nLight Posts 32% Revenue Gain to $261M, A&D Sales Up 60% in 2025
nLight closed 2025 with $261 million in revenue, a 32% increase, driven by a 60% surge in aerospace and defense sales to $175 million and full-year adjusted EBITDA of $23.5 million. Fourth-quarter revenue hit a record $81.2 million with gross margin near 30% as the company pivoted away from legacy industrial markets.
1. Full-year 2025 Results
nLight reported 2025 revenue of $261 million, a 32% increase year-over-year, with aerospace and defense sales reaching $175 million, up 60%. Full-year gross margin improved to approximately 30% and adjusted EBITDA reached a record $23.5 million, bolstered by reduced operating expenses and discipline in working capital generating over $21 million in cash flow.
2. Record Q4 Performance
In the fourth quarter, revenue climbed to $81.2 million, up 71% year-over-year and 22% sequentially, as A&D product revenue grew 109% to $30.2 million and development revenue rose 66% to $26.1 million. Gross margin in Q4 was 30.7%, and the company delivered non-GAAP net income of $7.8 million and adjusted EBITDA of $10.7 million.
3. Strategic Portfolio Shift
Management announced the exit from cutting and welding markets, expecting a near-term $25–30 million revenue headwind, while raising over $190 million and maintaining more than $250 million on the balance sheet. Funds are earmarked for a new 50,000 square-foot manufacturing facility to expand capacity for directed energy and sensing.
4. Program Milestones and Outlook
Key program milestones include progress on the $171 million HELSI-2 1 MW high-energy laser effort, delivery of a 50 kW laser module for the DE M-SHORAD program, and international customer shipments. Funded backlog stood at approximately $162 million at year-end, and Q1 2026 guidance calls for $70–76 million in revenue with $5–10 million in adjusted EBITDA.