LASR 10-K & 10-Q changes, risk factors and insider trading
Nlight, Inc. · Nasdaq · Semiconductors & Related Devices · CIK 1124796 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Our business prospects depend significantly on our ability to secure new U.S. government awards and design wins, the timing and availability of government funding and our ability to successfully execute and deliver on our government contracts..”
New heading “We have classified contracts with the U.S. government, which limits investor insight into portions of our business.”
Removed heading “Our agreements with the U.S. government and suppliers to the U.S. government subject us to particular risks.”
Largest changes
“We are also subject to significant regulatory requirements, and if we are found to have violated regulatory requirements, we may be subject to reductions in contract values, contract modifications or terminations, penalties, fines, repayments, compensatory, treble or other damages, or suspension or debarment. U.S. …”see in full comparison
“U.S. government agencies routinely audit and investigate government contractors and can decrease or withhold certain payments when it deems systems subject to its review to be inadequate. Additionally, any costs found to be misclassified may be subject to repayment. We have unaudited and unsettled incurred cost claims related to past years, which places risk on our ability to issue final billings on contracts for which authorized and appropriated funds may be expiring. …”see in full comparison
“In addition, the United States has recently enacted new tariffs on a number of countries and the global economic, political, legal, and regulatory climate is fluid and unpredictable. President Trump’s administration has been evaluating key aspects of U.S. trade policy and making significant changes to U.S. trade policies, treaties and tariffs, and there continues to exist significant uncertainty about the future relationship between the United States and other countries with respect to such trade policies, treaties and tariffs. …”see in full comparison
“We must comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. government contracts. These laws and regulations impose terms or rights that are often more favorable to the government than those typically available to commercial parties in negotiated transactions. For example, the U.S. government may terminate any of our government contracts and, in general, subcontracts, at their convenience, as well as for default. …”see in full comparison
“We must also comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. government contracts. These laws and regulations impose terms or rights that are often more favorable to the government than those typically available to commercial parties in negotiated transactions. For example, the U.S. government may terminate any of our government contracts and, in general, subcontracts, at their convenience, as well as for default. In addition, the U.S. …”see in full comparison
The United States and various foreign governments have imposed controls, export license requirements and restrictions on the import or export of certain products, technologies, and software. For example, the U.S. governmentsee in full comparisonhas continued to expandexpanded controls further restricting the ability to send certain products and technology related to lasers, semiconductors, semiconductor manufacturing and supercomputing to and within China and additionaldestinations. These expanded controls include imposing additional licensing requirements on exports, re-exports,destinations andtransfersisof certain integrated circuits (ICs) and products containing those circuitsexpected toandfurtherwithin China and additional destinations. In many cases,expand theselicenses are subject to a policy of denial. Proposed regulations would impose a worldwide licensing requirement on certain ICs and computing resources that are used for training of AI models. In addition, the U.S. government also continues to add additional entities in China and elsewhere to restricted party lists impacting the ability of U.S. companies to provide products and technology to these entities.controls. These controls may impact our ability to export certain products and technology to China and other destinations and restrict our ability to use certain ICs in our products.
Full comparison: every changed paragraph (93)
The industries in which we operate have significant price and technological competition. We compete with companies providing semiconductor and fiber lasers, and with companies offering conventional laser or non-laser solutions for the applications we target. Some of our competitors are larger and have substantially greater manufacturing, financial and research and development resources and larger installed customer bases than we do. Some of these competitors may receive government subsidies allowing them to compete more aggressively. These companies will likely be able to expand into broader products, geographies,geographies and end markets, which may result in additional competitive pressures on us. Certain competitors also have higher sales volume than we do, which can enable them to lower the prices of their products. Additionally, the merger or consolidation of significant competitors would result in competitors with greater resources, which may enable them to offer a different market approach, or a lower cost structure through economies of scale or other efficiencies that we may be unable to match and which may intensify competition. Further, our competitors may seek to vertically integrate by buying suppliers that also supply products or components to us, which could enable them to further reduce prices, or could increase our costs. Moreover, our Original Equipment Manufacturer (OEM) customers'customers’ internal production of laser technologies presents additional competitive pressure. To compete, we have reduced prices of some of our products in the past and we may be forced to lower our prices further in the future, which could negatively impact our revenues and gross margins. To remain competitive, we believe that we will be required to continue to invest significantly in research and development and manufacturing facilities. We may not have sufficient resources to continue to make these investments and we may not be able to make the technological advances or price adjustments necessary to compete successfully. Any failure to compete successfully will materially adversely affect our business, financial condition, results of operations and growth prospects.prospects..
Our results of operations may vary based on the impact of changes in the markets we serve or in the global economy. The Aerospace and Defense market is largely dependent on government budgets, in particular defense budgets, which are driven by numerous factors, including geopolitical events, macroeconomic conditions and the ability of the U.S. government to enact relevant legislation.factors. As a result, our future revenues are subject in part to the uncertainties of governmental budgeting and appropriations and national defense policies and priorities, constraints of the budgetary process and timing and potential changes to these policies and priorities, all of which are beyond our control. Many of our customers in the defense industry are subcontractors that must negotiate our proposals with the U.S. government. Our continuing relationship with these customers and the ability of these customers to pay for our products is dependent on the U.S. government'sgovernment’s decision to accept or reject our customers'customers’ terms, which can be delayed for a substantial period of time and is largely outside of our control. Such delays could result in decreased revenues and could materially adversely affect our results of operations in any given period. For our products sold to the Industrial market, we believe demand is largely based on general economic conditions and we cannot predict the timing, strength or duration of any economic slowdown or recovery, whether global, regional or within specific markets. For the Microfabrication market, a portion of our revenues depends on the demand for our products from semiconductor equipment companies. The semiconductor equipment market has historically been characterized by sudden and severe cyclical variations in product supply and demand, which have often severely affected the demand for manufacturing equipment, including laser-based tools and systems, which limits our ability to predict our business prospects and financial results in this market.
The markets for our products are characterized by rapid technological change, frequent product introductions, substantial capital investment, volatility of product supply and demand, changing customer requirements and evolving industry standards. Our future performance depends in part on our successful development, introduction and market acceptance of new and enhanced products that address these changes and current and potential customer requirements. To the extent customers defer or cancel orders for existing products due to a slowdown in demand or in the expectation of a new product release, or if there is any delay in development or introduction of our new products or enhancements of our products, our business, financial condition, results of operations and growth prospects would be materially adversely affected. We also may not be able to develop the underlying core technologies necessary to create new products and enhancements, or to license these technologies from third parties. Product development delays may result from numerous factors, including: changing product specifications and customer requirements, unanticipated engineering complexities, expense reduction measures, difficulties in hiring and retaining technical personnel, difficulties in reallocating engineering resources and overcoming resource limitations, and changing market or competitive product requirements.
•changing product specifications and customer requirements;
•unanticipated engineering complexities;
•expense reduction measures we have implemented, and others we may implement, to conserve our cash and attempt to sustain profitability;
•difficulties in hiring and retaining necessary technical personnel;
•difficulties in reallocating engineering resources and overcoming resource limitations; and
•changing market or competitive product requirements.
Further, the development of new, technologically advanced products is a complex and uncertain process requiring high levels of innovation and highly skilled engineering and development personnel, as well as the accurate anticipation of technological and market trends. We cannot assure you that our expenditures for research and development will result in the introduction of new products or, if such products are introduced,or that thoseany new products will achieve sufficient market acceptance or generate revenues to offset the cost of development. Ramping of production capacity also entails risks of delays which can limit our ability to realize the full benefit of the new product introduction. We cannot assure you that we will be able to identify, develop, manufacture, market or support new or enhanced products successfully. Additionally, our product offerings may become obsolete givenwith the frequent introduction of alternative technologies. If our products fail to gain and maintain market acceptance, it could materially adversely affect our business, financial condition, results of operations and growth prospects.
We rely on a small number of customers for a significant portion of our revenues, and we expect this customer concentration will continue in the future. We generally do not enter into long-term purchase agreements with our customers that obligate them to purchase our products. Our business is characterized by short-term purchase orders issued by our customers, which are likely to be favorable to those customers. If any of our principal customers discontinues its relationship with us, develops its own products instead of using ours, replaces us as a vendor for certainany products or suffers downturns in its business resulting in a cancellation of orders or an inability to place new orders from us,reason, then our business, financial condition, results of operations and growth prospects could be materially adversely affected.
Our business prospects depend significantly on our ability to secure new U.S. government awards and design wins, the timing and availability of government funding and our ability to successfully execute and deliver on our government contracts..
A substantial portion of our business prospects and future growth depend on obtaining new U.S. government contract awards, many of which are subject to competitive procurement processes, lengthy evaluation periods and uncertainty as to timing and outcome. Even after we are awarded with a U.S. government contract, the realization of revenue is subject to significant uncertainty. U.S. government spending may be reduced as a result of changes in policy, and other factors affecting the U.S. government such as national security focus areas, budget deficits and the national debt. If we are successful in being awarded a government contract, such award may be subject to appeals, disputes or litigation, including bid protests by unsuccessful bidders. Government demand and payment for our solutions may be impacted by public sector budgetary cycles and funding authorizations, with funding reductions or delays adversely affecting public sector demand for our solutions. Delays, reductions or cancellations in funding could delay or reduce anticipated work under existing or expected contracts and adversely affect our financial condition.
In addition, our ability to successfully perform under awarded contracts depends on executing complex engineering and development efforts. The U.S. government contracting party may require modifications to technical specifications or to increase or decrease production of certain solutions sold to the U.S. government, or to prioritize deliveries to the U.S. government due to changes in U.S. national security strategy and/or priorities or other reasons, which could adversely impact production and delivery of other products or sales to other customers.
We must also comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. government contracts. These laws and regulations impose terms or rights that are often more favorable to the government than those typically available to commercial parties in negotiated transactions. For example, the U.S. government may terminate any of our government contracts and, in general, subcontracts, at their convenience, as well as for default. In addition, the U.S. government retains rights to intellectual property developed in connection with a government contract. The U.S. government could exercise these rights in certain circumstances in the future, which could have the effect of decreasing the benefit we are able to realize commercially from such intellectual property.
We are also subject to significant regulatory requirements, and if we are found to have violated regulatory requirements, we may be subject to reductions in contract values, contract modifications or terminations, penalties, fines, repayments, compensatory, treble or other damages, or suspension or debarment. U.S. government agencies routinely audit and investigate government contractors to evaluate performance, cost structures and compliance, as well as the adequacy of business systems and processes, and such agencies can impose fines, penalties, sanctions, damages or decrease or withhold certain payments when it deems systems subject to its review to be inadequate. Additionally, any costs found to be misclassified may be subject to repayment, and allegations of impropriety can result in significant reputational damage. We have unaudited and unsettled incurred cost claims related to past years, which places risk on our ability to issue final billings on contracts for which authorized and appropriated funds may be expiring. If an audit or investigation uncovers improper or illegal activities or if we fail to comply with government contracting laws, regulations and contract requirements, we may be subject to civil or criminal penalties and administrative sanctions, including reductions of the value of contracts, contract modifications or terminations, forfeiture of profits, suspension of payments, penalties, fines and suspension, or prohibition from doing business with the U.S. government. In addition, we could suffer serious reputational harm if allegations of impropriety were made against us. Similar government oversight exists in most other countries where we conduct business. Any such imposition of penalties, or the loss of such government contracts, could materially adversely affect our business, financial condition, results of operations and growth prospects. Responding to any investigation or action relating to government contracts could result in a significant diversion of management’s attention and resources and significant defense costs and other professional fees.
We have classified contracts with the U.S. government, which limits investor insight into portions of our business.
We derive a portion of our revenues from programs with the U.S. government and its agencies that are subject to security restrictions, which preclude the dissemination of information and technology that is classified for national security purposes under applicable law and regulation. In general, access to classified information, technology, facilities or programs requires appropriate personnel security clearances, is subject to additional contract oversight and potential liability and may also require appropriate facility clearances and other specialized infrastructure. In the event of a security incident involving classified information, technology, facilities, programs or personnel holding clearances, we may be subject to legal, financial, operational and reputational harm. We are limited in our ability to provide information about these classified programs, their risks or any disputes or claims relating to such programs. As a result, investors have less insight into our classified business and our business overall.
Growth in revenues, combined with the challenges of managing geographically dispersed operations, can place a significant strain on our management systems and resources, and our anticipated growth in future operations could continue to place such a strain. The failure to effectively manage our growth could disrupt our business and materially adversely affect our results of operations. In economic downturns, we must effectively manage our spending and operations to ensure that our competitive position during the downturn, as well as our future opportunities when the economy improves, remains intact. The failure to effectively manage our spending and operations could disrupt our business and materially adversely affect our results of operations.
Our products represent a large investment for our customers and they typically expend significant effort in evaluating, testing and qualifying our products before making a decision to purchase them, resulting in a lengthy initial sales cycle. Even after this evaluation process, a potential customer may decide not to purchase our products. As a result, these long sales cycles may cause us to incur significant expenses without receiving revenues to offset such expenses soon thereafter or at all.expenses. This, in turn, can materially adversely affect our business, financial condition, results of operations and growth prospects.
We rely on our own production capabilities to manufacture certain of our key components, such as semiconductor lasers, specialty optical fibers and optical components. Certain of our components,components suchthat aswe our semiconductor lasers, which are manufactured at our Camas and Vancouver, Washington facilities, and our active fibers, which are manufactured at our Lohja, Finland facility,manufacture rely on processes and equipment that cannot be easily moved or replaced. If our manufacturing activities were obstructed or hampered significantly at these, or our other facilities, it could take a considerable length of time, at an increased cost, for us to resume manufacturing, which could materially harm our business and results of operations.
Also, we purchase certain raw materials and components, which are key elements to manufacture our products and other components, such as semiconductor wafer substrates, fiber laser chip packages, optics, and other materials, from single- or limited-source suppliers.suppliers for which alternative options are limited. We generally do not have guaranteed supply arrangements with our suppliers. Our key suppliers may not have the ability to increase their production in line with our customers'customers’ demands. This can become acute during times of high growth in our customers'customers’ businesses. As a result, we have experienced, and may in the future experience, longer lead times or delays in fulfillment of our orders. Furthermore, other than our current suppliers, there may be a limited number of entities from which we could obtain these supplies. In addition, if quality issues arise with these outsourced materials and go undetected by us, the use of such defective materials in our products could compromise their quality and harm our reputation.
For certain long lead-time supplies or in order to lock in pricing, we may be obligated to place purchase orders which are not cancellable or otherwise assume liability for a large amount of the ordered supplies, which limits our ability to adjust down our inventory liability in the event of market downturns or other customer cancellations or rescheduling of their purchase orders for our products.. Some of our products require designs and specifications which are at the cutting-edge of available technologies. Accordingly, certain of our products require components and supplies which may be technologically difficult and unpredictable to manufacture. These types of components may only be available by a single supplier. These characteristics place further pressure on the timely delivery of such components. In addition, many of our suppliers havemay recently experiencedexperience shortages of many of the components and raw materials that we require, and in some cases, havemay significantly increasedincrease their prices. Any interruption or delay in the supply of any of these components or materials, or the inability to obtain these components and materials from existing suppliers or alternate sources at acceptable prices and within a reasonable amount of time, could materially adversely affect our ability to meet customer orders and in turn our business, financial condition, results of operations and growth prospects.
While we maintain insurance that may cover certain liabilities in connection with a security breach or incident, we cannot be certain that our insurance coverage will be adequate for data handling or information security liabilities actually incurred,adequate, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, premiums, or deductibles could have a material adverse effect on our business, including our financial condition, operating results, and reputation.
We have from time-to-time experienced labor shortages and other labor-related issues. A number of factors may adversely affect the labor force available to us in one or more of our geographies, including high employment levels, increasing market wages and other compensation costs, federal unemployment subsidies, and other government regulations, which include laws and regulations related to workers’ health and safety, wage and hour practices and immigration.regulations. These factors along with increased turnover rates within our employee base can decrease our efficiency and impact our cost of labor.
In addition, we believe our ability to manage successfully and grow our business and to develop new products depends, in large part, on our ability to recruit and retain qualified employees, particularly highly skilled technical, sales, service, management, and key staff personnel. Competition for qualified resources is intense and other companies may have greater resources available to provide substantial inducements to lureour key personnel away from us or to offer more competitive compensation packages to individuals we are trying to hire.personnel.
We have experienced, and expect to continue to experience, fluctuations in our quarterly results of operations including restructuring charges in the fourth quarter of 2023 and 2024.operations. Factors which have had or may in the future have an influence on our results of operations in a particular quarter include:
•changes in significant or key customer orders, or the gain or loss of a key customer;
•competitive pricing pressures and new market entrants;
• the increase, decrease, cancellation or rescheduling of significant customer orders;
• declines in selling prices for our products;
• delays in our product-shipment timing, obtaining licenses or other import/export approvals, customer or end user sales or deployment cycles, or work performed under development contracts;
•seasonality attributable to different purchasing patterns and levels of activity throughoutthrough the year in the areas where we operate;
• the impact of new acquisitions and the success of our integration efforts;
• the timing of revenue recognition based on the installation or acceptance of certainour products shipped to our customers;
•timing variability in product introductions, enhancements, services and technologies by us and our competitors and market acceptance of these new or enhanced products, services and technologies;
• different capital expenditure and budget cycles for our customers, which affect the timing of their spending;
• our ability to obtain export licenses for our products on a timely basis or at all;
• changes in tariffs imposed by the U.S., China and other foreign governments;
• the rate at which our present and future customers and end users adopt our technologies;
• the gain or loss of a key customer;
• product or customer mix;
• competitive pricing pressures and new market entrants;
• our ability to manage our inventory levels and any write-downs for excess or obsolete inventory;
• our ability to collect outstanding accounts receivable balances;
• changes in the amount and timing of our operating costs;
• impairment of values for goodwill, intangibles and other long-lived assets;
• foreign currency fluctuations;
• the impact of public health crises, geopolitical events and macroeconomic conditions on our business, results of operations; and financial condition;
•changes in jurisdictional income mix andmix, tax rulesrules, tariffs and regulations in countries where we operate; andoperate.
• economic and market conditions in a particular geography or country.
A substantial portion of our operating expenses are fixed for the short-term, and as a result, fluctuations in revenues or unanticipated expenses can have a material and immediate impact on our profitability. In addition, we often recognize a substantial portion of our revenues in the last month of each fiscal quarter. We also base our manufacturing on our forecasted product mix for the quarter. If the actual product mix varies significantly from our forecast, we may not be able to fill some orders during that quarter, which would result in delays in the shipment of our products. Accordingly, variations in timing of sales, particularly for our higher priced, higher margin products, can cause significant fluctuations in quarterly results of operations. Due to these and other factors, particularly varying product mix from quarter to quarter, we believe that quarter-to-quarter and year-to-year comparisons of our historical results of operations may not be meaningful. You should not rely on our results for any quarter or year as an indication of our future performance.
Due to these and other factors, particularly varying product mix from quarter to quarter, we believe that quarter-to-quarter and year-to-year comparisons of our historical results of operations may not be meaningful. You should not rely on our results for any quarter or year as an indication of our future performance.
Our agreements with the U.S. government and suppliers to the U.S. government subject us to particular risks.
We must comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. government contracts. These laws and regulations impose terms or rights that are often more favorable to the government than those typically available to commercial parties in negotiated transactions. For example, the U.S. government may terminate any of our government contracts and, in general, subcontracts, at their convenience, as well as for default. Additionally, changes in government spending could have adverse consequences on our financial position, results of operations and business. The funding of our contracts is subject to the overall U.S. government budget and appropriation decisions and processes, which are driven by numerous factors, including geopolitical events and macroeconomic conditions. The U.S. government contracting party may require us to increase or decrease production of certain solutions sold to the U.S. government, or to prioritize deliveries to the U.S. government due to changes in U.S. national security strategy and/or priorities or other reasons, which could adversely impact production and delivery of other products or sales to other customers. In addition, the U.S. government retains rights to intellectual property developed in connection with a government contract. The U.S. government could exercise these rights in certain circumstances in the future, which could have the effect of decreasing the benefit we are able to realize commercially from such intellectual property.
U.S. government agencies routinely audit and investigate government contractors and can decrease or withhold certain payments when it deems systems subject to its review to be inadequate. Additionally, any costs found to be misclassified may be subject to repayment. We have unaudited and unsettled incurred cost claims related to past years, which places risk on our ability to issue final billings on contracts for which authorized and appropriated funds may be expiring. If an audit or investigation uncovers improper or illegal activities or if we fail to comply with government contracting laws, regulations and contract requirements, we may be subject to civil or criminal penalties and administrative sanctions, including reductions of the value of contracts, contract modifications or terminations, forfeiture of profits, suspension of payments, penalties, fines and suspension, or prohibition from doing business with the U.S. government. In addition, we could suffer serious reputational harm if allegations of impropriety were made against us. Similar government oversight exists in most other countries where we conduct business. Any such imposition of penalties, or the loss of such government contracts, could materially adversely affect our business, financial condition, results of operations and growth prospects. Responding to any investigation or action relating to government contracts could result in a significant diversion of management’s attention and resources and significant defense costs and other professional fees.
Our inability to manage risks associated with our international customerscustomers, operations and operationssupply chain could materially adversely affect our business.
Our foreign operations and revenues are subject to a number of risks, including the impact of various macroeconomic conditions, unexpected changes in regulatory requirements, certification requirements and environmental and other regulations; reduced protection for intellectual property rights in some countries; potentially adverse tax consequences; political and economic instability; import/export regulations, tariffs and trade barriers; compliance with applicable United States and foreign anti-corruption laws; cultural and management differences; reliance in some jurisdictions on third-party revenues from channel partners; preference for locally produced products; supply chain, shipping, and other logistics complications; and longer accounts receivable collection periods. In particular, the economic, political, legal, and regulatory climate in China, both nationally and regionally, is fluid and unpredictable, and operating in China exposes us to related risks that could materially adversely impact our business.
In addition, the United States has recently enacted new tariffs on a number of countries and the global economic, political, legal, and regulatory climate is fluid and unpredictable. President Trump’s administration has been evaluating key aspects of U.S. trade policy and making significant changes to U.S. trade policies, treaties and tariffs, and there continues to exist significant uncertainty about the future relationship between the United States and other countries with respect to such trade policies, treaties and tariffs. These developments have caused and may continue to cause significant volatility in global financial markets and may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. For example, the Trump Administration has initiated various Section 232 tariff investigations to evaluate whether additional tariffs may be necessary on certain commodities, including semiconductors, critical minerals, and derivative electronics products, in order to protect U.S. national security interests. When these investigations are complete, the President may direct the imposition of additional tariffs on these or other commodities. With manufacturing in the United States and internationally and with a material portion of our revenue derived from foreign customers, we are susceptible to negative impacts from these tariffs or change in trade policies. In addition, new tariffs and other changes in U.S. trade policy could trigger retaliatory actions by affected countries, and certain foreign governments may impose trade sanctions on certain U.S. manufactured goods. Any of these factors could depress economic activity and restrict our access to third party services as well as disrupt our supply chain, which could materially adversely impact our business.
While we attempt to negotiate prices with suppliers or diversify our supply chain in response to increased tariffs, such efforts may be costly, may not yield immediate results or may be ineffective in fully mitigating the effects of these tariffs. The result of tariffs may include an increase in our prices to our customers, which could reduce the competitiveness of our products and adversely affect our revenue. In addition, if significant tariffs are sustained over a long period, our ability to source products in a cost-effective manner could be impacted, which may have a material adverse effect on our business, financial condition and results of operations.
Management's Discussion & Analysis (MD&A)
New heading “Global Economic Conditions”
New heading “Interest expense”
New heading “Other Income (Expense), net”
Removed heading “Other Income, net”
Largest changes
“A portion of our sales are generated from products manufactured outside the United States and we sell our products globally. Changing trade dynamics, including newly imposed or proposed tariffs and export controls, could disrupt our supply chain and increase input costs. These trade policy developments did not have a material impact on our financial results in 2025. …”see in full comparison
“During the third and fourth quarters of 2025, we implemented restructuring plans which included headcount reductions in China, Austria, Germany, and Finland, and the write-down of in-process capital equipment projects related to production capacity that had not been placed into service or redundant capital equipment we intend to sell. We implemented restructuring plans in the fourth quarters of 2024 and 2023 which resulted in reductions of headcount primarily in China, including the discontinuation of all manufacturing activities in China during the fourth quarter of 2024.”see in full comparison
“We implemented restructuring plans in the fourth quarters of 2024 and 2023 which resulted in reductions of headcount primarily in China, including the discontinuation of all manufacturing in China during the fourth quarter of 2024. During the fourth quarter of 2022, we implemented a restructuring plan which included headcount reductions in both the U.S. and China, and the write-down of certain in-process capital equipment projects related to production capacity that were never completed or placed into service.”see in full comparison
Thesee in full comparisonincreasedecrease in Laser Products gross margin for20232024 compared to20222023 was drivenby a decrease in direct labor and other variable manufacturing costs, and a decrease in manufacturing variances, partially offsetby the impact of lower sales and production volumes on fixed manufacturing costs due to the decrease in overall customerdemand.demandManufacturing variances in 2022 includedand inventory charges related tobusinessproductsrestructuring andfor thediscontinuationIndustrialof certain product linesmarket in the fourth quarter of2022.2024, offset partially by positive changes in sales mix. Thedecreaseincrease in Advanced Development gross margin for20232024 compared to20222023 was not significant and was primarily the result of changes in the composition ofresearch anddevelopment contracts.
“We continue to monitor macroeconomic trends, global inflationary pressures, and uncertainties related to international trade policy, including tariff actions and regulatory shifts. The U.S. government implemented a new series of tariffs on imported goods during 2025, prompting retaliatory tariffs by other countries.”see in full comparison
“On September 24, 2024, we amended the LOC to extend the maturity date to September 24, 2027, updated financial covenants, and amended the unused line fee and interest rate applicable to revolving loans.”see in full comparison
Full comparison: every changed paragraph (63)
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 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 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.
Overview nLIGHT, Inc. is a leading provider of high‑power lasers for mission-critical directed energy, optical sensing, and advanced manufacturing applications. We design, manufacture, and sell a range of high-power semiconductor lasers and fiber lasers that are typically integrated into laser systems or manufacturing tools built by 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 used in a wide range of defense applications. Our vertical integration enables us to develop products that leverage the same underlying technology, thereby enabling us to offer innovative and reliable products to customers in each of our end markets. We sell our products into three primary end markets: Aerospace and Defense, Industrial, and Microfabrication.
nLIGHT, Inc., headquartered in Camas, Washington, is a leading provider of high‑power semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications.
Revenues decreasedincreased to $198.5$261.3 million in the year ended December 31, 20242025 compared to $209.9$198.5 million in 20232024 due to a decrease inhigher sales volumes in the Laser Products segment thatand wascontinued partially offset by an increase in salesgrowth in the Advanced Development segment. We generated a net loss of $60.8$23.5 million for the year ended December 31, 20242025 compared to a net loss of $41.7$60.8 million in 2023.2024.
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 average selling prices, or ASPs,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.
Global Economic Conditions
We continue to monitor macroeconomic trends, global inflationary pressures, and uncertainties related to international trade policy, including tariff actions and regulatory shifts. The U.S. government implemented a new series of tariffs on imported goods during 2025, prompting retaliatory tariffs by other countries.
A portion of our sales are generated from products manufactured outside the United States and we sell our products globally. Changing trade dynamics, including newly imposed or proposed tariffs and export controls, could disrupt our supply chain and increase input costs. These trade policy developments did not have a material impact on our financial results in 2025. However, if current trends continue or intensify, we may experience increased cost volatility, operational complexity, and broader economic pressures on our customer base that could have a negative impact on revenue and profitability in the future.
The increase in revenue from the Aerospace and Defense market for 2025 compared to 2024 was driven by increased unit sales of directed energy laser products and progress on existing development contracts. The increase in revenue from the Microfabrication market for 2025 compared to 2024 was primarily attributable to increased unit sales of semiconductor lasers in EMEA and Asia Pacific, partially offset by decreased unit sales in North America. The decrease in revenue from the Industrial market for 2025 compared to 2024 was primarily the result of decreased unit sales of industrial fiber lasers for cutting and welding due to lower customer demand and deteriorating market conditions across all regions.
The increase in revenue from the Aerospace and Defense market for 2024 compared to 2023 was the result of increased unit sales of products due to higher demand, an increase in ASPs, and increased development revenue from development contracts awarded primarily in the second half of 2023. The decrease in revenue from the Microfabrication market for 2024 compared to 2023 was primarily attributable to decreased unit sales of semiconductor lasers in EMEA and Asia Pacific, offset partially by increased unit sales in North America. The decrease in revenue from the Industrial market for 2024 compared to 2023 was primarily the result of decreased unit sales across all regions due to deteriorating market conditions and lower customer demand in cutting and additive manufacturing.
The decrease in Industrial market revenue for 2024 compared to 2023 was primarily the result of decreased unit sales across all regions due to deteriorating market conditions and lower customer demand in cutting and additive manufacturing. The decrease in Microfabrication market revenue for 2024 compared to 2023 was primarily attributable to decreased unit sales of semiconductor lasers in EMEA(1) and Asia Pacific, offset partially by increased unit sales in North America. The increase in Aerospace and Defense market revenue for 2024 compared to 2023 was the result of increased unit sales of products due to higher demand, an increase in ASPs, and increased development revenue from development contracts awarded primarily in the second half of 2023.
The decreases in Industrial and Microfabrication market revenue for 2023 compared to 2022 were the result of decreased unit sales across all regions due primarily to lower customer demand and deteriorating market conditions. The increase in Aerospace and Defense market revenue in 2023 compared to 2022 was driven by new development contracts, offset partially by a decrease in product sales.
The decreaseincrease in Laser Products revenue for 20242025 compared to 20232024 was driven by decreased sales to both the Industrialresult and Microfabrication markets as discussed above, offset partially byof increased salesrevenue tofrom the Aerospace and Defense market and Microfabrication market as discussed above, partially offset by decreased revenue from the Industrial market. The increase in Advanced Development revenue for 20242025 compared to 20232024 was thedriven resultby of increased activityprogress on developmentexisting contracts awarded primarily in the second half of 2023. All Advanced Development revenue is included in the Aerospaceresearch and Defensedevelopment market.contracts.
The decrease in Laser Products revenue for 20232024 compared to 20222023 was primarilydriven due toby decreased unitsrevenue salesfrom toboth the Industrial and Microfabrication markets as discussed above.above, offset partially by increased revenue from the Aerospace and Defense market. The increase in Advanced Development revenue wasfor driven2024 bycompared new development contracts. Most of our Advanced Development revenue into 2023 was generatedthe fromresult costof plusincreased fixedactivity feeon development contracts,contracts andawarded all Advanced Development revenue is includedprimarily in the Aerospacesecond andhalf Defenseof market.2023.
All Advanced Development revenue is included in the Aerospace and Defense market.
(1) EMEA consists of Europe, the Middle East, and Africa.
The increase in North America revenue for 2025 compared to 2024 was the result of increased revenue from the Aerospace and Defense market, partially offset by decreased revenue from the Microfabrication and Industrial markets. The increases in Asia Pacific and EMEA revenues for 2025 compared to 2024 were the result of increased revenue from the Aerospace and Defense market and Microfabrication market, partially offset by decreased revenue from the Industrial market.
The decrease in North America revenue for 2023 compared to 2022 was the result of decreased revenue from the Industrial and Microfabrication markets, partially offset by an increase in revenue from the Aerospace and Defense market. The decrease in Asia Pacific and EMEA revenue for 2023 compared to 2022 was driven by decreases in revenue from the Industrial and Microfabrication markets as discussed above.
The decreaseincrease in Laser Products gross margin for 20242025 compared to 20232024 was driven by primarily by changes in sales mix, which included increased sales of directed energy laser products, the impact of lower sales andincreased production volumes on fixed manufacturing costs due to the decreaseoverall increase in overallsales customeras demandpreviously discussed, and an increase in duty reclaim and manufacturing yields. In addition, Laser Products gross margin in 2024 was negatively impacted by inventory charges related to products for the Industrial market in the fourth quarter of 2024, offset partially by positive changes in sales mix.2024. The increase in Advanced Development gross margin for 20242025 compared to 2023 was not significant and2024 was primarily the result of changesan increase in therevenue compositionfrom offixed researchpriced andcontracts developmentthat carried higher average gross margins than cost-plus fixed fee contracts.
The increasedecrease in Laser Products gross margin for 20232024 compared to 20222023 was driven by a decrease in direct labor and other variable manufacturing costs, and a decrease in manufacturing variances, partially offset by the impact of lower sales and production volumes on fixed manufacturing costs due to the decrease in overall customer demand.demand Manufacturing variances in 2022 includedand inventory charges related to businessproducts restructuring andfor the discontinuationIndustrial of certain product linesmarket in the fourth quarter of 2022.2024, offset partially by positive changes in sales mix. The decreaseincrease in Advanced Development gross margin for 20232024 compared to 20222023 was not significant and was primarily the result of changes in the composition of research and development contracts.
The increase in research and development expense for 2025 compared to 2024 was driven by an increase in stock-based compensation of $1.8 million, and increases in incentive compensation and indirect project-related spending that were partially offset by a decrease in outside services.
The decrease in research and development expense for 2023 compared to 2022 was due primarily to decreases in salary costs and project-related expenses, an increase in costs allocated from research and development to development projects, and a decrease in stock-based compensation of $1.8 million.
The increase in sales, general and administrative expense for 2025 compared to 2024 was primarily due to increases in stock-based compensation of $6.6 million and increases in employee and incentive compensation, partially offset by decreases in bad debt expense, increases in bad debt recoveries, and a higher allocation of costs from sales, general and administrative to development projects.
The decrease in sales, general and administrative expense for 2023 compared to 2022 was primarily due to a decrease in salary costs and incentive compensation, and an increase in administrative costs allocated from sales, general and administrative to development projects, partially offset by an increase in stock-based compensation of $1.2 million.
During the third and fourth quarters of 2025, we implemented restructuring plans which included headcount reductions in China, Austria, Germany, and Finland, and the write-down of in-process capital equipment projects related to production capacity that had not been placed into service or redundant capital equipment we intend to sell. We implemented restructuring plans in the fourth quarters of 2024 and 2023 which resulted in reductions of headcount primarily in China, including the discontinuation of all manufacturing activities in China during the fourth quarter of 2024.
We implemented restructuring plans in the fourth quarters of 2024 and 2023 which resulted in reductions of headcount primarily in China, including the discontinuation of all manufacturing in China during the fourth quarter of 2024. During the fourth quarter of 2022, we implemented a restructuring plan which included headcount reductions in both the U.S. and China, and the write-down of certain in-process capital equipment projects related to production capacity that were never completed or placed into service.
Interest Income, netIncome
Interest income, net was as follows (in thousands):
The increasesincrease in interest income, netincome for 20242025 compared to 20232024, was driven primarily by an increase in income earned from marketable securities and 2023 compared to 2022 were driven by increases inimputed interest rateson anda thelong-term averagecustomer cash and cash equivalents held in interest-bearing accounts.receivable.
Interest income is primarily earned from our marketable securities (U.S. treasuries), recognized using the effective yield method, and cash equivalents (money market securities).
Beginning with the three months ended March 31, 2025, income earned from marketable securities is classified within interest income, net, rather than other income, net. This change in presentation more accurately reflects the nature of the income and has no impact on total net income.
Other Income, net
The increasesincrease in otherinterest income,income net, infor 2024 compared to 2023 and in 2023 compared to 2022 were driven by realizedan gainsincrease onin interest rates and the saleaverage ofcash marketableand securities.cash equivalents held in interest-bearing accounts.
Interest expense
The increases in interest expense for 2025 compared to 2024, and 2024 compared to 2023, were driven by interest on the outstanding line of credit.
Other Income (Expense), net
The decrease in other income, net, in 2025 compared to 2024 was primarily attributable to changes in net realized and unrealized foreign exchange transactions resulting from currency rate fluctuations. The change in classification of income earned from marketable securities referenced above is the primary factor contributing to the year-over-year variance for other income, net from the same period in 2024. The increases in other income, net in 2024 compared to 2023 were driven by realized gains on sale of marketable securities.
We record income tax expense for taxes in our foreign jurisdictions including Finland, Italy, Austria, China 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, and a partial valuation allowance in China as of December 31, 2024.2025. 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.
On July 4, 2025, the OBBBA was signed into law. Some of the tax related provisions of the OBBBA affecting corporations include but are not limited to expensing of domestic research expenses, increasing the limit of the deduction of interest expense deduction to thirty percent of EBITDA, and one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. We evaluated the impact of the OBBBA on our financial condition and results of operations in future periods, and we do not anticipate a material change to our effective income tax rate or net deferred federal income tax assets as we maintain a full valuation allowance for all U.S. deferred tax assets.
Income tax expense in 2025 primarily relates to operations in China and Finland, partially offset by income tax reserve reversals. The increase in overall income tax expense for 2025 compared to 2024 was the result of a partial valuation allowance release in China during the fourth quarter of 2024, offset partially by income tax expense from other foreign tax jurisdictions.
The income tax benefit in 2024 was the result of a partial valuation allowance release in China during the fourth quarter of 2024, offset partially by income tax expense from other foreign tax jurisdictions. The decrease in overall income tax benefit for 2024 compared to 2023, and decrease in expense for 2023 compared to 2022, was driven by a discrete tax benefit related to expiring statutes of limitations of unrecognized tax positions recorded in the second quarter of 2023.
We had cash and cash equivalents and restricted cash of $99.0 million and $66.1 million as of December 31, 2025 and December 31, 2024, respectively. In addition, we had marketable securities of $34.9 million and $34.9 million at December 31, 2025 and December 31, 2024, respectively. Our total balance of cash, cash equivalents, restricted cash and marketable securities increased by $33.0 million from December 31, 2024 to December 31, 2025.
Total cash and cash equivalents, restricted cash and marketable securities were $101.0 million and $113.2 million as of December 31, 2024 and 2023, respectively. We had cash and cash equivalents and restricted cash of $66.1 million and $53.5 million as of December 31, 2024 and 2023, respectively, and marketable securities of $34.9 million and $59.7 million as of December 31, 2024 and 2023, respectively.
For the year ended December 31, 2024, our principal uses of liquidity were to fund operating activities, acquire plant and equipment and make tax payments related to stock award issuances. The primary sources of cash were collections from customers and net proceeds from the sale of marketable securities.
For the year ended December 31, 2025, our principal sources of liquidity included the draw of $20 million on our line of credit and cash collected from customers. We believe our existing sources of liquidity, including sales to customers and our line of credit,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.
Net Cash Provided By (Used inIn) Provided by Operating Activities
During the year ended December 31, 2025, net cash provided by operating activities was $21.3 million, which was the result of a $23.5 million net loss, offset by cash provided by working capital of $1.1 million and non‑cash expenses totaling $43.7 million related primarily to depreciation, amortization, and stock-based compensation. Changes in working capital were driven by a $14.7 million increase in accounts receivable,$4.1 million increase in inventory, offset by a $12 million increase in accounts payable and accrued expenses, $3.9 million increase in lease liabilities, and a $2.1 million decrease in deferred revenue.
During the year ended December 31, 2023, net cash provided by operating activities was $10.1 million, which was the result of a $41.7 million net loss, offset by cash provided by working capital of $8.1 million and non‑cash expenses totaling $43.7 million related primarily to depreciation, amortization, and stock-based compensation. Changes in working capital were driven by a $14.9 million decrease in inventory, partially offset by a $4.5 million decrease in accounts payable.
Net Cash Provided by (Used inIn) Provided By Investing Activities
During the year ended December 31, 2025, net cash used in investing activities was $8.8 million, including the net purchase of $0.3 million of marketable securities and $8.5 million of capital expenditures related to investments in directed energy, manufacturing equipment and facilities.
During the year ended December 31, 2023, net cash used in investing activities was $14.1 million, including the net purchase of $8.8 million of marketable securities and $5.3 million of capital expenditures related to investments in directed energy, manufacturing equipment and facilities.
Net Cash Provided By (Used inIn) Financing Activities
During the year ended December 31, 2025, net cash provided by financing activities was $20.1 million, which was primarily driven by $20 million of proceeds from our line of credit and $3.2 million of proceeds from stock options exercises and employee stock plan purchases, partially offset by $3.1 million of withholding tax payments related to the vesting of stock awards.
During the year ended December 31, 2023, net cash used in financing activities was $0.9 million, which was primarily driven by $4.0 million of withholding tax payments related to the vesting of stock awards, partially offset by $3.1 million of proceeds from stock options exercises and employee stock plan purchases.
We have a $40.0 million revolving line of credit, or LOC, with Banc of California dated September 24, 2018, which is secured by our assets.
On September 24, 2024, we amended the LOC to extend the maturity date to September 24, 2027, updated financial covenants, and amended the unused line fee and interest rate applicable to revolving loans.
We have a $40.0 million revolving line of credit "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 and bears an unused credit fee of 0.25% on an annualized basis. The interest rate of 5.75% on the LOC at December 31, 2025 is based on the Prime Rate, minus a margin based on our liquidity levels. No amounts were outstanding under the LOC at December 31, 2024 or 2023 and we were in compliance with all covenants.
During the year ended December 31, 2025, we drew $20.0 million under the LOC to support working capital and general corporate purposes. There was $20.0 million and $0.0 million outstanding under the LOC at December 31, 2025 and 2024, respectfully, and we were in compliance with all covenants. The remaining $20.0 million unused portion of the LOC is available for borrowing.
We have elected, per ASC 606-10-25-18B (shipping and handling practical expedient), to recognize shipping and handling services performed after control transfer as fulfillment costs.
Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers,amplifiers, andfiber certain defenselasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. BecauseFor controllong-term transferscontracts, overwe time,estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized basedover ontime theusing extentcosts ofincurred to date relative to total estimated costs at completion to measure progress towardstoward completionsatisfying of theour performance obligation.obligations. WeIncurred generallycosts userepresent thework cost-to-costperformed, measurewhich ofcorresponds progresswith, forand our contracts because itthereby best depictsdepicts, the transfer of control to the customer. BillingContract undercosts theseinclude arrangementslabor, generallymaterials, occurssubcontractors withincosts, oneother monthdirect aftercosts, theand workindirect iscosts completed.applicable on government and commercial contracts.
What changed in the latest 10-Q
Risk Factors
New heading “We are subject to U.S. and international governmental export and import controls that could adversely impact our supply chain, subject us to liability, impair our ability to compete and otherwise adversely affect our business, financial condition, results of operations and growth prospects.”
Largest changes
“We must export our products in compliance with applicable export controls, and we may not always be successful in obtaining necessary export licenses. Denials of export licenses or limitations imposed by such laws on our ability to export or sell our products may harm our international and domestic revenues. Furthermore, noncompliance by us or any of our customers with these laws could have negative consequences, including government investigations, penalties and reputational harm. …”see in full comparison
“Foreign governments also impose trade restrictions and retaliate in ways that could adversely impact our business, for example by imposing export control regimes placing export or other license requirements or restrictions on certain products or materials. These restrictions could increase the cost of, or delay or prevent the shipment of, components or inputs used to produce our products. For example, in June 2026, China implemented enhanced export declaration requirements for certain machine tools, unmanned aerial systems and related components. …”see in full comparison
“We are subject to U.S. and international governmental export and import controls that could adversely impact our supply chain, subject us to liability, impair our ability to compete and otherwise adversely affect our business, financial condition, results of operations and growth prospects.”see in full comparison
“The United States and various foreign governments have imposed controls, export license requirements and restrictions on the import or export of certain products, technologies, and software. For example, the U.S. government has imposed controls restricting the ability to send certain products and technology related to lasers, semiconductors, semiconductor manufacturing and supercomputing to and within China and additional destinations and is expected to further expand these controls. …”see in full comparison
Full comparison: every changed paragraph (5)
For risk factors related to our business, reference is made to Item 1A, "Risk Factors," contained in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025. ThereExcept as disclosed below, there have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
We are subject to U.S. and international governmental export and import controls that could adversely impact our supply chain, subject us to liability, impair our ability to compete and otherwise adversely affect our business, financial condition, results of operations and growth prospects.
The United States and various foreign governments have imposed controls, export license requirements and restrictions on the import or export of certain products, technologies, and software. For example, the U.S. government has imposed controls restricting the ability to send certain products and technology related to lasers, semiconductors, semiconductor manufacturing and supercomputing to and within China and additional destinations and is expected to further expand these controls. These controls may impact our ability to export certain products and technology to China and other destinations and restrict our ability to use certain components in our products.
Foreign governments also impose trade restrictions and retaliate in ways that could adversely impact our business, for example by imposing export control regimes placing export or other license requirements or restrictions on certain products or materials. These restrictions could increase the cost of, or delay or prevent the shipment of, components or inputs used to produce our products. For example, 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. If we are unable to mitigate the supply chain disruptions caused by China’s new customs requirements, we expect it to increase our operational complexity, continue to disrupt our production and have a material negative impact on our revenue and profitability in future periods.
We must export our products in compliance with applicable export controls, and we may not always be successful in obtaining necessary export licenses. Denials of export licenses or limitations imposed by such laws on our ability to export or sell our products may harm our international and domestic revenues. Furthermore, noncompliance by us or any of our customers with these laws could have negative consequences, including government investigations, penalties and reputational harm. Any failure by us or any of our customers to adequately comply with these laws could result in civil fines or suspension or loss of our export privileges, as well as substantial expense and diversion of management resources and attention, any of which could materially adversely affect our business, financial condition, results of operations and growth prospects.
Management's Discussion & Analysis (MD&A)
Largest changes
Changes in global economic conditions andsee in full comparisontariffsinternationalontradegoods to and from the U.S.uncertainty did not have a material impact on our financial results in the three and six months endedMarchJune31,30,2026.2026,However,butchangescomponents from certain key suppliers outside the United States have been held inglobalcustomseconomicinconditionsChinaandalonguncertaintywithrelatedshipments from nLIGHT, Inc. totariffscertaincouldcustomers outside the United States. If we are unable to 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 and profitability inthefuturefuture.periods.
“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 Court 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. …”see in full comparison
see in full comparisonAWe sell our products globally, and a portion of our sales are generated from products that are manufactured outside the UnitedStatesStates.andorwerelysellonourcomponentsproductsfromglobally.suppliers who are located outside of the United States. Changing trade dynamics, including changes intariffs andtariffs, export regulations, and customs enforcement, could disrupt our supplychain,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 instance, 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 Court issued an additional ruling stating that importers that have paid tariffs under IEEPA are due refunds. We are currently evaluating the impact of this decision on our business, as the ultimate timing and amount of any potential refunds is uncertain and subject to further legal and regulatory developments.
“The decrease in income tax expense for the six months ended June 30, 2026 compared to the same period in 2025 was driven by a decrease in income in foreign jurisdictions and discrete tax benefits for expiring statutes of limitations on unrecognized tax positions that were partially reduced by an increase in valuation allowance in China in the second quarter of 2026. Our tax expense is dependent on the geographic mix of earnings and primarily related to our foreign operations.”see in full comparison
Thesee in full comparisondecreaseincrease in income tax expense for the three months endedMarchJune31,30,2026,2026 compared to the same period in 2025 was driven by an increase in valuation allowance in China that was partially reduced by a decrease in incomefrom ourin foreignoperations.jurisdictionsOurand a discrete taxexpensebenefitisfordependentexpiring statutes of limitations on unrecognized tax positions in thegeographicsecondmixquarter ofearnings and primarily related to our foreign operations.2026.
see in full comparisonProducts costCost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs,duties,tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecastedcustomerdemandorders.from our customers. We expense all warranty costs and inventory provisions as cost of revenues.
Full comparison: every changed paragraph (30)
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 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; 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.
Revenues increased to $80.2$162.8 million in the threesix months ended MarchJune 31,30, 2026 compared to $51.7$113.4 million in the same period in 2025 due primarily to an increase in both product and development revenue from the Aerospace and Defense end market. We generated net incomeloss of $0.6$0.7 million for the threesix months ended MarchJune 31,30, 2026 compared to a net loss of $8.1$11.7 million for the same period in 2025.
Global Economic Conditions and Trade Policies
AWe sell our products globally, and a portion of our sales are generated from products that are manufactured outside the United StatesStates. andor werely sellon ourcomponents productsfrom globally.suppliers who are located outside of the United States. Changing trade dynamics, including changes in tariffs andtariffs, export regulations, and customs enforcement, could disrupt our supply chain,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 instance, 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 Court issued an additional ruling stating that importers that have paid tariffs under IEEPA are due refunds. We are currently evaluating the impact of this decision on our business, as the ultimate timing and amount of any potential refunds is uncertain and subject to further legal and regulatory developments.
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 Court 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 tariffsinternational ontrade goods to and from the U.S.uncertainty did not have a material impact on our financial results in the three and six months ended MarchJune 31,30, 2026.2026, However,but changescomponents from certain key suppliers outside the United States have been held in globalcustoms economicin conditionsChina andalong uncertaintywith relatedshipments from nLIGHT, Inc. to tariffscertain couldcustomers outside the United States. If we are unable to 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 and profitability in thefuture future.periods.
The increaseincreases in revenue from the Aerospace and Defense end market for the three and six months ended MarchJune 31,30, 20262026, compared to the same periodperiods in 20252025, waswere driven primarily by increased unit sales of directed energy laser productsproducts, acrossincreased allunit regionssales of laser components for defense programs, and progress on existing research and development contracts. The increaseincreases in revenue from the Microfabrication end market for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 waswere primarily attributable to increased unit sales of semiconductor lasers in all regions. The increaseincreases in revenue from the Industrial marketsend market for the three and six months ended MarchJune 31,30, 20262026, compared to the same periodperiods in 20252025, waswere the result of increased unit sales of additive fiber lasers in North America, partially offset by decreased unit sales of other industrial laser products.
The increaseincreases in Laser Products revenue for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 waswere the result of increased unitsunit sales across all end markets. The increaseincreases in Advanced Development revenue for the three and six months ended MarchJune 31,30, 20262026, compared to the same periodperiods in 20252025, waswere driven by progress on existing research and development contracts. All Advanced Development revenue is included in the Aerospace and Defense market.
Geographic revenue information is based on the location to which we ship our products. The increaseincreases in North America Revenuerevenues for the three and six months ended MarchJune 31,30, 2026 wascompared to the same periods in 2025, were due to increased revenue across all end markets, with revenue from the Aerospace and Defense end market representing most of the increase. The increases in Asia Pacific and EMEA revenues for the three months ended March 31, 2026 compared to the same period in 2025 were the result of increased revenues from the Aerospace and Defense and Microfabrication markets, partially offset by decreased revenue from the Industrial market.
The increase in Asia Pacific revenue for the three months ended June 30, 2026 compared to the same period in 2025 was driven by increased revenue from the Industrial and Microfabrication end markets, while the increase in Asia Pacific revenue for the six months ended June 30, 2026 was driven by increased revenue from the Aerospace and Defense and Microfabrication end markets, partially offset by decreased revenue from the Industrial end market.
The increases in EMEA revenues for the three and six months ended June 30, 2026 compared to the same periods in 2025, were due to increased revenue from the Aerospace and Defense and Microfabrication end markets, partially offset by decreased revenue from the Industrial end market.
Products costCost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs, duties,tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecasted customerdemand orders.from our customers. We expense all warranty costs and inventory provisions as cost of revenues.
Development costCost of Advanced Development revenue consists primarily of materials, labor, subcontracting costs, and an allocation of indirect costs including overhead and general and administrative.
The increase in productsLaser Products gross margin for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 waswere driven primarily by sales mix and the impact of increased production volumes on fixed manufacturing costs due to the overall increase in sales. The decrease in development gross margin for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods 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. CPFF contracts generally have a lower average gross margin than FFP contracts.
The increaseincreases in research and development expense for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 waswere drivenprimarily byattributable anto increaseincreases in employee and incentive compensation and increases in stock-based compensation of $0.5$0.8 million,million anand increase$1.3 inmillion employeefor compensationthe duethree toand ansix increasemonths inended headcount,June partially30, offset2026, by a decrease in project-related expenses.respectively.
The increaseincreases in sales, general and administrative expense for the three and six months ended MarchJune 31,30, 20262026, compared to the same periodperiods in 20252025, waswere driven primarily dueby toincreases anin increaseemployee and incentive compensation, and increases in stock-based compensation of $3.9$3.1 million and an$7.0 increasemillion, in employee compensation,respectively, partially offset by decreases in bad debt recoveries and a higher allocation of costs from sales, general and administrative to development projects, and decrease in bad debt recoveries.projects.
The decreaseincreases in interest income,income for the three and six months ended MarchJune 31,30, 20262026, compared to the same periodperiods in 20252025, waswere driven primarily by a decrease in income earned from marketable securities, partially offset by an increase in incomethe earnedaverage frombalance of cash, cash equivalents.equivalents and marketable securities.
Interest (expense)
The increasechanges in interest (expense), for the three and six months ended June 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, 20262025, comparedwe todrew $20.0 million under the sameLOC. periodDuring inthe 2025three wasmonths drivenended primarilyJune by30, an2026, increasewe inrepaid interestthe expense$20.0 onmillion lineLOC of credit (LOC).balance. Interest expense on the LOC was $0.2 million and $0.5 million for the three and six months ended MarchJune 31,30, 20252026, was immaterial due to the timing of the draw.respectively.
*NM - Not meaningful.
We record income tax expense for taxes in our foreign jurisdictions including Finland, Italy, Austria, China 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, and a partial valuation allowance in China as of MarchJune 31,30, 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.
The decreaseincrease in income tax expense for the three months ended MarchJune 31,30, 2026,2026 compared to the same period in 2025 was driven by an increase in valuation allowance in China that was partially reduced by a decrease in income from ourin foreign operations.jurisdictions Ourand a discrete tax expensebenefit isfor dependentexpiring statutes of limitations on unrecognized tax positions in the geographicsecond mixquarter of earnings and primarily related to our foreign operations.2026.
The decrease in income tax expense for the six months ended June 30, 2026 compared to the same period in 2025 was driven by a decrease in income in foreign jurisdictions and discrete tax benefits for expiring statutes of limitations on unrecognized tax positions that were partially reduced by an increase in valuation allowance in China in the second quarter of 2026. Our tax expense is dependent on the geographic mix of earnings and primarily related to our foreign operations.
We had cash and cash equivalents and restricted cash of $298.5$296.1 million and $99.0 million as of MarchJune 31,30, 2026 and December 31, 2025, respectively. In addition, we had marketable securities of $34.4$34.7 million and $34.9 million at MarchJune 31,30, 2026 and December 31, 2025, respectively. Our total balance of cash, cash equivalents, restricted cash and marketable securities increased by $199.0$196.8 million from December 31, 2025 to MarchJune 31,30, 2026.
For the threesix months ended MarchJune 31,30, 2026, our principal sources of liquidity waswere 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.
During the threesix months ended MarchJune 31,30, 2026, net cash provided by operating activities was $9.7$30.4 million, which was the result of $0.6cash provided by net working capital of $1.6 million netand income andby non-cash expenses totaling $15.1$29.5 million related primarily to depreciation, amortization, and stock-based compensation, offset by cash used in net working capitalloss of $6.0$0.7 million. The cash usedprovided inby net working capital in the threesix months ended MarchJune 31,30, 2026 was driven by $8.2a $9.2 million increase in deferred revenues, $4.0 million decrease in accounts receivable, $3.0 million increase in accounts payable, and $0.5 million decrease in other assets, net. The cash provided by working capital was offset by a $8.5 million increase in prepaid expenses and other current assets, $2.5$3.0 million increase in inventory, $2.2 million decrease in accrued and other long-term liabilities, $1.6 million decrease in accounts payable, and $0.6$1.3 million decrease in lease liabilities. The uses of cash were offset by a $2.7 million decrease in accounts receivable, $2.6 million increase in deferred revenues, $1.3 million decrease in inventory,liabilities, and $0.2 million decrease in othernon-current assets,income net.taxes payable.
During the threesix months ended MarchJune 31,30, 2026, net cash used in investing activities was $1.4$6.2 million, which was driven by net capital expenditures of $2.1$7.0 million, offset by the net proceeds from maturities and sales of marketable securities of $0.7 million.
During the threesix months ended MarchJune 31,30, 2026, net cash provided by financing activities was $191.2$173.0 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 $0.2$1.9 million, offset by repayment of $20.0 million of the LOC and tax payments related to stock award issuances of $0.2 million.
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 5.75% on the LOC at MarchJune 31,30, 2026 is based on the Prime Rate, minus a margin based on our liquidity levels.
As of MarchJune 31,30, 2026, $20.0no millionamounts waswere outstanding on the LOC and we were in compliance with all covenants. The remaining $20.0$40.0 million unused portion of the LOC is available for borrowing.
LASR insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 17 filings (5 insiders, 17 trade dates, 1,049,108 shares, about $58.5M; 11 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -1,049,108 (purchases minus sales); net value about -$58.5M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-15 | Moore Geoffrey |
Open-market sale |
4,452 | $38.45 | $171.2K |
| 2026-09-09 | Keeney Scott H |
Open-market sale |
100,000 | $41.01 | $4.1M |
| 2026-09-08 | Keeney Scott H |
Open-market sale |
1,080 | $42.20 | $45.6K |
| 2026-09-08 | Keeney Scott H |
Open-market sale |
67,651 | $41.69 | $2.8M |
| 2026-09-08 | Keeney Scott H |
Open-market sale |
46,521 | $40.75 | $1.9M |
| 2026-09-04 | Corso Joseph John |
Open-market sale |
3,524 | $41.49 | $146.2K |
| 2026-09-03 | Corso Joseph John |
Open-market sale |
4,191 | $40.69 | $170.5K |
| 2026-09-03 | Keeney Scott H |
Open-market sale | 9,753 | $40.69 | $396.8K |
| 2026-09-03 | Nias James |
Open-market sale | 1,025 | $40.69 | $41.7K |
| 2026-08-28 | Gossman William |
Open-market sale |
15,000 | $44.36 | $665.4K |
| 2026-08-28 | Gossman William |
Option exercise |
15,000 | $1.10 | $16.5K |
| 2026-08-24 | Keeney Scott H |
Open-market sale |
25,039 | $44.79 | $1.1M |
| 2026-08-24 | Keeney Scott H |
Open-market sale |
155,008 | $44.03 | $6.8M |
| 2026-08-24 | Keeney Scott H |
Option exercise |
181,750 | $1.45 | $263.5K |
| 2026-08-24 | Keeney Scott H |
Open-market sale |
1,703 | $45.92 | $78.2K |
| 2026-08-21 | Keeney Scott H |
Option exercise |
99,706 | $1.45 | $144.6K |
| 2026-08-21 | Keeney Scott H |
Open-market sale |
2,092 | $48.97 | $102.4K |
| 2026-08-21 | Keeney Scott H |
Open-market sale |
2,459 | $47.92 | $117.8K |
| 2026-08-21 | Keeney Scott H |
Open-market sale |
112,470 | $47.15 | $5.3M |
| 2026-08-21 | Keeney Scott H |
Open-market sale |
64,729 | $46.29 | $3.0M |
| 2026-08-21 | Keeney Scott H |
Option exercise |
82,044 | $1.45 | $119.0K |
| 2026-06-05 | Haines Gerald M Ii |
Grant/award | 2,429 | — | — |
| 2026-06-05 | Hartman Mark D |
Grant/award | 2,429 | — | — |
| 2026-06-05 | Locke Gary |
Grant/award | 2,429 | — | — |
| 2026-06-05 | Gossman William |
Grant/award | 2,429 | — | — |
| 2026-06-05 | Moore Geoffrey |
Grant/award | 2,429 | — | — |
| 2026-06-05 | Nichols Camille |
Grant/award | 2,429 | — | — |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
3,055 | $72.59 | $221.8K |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
890 | $71.67 | $63.8K |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
625 | $76.61 | $47.9K |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
5,282 | $75.94 | $401.1K |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
4,813 | $74.94 | $360.7K |
| 2026-06-04 | Keeney Scott H |
Open-market sale |
1,424 | $73.76 | $105.0K |
| 2026-06-04 | Corso Joseph John |
Open-market sale |
3,817 | $72.90 | $278.3K |
| 2026-06-03 | Keeney Scott H |
Open-market sale |
8,901 | $77.99 | $694.2K |
| 2026-06-03 | Nias James |
Open-market sale | 940 | $77.99 | $73.3K |
| 2026-06-03 | Corso Joseph John |
Open-market sale |
3,840 | $77.99 | $299.5K |
| 2026-05-29 | Keeney Scott H |
Gift |
3,973 | — | — |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
21,332 | $73.06 | $1.6M |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
10,070 | $73.96 | $744.8K |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
1,278 | $75.12 | $96.0K |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
799 | $76.21 | $60.9K |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
712 | $77.39 | $55.1K |
| 2026-05-29 | Keeney Scott H |
Open-market sale |
7,180 | $72.37 | $519.6K |
| 2026-05-28 | Keeney Scott H |
Open-market sale |
5,394 | $77.44 | $417.7K |
| 2026-05-28 | Keeney Scott H |
Open-market sale |
21,326 | $78.29 | $1.7M |
| 2026-05-28 | Keeney Scott H |
Open-market sale |
9,861 | $79.14 | $780.4K |
| 2026-05-28 | Keeney Scott H |
Open-market sale |
3,363 | $80.34 | $270.2K |
| 2026-05-28 | Keeney Scott H |
Open-market sale |
1,429 | $81.06 | $115.8K |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
3,267 | $76.46 | $249.8K |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
1,717 | $72.93 | $125.2K |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
2,068 | $73.73 | $152.5K |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
16,842 | $74.96 | $1.3M |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
16,590 | $75.80 | $1.3M |
| 2026-05-21 | Keeney Scott H |
Open-market sale |
889 | $71.47 | $63.5K |
| 2026-05-20 | Corso Joseph John |
Open-market sale |
1,903 | $68.81 | $130.9K |
| 2026-05-20 | Corso Joseph John |
Open-market sale |
1,537 | $71.36 | $109.7K |
| 2026-05-20 | Corso Joseph John |
Open-market sale |
19,090 | $70.77 | $1.4M |
| 2026-05-20 | Corso Joseph John |
Open-market sale |
12,946 | $69.98 | $906.0K |
| 2026-05-20 | Nias James |
Open-market sale |
415 | $71.09 | $29.5K |
Well-known investors holding LASR (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 529,520 | $36.9M | 0.01% | Reduced 1% |
| Millennium Management (Israel Englander) | 2026-06-30 | 449,024 | $31.3M | 0.02% | Reduced 33% |
| Renaissance Technologies | 2026-06-30 | 250,400 | $17.4M | 0.02% | Added 281% |
| PRIMECAP Management | 2026-06-30 | 225,539 | $15.7M | 0.01% | Reduced 1% |
| Two Sigma Investments | 2026-06-30 | 175,200 | $12.2M | 0.01% | Added 11% |
| Polen Capital Management | 2026-06-30 | 133,448 | $9.3M | 0.08% | Added 49% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 120,666 | $8.4M | 0.01% | Added 28% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 113,418 | $7.9M | 0.0% | Reduced 72% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 87,799 | $6.1M | 0.01% | Reduced 2% |
| D. E. Shaw & Co. | 2026-06-30 | 57,970 | $4.0M | 0.0% | Added 410% |