Shares of nLIGHT Inc (NASDAQ: LASR) surged 10.3% to $72.98 in late-morning trading Friday, paring gains from an earlier session high of $86.85, after the laser technology company reported a 55.2% year-over-year increase in first-quarter revenue, fueled by record sales in its aerospace and defense segment. The company also swung to a modest profit, underscoring its pivot toward military applications.
Defense Drives Record Revenue
For the quarter ended March 31, 2026, nLIGHT posted revenue of $80.2 million, up sharply from $51.7 million in the same period last year. The aerospace and defense category accounted for $55.1 million, representing approximately 68.8% of total revenue. The company attributed the surge to higher volumes of directed-energy laser products and continued progress on development contracts. Directed-energy weapons, which use focused laser beams rather than conventional munitions, have become a focal point for military modernization efforts.
Profitability and Margins Improve
nLIGHT reported net income of $645,000, or $0.01 per diluted share, a significant turnaround from a net loss of $8.1 million, or $0.16 per share, in the year-ago quarter. Gross margin expanded to 33.1% from 26.7%, while adjusted EBITDA jumped to $13.8 million from just $116,000. Chief Executive Scott Keeney credited the performance to strength in the aerospace and defense markets, citing a robust pipeline of directed-energy opportunities including follow-on production, platform upgrades, and new prototype programs.
HADES Laser System Launched
During the quarter, nLIGHT unveiled its HADES family of high-energy laser systems, designed for military use. The first 70-kilowatt-class system is now available, aimed at countering drones, rockets, artillery, and mortars. Chief Technology Officer Rob Martinsen noted that directed energy is becoming a foundational element of layered defense strategies.
Segment Performance
Revenue from Laser Products reached $58.2 million, while Advanced Development contributed $22.0 million, all from contract R&D work within aerospace and defense. Microfabrication revenue edged up to $13.0 million, and industrial segment revenue came in at $12.0 million. Chief Financial Officer Joseph Corso said product margins benefited from higher volumes and favorable mix, with solid performance across directed energy, laser sensing, industrial, and microfabrication markets.
Strong Balance Sheet
As of March 31, nLIGHT held $298.2 million in cash and cash equivalents, plus $34.4 million in marketable securities. The cash position was bolstered by a February stock offering that raised $191.3 million. Management plans to invest in a new 50,000-square-foot manufacturing facility in Longmont, Colorado, and accelerate directed-energy product development.
Competitive Landscape and Outlook
nLIGHT faces competition from IPG Photonics, Coherent, and TRUMPF, which have larger R&D budgets and scale advantages. For the second quarter, the company projects revenue between $75 million and $81 million, with gross margin of 29% to 33% and adjusted EBITDA of $8 million to $12 million. Management cautioned that gross margins may decline from Q1 levels and that the aerospace and defense segment depends on continued funding from U.S. and allied governments. Keeney noted that the budget process will take time to work through Congress.