NLIGHT announces financial performance for the fourth quarter and full year of 2024

Recently, nLIGHT, a manufacturer of high-power semiconductors and fiber lasers, announced its financial performance for the fourth quarter and full year of 2024.

financial summary
Total revenue: 198.5 million US dollars, a decrease from 209.9 million US dollars in 2023, due to a decline in sales in the laser product department.
Operating loss: A loss of $65.6 million, compared to a loss of $46.8 million in 2023, due to increased operating expenses and restructuring costs.
Net loss: A loss of $60.8 million, compared to $41.7 million in 2023, reflecting an increase in restructuring and operating expenses.
According to disclosed information, nLIGHT's revenue for the fourth quarter of 2024 was $47.4 million, a decrease of 8.7% from $51.9 million in the fourth quarter of 2023; The gross profit margin for the fourth quarter of 2024 was 2.4%, compared to 18.9% in the fourth quarter of 2023, a significant year-on-year decline.

NLIGHT's GAAP net loss for the fourth quarter of 2024 was $25 million, while its GAAP net loss for the fourth quarter of 2023 was $13.2 million; The non GAAP net loss for the fourth quarter of 2024 was $14.5 million, while the non GAAP net loss for the fourth quarter of 2023 was $6 million.

Q4 2024 Financial Highlights

NLIGHT's full year revenue for 2024 was $198.5 million, a decrease of 5.4% from the full year revenue of $209.9 million in 2023. The gross profit margin for the whole year of 2024 is 16.6%, while for the whole year of 2023 it is 22.0%. The GAAP net loss for the full year of 2024 was $60.8 million, while the net loss for the full year of 2023 was $41.7 million. The non GAAP net loss for the full year of 2024 was $30.9 million, while the non GAAP net loss for the full year of 2023 was $13.6 million.

Financial highlights for the whole year of 2024

Based on previous years' performance reports, nLIGHT has been losing money for six consecutive years, with a net loss of up to $256.4 million.

Scott Keeney, President and CEO of nLIGHT, stated that 2024 is a year of transformation for nLIGHT as our defense business begins to expand, with revenue increasing by 20% year-on-year to $110 million, accounting for approximately 55% of our overall sales. We have made significant progress in multiple large-scale directional energy contracts and won new projects in the field of laser sensing. As we enter 2025, I am optimistic about our business, especially in the aerospace and defense sectors. This year, we have good visibility in multiple projects in the fields of directional energy and laser sensing, coupled with a record backlog of orders and a healthy balance sheet. We are confident that we will have a favorable position in the near and long-term growth of the aerospace and defense markets.

From the perspective of business segments, the revenue of nLIGHT Laser Products Division in 2024 decreased due to the decline in sales in the industrial and microfabrication markets, while the revenue of the Advanced Development Division increased due to new development contracts in the aerospace and defense markets.

From a regional perspective, nLIGHT North America accounted for 66.9% of total revenue in 2024, with growth due to increased demand in the aerospace and defense markets. On the contrary, due to the decline in sales in the industrial and microfabrication markets, revenue in the Asia Pacific and EMEA regions has decreased.

The decline in industrial market revenue is mainly due to a decrease in unit sales in all regions, reflecting the deterioration of market conditions and a decrease in customer demand for cutting and additive manufacturing. It is understood that nLIGHT continues to innovate in the fields of high-power semiconductors and fiber lasers, focusing on programmable and repairable high-power fiber lasers for aerospace, defense, and industrial applications.

In 2024, nLIGHT will cease all manufacturing activities in China and transfer these products and capabilities to its contract manufacturers in Thailand or automated production lines located in Kamas, Western Australia. In the future, nLIGHT plans to continue investing in research and development to maintain its competitive advantage in high-power laser technology, with a focus on expanding its technological leadership in directional energy and laser sensing.

In the first quarter of 2025, nLIGHT expects revenue to be between $45 million and $51 million. The median of $48 million includes approximately $33 million in laser product revenue and approximately $15 million in advanced development revenue. NLIGHT expects the overall gross profit margin to be between 13% and 17%, with laser products having a gross profit margin between 16% and 20%, and advanced development having a gross profit margin of approximately 8%. NLIGHT expects adjusted EBITDA to be between $6 million and $3 million.

Source: Yangtze River Delta Laser Alliance