nLIGHT reported preliminary Q4 2025 revenue guidance of $78‑$80 million, up from $72‑$78 million, surpassing consensus estimates of about $75 million. The company also projected Laser Products revenue of $54‑$55 million and Advanced Development revenue of $24‑$25 million, reflecting a strong mix shift toward higher‑margin defense contracts.
The guidance reflects a 30‑40 % increase in Laser Products revenue compared with the $41‑$42 million reported in Q3 2025, and a 20‑25 % rise in Advanced Development revenue versus the $19‑$20 million in the same quarter. Compared with Q4 2024 revenue of $47.4 million, the company is projecting a 60‑70 % year‑over‑year growth, driven almost entirely by the Aerospace & Defense segment, which accounted for roughly 80 % of total revenue in Q3 2025.
CEO Scott Keeney said the company “ended 2025 on a strong note, particularly with respect to the performance of our Aerospace & Defense market,” and added that the firm “enters 2026 with good visibility across multiple programs in both directed energy and laser sensing.” The comments underscore management’s confidence in sustained demand for defense‑focused laser solutions.
Investors reacted positively to the guidance, with the stock trading higher in pre‑market sessions. The rally was largely driven by the revenue beat, the robust Aerospace & Defense mix, and the company’s clear outlook for 2026. Analysts noted the guidance as a sign of improving execution and a potential shift toward a more profitable business mix.
The company’s focus on directed energy and laser sensing positions it to benefit from increasing defense spending, while the appointment of Gerald Haines to the board brings additional expertise in defense technology. However, the company has faced margin compression in recent quarters due to non‑routine charges related to inventory reserves and right‑sizing its industrial business, and insider selling by senior executives has raised questions about long‑term alignment. Despite these headwinds, the guidance signals a return to growth momentum and a strategic pivot toward higher‑margin defense contracts.
Overall, the preliminary Q4 2025 guidance indicates that nLIGHT is on track to accelerate revenue growth and strengthen its defense‑centric portfolio, setting the stage for continued expansion in directed energy and laser sensing markets in 2026 and beyond.
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