Laser Photonics Corporation reported third‑quarter 2025 results that showed a 28% year‑over‑year increase in revenue to $0.9 million, but the company posted a negative gross profit of $0.2 million, a widening operating loss of $3.2 million, and a net loss of $4.7 million, largely driven by a $0.5 million inventory write‑down and higher operating expenses.
Revenue growth was fueled by strong demand across the company’s core markets—marine, aerospace, semiconductor, non‑destructive testing, and industrial automation—yet the mix shifted toward lower‑margin sales, which, combined with the inventory write‑down, eroded gross profitability. The negative gross profit marks a sharp reversal from the $0.6 million profit reported in Q3 2024.
Margin compression was further exacerbated by the integration costs of the recent acquisitions of CMS and Beamer Laser Marking Systems, as well as increased spending on sales and marketing to support the expanded product portfolio. These investments, while strategic, added to the operating expense base and contributed to the widening loss.
Cash and cash equivalents rose to $3.6 million from $0.5 million at the end of 2024, a jump largely attributable to a PIPE equity financing and a note purchase agreement. However, management disclosed substantial doubt about the company’s ability to continue as a going concern without additional cash flow or financing, underscoring the liquidity risk behind the improved balance sheet.
CEO Wayne Tupuola highlighted the company’s growth trajectory, noting that the Beamer acquisition expands Laser Photonics’ reach into IR fiber and CO₂ laser marking for regulated industries, and that the firm is gaining traction with new and repeat orders. CFO Carlos Sardinas explained that the late filing was caused by the integration of Beamer and that the inventory write‑down was a one‑time charge, but reiterated the need for further financing to address the going‑concern warning.
Looking forward, Laser Photonics expects to regain Nasdaq compliance soon, will continue investing in its vertically integrated manufacturing model, and will monitor cash flow closely as it navigates the current headwinds of margin pressure and integration costs.
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