nLIGHT, Inc. (LASR): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see how nLIGHT, Inc. is actually structuring its business now that the defense pivot is clearly paying off. It's not just about lasers anymore; it's about mission-critical directed energy. We saw Q3 2025 revenue land at $66.7 million, with Aerospace & Defense growth set to top 40% for the year, but the margins tell a nuanced story, especially with those lower-margin R&D contracts guiding around 8% for Q4. This Business Model Canvas cuts through the noise, showing you the key resources-like those proprietary chips-and the specific customer relationships that are fueling this transformation. See below for the precise breakdown of how they capture value from the factory floor to the Pentagon.

nLIGHT, Inc. (LASR) - Canvas Business Model: Key Partnerships

You're looking at the relationships nLIGHT, Inc. relies on to drive its high-growth defense segment, which is the core of its current financial story.

The U.S. Government and prime defense contractors form the backbone of the current revenue structure. For instance, the Aerospace & Defense (A&D) segment delivered record revenue of $45.6 million in the third quarter of 2025, making up 68% of total revenue for that period. Management expects full year 2025 A&D revenue growth to exceed the prior outlook of at least 40% year-over-year.

Key strategic partners for directed energy programs include the prime contractor on the DE M-SHORAD effort, KORD Technologies, LLC. nLIGHT, Inc. is a subcontractor on this program, which involved a $34.5 million contract award. This specific work was expected to complete around the middle of 2025.

The partnership landscape is further defined by major development contracts:

Program/Customer Type	Partner/Customer	Contract Value/Metric	Status/Period
Directed Energy Development	U.S. DoD (HELSI-2 Program)	$171 million total program value	Component shipments drove Q1 2025 revenue; expected contributor through remainder of 2025 and into 2026
Directed Energy Prototyping	U.S. Army RCCTO (via KORD)	$34.5 million contract	Expected completion mid-2025
Laser Sensing/Munitions Restocking	Unspecified Defense Customer	New $50 million contract signed in Q3 2025	Ongoing program of record supported for over a decade
International Defense Sales	New International Defense Customer	Reported in Q2 2025 results	Contributed to record Q2 2025 A&D revenue of $40.7 million

The company also noted a healthy pipeline from both domestic and international defense agencies, including a new $50 million laser sensing contract in Q3 2025.

For commercial volume, nLIGHT, Inc. has strategically shifted production away from China. Prior to 2023, reliance on the Shanghai facility was reduced to below 10%, supported by investment in the Camas, Washington facility and contract manufacturing in Thailand.

International defense engagement is noted as significant, with 'fairly advanced' developments mentioned in Israel as of early 2024. The Q2 2025 results specifically highlighted growth driven by a new international defense customer.

• A&D revenue in Q3 2025: $45.6 million.
• Q3 2025 Product Gross Margin: 41.0%.
• Q4 2025 Revenue Guidance Midpoint: $75 million.
• Total cash, cash equivalents, and investments as of Q3 2025 end: $116.1 million.

Finance: review Q4 2025 guidance execution against the $75 million midpoint target by February 2026.

nLIGHT, Inc. (LASR) - Canvas Business Model: Key Activities

You're looking at the core engine of nLIGHT, Inc., the things they absolutely must do well to keep the lights on and grow, especially with defense spending driving the current narrative. Here's the quick math on what they're focused on right now.

Manufacturing proprietary semiconductor and fiber lasers

The physical making of the lasers is central. This activity supports both the Products segment and the Advanced Development segment. The success here is reflected in the product gross margin, which hit 41.0% in the third quarter of 2025, a significant jump from 28.8% in Q3 2024. This margin expansion shows better operational execution and product mix leverage.

The revenue split shows where the manufacturing focus is landing:

Segment/Metric	Q3 2025 Actual (USD Thousands)	Q4 2025 Guidance Midpoint (USD Millions)
Total Revenue	$66,700	$75.0
Products Revenue	Approx. $26,400 (Defense Product Revenue Only)	Approx. $55.0
Microfabrication Revenue	$11,600	Included in Products
Industrial Revenue	$9,600	Included in Products

Executing Advanced Development R&D contracts

This is the contract work that feeds future product revenue, often tied to government programs. The Advanced Development segment carries a much lower gross margin expectation, which is a key distinction in their operational focus.

• Advanced Development Gross Margin guidance for Q4 2025 is approximately 8%.
• Q4 2025 Advanced Development revenue is guided to be approximately $20 million.
• Q3 2025 Advanced Development revenue was a component of the total revenue of $66.7 million.
• Q2 2025 Advanced Development revenue was approximately $18 million.

The company is clearly prioritizing the ramp of defense-related development work, as evidenced by the full-year 2025 A&D growth target exceeding 40% year-over-year.

Continuous innovation in high-power laser technology stack

Innovation is tied directly to securing and executing on the high-growth defense contracts. The focus is on directed energy and optical sensing applications, which are driving the top-line performance.

• Aerospace & Defense (A&D) revenue for Q3 2025 was $45.6 million, making up 68% of total revenue.
• Defense product revenue in Q3 2025 grew 71% year-over-year.
• Management expects full year 2025 A&D revenue growth to exceed the prior outlook for growth of at least 40% year-over-year.
• The company highlighted strong execution in directed energy applications.

This innovation focus is what allows nLIGHT, Inc. to command a premium on its product sales, reflected in the 41.0% product gross margin in Q3 2025.

Global supply chain management across U.S. and Asia

Managing the flow of components and finished goods is a constant activity, especially given past transitions and current geopolitical factors. The company has actively managed its manufacturing footprint to mitigate input cost variability.

Here are some supply chain/manufacturing notes:

• nLIGHT, Inc. shifted commercial laser production to the U.S. and Thailand.
• The company noted that a sequential revenue increase in Q2 2025 for microfabrication followed a manufacturing transition out of China.
• High tariffs created short-term margin variability due to increased input costs.
• The company reported successful execution on the transition of amplifier production lines.

The operational execution on these transitions directly supported the gross margin expansion seen in 2025.

Finance: review Q4 2025 inventory projections by next Tuesday.

nLIGHT, Inc. (LASR) - Canvas Business Model: Key Resources

You're looking at the core assets that power nLIGHT, Inc.'s operations, especially given the pivot toward defense spending. These aren't just abstract concepts; they are tangible, measurable advantages that underpin their revenue generation, particularly in the Aerospace & Defense segment.

The foundation of nLIGHT, Inc.'s offering is its proprietary high-power semiconductor laser chips. They manufacture these chips from gallium arsenide wafers, using a patented multiplexed single-chip architecture. This allows them to combine multiple chips into what they claim are the most brilliant semiconductor lasers commercially available. For example, their 'element' products can deliver power levels up to 570W across wavelengths ranging from 793 to 976nm, with industry-leading brightness improvements, achieving over 250 watts coupled into a 100 micron fiber. This vertical integration, extending to raw materials for their optical fiber, is a significant differentiator.

The company's global manufacturing footprint supports this vertical integration. While headquartered in Camas, Washington, nLIGHT, Inc. operates primary manufacturing facilities across the United States, including Vancouver, Washington, and Hillsboro, Oregon, as well as in Lohja, Finland. The outline specifies a presence in the U.S. and Thailand; the company also reports operations in Europe and Asia, employing approximately 800 people as of early 2025. This physical presence helps control costs and protect intellectual property.

Protecting that technology is the extensive intellectual property portfolio and patents. nLIGHT, Inc. relies on a combination of patents, trade secrets, and trademarks. As of late 2025, their semiconductor laser products are protected by at least 16 listed granted U.S. patents, with several key grants issued in 2024 and 2025 alone, such as US12449298 and US12444896, both granted on October 21, 2025. The company's grant share was reported at 44% as of January 2024.

Finally, the balance sheet provides the necessary fuel for ongoing R&D and program execution. The liquidity position as of the second quarter of 2025 is a key resource for weathering any short-term commercial market volatility.

Here's a quick look at the key financial and quantitative resource data:

Resource Metric	Value/Detail
Cash and Equivalents (as of Q2 2025)	$78.812 million
Semiconductor Laser Output (Industry Lead Example)	Up to 250 watts into 100 micron fiber
Semiconductor Laser Power Levels (element product)	Up to 570W
Number of Listed Semiconductor Laser Patents	16
Patent Grant Share (as of Jan 2024)	44%
Employee Count (Approximate as of early 2025)	Approximately 800

The core technologies are protected by these patents, which support their high-power density products.

• Proprietary technology includes patented multiplexed single-chip architecture.
• Manufacturing relies on compound semiconductor laser chips from gallium arsenide wafers.
• Key patents granted in 2025 include US12449298 and US12444896.
• The company maintains a vertically integrated structure for quality control.

Finance: confirm the Q3 2025 cash position by the end of next week.

nLIGHT, Inc. (LASR) - Canvas Business Model: Value Propositions

You're looking at the core offerings that nLIGHT, Inc. delivers to its customers, which are heavily weighted toward high-performance, mission-critical applications as of late 2025. This isn't just about selling components; it's about providing scalable, controlled laser architecture for demanding uses.

High-power, programmable fiber lasers for industrial use.

While commercial markets have seen continued weakness, nLIGHT, Inc. still provides solutions for industrial material processing. The company's focus, however, is clearly shifting away from commoditized applications where Chinese-manufactured low-cost lasers are prevalent. For context on the broader market nLIGHT operates in, the High Power Fiber Laser segment (Above 2kW) is projected to account for 62.7% of fiber laser demand in 2025, showing where the power focus lies globally. You can see the revenue mix shift, with Aerospace & Defense (A&D) accounting for 66% of total sales in Q2 2025, up from 55.17% for the full year 2024.

Mission-critical directed energy solutions for defense.

This is where the significant value is being created and recognized. nLIGHT, Inc. is executing on major defense programs that require power scaling and ruggedization. For example, the company is delivering a 50kW-class High Energy Laser (HEL) for integration into Stryker combat vehicles under the U.S. Army's Directed Energy Maneuver-Short Range Air Defense (DE M-SHORAD) initiative in 2025. Furthermore, the High Energy Laser Scaling Initiative (HELSI) contract was expanded to a total value of $171 million to scale laser source power to the megawatt-class.

The financial impact of this focus is clear in the guidance; management expects full year 2025 A&D revenue growth to exceed the prior outlook for at least 40% year-over-year growth. The Q3 2025 results showed this strength, with A&D driving record shipments.

Laser sensing products for missile guidance and countermeasures.

Beyond direct directed energy weapons, nLIGHT, Inc. provides laser technology for sensing applications, which are also seeing record shipments as of Q2 2025. These sensing products are integral to missile guidance and countermeasures systems, representing a high-value, specialized niche within the defense sector. The growth in this area contributes to the overall A&D segment performance, which saw Q3 2025 revenue hit $66.742 million, up 18.9% year-over-year.

Full control over the laser technology stack for performance.

A key differentiator is the company's vertical integration, which translates directly into performance control and reliability for the end-user. This control spans from the semiconductor laser chips all the way through to the high-power beam directors. This architecture is what allows them to meet demanding specifications, such as demonstrating a 300 kilowatt (kW) class HEL that exceeded program objectives in 2023, which underpins the current $171 million HELSI-2 award.

Here's a quick look at the financial and contract metrics underpinning these value propositions as of late 2025:

Metric Category	Specific Value	Context/Date
Q3 2025 Revenue	$66.742 million	Reported for the three months ended September 30, 2025
Trailing Twelve Months Revenue	$227.53 million	Ending September 30, 2025
Q3 2025 Products Gross Margin	41%	Demonstrates operational leverage on product sales
HELSI-2 Contract Value	$171 million	Total value for 1 Megawatt-class laser development
DE M-SHORAD Laser Power	50kW-class	For integration into Stryker combat vehicles in 2025
Q3 2025 Adjusted EBITDA	$7.109 million	Positive result showing profitability leverage

The value proposition is further supported by the internal structure that enables this performance. You can see the commitment to this high-value area through the segment focus:

• A&D revenue growth target for full year 2025 is at least 40% year-over-year.
• The company's technology is being scaled to the megawatt-class for defense applications.
• Vertical integration provides complete control over system performance, ensuring field-serviceable, ruggedized lasers.
• The company is reallocating engineering resources from slower-growth commercial projects to higher-value defense initiatives.

nLIGHT, Inc. (LASR) - Canvas Business Model: Customer Relationships

You're looking at how nLIGHT, Inc. (LASR) manages its key customer interactions as of late 2025. The relationship structure clearly favors the high-growth, high-commitment defense sector over the more volatile commercial side.

Dedicated, long-term supplier relationships with defense OEMs

The core relationship here is deep integration with defense Original Equipment Manufacturers (OEMs) and the U.S. Department of Defense (DoD). This is not transactional; it's about being a critical, long-term supplier for mission-critical systems. The numbers show this focus pays off, with Aerospace and Defense (A&D) revenue dominating the top line.

For the third quarter of 2025, Aerospace and Defense revenue hit a record of $45.6 million, representing a 50% increase year-over-year and a 12% sequential jump. This segment accounted for 63% of total sales in Q2 2025. Management expects full year 2025 A&D revenue growth to surpass the prior outlook of at least 40% year-over-year.

These relationships are cemented by significant, multi-year development and production efforts. Here's a look at some of the key defense engagements:

Program/Contract Type	Value/Metric	Reporting Period/Context
A&D Revenue (Q3 2025)	$45.6 million	Record for the quarter
Full Year 2025 A&D Growth Target	Exceeding 40% year-over-year	Prior outlook
HELSI-2 Program (DoD)	$171 million contract	Key driver for product shipments
New Laser Sensing Contract	$50 million	Tied to munitions restocking
HEL Prototype Development Contract	$86 million	Awarded in May 2025 for HELSI
A&D Revenue Share (Q2 2025)	63% of total sales	Shift from 49% in Q2 2024

The company is also actively pursuing international defense opportunities, having started shipments to a new international customer in the second quarter of 2025.

Direct sales and technical support for industrial customers

For the commercial side, which includes industrial and microfabrication customers, the approach is more traditional direct sales, but the focus is clearly shifting away from it. While commercial markets saw some sequential improvement, management is cautious about sustained demand.

In the second quarter of 2025, commercial markets revenue was $21 million, which was up 11% sequentially but down 9% year-over-year. The total company revenue for Q3 2025 was $66.7 million. To be fair, management indicated they continue to rationalize investments in these commercial markets, suggesting technical support is being prioritized where it drives the highest near-term return, or it's being scaled back where demand is weak.

High-touch engagement for Advanced Development contracts

The Advanced Development segment, which covers research, design, and prototyping for next-gen defense tech, requires a very high-touch, collaborative engagement model. This is where nLIGHT, Inc. (LASR) works closely with defense partners on custom, high-power fiber lasers and beam-combining technologies.

Development revenue in the third quarter of 2025 was $19.1 million, showing a 28% year-over-year growth. The guidance for the fourth quarter of 2025 anticipates development revenue to be $20 million. However, the profitability on this work can fluctuate significantly. Development gross margin was 6.4% in Q3 2025, down from 13.1% the prior quarter, largely due to the completion of smaller, higher-margin programs. The company expects this margin to remain in the 8% range going forward. The Army's DE M-SHORAD program, which is an R&D contract, is noted as ramping down, suggesting a transition point in this high-touch engagement cycle.

Investor relations via CEO-led conference participation

Investor relations is managed directly by senior leadership, including Chairman and CEO Scott Keeney and VP of Corporate Development and Investor Relations John Marchetti. This direct engagement is designed to align market expectations with operational milestones, especially around defense contract execution.

In 2025, management actively participated in several key investor events:

• The Raymond James 46th Annual Institutional Investors Conference on March 4, 2025.
• The Cantor Global Technology Conference on March 12, 2025.
• The Raymond James 2025 TMT Consumer Conference on December 9, 2025.
• The 14th Annual NYC Summit on December 16, 2025.

Presentation materials from these events are made available on the company's investor page at https://investors.nlight.net. This consistent presence helps reinforce confidence, especially as the company delivered a positive Adjusted EBITDA of $7.1 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

nLIGHT, Inc. (LASR) - Canvas Business Model: Channels

You're looking at how nLIGHT, Inc. gets its products and services into the hands of its customers as of late 2025. The channel strategy clearly shows a pivot, with direct engagement dominating the high-growth areas.

Direct sales force to Aerospace and Defense (A&D) prime contractors

The primary engine for nLIGHT, Inc.'s current financial momentum is its direct sales approach into the Aerospace and Defense sector. This channel is responsible for the bulk of the company's revenue, which hit a record in the third quarter of 2025. The focus here is on high-power lasers for mission critical directed energy applications, which are sold directly to prime contractors and the U.S. Government.

The success of this channel is evident in the Q3 2025 figures:

• Aerospace and Defense revenue reached a record $45.6 million in the third quarter of 2025.
• This A&D segment represented 68% of total revenue for the quarter.
• A&D product sales alone grew 71% year-over-year, reaching $26.4 million in Q3 2025.
• Full year 2025 A&D revenue growth is expected to exceed the prior outlook of at least 40% year-over-year.

Direct sales to global Industrial and Microfabrication OEMs

For the commercial side, which includes Industrial and Microfabrication Original Equipment Manufacturers (OEMs), nLIGHT, Inc. appears to rely on a direct sales model, though this segment is currently experiencing headwinds. Management has been clear about strategically pruning lower-return business within this area, focusing resources elsewhere. The company has operations in the United States, Europe, and Asia, suggesting a global direct sales footprint for these commercial customers.

Here is the revenue contribution from these commercial channels in Q3 2025:

Market Segment	Q3 2025 Revenue (in thousands)	Year-over-Year Change
Microfabrication	$11,600	Down 19%
Industrial	$9,600	Down 17%
Total Commercial	$21,200	Down 18%

The total revenue for nLIGHT, Inc. in Q3 2025 was $66,742 thousand.

Government contract vehicles for Advanced Development

Advanced Development revenue is channeled almost exclusively through government contract vehicles, often related to directed energy programs. This is a distinct revenue stream from the product sales within the A&D segment, representing research and development work. The company is executing on several significant, multi-year programs that utilize these vehicles.

• Development revenue in Q3 2025 was $19.1 million, showing a 28% year-over-year growth.
• The HELSI-2 program, a development contract, has a total value of $171 million.
• In the third quarter of 2025, nLIGHT, Inc. signed a new $50 million contract for a long-running missile program.
• Q4 2025 guidance projects Development revenue to be approximately $20 million.

This development revenue stream is critical for securing future product revenue, as seen with the HELSI-2 program's expected contribution through the remainder of 2025 and into 2026.

International distributors for commercial markets

While the search results heavily emphasize direct sales to A&D primes and the commercial OEM segment, the mention of international operations in Europe and Asia, combined with the general structure of laser component sales, implies the use of international distributors for commercial markets, particularly where direct sales force coverage is less efficient. The company has not provided specific revenue breakdowns attributed to distributor channels for the commercial segments in the latest reports, but the global footprint suggests this mechanism is in place to support sales outside the primary direct-engagement zones.

nLIGHT, Inc. has approximately 800 employees and operations spanning the United States, Europe, and Asia.

nLIGHT, Inc. (LASR) - Canvas Business Model: Customer Segments

You're looking at the core customer base for nLIGHT, Inc. as of late 2025, and honestly, the shift in focus is the biggest story here. The company's customer segments are clearly bifurcating between high-growth defense work and more challenged commercial markets.

The Aerospace and Defense (A&D) customers are now the overwhelming driver of the business. This segment saw record performance, with Q3 2025 revenue hitting $45.6 million, which represented 68% of the total $66.7 million revenue for that quarter. Defense product revenue specifically grew over 70% year-over-year in Q3 2025. This group includes direct work with the U.S. Army, such as the $34.5 million contract for the DE M-SHORAD prototyping effort, where nLIGHT, Inc. serves as a subcontractor to KORD Technologies, LLC. Furthermore, the company is heavily invested in the High Energy Laser Scaling Initiative (HELSI2) program, a $171 million effort aimed at delivering a one-megawatt laser.

The remaining customer base falls under the commercial umbrella, which includes Industrial manufacturers and Microfabrication companies. These segments are facing a tougher demand environment. For instance, in Q3 2025, Industrial markets generated $9.6 million in revenue, down 17% year-over-year, with the company noting challenges in cutting and welding applications. Microfabrication revenue was $11.6 million in Q3 2025, a decline of 19% year-over-year, though it showed modest sequential improvement of 3%.

The Advanced Development portion of the business, which often aligns with future defense or specialized needs, is guided to have a gross margin of approximately 8% for Q4 2025. This contrasts sharply with the Products gross margin, which reached a record 41.0% in Q3 2025, largely due to the A&D mix.

We also see a clear focus on International allied nations for directed energy programs. Management specifically mentioned expanded international opportunities in directed energy driving growth, and in Q2 2025, the A&D segment growth included a new international defense customer. The company expects full-year 2025 A&D revenue growth to exceed its prior outlook of at least 40% year-over-year.

Here's a quick look at the revenue distribution based on the latest reported quarter:

Customer Segment	Q3 2025 Revenue (in thousands USD)	Approximate % of Total Revenue (Q3 2025)	Year-over-Year Growth (Q3 2025)
Aerospace and Defense (A&D)	$45,600	68%	+50%
Microfabrication	$11,600	17.4%	-19%
Industrial	$9,600	14.4%	-17%
Advanced Development (Guidance)	Approx. $20,000 (Q4 2025 Midpoint)	N/A	N/A

The customer base is consolidating around mission-critical applications, which is reflected in the financial structure:

• Total backlog stood at $399 million as of March 2025.
• $167 million of that backlog was funded and shippable within two years.
• The company's total revenue for the trailing twelve months (ttm) ending September 30, 2025, was $227.53 million.
• Q4 2025 revenue guidance midpoint is set at $75 million.

nLIGHT, Inc. (LASR) - Canvas Business Model: Cost Structure

The cost structure for nLIGHT, Inc. is heavily weighted toward product creation and future technology development, which is typical for a high-power laser manufacturer serving demanding sectors like Aerospace & Defense (A&D).

High cost of goods sold (COGS) for complex laser products is reflected in the gross margin profile. While the overall Gross Margin for the third quarter of 2025 was 31.1%, the Products segment-which includes the complex laser systems-achieved a significantly higher Product Gross Margin of 41.0% for the same period. This margin expansion, up from 28.8% in Q3 2024, suggests better cost management or a favorable product mix shifting toward higher-margin defense products, but the underlying COGS for these sophisticated components remains a major cost driver.

Significant Research and Development (R&D) expenses are essential to maintaining technological leadership, particularly for A&D programs. For the three months ended September 30, 2025, Research and Development expenses were reported as $\mathbf{\$2.56}$ million (or $\mathbf{\$2,560}$ thousand). This investment supports the development revenue stream, which was $\mathbf{\$19.1}$ million in Q3 2025, up 28% year-over-year.

Sales, General, and Administrative (SG&A) costs support the growth across all segments. For the third quarter of 2025, SG&A expenses were $\mathbf{\$6.187}$ million (or $\mathbf{\$6,187}$ thousand). The company is focused on operating expense discipline; Non-GAAP Operating Expenses for Q3 2025 were $\mathbf{\$17.5}$ million, and management expects this to remain in the $\mathbf{\$18}$ million range for the fourth quarter of 2025, indicating a focus on controlling overhead relative to revenue growth.

Manufacturing overhead for dual-site (U.S./Thailand) operations is managed to support global production scale. While specific overhead allocation figures aren't explicitly detailed, the company's operational structure, including facilities in the U.S. and Asia, is designed to balance cost efficiency with proximity to key defense and industrial customers. The restructuring charge of approximately $\mathbf{\$1.7}$ million recorded in Q3 2025 was associated with reducing activities in China and in cutting and welding, suggesting ongoing optimization of the manufacturing footprint.

Here's a look at the key cost and margin metrics around late 2025:

Metric (in millions USD, unless noted)	Q3 2025 Actual	Q4 2025 Guidance (Midpoint/Range)
Total Revenue	$\mathbf{\$66.7}$	$\mathbf{\$75.0}$ (Range: $\mathbf{\$72}$ to $\mathbf{\$78}$)
Products Revenue	$\mathbf{\$47.6}$	$\mathbf{\$55.0}$
Development Revenue	$\mathbf{\$19.1}$	$\mathbf{\$20.0}$
Total Gross Margin	31.1%	29.5% (Range: 27% to 32%)
Products Gross Margin	41.0%	36.5% (Range: 34% to 39%)
Development Gross Margin	6.4%	8.0%
Research & Development Expense (Quarterly)	$\mathbf{\$2.56}$	Not explicitly provided, but implied within OpEx control
Sales, General, & Admin Expense (Quarterly)	$\mathbf{\$6.187}$	Not explicitly provided, but implied within OpEx control
GAAP Operating Expenses (Quarterly)	$\mathbf{\$28.1}$	Not explicitly provided
Non-GAAP Operating Expenses (Quarterly)	$\mathbf{\$17.5}$	$\mathbf{\$18.0}$ (Range)
Restructuring Charge (Included in GAAP OpEx)	$\mathbf{\$1.7}$	Not expected to recur significantly
Adjusted EBITDA	$\mathbf{\$7.1}$	$\mathbf{\$8.5}$ (Midpoint of $\mathbf{\$6}$ to $\mathbf{\$11}$ million range)

The company's cost management is evident in the Non-GAAP OpEx being $\mathbf{\$10.6}$ million lower than GAAP OpEx in Q3 2025 ($\mathbf{\$28.1}$ million GAAP minus $\mathbf{\$17.5}$ million Non-GAAP), largely due to excluding items like stock-based compensation.

nLIGHT, Inc. (LASR) - Canvas Business Model: Revenue Streams

You're looking at how nLIGHT, Inc. brings in its money, and right now, it's heavily weighted toward defense and high-power applications. The revenue streams clearly separate into two main buckets: the sale of finished Laser Products and the revenue generated from Advanced Development (A&D) contracts, which is essentially R&D work for customers.

For the third quarter of 2025, nLIGHT, Inc. reported total revenue of $66.7 million. The growth story is definitely in the defense space; management expects the full-year 2025 A&D revenue growth to exceed 40% year-over-year. This focus is driving the overall financial performance, even as other segments face headwinds.

Here's a quick look at how the revenue streams stacked up in Q3 2025 and what the company is projecting for Q4 2025:

Revenue Category	Q3 2025 Actual (in millions)	Q4 2025 Guidance (Midpoint, in millions)
Total Revenue	$66.7	$75.0
Product Sales (Total)	$47.61	~$55.0
Development/A&D Revenue	$19.13	~$20.0

The composition of that revenue is key to understanding the margins you'll see on the income statement. The Laser Products sales are the higher-margin component of the business, which is why the company is so focused on ramping those programs. Conversely, the Advanced Development contracts, while crucial for future product pipelines, carry a much thinner margin profile.

Let's map out the profitability associated with each stream as of late 2025:

• Laser Products sales achieved a gross margin of 41% in Q3 2025.
• The Advanced Development (R&D) contract revenue is guided to have a significantly lower gross margin at approximately 8% for Q4 2025.
• Overall gross margin for nLIGHT, Inc. in Q3 2025 was 31.1%.

To be fair, the Q3 2025 product gross margin of 41% is a major step up from the prior year, showing operational leverage is starting to kick in as volumes increase on those key defense contracts. The Q4 2025 guidance midpoint of $75 million revenue, split between approximately $55 million in Product revenue and $20 million in Development revenue, shows the continued reliance on the higher-margin product sales to pull the overall company margin up toward the guided range of 27% to 32%.