Is nLIGHT’s (LASR) Upbeat Guidance Shifting the Narrative on Sustainable Revenue Growth?

• nLIGHT, Inc. recently reported its third quarter 2025 results, showing year-over-year revenue growth to US$66.74 million and a narrowed net loss, and also provided fourth quarter revenue guidance of US$72 million to US$78 million.
• An important insight is that the company’s updated guidance signals ongoing momentum in both advanced development and product revenues, suggesting broader demand across its key markets.
• We’ll examine how nLIGHT’s improved revenue guidance and reduced net loss impact the company’s investment outlook.

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nLIGHT Investment Narrative Recap

To hold shares in nLIGHT, investors need to trust in the company’s ability to capitalize on defense and advanced manufacturing demand while narrowing losses. The latest results reveal improved revenue guidance and a smaller net loss, which may encourage optimism around near-term growth but do little to resolve the company’s reliance on U.S. aerospace and defense budgets, the biggest current risk if contract timing or government priorities shift. The most important catalyst remains sustained momentum in high-power laser programs, yet exposure to large program cycles could keep volatility elevated.

Of the latest announcements, the company’s raised fourth-quarter revenue guidance to a range of US$72 million to US$78 million is the most relevant. This is pivotal as it reinforces management’s confidence in diversified demand across both advanced development and product sales, directly supporting the near-term growth catalyst investors are watching. However, risks tied to concentration in defense contracts still linger...

Read the full narrative on nLIGHT (it's free!)

nLIGHT's narrative projects $310.5 million in revenue and $28.1 million in earnings by 2028. This requires 12.7% yearly revenue growth and a $75.1 million earnings increase from -$47.0 million today.

Uncover how nLIGHT's forecasts yield a $35.58 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members’ fair value estimates for nLIGHT range from US$22.83 to US$35.58, based on two independent perspectives. Even as optimism follows management’s higher short-term revenue guidance, continued dependence on government-backed programs could weigh on earnings consistency, explore these alternative views to broaden your understanding.

Explore 2 other fair value estimates on nLIGHT - why the stock might be worth 23% less than the current price!

Build Your Own nLIGHT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your nLIGHT research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free nLIGHT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate nLIGHT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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