nLIGHT Inc.

11/06/2026 | Press release | Distributed by Public on 11/06/2026 13:25

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "ability," "anticipate," "attempt," "believe," "can be," "continue," "could," "depend," "enable," "estimate," "expect," "extend," "grow," "if," "intend," "likely," "may," "objective," "ongoing," "plan," "possible," "potential," "predict," "project," "propose," "rely," "should," "target," "will," "would" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
These statements involve risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about: our business model and strategic plans; our expectations regarding manufacturing; our future financial performance; demand for our semiconductor and fiber laser solutions; our ability to develop innovative products; our expectations regarding product volumes and the introduction of new products; our technology and new product research and development activities; the impact of U.S. government budget and appropriations processes, including continuing resolutions and potential government shutdowns; the impact of new import and export controls; the impact of changes in regulations and customs, tariffs and trade barriers, or the perception that any of them could occur; the impact of ongoing supply chain disruptions; our restructuring of China operations; the impact of inflation; the impact of seasonality; the effect on our business of litigation to which we are or may become a party; and the sufficiency of our existing liquidity sources to meet our cash needs.
You should refer to the "Risk Factors" section of this report for a discussion of other important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this report will prove to be accurate. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, which although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted a thorough inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Overview
nLIGHT, Inc. is a leading provider of high-power lasers for mission-critical directed energy, optical sensing, and advanced manufacturing applications. We design, develop, manufacture, integrate and sell a range of high-power semiconductor and fiber lasers that are typically integrated into laser systems or manufacturing tools built by us or our customers. We also make high energy pulsed fiber lasers, fiber amplifiers, and beam combination and control systems for use in high-energy laser systems for directed energy and laser sensing systems for use in a wide range of commercial and defense applications. Our long history of commercial technology development and vertical integration enables us to develop products that leverage the same underlying technology across a variety of applications and markets, thereby enabling us to deliver innovative and reliable products to customers in each of our end markets.
We sell our products into two primary end markets: Defense & Space and Advanced Manufacturing. Beginning with the quarter ended September 30, 2026, we present revenue in two end markets: Defense & Space, which consists of revenue previously reported as Aerospace and Defense, and Advanced Manufacturing, which combines our former Industrial and Microfabrication end markets, and includes semiconductor and fiber laser products sold into a variety of end markets including additive manufacturing. We made this change to better reflect how management views our customer base. Prior-period amounts have been recast to conform to the current presentation. The change had no effect on total revenue or segment reporting.
We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment.
Revenues increased to $236.5 million in the nine months ended September 30, 2026 compared to $180.1 million in the same period in 2025 due primarily to an increase in both product and development revenue from the Defense & Space end market. We incurred a net loss of $7.9 million for the nine months ended September 30, 2026 compared to a net loss of $18.6 million for the same period in 2025.
Factors Affecting Our Performance
Demand for our Products and Solutions
Our revenue depends largely on market conditions, competitive pressure, and achievement of design wins. We consider a design win to occur when a customer notifies us that it has selected one of our products to be incorporated into a product or system under development by such customer. In the Defense & Space market, our business also depends in large part on continued investment in laser technology by the U.S. government and its allies, and our ability to continue to successfully develop leading technology in this area and commercialize that technology in the future. Certain of our U.S. government programs are currently funded under a continuing resolution that expires on December 11, 2026. A further lapse in appropriations, or an extended period of funding under continuing resolutions, could delay U.S. government procurements, contract awards, deliveries and payments and adversely affect our results of operations.
Demand for our products also fluctuates based on market cycles, continuously evolving industry supply chains, trade and tariff terms, as well as evolving competitive dynamics in each of our end-markets. Erosion of ASPs of established products is typical in our industry, and the ASPs of our products generally decrease as our products mature. We may also negotiate discounted selling prices from time to time with certain customers that purchase higher volumes, or to penetrate new markets or applications.
Technology and New Product Development
We invest heavily in the development of our semiconductor, fiber laser, directed energy, and laser-sensing technologies to provide solutions to our current and future customers. We anticipate that we will continue to invest in research and development to achieve our technology and product roadmap. Our product development is targeted to specific sectors of the market where we believe the performance of our products provides a significant benefit to our customers. We believe our close coordination with our customers regarding their future product requirements enhances the efficiency of our research and development expenditures.
Manufacturing Costs and Gross Margins
Product gross profit, in absolute dollars and gross margin, may fluctuate from period to period based on product sales mix, sales volumes, changes in ASPs, production volumes, the corresponding absorption of manufacturing overhead expenses, the cost of purchased materials, production costs and manufacturing yields. Product sales mix can affect gross profits due to variations in profitability related to product configurations and cost profiles, customer volume pricing, availability of competitive products in various markets, and new product introductions, among other factors. Even though certain of our products are built offshore by contract manufacturers, capacity utilization affects gross margin because of the fixed cost associated with our U.S.-based manufacturing capabilities. Change in sales and production volumes impact absorption of fixed costs, manufacturing efficiencies and production costs.
Our Development gross profit varies with the type and terms of contracts, contract volume, project mix, changes in the estimated cost of projects at completion, and successful execution on projects during the period. Most of our Development contracts have historically been structured as cost plus fixed fee due to the technical complexity of the
research and development services, but we also perform work under fixed price contracts where gross margin can change from period to period based on the estimated cost of the project at completion.
Seasonality
Our quarterly revenues can fluctuate with general economic trends, the timing of capital expenditures by our customers and holidays. In addition, as is typical in our industry, we tend to recognize a larger percentage of our quarterly revenues in the last month of the quarter, which may impact our working capital trends.
Global Economic Conditions and Trade Policies
We sell our products globally, and a portion of our sales are generated from products that are manufactured outside the United States or rely on components from suppliers who are located outside of the United States. Changing trade dynamics, including changes in tariffs, export regulations, and customs enforcement, could disrupt our supply chain and production, disrupt customer sales, and increase input costs. We continue to monitor macroeconomic trends, global inflationary pressures, and uncertainties related to international trade policy, including tariff actions and regulatory shifts.
For example, in February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). In March 2026, the U.S. Court of International Trade issued an additional ruling stating that importers that have paid tariffs under IEEPA are due refunds. In addition, in June 2026, China implemented enhanced export declaration requirements for certain machine tools, unmanned aerial systems, and related components. These new requirements impose more stringent documentation, classification, and reporting obligations on exporters that have resulted in increased compliance costs and longer customs clearance times.
Changes in global economic conditions and international trade negatively impacted our revenue and operating results in the three and nine months ended September 30, 2026, as components from certain key suppliers in China were held in customs in China along with shipments from nLIGHT, Inc. to certain customers in China. During the third quarter of 2026 we initiated a variety of mitigation strategies to secure the components and materials needed to manufacture our products, all of which are ongoing. If we are unable to effectively mitigate these supply chain disruptions, we expect them to increase our operational complexity, continue to disrupt our production and have a material negative impact on our revenue, cost, and profitability in future periods.
Results of Operations
The following table sets forth our operating results as a percentage of revenues for the periods indicated (which may not add up due to rounding):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Revenue:
Products 65.1 % 71.3 % 70.0 % 68.9 %
Development 34.9 28.7 30.0 31.1
Total revenue 100.0 100.0 100.0 100.0
Cost of revenue:
Products 34.3 42.1 39.3 42.7
Development 32.6 26.8 28.3 27.9
Total cost of revenue 66.9 68.9 67.6 70.6
Gross profit 33.1 31.1 32.4 29.4
Operating expenses:
Research and development 17.0 17.3 15.9 18.8
Sales, general, and administrative 18.5 22.1 19.0 21.4
Restructuring 10.1 2.6 3.3 1.0
Total operating expenses 45.6 42.0 38.2 41.2
Loss from operations (12.5) (10.9) (5.8) (11.8)
Other income:
Interest income 3.3 1.6 2.8 2.2
Interest expense (0.1) (0.5) (0.2) (0.4)
Other income (expense), net - (0.1) - (0.1)
Loss before income taxes (9.3) (9.9) (3.2) (10.1)
Income tax expense 0.4 0.4 0.2 0.2
Net loss (9.7) % (10.3) % (3.4) % (10.3) %
Revenues by End Market
Our revenues by end market were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue $ %
Defense & Space
$ 52,460 71.1 % $ 45,554 68.3 % $ 6,906 15.2 %
Advanced Manufacturing 21,303 28.9 21,188 31.7 115 0.5
$ 73,763 100.0 % $ 66,742 100.0 % $ 7,021 10.5 %
Nine Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue Amount %
Defense & Space
$ 164,885 69.7 % $ 118,955 66.0 % $ 45,930 38.6 %
Advanced Manufacturing 71,650 30.3 61,190 34.0 10,460 17.1
$ 236,535 100.0 % $ 180,145 100.0 % $ 56,390 31.3 %
The increases in revenue from the Defense & Space end market for the three and nine months ended September 30, 2026, compared to the same periods in 2025, were driven primarily by increased unit sales of directed energy laser products, increased unit sales of laser components for defense programs, and progress on both new and existing research and development contracts. The increase in revenue from the Advanced Manufacturing end market for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was primarily attributable to increased unit sales of semiconductor lasers and fiber lasers to additive manufacturing customers, partially offset by decreased unit sales of fiber lasers to cutting and welding customers.
Revenues by Segment
Our revenues by segment were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue $ %
Laser Products $ 48,047 65.1 % $ 47,608 71.3 % $ 439 0.9 %
Advanced Development 25,716 34.9 19,134 28.7 6,582 34.4
$ 73,763 100.0 % $ 66,742 100.0 % $ 7,021 10.5 %
Nine Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue Amount %
Laser Products $ 165,612 70.0 % $ 124,110 68.9 % $ 41,502 33.4 %
Advanced Development 70,923 30.0 56,035 31.1 14,888 26.6
$ 236,535 100.0 % $ 180,145 100.0 % $ 56,390 31.3 %
The increases in Laser Products revenue for the three and nine months ended September 30, 2026 compared to the same periods in 2025 were the result of increased unit sales across all end markets. The increases in Advanced Development revenue for the three and nine months ended September 30, 2026, compared to the same periods in 2025, were driven by progress on new and existing research and development contracts. All Advanced Development revenue is included in the Defense & Space market.
Revenues by Geographic Region
Our revenues by geographic region were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue $ %
North America $ 52,122 70.7 % $ 46,682 69.9 % $ 5,440 11.7 %
Asia Pacific 9,696 13.1 9,280 13.9 416 4.5
EMEA(1)
11,945 16.2 10,780 16.2 1,165 10.8
$ 73,763 100.0 % $ 66,742 100.0 % $ 7,021 10.5 %
Nine Months Ended September 30, Change
2026 % of Revenue 2025 % of Revenue Amount %
North America $ 170,875 72.2 % $ 127,938 71.0 % $ 42,937 33.6 %
Asia Pacific 30,754 13.0 27,070 15.0 3,684 13.6
EMEA(1)
34,906 14.8 25,137 14.0 9,769 38.9
$ 236,535 100.0 % $ 180,145 100.0 % $ 56,390 31.3 %
(1) EMEA consists of Europe, the Middle East, and Africa.
Geographic revenue information is based on the location to which we ship our products.
The increase in North America revenues for the three months ended September 30, 2026 compared to the same period in 2025, was due to increased revenue from the Defense & Space end market, partially offset by a decrease from the Advanced Manufacturing end market. The increase in North America revenues for the nine months ended September 30, 2026 compared to the same period in 2025, was due to increased revenue across all end markets, with revenue from the Defense & Space end market representing most of the increase.
The increase in Asia Pacific revenues for the three months ended September 30, 2026 compared to the same period in 2025, was due to increased revenue from the Advanced Manufacturing end market, partially offset by a decrease from the Defense & Space end market. The increase in Asia Pacific revenues for the nine months ended September 30, 2026 compared to the same period in 2025, was due to increased revenue across all end markets.
The increases in EMEA revenues for the three and nine months ended September 30, 2026 compared to the same periods in 2025, were due to increased revenue across all end markets.
Cost of Revenues and Gross Margin
Cost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs, tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecasted demand from our customers. We expense all warranty costs and inventory provisions as cost of revenues.
Cost of Advanced Development revenue consists of materials, labor, subcontracting costs, and an allocation of indirect costs including overhead and general and administrative.
Our gross profit and gross margin were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,
2026 2025
Products Development Total Products Development Total
Gross profit $ 22,758 $ 1,673 $ 24,431 $ 19,522 $ 1,231 $ 20,753
Gross margin 47.4 % 6.5 % 33.1 % 41.0 % 6.4 % 31.1 %
Nine Months Ended September 30,
2026 2025
Products Development Total Products Development Total
Gross profit $ 72,584 $ 4,085 $ 76,669 $ 47,195 $ 5,814 $ 53,009
Gross margin 43.8 % 5.8 % 32.4 % 38.0 % 10.4 % 29.4 %
The increase in Laser Products gross margin for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was driven primarily by product sales mix, decreased inventory and warranty reserve charges, and the impact of increased production volumes on fixed manufacturing costs driven by demand. The increase in development gross margin for the three months ended September 30, 2026 compared to the same period in 2025 is attributable to changes in the mix of research and development contracts. The decrease in development gross margin for the nine months ended September 30, 2026 compared to the same period in 2025 was primarily the result of an increase in revenue from cost-plus fixed fee (CPFF) contracts relative to firm fixed price (FFP) contracts. Our CPFF contracts generally have a lower average gross margin than our FFP contracts.
Operating Expenses
Our operating expenses were as follows for the periods presented (dollars in thousands):
Research and Development
Three Months Ended September 30, Change
2026 2025 $ %
Research and development $ 12,535 $ 11,534 $ 1,001 8.7 %
Nine Months Ended September 30, Change
2026 2025 Amount %
Research and development $ 37,511 $ 33,920 $ 3,591 10.6 %
The increases in research and development expense for the three and nine months ended September 30, 2026 compared to the same periods in 2025 were primarily attributable to increased employee compensation driven by higher headcount. The increase in research and development expense for the nine months ended September 30, 2026 is also attributable to an increase in stock-based compensation of $1.3 million.
Sales, General and Administrative
Three Months Ended September 30, Change
2026 2025 $ %
Sales, general, and administrative $ 13,653 $ 14,785 $ (1,132) (7.7) %
Nine Months Ended September 30, Change
2026 2025 Amount %
Sales, general, and administrative $ 44,906 $ 38,501 $ 6,405 16.6 %
The decrease in sales, general and administrative expense for the three months ended September 30, 2026, compared to the same period in 2025, was driven primarily by a higher allocation of costs from sales, general and administrative to development projects. The increase in sales, general and administrative expense for the nine months ended September 30, 2026, compared to the same period in 2025, was driven primarily by an increase in stock-based compensation of $7.1 million, increased employee compensation, and decreased bad debt recoveries, partially offset by a higher allocation of costs from sales, general and administrative to development projects.
Restructuring
Restructuring included the following (in thousands):
Three Months Ended September 30, Change
2026 2025 $ %
Employee termination costs $ 4,524 $ 942 $ 3,582 380.3%
Write-down of long-lived assets and customer receivables 2,412 791 1,621 204.9%
Other 526 - 526 NM*
Total restructuring charges $ 7,462 $ 1,733 $ 5,729 330.6%
Nine Months Ended September 30, Change
2026 2025 $ %
Employee termination costs $ 4,524 $ 942 $ 3,582 380.3%
Write-down of long-lived assets and customer receivables 2,412 791 1,621 204.9%
Other 821 - 821 NM*
Total restructuring charges $ 7,757 $ 1,733 $ 6,024 347.6%
*NM - Not meaningful
During the third quarter we implemented a restructuring plan that shut down nearly all of our business operations in China. This restructuring plan directly included a headcount reduction, the write-down of long-lived assets, and the write-down of customer receivables. During the three months ended March 31, 2026 we incurred restructuring charges consisting of lease exit and termination costs related to excess manufacturing space. During the three months ended September 30, 2025 we implemented restructuring plans which included headcount reduction in China and the write-down of in-process capital equipment projects related to production capacity that was never placed into service.
Interest Income
Three Months Ended September 30, Change
2026 2025 $ %
Interest income $ 2,456 $ 1,079 $ 1,377 127.6%
Nine Months Ended September 30, Change
2026 2025 Amount %
Interest income $ 6,492 $ 3,875 $ 2,617 67.5 %
The increases in interest income for the three and nine months ended September 30, 2026, compared to the same periods in 2025, were driven primarily by an increase in the average balance of cash, cash equivalents and marketable securities.
Interest income is primarily earned from our marketable securities (U.S. treasuries), recognized using the effective yield method, and cash equivalents (money market securities).
Interest expense
Three Months Ended September 30, Change
2026 2025 $ %
Interest expense $ (25) $ (317) $ 292 (92.1)%
Nine Months Ended September 30, Change
2026 2025 Amount %
Interest expense $ (529) $ (753) $ 224 (29.7)%
The decreases in interest expense for the three and nine months ended September 30, 2026, compared to the same periods in 2025, were primarily driven by the timing of our borrowing and repayment of $20.0 million under the line of credit (LOC). During the three months ended March 31, 2025, we drew $20.0 million under the LOC. During the three months ended June 30, 2026, we repaid the $20.0 million LOC balance. Interest expense on the LOC was immaterial and $0.5 million for the three and nine months ended September 30, 2026, respectively.
Other Income, net
Three Months Ended September 30, Change
2026 2025 $ %
Other income (expense), net $ (72) $ (64) $ (8) 12.5 %
Nine Months Ended September 30, Change
2026 2025 Amount %
Other income (expense), net $ 116 $ (108) $ 224 (207.4) %
Other income, net is primarily attributable to changes in net realized and unrealized foreign exchange transactions resulting from currency rate fluctuations.
Income Tax Expense
Three Months Ended September 30, Change
2026 2025 $ %
Income tax expense $ 316 $ 273 $ 43 15.8 %
Nine Months Ended September 30, Change
2026 2025 Amount %
Income tax expense $ 444 $ 427 $ 17 4.0 %
We record income tax expense for taxes in our foreign jurisdictions including China, Finland, Italy, and South Korea. While our tax expense is largely dependent on the geographic mix of earnings related to our foreign operations, we also record tax expense for uncertain tax positions taken and associated penalties and interest. We consider all available evidence, both positive and negative, in assessing the extent to which a valuation allowance should be applied against our deferred tax assets. Due to the uncertainty with respect to their ultimate realizability, we continue to maintain a full valuation allowance on deferred tax assets in the United States (U.S.), and a partial valuation allowance in China as of September 30, 2026. Our effective tax rate may vary from period to period based on changes in estimated taxable income or loss by jurisdiction, changes to the valuation allowance, changes to U.S. federal, state or foreign tax laws, future expansion into areas with varying country, state, and local income tax rates and deductibility of certain costs and expenses by jurisdiction.
Our tax expense is dependent on the geographic mix of earnings and primarily related to our foreign operations. The increase in income tax expense for the three and nine months ended September 30, 2026 compared to the
same periods in 2025 was driven by an increase in foreign income. The second quarter of 2026 includes an increase in the valuation allowance for China that was partially offset by discrete tax benefits for expiring statutes of limitations on unrecognized tax positions.
Liquidity and Capital Resources
We had cash and cash equivalents and restricted cash of $279.7 million and $99.0 million as of September 30, 2026 and December 31, 2025, respectively. In addition, we had marketable securities of $34.8 million and $34.9 million at September 30, 2026 and December 31, 2025, respectively. Our total balance of cash, cash equivalents, restricted cash and marketable securities increased by $180.6 million from December 31, 2025 to September 30, 2026.
For the nine months ended September 30, 2026, our principal sources of liquidity were from our public offering and cash collected from customers. We believe our existing sources of liquidity will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. Our future capital requirements may vary materially from period to period and will depend on many factors, including the timing and extent of spending on research and development efforts, the expansion of sales and marketing activities, the continuing market acceptance of our products and ongoing investments to support the growth of our business. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, technologies and intellectual property rights. From time to time, we may explore additional financing sources which could include equity, equity-linked and debt financing arrangements.
The following table summarizes our cash flows for the periods presented (in thousands):
Nine Months Ended September 30,
2026 2025
Net cash provided by operating activities $ 17,282 $ 3,812
Net cash used in investing activities (10,257) (7,269)
Net cash provided by financing activities 173,589 18,519
Effect of exchange rate changes on cash 58 278
Net increase in cash, cash equivalents and restricted cash $ 180,672 $ 15,340
Net Cash Provided by Operating Activities
During the nine months ended September 30, 2026, net cash provided by operating activities was $17.3 million, which was the result of an $7.9 million net loss and cash used in net working capital of $17.6 million, offset by non-cash expenses totaling $42.8 million related primarily to depreciation, amortization, stock-based compensation, and restructuring charges. The cash used in net working capital in the nine months ended September 30, 2026 was driven by a $21.8 million increase in prepaid expenses and other current assets and a $15.1 million increase in inventory. The cash used in working capital was offset by an $8.4 million increase in deferred revenues, $3.6 million decrease in accounts receivable, net, $3.1 million increase in lease liabilities, $2.3 million increase in accounts payable, $1.5 million increase in accrued and other long-term liabilities, and $0.4 million decrease in other assets, net.
Net Cash Used in Investing Activities
During the nine months ended September 30, 2026, net cash used in investing activities was $10.3 million, which was driven by net capital expenditures of $11.4 million, offset by the net proceeds from maturities and sales of marketable securities of $0.7 million and proceeds from the sale of a subsidiary of $0.4 million.
Net Cash Provided by Financing Activities
During the nine months ended September 30, 2026, net cash provided by financing activities was $173.6 million, which consisted of proceeds from our public offering, net of underwriting discounts and offering costs, of $191.3 million and proceeds from stock option exercises and employee stock plan purchases of $2.5 million, offset by repayment of $20.0 million of the LOC and tax payments related to stock award issuances of $0.2 million.
Credit Facilities
We have a $40.0 million revolving LOC with Banc of California dated September 24, 2018, which is secured by our assets and matures on September 24, 2027. The LOC agreement contains restrictive and financial covenants, including a minimum total cash covenant, and bears an unused credit fee of 0.25% on an annualized basis. The interest rate of 6.0% on the LOC at September 30, 2026 is based on the Prime Rate, minus a margin based on our liquidity levels.
As of September 30, 2026, no amounts were outstanding on the LOC and we were in compliance with all covenants. The full $40.0 million unused portion of the LOC is available for borrowing.
Contractual Obligations
There have been no material changes to our contractual obligations as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
nLIGHT Inc. published this content on November 06, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 06, 2026 at 19:25 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]