions to enhance its product offerings and market position. However, the outlook remains cautious due to ongoing market volatility and the potential impact of geopolitical events on government spending in the defense sector.