nLIGHT, Inc.

Total revenue in Q2 2026 was $82.6 million, up 34% from $61.7 million in Q2 2025 and up 3% sequentially. Gross margin was 31.1% GAAP versus 29.9% a year ago and 33.1% last quarter; non-GAAP gross margin was 32.6% versus 30.9% a year ago and 34.4% last quarter. Products gross margin was 41.2% versus 38.5% a year ago and 43.6% last quarter. GAAP net loss was $1.3 million, or $0.02 per share, versus a loss of $3.6 million, or $0.07 per share, a year ago; non-GAAP net income was $9.6 million, or $0.15 per diluted share, versus $2.9 million, or $0.06 per diluted share, a year ago. Adjusted EBITDA was $10.7 million versus $5.6 million a year ago. Cash, cash equivalents, restricted cash and investments totaled $330.8 million, and the company repaid the $20 million drawn on its credit line. For Q3 2026, revenue is guided to $63 million to $73 million, including about $43 million of product revenue and $25 million of development revenue at the midpoint; about $17 million of product revenue expected to ship in Q3 is now pushed to future quarters. Q3 gross margin is expected to be 24% to 30%, product gross margin 34% to 40%, development gross margin about 8%, and adjusted EBITDA $1 million to $7 million.

Scott Keeney framed the quarter as another strong execution period, pointing to record revenue, gross margin, adjusted EBITDA and cash from operations. He emphasized expanding demand across defense, directed energy, laser sensing and advanced manufacturing, and highlighted JLWS as a major validation of nLIGHT’s HADES platform and vertically integrated model. His tone was upbeat but pragmatic: he repeatedly said demand is strong, while also noting that supply chain issues are creating timing problems.

Joseph Corso focused on the financial momentum and the near-term supply issue. He cited record product revenue, a 31.1% GAAP gross margin, 32.6% non-GAAP gross margin, $20.7 million of operating cash flow, and $330.8 million of cash and investments, plus repayment of the $20 million credit line draw. For Q3, he said the lower revenue range reflects roughly $17 million of delayed product shipments tied to Chinese-sourced optics and that non-GAAP OpEx should remain in the $17 million to $19 million per quarter range in the second half of 2026.

Analysts focused heavily on JLWS timing and the HELSI-2 transition, and management said JLWS will start contributing in Q3, ramp in 2027, and more than replace the eventual HELSI-2 decline. Several questions probed the supply chain issue; management said it is a very recent development, mainly affects commercial products, and is tied to China tightening scrutiny on dual-use optics and related materials. They said the issue could resolve in months or quarters, but Q4 timing is still uncertain. Questions also covered space sensing and missile restocking, with management saying both are emerging areas of interest and that kinetic munitions demand is benefiting from restocking and growing content per program.