Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________

FORM 10-Q

________________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-38462

________________________________________________________

NLIGHT, INC.

(Exact name of Registrant as specified in its charter)

________________________________________________________

Delaware

91-2066376

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

4637 NW 18th Avenue

Camas, Washington 98607

(Address of principal executive office, including zip code)

(360) 566-4460

(Registrant's telephone number, including area code)

__________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Exchange on which Registered
Common Stock, par value $0.0001 per share	LASR	The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☐

Accelerated Filer

☒

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2024, the Registrant had 48,429,356 shares of common stock outstanding.


TABLE OF CONTENTS
			Page

Part I. Financial Information			1
Item 1. Unaudited Interim Financial Statements			1
Consolidated Balance Sheets: September 30, 2024 and December 31, 2023 (unaudited)			1
Consolidated Statements of Operations: Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)			2
Consolidated Statements of Comprehensive Loss: Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)			3
Consolidated Statements of Stockholders' Equity: Three and Nine Months Ended September 30 , 2024 and 2023 (unaudited)			4
Consolidated Statements of Cash Flows: Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)			6
Notes to Consolidated Financial Statements (unaudited)			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3. Quantitative and Qualitative Disclosures About Market Risk			25
Item 4. Controls and Procedures			26
Part II. Other Information			26
Item 1. Legal Proceedings			27
Item 1A. Risk Factors			27
Item 5. Other Information			27
Item 6. Exhibits			28
Signatures			29

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

nLIGHT, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)


	As of
	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	41,456	$	53,210
Marketable securities	65,241		59,672
Accounts receivable, net of allowances of $1,810 and $315	40,282		39,585
Inventory	48,828		52,160
Prepaid expenses and other current assets	14,975		15,927
Total current assets	210,782		220,554
Restricted cash	258		256
Lease right-of-use assets	11,270		12,616
Property, plant and equipment, net	47,889		52,300
Intangible assets, net	981		1,652
Goodwill	12,408		12,399
Other assets, net	7,706		7,026
Total assets	$	291,294	$	306,803

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	16,467	$	12,166
Accrued liabilities	14,141		12,556
Deferred revenues	2,921		4,849
Current portion of lease liabilities	2,616		3,181

Total current liabilities	36,145		32,752
Non-current income taxes payable	5,638		5,391
Long-term lease liabilities	10,017		10,978

Other long-term liabilities	4,224		3,263
Total liabilities	56,024		52,384
Stockholders' equity:

Common stock - $0.0001 par value; 190,000 shares authorized, 48,343 and 47,266 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	16		16
Additional paid-in capital	537,776		521,184
Accumulated other comprehensive loss	(2,388)		(2,477)
Accumulated deficit	(300,134)		(264,304)
Total stockholders’ equity	235,270		254,419
Total liabilities and stockholders’ equity	$	291,294	$	306,803

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue:
Products	$	41,132	$	38,103	$	104,960	$	118,802
Development	14,997		12,531		46,207		39,227
Total revenue	56,129		50,634		151,167		158,029
Cost of revenue:
Products	29,286		29,015		76,528		84,813
Development	14,293		11,681		42,751		36,907
Total cost of revenue	43,579		40,696		119,279		121,720
Gross profit	12,550		9,938		31,888		36,309
Operating expenses:
Research and development	11,328		10,744		33,723		34,049
Sales, general, and administrative	13,021		11,725		37,372		34,684

Total operating expenses	24,349		22,469		71,095		68,733
Loss from operations	(11,799)		(12,531)		(39,207)		(32,424)
Other income:
Interest income, net	394		303		1,308		990
Other income, net	1,331		536		2,594		1,997
Loss before income taxes	(10,074)		(11,692)		(35,305)		(29,437)
Income tax expense (benefit)	261		187		525		(1,005)
Net loss	$	(10,335)	$	(11,879)	$	(35,830)	$	(28,432)


Net loss per share, basic and diluted	$	(0.21)	$	(0.26)	$	(0.75)	$	(0.62)


Shares used in per share calculations, basic and diluted	48,133		46,403		47,679		45,857

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net loss	$	(10,335)	$	(11,879)	$	(35,830)	$	(28,432)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	335		(131)		47		(816)
Unrealized gains (losses) on available-for-sale securities	(216)		21		42		339
Comprehensive loss	$	(10,216)	$	(11,989)	$	(35,741)	$	(28,909)

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)


	Three Months Ended September 30, 2024
	Common stock			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
	Shares	Amount
Balance, June 30, 2024	48,099	$	16	$	531,822	$	(2,507)	$	(289,799)	$	239,532
Net loss	—	—		—		—		(10,335)		(10,335)
Issuance of common stock pursuant to exercise of stock options	105	—		84		—		—		84
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	139	—		(657)		—		—		(657)

Stock-based compensation	—	—		6,527		—		—		6,527
Unrealized losses on available-for-sale securities	—	—		—		(216)		—		(216)
Cumulative translation adjustment, net of tax	—	—		—		335		—		335
Balance, September 30, 2024	48,343	$	16	$	537,776	$	(2,388)	$	(300,134)	$	235,270


		Nine Months Ended September 30, 2024
	Common stock		Additional paid-in capital			Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
		Shares			Amount
Balance, December 31, 2023		47,266	$	16		$	521,184	$	(2,477)	$	(264,304)	$	254,419
Net loss		—	—			—		—		(35,830)		(35,830)
Issuance of common stock pursuant to exercise of stock options		247	—			221		—		—		221
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax		684	—			(3,945)		—		—		(3,945)
Issuance of common stock under the Employee Stock Purchase Plan		146	—			1,355		—		—		1,355
Stock-based compensation		—	—			18,961		—		—		18,961
Unrealized gains on available-for-sale securities		—	—			—		42		—		42
Cumulative translation adjustment, net of tax		—	—			—		47		—		47
Balance, September 30, 2024		48,343	$	16		$	537,776	$	(2,388)	$	(300,134)	$	235,270


		Three Months Ended September 30, 2023
	Common stock	Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit			Total stockholders' equity
			Shares					Amount














Balance, June 30, 2023		46,503		$	16	$	507,649		$	(3,115)	$	(239,187)	$	265,363
Net loss		—		—		—			—		(11,879)		(11,879)

Issuance of common stock pursuant to exercise of stock options		61		—		53			—		—		53
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax		109		—		(535)			—		—		(535)



Stock-based compensation		—		—		6,627			—		—		6,627
Unrealized gains on available-for-sale securities		—		—		—			21		—		21
Cumulative translation adjustment, net of tax		—		—		—			(131)		—		(131)
Balance, September 30, 2023		46,673		$	16	$	513,794		$	(3,225)	$	(251,066)	$	259,519


		Nine Months Ended September 30, 2023
	Common stock		Additional paid-in capital			Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
		Shares			Amount
Balance, December 31, 2022		45,629	$	16		$	496,211	$	(2,748)	$	(222,634)	$	270,845
Net loss		—	—			—		—		(28,432)		(28,432)

Issuance of common stock pursuant to exercise of stock options		278	—			385		—		—		385
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax		632	—			(3,667)		—		—		(3,667)
Issuance of common stock under the Employee Stock Purchase Plan		134	—			1,220		—		—		1,220



Stock-based compensation		—	—			19,645		—		—		19,645
Unrealized gains on available-for-sale securities		—	—			—		339		—		339
Cumulative translation adjustment, net of tax		—	—			—		(816)		—		(816)
Balance, September 30, 2023		46,673	$	16		$	513,794	$	(3,225)	$	(251,066)	$	259,519

See accompanying notes to consolidated financial statements.

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nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Nine Months Ended September 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(35,830)	$	(28,432)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	9,356		9,292
Amortization	3,403		2,697
Reduction in carrying amount of right-of-use assets	1,367		947
Provision for losses on (recoveries of) accounts receivable	1,489		(2)
Stock-based compensation	18,961		19,645
Deferred income taxes	—		7
Loss on disposal of property, plant and equipment	76		525
Changes in operating assets and liabilities:
Accounts receivable, net	(2,119)		2,308
Inventory	3,348		5,491
Prepaid expenses and other current assets	954		1,358
Other assets, net	(3,351)		(442)
Accounts payable	4,628		(2,079)
Accrued and other long-term liabilities	2,511		161
Deferred revenues	(1,931)		617
Lease liabilities	(1,546)		(1,076)
Non-current income taxes payable	212		(1,330)
Net cash provided by operating activities	1,528		9,687
Cash flows from investing activities:

Purchases of property, plant and equipment	(5,313)		(4,386)

Purchase of marketable securities	(88,643)		(103,008)
Proceeds from maturities and sales of marketable securities	83,033		94,231
Net cash used in investing activities	(10,923)		(13,163)
Cash flows from financing activities:






Proceeds from employee stock plan purchases	1,355		1,220

Proceeds from stock option exercises	221		385
Tax payments related to stock award issuances	(3,945)		(3,667)
Net cash used in financing activities	(2,369)		(2,062)
Effect of exchange rate changes on cash	12		(198)
Net decrease in cash, cash equivalents, and restricted cash	(11,752)		(5,736)
Cash, cash equivalents, and restricted cash, beginning of period	53,466		58,078
Cash, cash equivalents, and restricted cash, end of period	$	41,714	$	52,342
Supplemental disclosures:
Cash paid for interest, net	$	40	$	20
Cash paid for income taxes	302		270
Operating cash outflows from operating leases	3,057		2,890
Right-of-use assets obtained in exchange for lease liabilities	995		1,295
Accrued purchases of property, equipment and patents	415		561
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	41,456	52,087
Restricted cash	258		255
Total cash, cash equivalents, and restricted cash	$	41,714	$	52,342

See accompanying notes to consolidated financial statements.

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nLIGHT, Inc.

Notes to Consolidated Financial Statements

Note 1 - Basis of Presentation and New Accounting Pronouncements

Basis of Presentation

The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Critical Accounting Policies

Our critical accounting policies have not materially changed during the nine months ended September 30, 2024, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

New Accounting Pronouncements

ASU 2023-07

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are

currently evaluating the impact of this guidance on our consolidated financial statements.

ASU 2023-09

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.

Note 2 - Revenue

We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations.

We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a, revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, we recognize, over time, revenue as per ASC 606-10-55-18 (invoice practical expedient) for our cost plus contracts and, accordingly, elect not to disclose

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information related to those performance obligations under ASC 606-10-50-14b. As of September 30, 2024, we had $10 million of performance obligations relating to firm fixed price contracts that did not qualify for the aforementioned disclosure exemptions. We expect to recognize 50% of these performance obligations by the end of 2024 and the remainder by the end of 2025.

Rights of return generally are not included in customer contracts. Accordingly, product revenue is recognized upon transfer of control at shipment or delivery, as applicable. Rights of return are evaluated as they occur.

Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. For long-term contracts, we 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 over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts.

Contract estimates are based on various assumptions to project the outcome of future events that may span several

years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached.

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):

Sales by End Market


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Industrial	$	11,588	$	19,607	$	36,478	$	56,078
Microfabrication	14,263		12,000		35,276		37,285
Aerospace and Defense	30,278		19,027		79,413		64,666
	$	56,129	$	50,634	$	151,167	$	158,029

Sales by Geography


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
North America	$	36,332	$	31,330	$	100,696	$	94,750
China	2,371		2,624		8,877		9,134
Rest of World	17,426		16,680		41,594		54,145
	$	56,129	$	50,634	$	151,167	$	158,029

Sales by Timing of Revenue


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Point in time	$	41,070	$	37,913	$	105,062	$	117,361
Over time	15,059		12,721		46,105		40,668
	$	56,129	$	50,634	$	151,167	$	158,029

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Our contract assets and liabilities were as follows (in thousands):


	Balance Sheet Classification	As of
		September 30, 2024		December 31, 2023
Contract assets	Prepaid expenses and other current assets	$	8,802	$	7,298
Contract liabilities	Deferred revenues and other long-term liabilities	5,769		6,368

Contract assets generally consist of revenue recognized on an over-time basis where revenue recognition has been met, but the amounts are billed and collected in a subsequent period. In our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities recorded in deferred revenues on the Consolidated Balance Sheets. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration.

During the three and nine months ended September 30, 2024, we recognized revenue of $43 thousand and $4.3 million that was included in the deferred revenues balance at the beginning of the period as the performance obligations under the associated agreements were satisfied.

Note 3 - Concentrations of Credit and Other Risks

The following customers accounted for 10% or more of our revenues for the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
U.S. Government*	12%	16%	15%	17%
Raytheon Technologies	(1)	(1)	10%	(1)
KORD Technologies	19%	(1)	14%	(1)

*Excludes sales to customers who sell our products and services exclusively to the U.S. Government

(1) Represents less than 10% of total revenues.

Financial instruments that potentially expose us to concentrations of credit risk consist principally of receivables from customers. As of September 30, 2024 and December 31, 2023, two customers accounted for a total of 22% and 24%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date.

Note 4 - Marketable Securities

Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations.

Realized gains were $1.1 million and $2.5 million for the three and nine months ended September 30, 2024, respectively. Unrealized losses were $0.2 million and immaterial for the three and nine months ended September

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30, 2024, respectively. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. Realized gains were $0.8 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. Unrealized gains were immaterial for the three months ended September 30, 2023 and $0.3 million for the nine months ended September 30, 2023.

See Note 5 for additional information.

Note 5 - Fair Value of Financial Instruments

The carrying amounts of certain of our financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities are shown at cost which approximates fair value due to the short-term nature of these instruments. The fair value of our term and revolving loans approximates the carrying value due to the variable market rate used to calculate interest payments.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

•Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.

•Level 2 Inputs: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents and marketable securities.

Our fair value hierarchy for our financial instruments was as follows (in thousands):


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	20,189	$	—	$	—	$	20,189
Commercial paper	2,446		—		—		2,446
	22,635		—		—		22,635
Marketable Securities:
U.S. treasuries	65,241		—		—		65,241
Total	$	87,876	$	—	$	—	$	87,876


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	22,441	$	—	$	—	$	22,441
Commercial paper	1,995		—		—		1,995
	24,436		—		—		24,436
Marketable Securities:
U.S. treasuries	59,672		—		—		59,672
Total	$	84,108	$	—	$	—	$	84,108

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Cash Equivalents

The fair value of cash equivalents is determined based on quoted market prices for similar or identical securities.

Marketable Securities

We classify our marketable securities as available-for-sale and value them utilizing a market approach that uses observable inputs without applying significant judgment.

Note 6 - Inventory

Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Inventory consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Raw materials	$	20,278	$	23,426
Work in process and semi-finished goods	22,113		19,640
Finished goods	6,437		9,094
	$	48,828	$	52,160

Note 7 - Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):


	Useful life	As of
	(years)	September 30, 2024		December 31, 2023
Automobiles	3	$	518	$	109
Computer hardware and software	3 - 5	16,037		9,145
Manufacturing and lab equipment	2 - 7	85,964		91,050
Office equipment and furniture	5 - 7	4,990		2,634
Leasehold and building improvements	2 - 12	30,937		31,988
Buildings	30	9,392		9,392
Land	N/A	3,399		3,399
		151,237		147,717
Accumulated depreciation		(103,348)		(95,417)
		$	47,889	$	52,300

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Note 8 - Intangible Assets and Goodwill

Intangible Assets

The details of definite lived intangible assets were as follows (in thousands):


	Estimated useful life (in years)	As of
		September 30, 2024		December 31, 2023
Patents	3 - 5	$	—	$	6,345
Development programs	2 - 4	7,200		7,200
Developed technology	5	2,959		2,959
		10,159		16,504
Accumulated amortization		(9,178)		(14,852)
		$	981	$	1,652

Amortization related to intangible assets was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	149	$	633	$	671	$	1,896

Estimated amortization expense for future years is as follows (in thousands):


2024	$	149
2025	484
2026	348
Thereafter	—
	$	981

Goodwill

The carrying amount of goodwill by segment was as follows (in thousands):


	Laser Products		Advanced Development		Totals


Balance, December 31, 2023	$	2,151	$	10,248	$	12,399
Currency exchange rate adjustment	9		—		9
Balance, September 30, 2024	$	2,160	$	10,248	$	12,408

Note 9 - Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Accrued payroll and benefits	$	10,497	$	7,898
Product warranty, current	2,440		3,339



Other accrued expenses	1,204		1,319
	$	14,141	$	12,556

Note 10 - Product Warranties

We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is

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included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets.

Product warranty liability activity was as follows for the periods presented (in thousands):


	Nine Months Ended September 30,
		2024		2023
Product warranty liability, beginning		$	4,469	$	5,441
Warranty charges incurred, net		(3,492)		(2,805)
Provision for warranty charges, net of adjustments		2,597		2,267

Product warranty liability, ending		3,574		4,903
Less: current portion of product warranty liability		(2,440)		(3,694)
Non-current portion of product warranty liability		$	1,134	$	1,209

Note 11 - Stockholders' Equity and Stock-Based Compensation

Restricted Stock Awards and Units

Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:


		Number of Restricted Stock Units (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		2,817	$	13.27
	Granted	1,787	14.09
	Vested	(998)	15.08
	Forfeited	(77)	13.94
Balance, September 30, 2024		3,529	13.16


		Number of Restricted Stock Awards (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		133	$	30.44
	Vested	(96)	29.20
Balance, September 30, 2024		37	33.66

The total fair value of RSUs vested during the nine months ended September 30, 2024, was $15.0 million. Awards outstanding as of September 30, 2024 include 1.3 million performance-based awards that will vest upon meeting certain performance criteria. 0.5 million performance-based awards were granted during the nine months ended September 30, 2024.

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Stock Options

The following table summarizes our stock option activity during the nine months ended September 30, 2024:


	Number of Options (Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 2023	1,398	$1.24	2.5	$17,142

Options exercised	(247)	0.89

Outstanding, September 30, 2024	1,151	1.31	1.9	10,795
Options exercisable at September 30, 2024	1,151	1.31	1.9	10,795
Options vested as of September 30, 2024, and expected to vest after September 30, 2024	1,151	1.31	1.9	10,795

Total intrinsic value of options exercised for the nine months ended September 30, 2024 and 2023, was $2.7 million and $2.5 million, respectively. We received proceeds of $0.2 million and $0.4 million from the exercise of options for the nine months ended September 30, 2024 and 2023, respectively.

Stock-Based Compensation

Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$	629	$	508	$	1,829	$	1,871
Research and development	2,046		2,613		5,834		7,537
Sales, general and administrative	3,852		3,506		11,298		10,237
	$	6,527	$	6,627	$	18,961	$	19,645

Unrecognized Compensation Costs

As of September 30, 2024, total unrecognized stock-based compensation was $36.5 million, which will be recognized over an average expected recognition period of 2.0 years.

Note 12 - Commitments and Contingencies

Leases

See Note 13.

Legal Matters

On March 25, 2022, Lumentum Operations LLC (Lumentum) filed a complaint against nLIGHT, Inc. and certain of its employees in the U.S. District Court for the Western District of Washington. The complaint alleges that Lumentum is the partial or full owner of certain of our patents and requests corresponding relief from the court. We are vigorously defending against Lumentum’s allegations. Loss in this matter is not probable or reasonably estimable and, as such, no loss contingency has been recorded.

From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of September 30, 2024 we believe these matters will not have a material adverse effect on our consolidated financial statements.

Note 13 - Leases

We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.1 to 10.7 years, and some leases include options to extend up to 15 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.1 to 4.1 years. These leases are primarily operating leases; financing leases are not

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material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 7 years as of September 30, 2024, and the weighted-average discount rate was 4.0%.

The components of lease expense related to operating leases were as follows (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023			2024		2023
Lease expense:
	Operating lease expense	$	943	$	948		$	2,773	$	2,763
	Short-term lease expense	139		142			265		348
	Variable and other lease expense	273		271			793		744
		$	1,355	$	1,361		$	3,831	$	3,855

Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):


2024	$	959
2025	2,669
2026	1,971
2027	1,886
2028	1,617
Thereafter	5,445
Total minimum lease payments	14,547
Less: interest	(1,914)
Present value of net minimum lease payments	12,633
Less: current portion of lease liabilities	(2,616)
Total long-term lease liabilities	$	10,017

Note 14 - Segment Information

We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands):


	Three Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	41,132		$	14,997		$	—	$	56,129
Gross profit	$	12,475		$	704		$	(629)	$	12,550
Gross margin	30.3		%	4.7		%	NM*		22.4		%


	Nine Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	104,960		$	46,207		$	—	$	151,167
Gross profit	$	30,261		$	3,456		$	(1,829)	$	31,888
Gross margin	28.8		%	7.5		%	NM*		21.1		%

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	Three Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	38,103		$	12,531		$	—	$	50,634
Gross profit	$	9,596		$	850		$	(508)	$	9,938
Gross margin	25.2		%	6.8		%	NM*		19.6		%


	Nine Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	118,802		$	39,227		$	—	$	158,029
Gross profit	$	35,860		$	2,320		$	(1,871)	$	36,309
Gross margin	30.2		%	5.9		%	NM*		23.0		%

*Not meaningful

Corporate and Other is unallocated expenses related to stock-based compensation.

There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Note 15 - Net Loss per Share

Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position.

The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023


Restricted stock units and awards	715	918	947	942

Common stock options	1,082	1,413	1,177	1,485
	1,797	2,331	2,124	2,427

Note 16 - Subsequent Event

In October 2024, we gave notice to employees at our Shanghai manufacturing facility of a reduction in force. A severance charge of approximately $3.8 million will be recorded in the fourth quarter of 2024.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "ability," "anticipate," "attempt," "believe," "can be," "continue," "could," "depend," "enable," "estimate," "expect," "extend," "grow," "if," "intend," "likely," "may," "objective," "ongoing," "plan," "possible," "potential," "predict," "project," "propose," "rely," "should," "target," "will," "would" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

These statements involve risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about: our business model and strategic plans; our expectations regarding manufacturing; our future financial performance; demand for our semiconductor and fiber laser solutions; our ability to develop innovative products; our expectations regarding product volumes and the introduction of new products; our technology and new product research and development activities; the impact of inflation; the impact of seasonality; the effect on our business of litigation to which we are or may become a party; and the sufficiency of our existing liquidity sources to meet our cash needs.

You should refer to the "Risk Factors" section of this report for a discussion of other important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this report will prove to be accurate. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, which although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted a thorough inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Overview

nLIGHT, Inc. is a leading provider of high‑power semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. Headquartered in Camas, Washington, we design, develop, and manufacture the critical elements of our lasers, and believe our vertically integrated business model enables us to rapidly introduce innovative products, control our costs and protect our intellectual property.

We operate in two reportable segments—Laser Products and Advanced Development —and we serve three primary end-markets—Industrial, Microfabrication, and Aerospace and Defense. Sales of our semiconductor lasers, fiber lasers, fiber amplifiers, and other directed energy laser products are included in the Laser Products segment, while revenue earned from research and development contracts are included in the Advanced Development segment.

Revenues decreased to $151.2 million in the nine months ended September 30, 2024 compared to $158.0 million in the same period of 2023 due primarily to decreased sales in the Laser Products segment. We generated a net loss of $35.8 million for the nine months ended September 30, 2024 compared to a net loss of $28.4 million for the same period of 2023.

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Factors Affecting Our Performance

Demand for our Semiconductor and Fiber Laser Solutions

Our revenue growth depends on market demand and achievement of design wins for our semiconductor and fiber lasers. We consider a design win to occur when a customer notifies us that it has selected one of our products to be incorporated into a product or system under development by such customer. For the foreseeable future, our operations will continue to depend upon capital expenditures by customers in the Industrial and Microfabrication markets, which, in turn, depend upon the demand for these customers’ products or services. In addition, in the Aerospace and Defense market, our business depends in large part on continued investment in laser technology by the U.S. government and its allies, and our ability to continue to successfully develop leading technology in this area and commercialize that technology in the future.

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, 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. Historically, we have been able to offset decreasing ASPs by introducing new and higher value products, increasing the sales of our existing products, expanding into new applications and reducing our product and manufacturing costs. Although we anticipate further increases in product volumes and the continued introduction of new and higher value products, ASP reduction may cause our revenues to decline or grow at a slower rate.

Technology and New Product Development

We invest heavily in the development of our semiconductor, fiber laser, directed energy, and laser-sensing technologies to provide solutions to our current and future customers. We anticipate that we will continue to invest in research and development to achieve our technology and product roadmap. Our product development is targeted to specific sectors of the market where we believe the performance of our products provides a significant benefit to our customers. We believe our close coordination with our customers regarding their future product requirements enhances the efficiency of our research and development expenditures.

Manufacturing Costs and Gross Margins

Our product gross profit, in absolute dollars and as a percentage of revenues, is impacted by our product sales mix, sales volumes, changes in ASPs, production volumes, the corresponding absorption of manufacturing overhead expenses, the cost of purchased materials, production costs and manufacturing yields. Our product sales mix can affect gross profits due to variations in profitability related to product configurations and cost profiles, customer volume pricing, availability of competitive products in various markets, and new product introductions, among other factors. We have invested heavily in U.S.-based manufacturing capabilities in the last several years. Capacity utilization affects our gross margin because we have a high fixed cost base due to our vertically integrated business model. Increases in sales and production volumes drive favorable absorption of fixed costs, improved manufacturing efficiencies and lower production costs. Gross margins may fluctuate from period to period depending on product mix and the level of capacity utilization.

Our Advanced Development gross profit varies with the type and terms of contracts, contract volume, project mix, changes in the estimated cost of projects at completion, and successful execution on projects during the period. Most of our Advanced Development contracts have historically been structured as cost plus fixed fee due to the technical complexity of the research and development services, but we also perform work under fixed price contracts where gross margin can change from period to period based on the estimated cost of the project at completion.

Seasonality

Our quarterly revenues can fluctuate with general economic trends, the timing of capital expenditures by our customers, holidays, and general economic trends. In addition, as is typical in our industry, we tend to recognize a larger percentage of our quarterly revenues in the last month of the quarter, which may impact our working capital trends.

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Results of Operations

The following table sets forth our operating results as a percentage of revenues for the periods indicated (which may not add up due to rounding):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue:
Products	73.3	%	75.3	%	69.4	%	75.2	%
Development	26.7		24.7		30.6		24.8
Total revenue	100.0		100.0		100.0		100.0
Cost of revenue:
Products	52.2		57.3		50.6		53.7
Development	25.4		23.1		28.3		23.3
Total cost of revenue	77.6		80.4		78.9		77.0
Gross profit	22.4		19.6		21.1		23.0
Operating expenses:
Research and development	20.2		21.2		22.3		21.5
Sales, general, and administrative	23.2		23.2		24.7		21.9
Total operating expenses	43.4		44.4		47.0		43.5
Loss from operations	(21.0)		(24.7)		(25.9)		(20.5)
Other income:
Interest income, net	0.7		0.6		0.9		0.6
Other income, net	2.4		1.1		1.7		1.3
Loss before income taxes	(17.9)		(23.1)		(23.3)		(18.6)
Income tax expense (benefit)	0.5		0.4		0.3		(0.6)
Net loss	(18.4)	%	(23.5)	%	(23.6)	%	(18.0)	%

Revenues by End Market

Our revenues by end market were as follows for the periods presented (dollars in thousands):


	Three Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		$		%
Industrial	$	11,588	20.6	%	$	19,607	38.7	%	$	(8,019)	(40.9)	%
Microfabrication	14,263		25.4		12,000		23.7		2,263		18.9
Aerospace and Defense	30,278		54.0		19,027		37.6		11,251		59.1
	$	56,129	100.0	%	$	50,634	100.0	%	$	5,495	10.9	%


	Nine Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		Amount		%
Industrial	$	36,478	24.1	%	$	56,078	35.5	%	$	(19,600)	(35.0)	%
Microfabrication	35,276		23.4		37,285		23.6		(2,009)		(5.4)
Aerospace and Defense	79,413		52.5		64,666		40.9		14,747		22.8
	$	151,167	100.0	%	$	158,029	100.0	%	$	(6,862)	(4.3)	%

The decreases in revenue from the Industrial market for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by decreases in unit sales due to deteriorating market conditions and lower customer demand in cutting and additive manufacturing.

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The increase in revenue from the Microfabrication market for the three months ended September 30, 2024 compared to the same period in 2023 was primarily attributable to an increase in unit sales of semiconductor lasers to Rest of World customers due to improved demand. The decrease in revenue from the Microfabrication market for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by lower unit sales for the first six months of 2024 that was partially offset by an increase in unit sales for the third quarter of 2024.

The increases in revenue from the Aerospace and Defense market for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were the result of increased unit sales of products due to higher market demand, an increase in ASPs, and increased development revenue from development contracts awarded primarily in the second half of 2023.

Revenues by Segment

Our revenues by segment were as follows for the periods presented (dollars in thousands):


	Three Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		$		%
Laser Products	$	41,132	73.3	%	$	38,103	75.3	%	$	3,029	7.9	%
Advanced Development	14,997		26.7		12,531		24.7		2,466		19.7
	$	56,129	100.0	%	$	50,634	100.0	%	$	5,495	10.9	%


	Nine Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		Amount		%
Laser Products	$	104,960	69.4	%	$	118,802	75.2	%	$	(13,842)	(11.7)	%
Advanced Development	46,207		30.6		39,227		24.8		6,980		17.8
	$	151,167	100.0	%	$	158,029	100.0	%	$	(6,862)	(4.3)	%

The increase in Laser Products revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of increased revenue from the Microfabrication and Aerospace and Defense markets as discussed above, offset partially by a decrease in revenue from the Industrial market. The decrease in Laser Products revenue for the nine month ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from the Industrial and Microfabrication markets as discussed above, offset partially by an increase in revenue from the Aerospace and Defense market.

The increases in Advanced Development revenue for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by development contracts awarded primarily in the second half of 2023. All Advanced Development revenue is included in the Aerospace and Defense market.

Revenues by Geographic Region

Our revenues by geographic region were as follows for the periods presented (dollars in thousands):


	Three Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		$		%
North America	$	36,332	64.7	%	$	31,330	61.9	%	$	5,002	16.0	%
China	2,371		4.2		2,624		5.2		(253)		(9.6)
Rest of World	17,426		31.1		16,680		32.9		746		4.5
	$	56,129	100.0	%	$	50,634	100.0	%	$	5,495	10.9	%

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	Nine Months Ended September 30,								Change
	2024		% of Revenue		2023		% of Revenue		Amount		%
North America	$	100,696	66.6	%	$	94,750	60.0	%	$	5,946	6.3	%
China	8,877		5.9		9,134		5.8		(257)		(2.8)
Rest of World	41,594		27.5		54,145		34.2		(12,551)		(23.2)
	$	151,167	100.0	%	$	158,029	100.0	%	$	(6,862)	(4.3)	%

Geographic revenue information is based on the location to which we ship our products. The increases in North America revenue for the three and nine months ended September 30, 2024 compared to the same periods in 2023, were primarily attributable to increased revenue from the Aerospace and Defense market as previously discussed, offset partially by decreased revenue from the Industrial market.

The decrease in China revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from the Microfabrication and Industrial markets. The decrease in China revenue for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by a decreased in revenue from the Industrial market offset partially by an increase in revenue from the Microfabrication market.

The increase in Rest of World revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of increased revenue from the Aerospace and Defense and Microfabrication markets, offset partially by decreased revenue from the Industrial market. The decrease in Rest of World revenue for the nine months ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from both the Industrial and Microfabrication markets, offset partially by increased revenue from the Aerospace and Defense market.

Cost of Revenues and Gross Margin

Cost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs, tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecasted demand from our customers. We expense all warranty costs and inventory provisions as cost of revenues.

Cost of Advanced Development revenue consists of materials, labor, subcontracting costs, and an allocation of indirect costs including overhead and general and administrative.

Our gross profit and gross margin were as follows for the periods presented (dollars in thousands):


	Three Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Total
Gross profit	$	12,475		$	704		$	(629)	$	12,550
Gross margin	30.3		%	4.7		%	NM*		22.4		%


	Nine Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Total
Gross profit	$	30,261		$	3,456		$	(1,829)	$	31,888
Gross margin	28.8		%	7.5		%	NM*		21.1		%


	Three Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Total
Gross profit	$	9,596		$	850		$	(508)	$	9,938
Gross margin	25.2		%	6.8		%	NM*		19.6		%

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	Nine Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Total
Gross profit	$	35,860		$	2,320		$	(1,871)	$	36,309
Gross margin	30.2		%	5.9		%	NM*		23.0		%

*NM = not meaningful

The increase in Laser Products gross margin for the three months ended September 30, 2024 compared to the same period of 2023 was driven primarily by positive changes in sales mix and increases in ASPs in the Aerospace and Defense market. Our average gross margins on sales for the Industrial market have been lower than those for the Microfabrication and Aerospace and Defense markets. The decrease in Laser Products gross margin for the nine months ended September 30, 2024 compared to same period of 2023, was driven by the impact of lower production volumes on fixed manufacturing costs due to the decrease in overall customer demand, partially offset by positive changes in sales mix.

The decrease in Advanced Development gross margin for the three months ended September 30, 2024 compared to the same period in 2023 was driven by changes in the composition of research and development contracts and a increase in the estimated cost at completion on a significant fixed priced contract in the third quarter of 2024. The increase in Advanced Development gross margin for the nine months ended September 30, 2024 compared to the same periods in 2023 was primarily the result of changes in the composition of research and development contracts. The nine month period ended September 30, 2024 included more revenue from fixed priced contracts that carried higher average gross margins than cost-plus fixed fee contracts during the period.

Operating Expenses

Our operating expenses were as follows for the periods presented (dollars in thousands):

Research and Development


	Three Months Ended September 30,				Change
	2024		2023		$		%
Research and development	$	11,328	$	10,744	$	584	5.4	%


	Nine Months Ended September 30,				Change
	2024		2023		Amount		%
Research and development	$	33,723	$	34,049	$	(326)	(1.0)	%

The increase in research and development expense for the three months ended September 30, 2024 compared to the same period in 2023 was primarily attributable to an increase in employee compensation costs and project-related spending, offset partially by a decrease in stock-based compensation of $0.6 million. The decrease in research and development expense for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by a decrease in stock-based compensation of $1.7 million, offset partially by increases in employee compensation costs and project-related spending.

Sales, General and Administrative


	Three Months Ended September 30,				Change
	2024		2023		$		%
Sales, general, and administrative	$	13,021	$	11,725	$	1,296	11.1	%

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	Nine Months Ended September 30,				Change
	2024		2023		Amount		%
Sales, general, and administrative	$	37,372	$	34,684	$	2,688	7.7	%

The increases in sales, general and administrative expense for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were primarily due to increases in bad debt expense and stock-based compensation of $0.3 million and $1.1 million for the three and nine months ended September 30, 2024, respectively.

Interest Income, net


	Three Months Ended September 30,				Change
	2024		2023		$		%
Interest income, net	$	394	$	303	$	91	30.0%


	Nine Months Ended September 30,				Change
	2024		2023		Amount		%
Interest income, net	$	1,308	$	990	$	318	32.1	%

The increases in interest income, net, for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by increases in interest rates and increased investment in marketable securities.

Other Income, net


	Three Months Ended September 30,				Change
	2024		2023		$		%
Other income, net	$	1,331	$	536	$	795	148.3	%


	Nine Months Ended September 30,				Change
	2024		2023		Amount		%
Other income, net	$	2,594	$	1,997	$	597	29.9	%

Changes in other income, net, are primarily attributable to realized gains on the sale of marketable securities and changes in net realized and unrealized foreign exchange transactions resulting from currency rate fluctuations.

Income Tax Expense (Benefit)


	Three Months Ended September 30,				Change
	2024		2023		$		%
Income tax expense (benefit)	$	261	$	187	$	74	39.6	%


	Nine Months Ended September 30,				Change
	2024		2023		Amount		%
Income tax expense (benefit)	$	525	$	(1,005)	$	1,530	152.2	%

We record income tax expense for taxes in our foreign jurisdictions including Austria, Finland, Italy, and South Korea. While our tax expense is largely dependent on the geographic mix of earnings related to our foreign operations, we also record tax expense for uncertain tax positions taken and associated penalties and interest. We consider all available evidence, both positive and negative, in assessing the extent to which a valuation allowance should be applied against our deferred tax assets. Due to the uncertainty with respect to their ultimate realizability in

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the United States and China, we continue to maintain a full valuation allowance in these jurisdictions as of September 30, 2024.

The increase in income tax expense for the nine months ended September 30, 2024 compared to the same period in 2023 is primarily due to a benefit for expiring statutes of limitations on unrecognized tax positions in the second quarter of 2023 and accrued interest on unrecognized tax positions. The increase in income tax expense for the three months ended September 30, 2024 compared to the same period in 2023 was mainly driven by an increase in income in foreign jurisdictions.

Liquidity and Capital Resources

We had cash and cash equivalents and restricted cash of $41.7 million and $53.5 million as of September 30, 2024 and December 31, 2023, respectively. In addition, we had marketable securities of $65.2 million and $59.7 million at September 30, 2024 and December 31, 2023, respectively. Our total balance of cash, cash equivalents, restricted cash and marketable securities decreased by $6.2 million from December 31, 2023 to September 30, 2024.

For the nine months ended September 30, 2024, our principal source of liquidity was cash collected from customers. We believe our existing sources of liquidity will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. Our future capital requirements may vary materially from period to period and will depend on many factors, including the timing and extent of spending on research and development efforts, the expansion of sales and marketing activities, the continuing market acceptance of our products and ongoing investments to support the growth of our business. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, technologies and intellectual property rights. From time to time, we may explore additional financing sources which could include equity, equity‑linked and debt financing arrangements.

The following table summarizes our cash flows for the periods presented (in thousands):


	Nine Months Ended September 30,
	2024		2023
Net cash provided by operating activities	$	1,528	$	9,687
Net cash used in investing activities	(10,923)		(13,163)
Net cash used in financing activities	(2,369)		(2,062)
Effect of exchange rate changes on cash	12		(198)
Net decrease in cash, cash equivalents and restricted cash	$	(11,752)	$	(5,736)

Net Cash Provided by Operating Activities

During the nine months ended September 30, 2024, net cash provided by operating activities was $1.5 million, which was the result of a $35.8 million net loss, offset by a decrease in net working capital of $2.7 million and non-cash expenses totaling $34.7 million related primarily to depreciation, amortization, and stock-based compensation. The decrease in net working capital in the nine months ended September 30, 2024 was driven by a $3.3 million decrease in inventory, a $1.0 million decrease in prepaid expenses and other current assets, a $4.6 million increase in accounts payable and a $2.5 million increase in accrued and other long-term liabilities. These increases were offset by a $2.1 million increase in accounts receivable, a $3.4 million increase in other assets, net, a $1.9 million decrease in deferred revenues and a $1.5 million decrease in lease liabilities.

Net Cash Used in Investing Activities

During the nine months ended September 30, 2024, net cash used in investing activities was $10.9 million, which was driven by the net purchase of marketable securities of $5.6 million and capital expenditures of $5.3 million.

Net Cash Used in Financing Activities

During the nine months ended September 30, 2024, net cash used in financing activities was $2.4 million, which consisted of taxes paid on the net settlement of stock awards of $3.9 million, partially offset by proceeds from stock option exercises and employee stock plan purchases of $1.6 million.

Credit Facilities

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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 27, 2024, we amended the LOC to extend the maturity date to September 24, 2027, updated financial covenants, and amend the unused line fee and interest rate applicable to revolving loans.

The LOC agreement contains restrictive and financial covenants and bears an unused credit fee of 0.25% on an annualized basis. The interest rate on the LOC is based on the Prime Rate, minus a margin based on our liquidity levels. No amounts were outstanding under the LOC at September 30, 2024 and we were in compliance with all covenants.

Contractual Obligations

There have been no material changes to our contractual obligations as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Inflation

We do not believe that inflation had a material effect on our business, financial condition or results of operations during the three and nine months ended September 30, 2024, If our costs become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could materially adversely affect our business, financial condition and results of operations.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” contained in Part II of our Annual Report on Form 10-K for the year ended December 31, 2023. Our exposure to market risk has not changed materially since December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and our chief financial officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and our chief financial officer have concluded that, as of such date, our disclosure controls and procedures were, in design and operation, effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Internal Control

Control systems, including ours, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control systems’ objectives are being met. Further, the design of any control systems must reflect the fact that there are resource constraints, and the benefits of all controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Control systems can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based, in part, on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a description of our material pending legal proceedings, see Note 12 - Commitments and Contingencies to our consolidated financial statements included elsewhere in this report.

ITEM 1A. RISK FACTORS

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, 2023. 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, 2023.

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

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ITEM 6. EXHIBITS

(a) Exhibits

Exhibit
Number

Incorporated by Reference

Filed
Herewith

Description

Form

File No.

Exhibit

Filing Date

10.1

Amendment No. 5 to Second Amended and Restated Loan and Security Agreement, effective as of September 24, 2024, by and between nLIGHT, Inc. and Banc of California (f/k/a Pacific Western Bank)

8-K

001-38462

10.1

September 27, 2024

31.1

Certification of the Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of the Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*

Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


*			The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		NLIGHT, INC.
		(Registrant)


November 8, 2024	By:	/s/ SCOTT KEENEY
Date		Scott Keeney
		President and Chief Executive Officer (Principal Executive Officer)

November 8, 2024	By:	/s/ JOSEPH CORSO
Date		Joseph Corso
		Chief Financial Officer (Principal Financial Officer)

November 8, 2024	By:	/s/ JAMES NIAS
Date		James Nias
		Chief Accounting Officer (Principal Accounting Officer)

Exhibit 31.1

NLIGHT, INC.

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Scott Keeney, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of nLIGHT, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 8, 2024

/s/ SCOTT KEENEY
Scott Keeney
President, Chief Executive Officer and Chairman (Principal Executive Officer)

Exhibit 31.2

NLIGHT, INC.

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Joseph Corso, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of nLIGHT, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 8, 2024

/s/ JOSEPH CORSO
Joseph Corso
Chief Financial Officer (Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal year ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report") by nLIGHT, Inc. (the "Company"), Scott Keeney, as the Chief Executive Officer of the Company, and Joseph Corso, as the Chief Financial Officer of the Company, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2024


			/s/ SCOTT KEENEY
			Scott Keeney
			President, Chief Executive Officer and Chairman (Principal Executive Officer)


			/s/ JOSEPH CORSO
			Joseph Corso
			Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies the Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-38462
Entity Registrant Name	NLIGHT, INC.
Entity Incorporation, Date of Incorporation	DE
Entity Tax Identification Number	91-2066376
Entity Address, Address Line One	4637 NW 18th Avenue
Entity Address, City or Town	Camas
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98607
City Area Code	360
Local Phone Number	566-4460
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	LASR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,429,356
Entity Central Index Key	0001124796
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 41,456	$ 53,210
Marketable securities	65,241	59,672
Accounts receivable, net of allowances of $1,810 and $315	40,282	39,585
Inventory	48,828	52,160
Prepaid expenses and other current assets	14,975	15,927
Total current assets	210,782	220,554
Restricted cash	258	256
Lease right-of-use assets	11,270	12,616
Property, plant and equipment, net	47,889	52,300
Intangible assets, net	981	1,652
Goodwill	12,408	12,399
Other assets, net	7,706	7,026
Total assets	291,294	306,803
Current liabilities:
Accounts payable	16,467	12,166
Accrued liabilities	14,141	12,556
Deferred revenues	2,921	4,849
Current portion of lease liabilities	2,616	3,181
Total current liabilities	36,145	32,752
Non-current income taxes payable	5,638	5,391
Long-term lease liabilities	10,017	10,978
Other long-term liabilities	4,224	3,263
Total liabilities	56,024	52,384
Stockholders' equity:
Common stock - $0.0001 par value; 190,000 shares authorized, 48,343 and 47,266 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	16	16
Additional paid-in capital	537,776	521,184
Accumulated other comprehensive loss	(2,388)	(2,477)
Accumulated deficit	(300,134)	(264,304)
Total stockholders’ equity	235,270	254,419
Total liabilities and stockholders’ equity	$ 291,294	$ 306,803

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, net of allowances	$ 1,810	$ 315
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	190,000	190,000
Common stock, shares issued (in shares)	48,343	47,266
Common stock, shares outstanding (in shares)	48,343	47,266

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenue	$ 56,129	$ 50,634	$ 151,167	$ 158,029
Total cost of revenue	43,579	40,696	119,279	121,720
Gross profit	12,550	9,938	31,888	36,309
Operating expenses:
Research and development	11,328	10,744	33,723	34,049
Sales, general, and administrative	13,021	11,725	37,372	34,684
Total operating expenses	24,349	22,469	71,095	68,733
Loss from operations	(11,799)	(12,531)	(39,207)	(32,424)
Other income:
Interest income, net	394	303	1,308	990
Other income, net	1,331	536	2,594	1,997
Loss before income taxes	(10,074)	(11,692)	(35,305)	(29,437)
Income tax expense (benefit)	261	187	525	(1,005)
Net loss	$ (10,335)	$ (11,879)	$ (35,830)	$ (28,432)
Net loss per share, basic (in dollars per share)	$ (0.21)	$ (0.26)	$ (0.75)	$ (0.62)
Net loss per share, diluted (in dollars per share)	$ (0.21)	$ (0.26)	$ (0.75)	$ (0.62)
Shares used in per share calculations, basic (in shares)	48,133	46,403	47,679	45,857
Shares used in per share calculations, diluted (in shares)	48,133	46,403	47,679	45,857
Products
Total revenue	$ 41,132	$ 38,103	$ 104,960	$ 118,802
Total cost of revenue	29,286	29,015	76,528	84,813
Development
Total revenue	14,997	12,531	46,207	39,227
Total cost of revenue	$ 14,293	$ 11,681	$ 42,751	$ 36,907

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (10,335)	$ (11,879)	$ (35,830)	$ (28,432)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	335	(131)	47	(816)
Unrealized gains (losses) on available-for-sale securities	(216)	21	42	339
Comprehensive loss	$ (10,216)	$ (11,989)	$ (35,741)	$ (28,909)

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2022		45,629
Beginning balance at Dec. 31, 2022	$ 270,845	$ 16	$ 496,211	$ (2,748)	$ (222,634)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,432)				(28,432)
Issuance of common stock pursuant to exercise of stock options (in shares)		278
Issuance of common stock pursuant to exercise of stock options	385		385
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		632
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(3,667)		(3,667)
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		134
Issuance of common stock under the Employee Stock Purchase Plan	1,220		1,220
Stock-based compensation	19,645		19,645
Unrealized gains (losses) on available-for-sale securities	339			339
Cumulative translation adjustment, net of tax	(816)			(816)
Ending balance (in shares) at Sep. 30, 2023		46,673
Ending balance at Sep. 30, 2023	259,519	$ 16	513,794	(3,225)	(251,066)
Beginning balance (in shares) at Jun. 30, 2023		46,503
Beginning balance at Jun. 30, 2023	265,363	$ 16	507,649	(3,115)	(239,187)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(11,879)				(11,879)
Issuance of common stock pursuant to exercise of stock options (in shares)		61
Issuance of common stock pursuant to exercise of stock options	53		53
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		109
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(535)		(535)
Stock-based compensation	6,627		6,627
Unrealized gains (losses) on available-for-sale securities	21			21
Cumulative translation adjustment, net of tax	(131)			(131)
Ending balance (in shares) at Sep. 30, 2023		46,673
Ending balance at Sep. 30, 2023	$ 259,519	$ 16	513,794	(3,225)	(251,066)
Beginning balance (in shares) at Dec. 31, 2023	47,266	47,266
Beginning balance at Dec. 31, 2023	$ 254,419	$ 16	521,184	(2,477)	(264,304)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (35,830)				(35,830)
Issuance of common stock pursuant to exercise of stock options (in shares)	247	247
Issuance of common stock pursuant to exercise of stock options	$ 221		221
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		684
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(3,945)		(3,945)
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		146
Issuance of common stock under the Employee Stock Purchase Plan	1,355		1,355
Stock-based compensation	18,961		18,961
Unrealized gains (losses) on available-for-sale securities	42			42
Cumulative translation adjustment, net of tax	$ 47			47
Ending balance (in shares) at Sep. 30, 2024	48,343	48,343
Ending balance at Sep. 30, 2024	$ 235,270	$ 16	537,776	(2,388)	(300,134)
Beginning balance (in shares) at Jun. 30, 2024		48,099
Beginning balance at Jun. 30, 2024	239,532	$ 16	531,822	(2,507)	(289,799)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(10,335)				(10,335)
Issuance of common stock pursuant to exercise of stock options (in shares)		105
Issuance of common stock pursuant to exercise of stock options	84		84
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		139
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(657)		(657)
Stock-based compensation	6,527		6,527
Unrealized gains (losses) on available-for-sale securities	(216)			(216)
Cumulative translation adjustment, net of tax	$ 335			335
Ending balance (in shares) at Sep. 30, 2024	48,343	48,343
Ending balance at Sep. 30, 2024	$ 235,270	$ 16	$ 537,776	$ (2,388)	$ (300,134)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (35,830)	$ (28,432)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	9,356	9,292
Amortization	3,403	2,697
Reduction in carrying amount of right-of-use assets	1,367	947
Provision for losses on (recoveries of) accounts receivable	1,489	(2)
Stock-based compensation	18,961	19,645
Deferred income taxes	0	7
Loss on disposal of property, plant and equipment	76	525
Changes in operating assets and liabilities:
Accounts receivable, net	(2,119)	2,308
Inventory	3,348	5,491
Prepaid expenses and other current assets	954	1,358
Other assets, net	(3,351)	(442)
Accounts payable	4,628	(2,079)
Accrued and other long-term liabilities	2,511	161
Deferred revenues	(1,931)	617
Lease liabilities	(1,546)	(1,076)
Non-current income taxes payable	212	(1,330)
Net cash provided by operating activities	1,528	9,687
Cash flows from investing activities:
Purchases of property, plant and equipment	(5,313)	(4,386)
Purchase of marketable securities	(88,643)	(103,008)
Proceeds from maturities and sales of marketable securities	83,033	94,231
Net cash used in investing activities	(10,923)	(13,163)
Cash flows from financing activities:
Proceeds from employee stock plan purchases	1,355	1,220
Proceeds from stock option exercises	221	385
Tax payments related to stock award issuances	(3,945)	(3,667)
Net cash used in financing activities	(2,369)	(2,062)
Effect of exchange rate changes on cash	12	(198)
Net decrease in cash, cash equivalents, and restricted cash	(11,752)	(5,736)
Cash, cash equivalents, and restricted cash, beginning of period	53,466	58,078
Cash, cash equivalents, and restricted cash, end of period	41,714	52,342
Supplemental disclosures:
Cash paid for interest, net	40	20
Cash paid for income taxes	302	270
Operating cash outflows from operating leases	3,057	2,890
Right-of-use assets obtained in exchange for lease liabilities	995	1,295
Accrued purchases of property, equipment and patents	415	561
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	41,456	52,087
Restricted cash	258	255
Total cash, cash equivalents, and restricted cash	$ 41,714	$ 52,342

Basis of Presentation and New Accounting Pronouncements	9 Months Ended
Basis of Presentation and New Accounting Pronouncements	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and New Accounting Pronouncements	Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Critical Accounting Policies Our critical accounting policies have not materially changed during the nine months ended September 30, 2024, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023. New Accounting Pronouncements ASU 2023-07 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.

Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Contract estimates are based on various assumptions to project the outcome of future events that may span several

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):

Sales by End Market


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Industrial	$	11,588	$	19,607	$	36,478	$	56,078
Microfabrication	14,263		12,000		35,276		37,285
Aerospace and Defense	30,278		19,027		79,413		64,666
	$	56,129	$	50,634	$	151,167	$	158,029

Sales by Geography


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
North America	$	36,332	$	31,330	$	100,696	$	94,750
China	2,371		2,624		8,877		9,134
Rest of World	17,426		16,680		41,594		54,145
	$	56,129	$	50,634	$	151,167	$	158,029

Sales by Timing of Revenue


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Point in time	$	41,070	$	37,913	$	105,062	$	117,361
Over time	15,059		12,721		46,105		40,668
	$	56,129	$	50,634	$	151,167	$	158,029

Our contract assets and liabilities were as follows (in thousands):


	Balance Sheet Classification	As of
		September 30, 2024		December 31, 2023
Contract assets	Prepaid expenses and other current assets	$	8,802	$	7,298
Contract liabilities	Deferred revenues and other long-term liabilities	5,769		6,368

Concentrations of Credit and Other Risks

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Concentrations of Credit and Other Risks

The following customers accounted for 10% or more of our revenues for the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
U.S. Government*	12%	16%	15%	17%
Raytheon Technologies	(1)	(1)	10%	(1)
KORD Technologies	19%	(1)	14%	(1)

*Excludes sales to customers who sell our products and services exclusively to the U.S. Government

(1) Represents less than 10% of total revenues.

Marketable Securities	9 Months Ended
Marketable Securities	Sep. 30, 2024
Investments, All Other Investments [Abstract]
Marketable Securities	Marketable Securities Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations. Realized gains were $1.1 million and $2.5 million for the three and nine months ended September 30, 2024, respectively. Unrealized losses were $0.2 million and immaterial for the three and nine months ended September 30, 2024, respectively. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. Realized gains were $0.8 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. Unrealized gains were immaterial for the three months ended September 30, 2023 and $0.3 million for the nine months ended September 30, 2023. See Note 5 for additional information.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

•Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.

•Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents and marketable securities.

Our fair value hierarchy for our financial instruments was as follows (in thousands):


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	20,189	$	—	$	—	$	20,189
Commercial paper	2,446		—		—		2,446
	22,635		—		—		22,635
Marketable Securities:
U.S. treasuries	65,241		—		—		65,241
Total	$	87,876	$	—	$	—	$	87,876


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	22,441	$	—	$	—	$	22,441
Commercial paper	1,995		—		—		1,995
	24,436		—		—		24,436
Marketable Securities:
U.S. treasuries	59,672		—		—		59,672
Total	$	84,108	$	—	$	—	$	84,108

Cash Equivalents

The fair value of cash equivalents is determined based on quoted market prices for similar or identical securities.

Marketable Securities

We classify our marketable securities as available-for-sale and value them utilizing a market approach that uses observable inputs without applying significant judgment.

Inventory

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Raw materials	$	20,278	$	23,426
Work in process and semi-finished goods	22,113		19,640
Finished goods	6,437		9,094
	$	48,828	$	52,160

Property, Plant and Equipment

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):


	Useful life	As of
	(years)	September 30, 2024		December 31, 2023
Automobiles	3	$	518	$	109
Computer hardware and software	3 - 5	16,037		9,145
Manufacturing and lab equipment	2 - 7	85,964		91,050
Office equipment and furniture	5 - 7	4,990		2,634
Leasehold and building improvements	2 - 12	30,937		31,988
Buildings	30	9,392		9,392
Land	N/A	3,399		3,399
		151,237		147,717
Accumulated depreciation		(103,348)		(95,417)
		$	47,889	$	52,300

Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets

The details of definite lived intangible assets were as follows (in thousands):


	Estimated useful life (in years)	As of
		September 30, 2024		December 31, 2023
Patents	3 - 5	$	—	$	6,345
Development programs	2 - 4	7,200		7,200
Developed technology	5	2,959		2,959
		10,159		16,504
Accumulated amortization		(9,178)		(14,852)
		$	981	$	1,652

Amortization related to intangible assets was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	149	$	633	$	671	$	1,896

Estimated amortization expense for future years is as follows (in thousands):


2024	$	149
2025	484
2026	348
Thereafter	—
	$	981

Goodwill

The carrying amount of goodwill by segment was as follows (in thousands):


	Laser Products		Advanced Development		Totals


Balance, December 31, 2023	$	2,151	$	10,248	$	12,399
Currency exchange rate adjustment	9		—		9
Balance, September 30, 2024	$	2,160	$	10,248	$	12,408

Accrued Liabilities

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Accrued payroll and benefits	$	10,497	$	7,898
Product warranty, current	2,440		3,339



Other accrued expenses	1,204		1,319
	$	14,141	$	12,556

Product Warranties

9 Months Ended

Sep. 30, 2024

Guarantees and Product Warranties [Abstract]

Product Warranties

included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets.

Product warranty liability activity was as follows for the periods presented (in thousands):


	Nine Months Ended September 30,
		2024		2023
Product warranty liability, beginning		$	4,469	$	5,441
Warranty charges incurred, net		(3,492)		(2,805)
Provision for warranty charges, net of adjustments		2,597		2,267

Product warranty liability, ending		3,574		4,903
Less: current portion of product warranty liability		(2,440)		(3,694)
Non-current portion of product warranty liability		$	1,134	$	1,209

Stockholders' Equity and Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders' Equity and Stock-Based Compensation

Restricted Stock Awards and Units

Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:


		Number of Restricted Stock Units (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		2,817	$	13.27
	Granted	1,787	14.09
	Vested	(998)	15.08
	Forfeited	(77)	13.94
Balance, September 30, 2024		3,529	13.16


		Number of Restricted Stock Awards (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		133	$	30.44
	Vested	(96)	29.20
Balance, September 30, 2024		37	33.66

Stock Options

The following table summarizes our stock option activity during the nine months ended September 30, 2024:


	Number of Options (Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 2023	1,398	$1.24	2.5	$17,142

Options exercised	(247)	0.89

Outstanding, September 30, 2024	1,151	1.31	1.9	10,795
Options exercisable at September 30, 2024	1,151	1.31	1.9	10,795
Options vested as of September 30, 2024, and expected to vest after September 30, 2024	1,151	1.31	1.9	10,795

Stock-Based Compensation

Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$	629	$	508	$	1,829	$	1,871
Research and development	2,046		2,613		5,834		7,537
Sales, general and administrative	3,852		3,506		11,298		10,237
	$	6,527	$	6,627	$	18,961	$	19,645

Unrecognized Compensation Costs

As of September 30, 2024, total unrecognized stock-based compensation was $36.5 million, which will be recognized over an average expected recognition period of 2.0 years.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases See Note 13. Legal Matters On March 25, 2022, Lumentum Operations LLC (Lumentum) filed a complaint against nLIGHT, Inc. and certain of its employees in the U.S. District Court for the Western District of Washington. The complaint alleges that Lumentum is the partial or full owner of certain of our patents and requests corresponding relief from the court. We are vigorously defending against Lumentum’s allegations. Loss in this matter is not probable or reasonably estimable and, as such, no loss contingency has been recorded. From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of September 30, 2024 we believe these matters will not have a material adverse effect on our consolidated financial statements.

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

The components of lease expense related to operating leases were as follows (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023			2024		2023
Lease expense:
	Operating lease expense	$	943	$	948		$	2,773	$	2,763
	Short-term lease expense	139		142			265		348
	Variable and other lease expense	273		271			793		744
		$	1,355	$	1,361		$	3,831	$	3,855

Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):


2024	$	959
2025	2,669
2026	1,971
2027	1,886
2028	1,617
Thereafter	5,445
Total minimum lease payments	14,547
Less: interest	(1,914)
Present value of net minimum lease payments	12,633
Less: current portion of lease liabilities	(2,616)
Total long-term lease liabilities	$	10,017

Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information


	Three Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	41,132		$	14,997		$	—	$	56,129
Gross profit	$	12,475		$	704		$	(629)	$	12,550
Gross margin	30.3		%	4.7		%	NM*		22.4		%


	Nine Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	104,960		$	46,207		$	—	$	151,167
Gross profit	$	30,261		$	3,456		$	(1,829)	$	31,888
Gross margin	28.8		%	7.5		%	NM*		21.1		%


	Three Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	38,103		$	12,531		$	—	$	50,634
Gross profit	$	9,596		$	850		$	(508)	$	9,938
Gross margin	25.2		%	6.8		%	NM*		19.6		%


	Nine Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	118,802		$	39,227		$	—	$	158,029
Gross profit	$	35,860		$	2,320		$	(1,871)	$	36,309
Gross margin	30.2		%	5.9		%	NM*		23.0		%

*Not meaningful

Corporate and Other is unallocated expenses related to stock-based compensation.

Net Loss per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Loss per Share

Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position.

The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023


Restricted stock units and awards	715	918	947	942

Common stock options	1,082	1,413	1,177	1,485
	1,797	2,331	2,124	2,427

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event In October 2024, we gave notice to employees at our Shanghai manufacturing facility of a reduction in force. A severance charge of approximately $3.8 million will be recorded in the fourth quarter of 2024.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (10,335)	$ (11,879)	$ (35,830)	$ (28,432)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.
New Accounting Pronouncements	New Accounting Pronouncements ASU 2023-07 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.
Inventory	Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.
Product Warranties	We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets.

Revenue (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Sales by End Market

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):

Sales by End Market


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Industrial	$	11,588	$	19,607	$	36,478	$	56,078
Microfabrication	14,263		12,000		35,276		37,285
Aerospace and Defense	30,278		19,027		79,413		64,666
	$	56,129	$	50,634	$	151,167	$	158,029

Schedule of Sales by Geography

Sales by Geography


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
North America	$	36,332	$	31,330	$	100,696	$	94,750
China	2,371		2,624		8,877		9,134
Rest of World	17,426		16,680		41,594		54,145
	$	56,129	$	50,634	$	151,167	$	158,029

Schedule of Sales by Timing of Revenue

Sales by Timing of Revenue


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Point in time	$	41,070	$	37,913	$	105,062	$	117,361
Over time	15,059		12,721		46,105		40,668
	$	56,129	$	50,634	$	151,167	$	158,029

Schedule of Contract Assets and Liabilities

Our contract assets and liabilities were as follows (in thousands):


	Balance Sheet Classification	As of
		September 30, 2024		December 31, 2023
Contract assets	Prepaid expenses and other current assets	$	8,802	$	7,298
Contract liabilities	Deferred revenues and other long-term liabilities	5,769		6,368

Concentrations of Credit and Other Risks (Tables)

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Schedule of Concentration of Credit

The following customers accounted for 10% or more of our revenues for the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
U.S. Government*	12%	16%	15%	17%
Raytheon Technologies	(1)	(1)	10%	(1)
KORD Technologies	19%	(1)	14%	(1)

*Excludes sales to customers who sell our products and services exclusively to the U.S. Government

(1) Represents less than 10% of total revenues.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value Hierarchy for Its Cash Equivalents

Our fair value hierarchy for our financial instruments was as follows (in thousands):


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	20,189	$	—	$	—	$	20,189
Commercial paper	2,446		—		—		2,446
	22,635		—		—		22,635
Marketable Securities:
U.S. treasuries	65,241		—		—		65,241
Total	$	87,876	$	—	$	—	$	87,876


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market securities	$	22,441	$	—	$	—	$	22,441
Commercial paper	1,995		—		—		1,995
	24,436		—		—		24,436
Marketable Securities:
U.S. treasuries	59,672		—		—		59,672
Total	$	84,108	$	—	$	—	$	84,108

Inventory (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Components of Inventory

Inventory consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Raw materials	$	20,278	$	23,426
Work in process and semi-finished goods	22,113		19,640
Finished goods	6,437		9,094
	$	48,828	$	52,160

Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):


	Useful life	As of
	(years)	September 30, 2024		December 31, 2023
Automobiles	3	$	518	$	109
Computer hardware and software	3 - 5	16,037		9,145
Manufacturing and lab equipment	2 - 7	85,964		91,050
Office equipment and furniture	5 - 7	4,990		2,634
Leasehold and building improvements	2 - 12	30,937		31,988
Buildings	30	9,392		9,392
Land	N/A	3,399		3,399
		151,237		147,717
Accumulated depreciation		(103,348)		(95,417)
		$	47,889	$	52,300

Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The details of definite lived intangible assets were as follows (in thousands):


	Estimated useful life (in years)	As of
		September 30, 2024		December 31, 2023
Patents	3 - 5	$	—	$	6,345
Development programs	2 - 4	7,200		7,200
Developed technology	5	2,959		2,959
		10,159		16,504
Accumulated amortization		(9,178)		(14,852)
		$	981	$	1,652

Schedule of Finite-lived Intangible Assets Amortization Expense

Amortization related to intangible assets was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	149	$	633	$	671	$	1,896

Schedule of Estimated Future Amortization Expense

Estimated amortization expense for future years is as follows (in thousands):


2024	$	149
2025	484
2026	348
Thereafter	—
	$	981

Schedule of Goodwill

The carrying amount of goodwill by segment was as follows (in thousands):


	Laser Products		Advanced Development		Totals


Balance, December 31, 2023	$	2,151	$	10,248	$	12,399
Currency exchange rate adjustment	9		—		9
Balance, September 30, 2024	$	2,160	$	10,248	$	12,408

Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	As of
	September 30, 2024		December 31, 2023
Accrued payroll and benefits	$	10,497	$	7,898
Product warranty, current	2,440		3,339



Other accrued expenses	1,204		1,319
	$	14,141	$	12,556

Product Warranties (Tables)

9 Months Ended

Sep. 30, 2024

Guarantees and Product Warranties [Abstract]

Schedule of Reconciliation of the Changes in the Aggregate Product Warranty Liability

Product warranty liability activity was as follows for the periods presented (in thousands):


	Nine Months Ended September 30,
		2024		2023
Product warranty liability, beginning		$	4,469	$	5,441
Warranty charges incurred, net		(3,492)		(2,805)
Provision for warranty charges, net of adjustments		2,597		2,267

Product warranty liability, ending		3,574		4,903
Less: current portion of product warranty liability		(2,440)		(3,694)
Non-current portion of product warranty liability		$	1,134	$	1,209

Stockholders' Equity and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of Restricted Stock Awards and Units

Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:


		Number of Restricted Stock Units (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		2,817	$	13.27
	Granted	1,787	14.09
	Vested	(998)	15.08
	Forfeited	(77)	13.94
Balance, September 30, 2024		3,529	13.16


		Number of Restricted Stock Awards (Thousands)	Weighted-Average Grant Date Fair Value
Balance, December 31, 2023		133	$	30.44
	Vested	(96)	29.20
Balance, September 30, 2024		37	33.66

Schedule of Stock Option Activity

The following table summarizes our stock option activity during the nine months ended September 30, 2024:


	Number of Options (Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 2023	1,398	$1.24	2.5	$17,142

Options exercised	(247)	0.89

Outstanding, September 30, 2024	1,151	1.31	1.9	10,795
Options exercisable at September 30, 2024	1,151	1.31	1.9	10,795
Options vested as of September 30, 2024, and expected to vest after September 30, 2024	1,151	1.31	1.9	10,795

Schedule of Stock-based Compensation Expense

Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$	629	$	508	$	1,829	$	1,871
Research and development	2,046		2,613		5,834		7,537
Sales, general and administrative	3,852		3,506		11,298		10,237
	$	6,527	$	6,627	$	18,961	$	19,645

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense related to operating leases were as follows (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023			2024		2023
Lease expense:
	Operating lease expense	$	943	$	948		$	2,773	$	2,763
	Short-term lease expense	139		142			265		348
	Variable and other lease expense	273		271			793		744
		$	1,355	$	1,361		$	3,831	$	3,855

Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations

Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):


2024	$	959
2025	2,669
2026	1,971
2027	1,886
2028	1,617
Thereafter	5,445
Total minimum lease payments	14,547
Less: interest	(1,914)
Present value of net minimum lease payments	12,633
Less: current portion of lease liabilities	(2,616)
Total long-term lease liabilities	$	10,017

Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Operating Results by Reportable Segment

The following table summarizes the operating results by reportable segment (dollars in thousands):


	Three Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	41,132		$	14,997		$	—	$	56,129
Gross profit	$	12,475		$	704		$	(629)	$	12,550
Gross margin	30.3		%	4.7		%	NM*		22.4		%


	Nine Months Ended September 30, 2024
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	104,960		$	46,207		$	—	$	151,167
Gross profit	$	30,261		$	3,456		$	(1,829)	$	31,888
Gross margin	28.8		%	7.5		%	NM*		21.1		%


	Three Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	38,103		$	12,531		$	—	$	50,634
Gross profit	$	9,596		$	850		$	(508)	$	9,938
Gross margin	25.2		%	6.8		%	NM*		19.6		%


	Nine Months Ended September 30, 2023
	Laser Products			Advanced Development			Corporate and Other		Totals
Revenue	$	118,802		$	39,227		$	—	$	158,029
Gross profit	$	35,860		$	2,320		$	(1,871)	$	36,309
Gross margin	30.2		%	5.9		%	NM*		23.0		%

*Not meaningful

Net Loss per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares

The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023


Restricted stock units and awards	715	918	947	942

Common stock options	1,082	1,413	1,177	1,485
	1,797	2,331	2,124	2,427

Revenue - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
Revenue - Narrative (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation	$ 10,000	$ 10,000
Revenue recognized, previously included in customer advances and deferred revenue	$ 43	$ 4,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	50.00%	50.00%
Performance obligation, scheduled delivery, period	3 months	3 months

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 56,129	$ 50,634	$ 151,167	$ 158,029
Point in time
Disaggregation of Revenue [Line Items]
Total revenue	41,070	37,913	105,062	117,361
Over time
Disaggregation of Revenue [Line Items]
Total revenue	15,059	12,721	46,105	40,668
North America
Disaggregation of Revenue [Line Items]
Total revenue	36,332	31,330	100,696	94,750
China
Disaggregation of Revenue [Line Items]
Total revenue	2,371	2,624	8,877	9,134
Rest of World
Disaggregation of Revenue [Line Items]
Total revenue	17,426	16,680	41,594	54,145
Industrial
Disaggregation of Revenue [Line Items]
Total revenue	11,588	19,607	36,478	56,078
Microfabrication
Disaggregation of Revenue [Line Items]
Total revenue	14,263	12,000	35,276	37,285
Aerospace and Defense
Disaggregation of Revenue [Line Items]
Total revenue	$ 30,278	$ 19,027	$ 79,413	$ 64,666

Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 8,802	$ 7,298
Contract liabilities	$ 5,769	$ 6,368

Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Sales Revenue \| U.S. Government
Concentration Risk [Line Items]
Concentration risk (as a percent)	12.00%	16.00%	15.00%	17.00%
Sales Revenue \| Raytheon Technologies
Concentration Risk [Line Items]
Concentration risk (as a percent)			10.00%
Sales Revenue \| KORD Technologies
Concentration Risk [Line Items]
Concentration risk (as a percent)	19.00%		14.00%
Accounts Receivable \| Two customers
Concentration Risk [Line Items]
Concentration risk (as a percent)			22.00%		24.00%

Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, All Other Investments [Abstract]
Realized gains on available-for-sale securities	$ 1,100	$ 800	$ 2,500	$ 1,700
Unrealized gains (losses) on available-for-sale securities	$ (216)	$ 21	$ 42	$ 339

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 22,635	$ 24,436
Total	87,876	84,108
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	22,635	24,436
Total	87,876	84,108
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Total	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Total	0	0
Money market securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	20,189	22,441
Money market securities \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	20,189	22,441
Money market securities \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Money market securities \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,446	1,995
Commercial paper \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,446	1,995
Commercial paper \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Commercial paper \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	65,241	59,672
U.S. treasuries \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	65,241	59,672
U.S. treasuries \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
U.S. treasuries \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	$ 0	$ 0

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 20,278	$ 23,426
Work in process and semi-finished goods	22,113	19,640
Finished goods	6,437	9,094
Inventory	$ 48,828	$ 52,160

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 151,237	$ 147,717
Accumulated depreciation	(103,348)	(95,417)
Property and equipment, net	$ 47,889	52,300
Automobiles
Property, Plant and Equipment [Line Items]
Useful life	3 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 518	109
Computer hardware and software
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 16,037	9,145
Computer hardware and software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Computer hardware and software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Manufacturing and lab equipment
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 85,964	91,050
Manufacturing and lab equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Manufacturing and lab equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	7 years
Office equipment and furniture
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 4,990	2,634
Office equipment and furniture \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Office equipment and furniture \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	7 years
Leasehold and building improvements
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 30,937	31,988
Leasehold and building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Leasehold and building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	12 years
Buildings
Property, Plant and Equipment [Line Items]
Useful life	30 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 9,392	9,392
Land
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 3,399	$ 3,399

Intangible Assets and Goodwill - Intangible Assets & Finite-lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 10,159		$ 10,159		$ 16,504
Accumulated amortization	(9,178)		(9,178)		(14,852)
Net value	981		981		1,652
Amortization expense	149	$ 633	671	$ 1,896
Patents
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	0		0		6,345
Development programs
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 7,200		$ 7,200		7,200
Developed technology
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years		5 years
Gross carrying amount	$ 2,959		$ 2,959		$ 2,959
Minimum \| Patents
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	3 years		3 years
Minimum \| Development programs
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	2 years		2 years
Maximum \| Patents
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years		5 years
Maximum \| Development programs
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	4 years		4 years

Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 149
2025	484
2026	348
Thereafter	0
Net value	$ 981	$ 1,652

Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 12,399
Currency exchange rate adjustment	9
Ending balance	12,408
Laser Products
Goodwill [Roll Forward]
Beginning balance	2,151
Currency exchange rate adjustment	9
Ending balance	2,160
Advanced Development
Goodwill [Roll Forward]
Beginning balance	10,248
Currency exchange rate adjustment	0
Ending balance	$ 10,248

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued payroll and benefits	$ 10,497	$ 7,898
Product warranty, current	2,440	3,339
Other accrued expenses	1,204	1,319
Total accrued liabilities	$ 14,141	$ 12,556

Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
Product Warranties (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Product warranty liability, beginning	$ 4,469	$ 5,441
Warranty charges incurred, net	(3,492)	(2,805)
Provision for warranty charges, net of adjustments	2,597	2,267
Product warranty liability, ending	3,574	4,903
Less: current portion of product warranty liability	(2,440)	(3,694)
Non-current portion of product warranty liability	$ 1,134	$ 1,209

Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Restricted Stock Units
Number of Restricted Stock Units (Thousands)
Balance, beginning (in shares) \| shares	2,817
Awards granted (in shares) \| shares	1,787
Awards vested (in shares) \| shares	(998)
Awards forfeited (in shares) \| shares	(77)
Balance, ending (in shares) \| shares	3,529
Weighted-Average Grant Date Fair Value
Balance, beginning (in dollars per share) \| $ / shares	$ 13.27
Awards granted (in dollars per share) \| $ / shares	14.09
Awards vested (in dollars per share) \| $ / shares	15.08
Awards forfeited (in dollars per share) \| $ / shares	13.94
Balance, ending (in dollars per share) \| $ / shares	$ 13.16
Restricted Stock Awards (RSAs)
Number of Restricted Stock Units (Thousands)
Balance, beginning (in shares) \| shares	133
Awards vested (in shares) \| shares	(96)
Balance, ending (in shares) \| shares	37
Weighted-Average Grant Date Fair Value
Balance, beginning (in dollars per share) \| $ / shares	$ 30.44
Awards vested (in dollars per share) \| $ / shares	29.20
Balance, ending (in dollars per share) \| $ / shares	$ 33.66

Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 2,700	$ 2,500
Proceeds from stock option exercises	221	$ 385
Unrecognized expense	$ 36,500
Period for recognition (in years)	2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, fair value	$ 15,000
Awards outstanding (in shares)	3,529		2,817
Granted (in shares)	1,787
Performance-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)	1,300
Granted (in shares)	500

Stockholders' Equity and Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Number of Options
Outstanding, beginning of period (in shares) \| shares	1,398
Options exercised (in shares) \| shares	(247)
Outstanding, end of period (in shares) \| shares	1,151	1,398
Weighted-Average Exercise Price
Outstanding, beginning of period (in dollars per share) \| $ / shares	$ 1.24
Options exercised (in dollars per share) \| $ / shares	0.89
Outstanding, end of period (in dollars per share) \| $ / shares	$ 1.31	$ 1.24
Outstanding, Weighted average remaining contractual term (in years)	1 year 10 months 24 days	2 years 6 months
Outstanding, Aggregate intrinsic value \| $	$ 10,795	$ 17,142
Options exercisable at end of period
Options exercisable (in shares) \| shares	1,151
Weighted average exercise price (in dollars per share) \| $ / shares	$ 1.31
Weighted-Average Remaining Contractual Term	1 year 10 months 24 days
Aggregate Intrinsic Value \| $	$ 10,795
Options vested as of end of period and expected to vest after end of period
Options vested and expected to vest (in shares) \| shares	1,151
Weighted average exercise price (in dollars per share) \| $ / shares	$ 1.31
Weighted-Average Remaining Contractual Term	1 year 10 months 24 days
Aggregate Intrinsic Value \| $	$ 10,795

Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,527	$ 6,627	$ 18,961	$ 19,645
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	629	508	1,829	1,871
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,046	2,613	5,834	7,537
Sales, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 3,852	$ 3,506	$ 11,298	$ 10,237

Leases - Narrative (Details)	Sep. 30, 2024
Lessee, Lease, Description [Line Items]
Weighted-average remaining lease term for operating leases (in years)	7 years
Weighted-average discount rate for operating leases (as a percent)	4.00%
Operating Leases, Facilities
Lessee, Lease, Description [Line Items]
Renewal lease term (in years)	15 years
Operating Leases, Facilities \| Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 month 6 days
Operating Leases, Facilities \| Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	10 years 8 months 12 days
Operating Leases, Automobiles and Equipment \| Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 month 6 days
Operating Leases, Automobiles and Equipment \| Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	4 years 1 month 6 days

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease expense	$ 943	$ 948	$ 2,773	$ 2,763
Short-term lease expense	139	142	265	348
Variable and other lease expense	273	271	793	744
Lease expense	$ 1,355	$ 1,361	$ 3,831	$ 3,855

Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
2024	$ 959
2025	2,669
2026	1,971
2027	1,886
2028	1,617
Thereafter	5,445
Total minimum lease payments	14,547
Less: interest	(1,914)
Present value of net minimum lease payments	12,633
Less: current portion of lease liabilities	(2,616)	$ (3,181)
Total long-term lease liabilities	$ 10,017	$ 10,978

Segment Information - Narrative (Details)	9 Months Ended
Segment Information - Narrative (Details)	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 56,129	$ 50,634	$ 151,167	$ 158,029
Gross profit	$ 12,550	$ 9,938	$ 31,888	$ 36,309
Gross margin	22.40%	19.60%	21.10%	23.00%
Operating Segments \| Laser Products
Segment Reporting Information [Line Items]
Revenue	$ 41,132	$ 38,103	$ 104,960	$ 118,802
Gross profit	$ 12,475	$ 9,596	$ 30,261	$ 35,860
Gross margin	30.30%	25.20%	28.80%	30.20%
Operating Segments \| Advanced Development
Segment Reporting Information [Line Items]
Revenue	$ 14,997	$ 12,531	$ 46,207	$ 39,227
Gross profit	$ 704	$ 850	$ 3,456	$ 2,320
Gross margin	4.70%	6.80%	7.50%	5.90%
Corporate and Other
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0
Gross profit	$ (629)	$ (508)	$ (1,829)	$ (1,871)

Net Loss per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
Net Loss per Share (Details) - shares shares in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,797	2,331	2,124	2,427
Restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	715	918	947	942
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,082	1,413	1,177	1,485