Two major projects become the \"lifeline\" for laser giant?

Recently, high-performance laser manufacturer nLIGHT disclosed its third-quarter financial report for 2025. According to the report, the company's third-quarter revenue was $66.7 million, a year-on-year increase of 19%, mainly due to the growing global demand for high-power fiber lasers used in directed energy weapons; GAAP net loss narrowed from $10.34 million in the same period last year to $6.87 million, with continuous improvement in profitability; gross margin continued to rise to 31.1%. 

In Which Areas has Nlight Achieved Growth?

Specifically, nLIGHT's aerospace and defense business deployment is mainly related to directed energy and laser sensing applications. The business revenue reached $46 million, accounting for more than two-thirds of total revenue, an increase of over 50% compared to the same period last year. 

A significant part of the year-on-year revenue growth in this business is attributed to the "HELSI 2" megawatt-class laser weapon program. This program aims to develop megawatt-class laser weapons, theoretically capable of neutralizing ballistic missiles and hypersonic weapons.

Helsi 2 Megawatt-class Laser Weapon Revenue Increased Significantly

It is understood that the "HELSI 2" project lasts for three years, with a total value of $171 million, and is expected to be completed in 2026. In addition to this program, nLIGHT is also involved in the "DE M-SHORAD" project, which aims to provide 50-kilowatt laser weapons.

NLIGHT began delivering high-power light sources to a new international customer in the most recent quarter, and orders for its laser sensing products used in missile guidance, countermeasures, and ranging applications are increasing.

nLIGHT Commercial Laser Business Declines

In the commercial laser business, nLIGHT's third-quarter revenue was $21 million, a significant decrease compared to the same period last year. Although the company's industrial and microprocessing markets have stabilized, revenue is expected to decline next year.

As the two major defense projects mentioned above approach their conclusion next year, it is expected that existing and newly signed contracts will fill any potential funding gaps in the future. Therefore, nLIGHT expects its fourth-quarter revenue to be around $75 million, with aerospace and defense revenue continuing to grow quarter-on-quarter, and the business's full-year sales growth exceeding the company's previous expectation of a 40% year-on-year increase.