nLIGHT (LASR) has wrapped up FY 2025 with fourth quarter revenue of US$81.2 million and a basic EPS loss of US$0.10, while on a trailing twelve month basis revenue sits at US$261.3 million and EPS at a loss of US$0.47. Over recent quarters the company has seen revenue move from US$47.4 million in Q4 2024 to US$81.2 million in Q4 2025, with quarterly EPS losses ranging between US$0.07 and US$0.51. This keeps the focus firmly on how quickly margins can move toward breakeven. With the stock trading at US$66.19, this set of results keeps the spotlight on when and how the margin profile can shift from ongoing losses toward more sustainable profitability.

See our full analysis for nLIGHT.

With the latest numbers on the table, the next step is to weigh them against the main stories investors follow about nLIGHT to see which narratives still hold up and which might need a rethink.

Revenue climbs to US$261.3 million over the year

• On a trailing twelve month basis, nLIGHT booked US$261.3 million of revenue and a net loss of US$23.5 million, compared with quarterly revenue moving between US$51.7 million and US$81.2 million and quarterly net losses ranging from US$3.6 million to US$8.1 million in FY 2025.
• Consensus narrative points to expanding defense and high growth manufacturing programs as key drivers. The TTM loss of US$23.5 million against US$261.3 million of sales gives some support to that view but also highlights tension because:
  • Revenue over the last 12 months is described as growing at about 13.6% a year, which fits the idea of a growing top line, yet margins remain negative and five year net losses have increased at roughly 12.6% a year.
  • Analysts expect revenue to grow 16.8% a year and earnings to reach US$23.2 million by 2029, so the current loss shows the company is still some distance from the positive margin profile embedded in that consensus narrative.

Losses narrow to US$4.9 million in Q4

• For Q4 2025, nLIGHT reported a basic EPS loss of US$0.10 and a net loss of US$4.9 million on US$81.2 million of revenue, compared with a TTM EPS loss of US$0.47 and a TTM net loss of US$23.5 million on US$261.3 million of revenue.
• Bulls argue that growing defense exposure and amplifier scaling can support margin improvement, and this quarter gives them some data to point to but also raises questions because:
  • Bullish assumptions look for revenue growth of 18.3% a year and margin expansion from a 9% loss to a 5.8% profit margin within three years. However, the TTM figures still reflect an overall net loss, so the improvement needs to continue rather than just appear in a single quarter.
  • Those bullish forecasts imply earnings of US$25.3 million and a P/E of 318.4x by 2029, which is far above the current US Electronic industry P/E of 28.8x, so the current loss profile means a lot has to go right to close that gap.

Bulls point to defense growth and margin potential as reasons the current loss profile could shift meaningfully over time, so if you want to see how that optimistic case is built in detail, check out the 🐂 nLIGHT Bull Case.

Rich valuation with DCF fair value at US$15.64

• With the stock at US$66.19, nLIGHT is trading on a P/S of 14.3x compared with 2.6x for peers in the US Electronic industry, and the quoted DCF fair value is US$15.64, well below the current share price.
• Bears focus on this valuation gap and ongoing losses, and the current numbers give them several concrete arguments to work with:
  • The market price sits above the DCF fair value of US$15.64, while the business is still loss making on a TTM net income of US$23.5 million. This contrasts with bearish forecasts that already assume revenue growth of 15.7% a year and a profit margin eventually moving toward the 8.2% industry level.
  • Five year losses have grown at about 12.6% a year, and recent commentary highlights elevated share price volatility and insider selling, so both the earnings record and the trading profile feed into the cautious view that the current valuation already prices in a lot of future improvement.

Skeptics argue that paying a premium P/S while TTM losses persist is risky without clear evidence of durable profitability, so if you want to see that cautious case unpacked around these earnings, have a look at the 🐻 nLIGHT Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for nLIGHT on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, sentiment around nLIGHT is mixed. It makes sense to review the data yourself and decide how comfortable you are with the trade off, then round out that view by checking the 1 key reward and 2 important warning signs.

See What Else Is Out There

nLIGHT combines ongoing TTM losses with a rich P/S multiple and a DCF fair value that sits well below the current share price.

If paying a high valuation for a loss making stock feels uncomfortable, you can quickly compare it with companies screened for value using the 51 high quality undervalued stocks.

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.