Free cash flow has shown volatile improvement, shifting from a $6.5 million outflow in 2024Q4 to a $7.6 million inflow in 2026Q1, despite significant non-cash stock-based compensation expenses.
| Cash from Operations | 31.03M | 21.33M | -2.36M | 10.09M | -14.54M | -7.44M | 13.04M | -4.24M | 3.33M | 3.41M | 5.96M |
| Operating CF Margin % | - | 8.16% | -1.19% | 4.81% | -6.01% | -2.76% | 5.85% | -2.4% | 1.74% | 2.46% | 5.88% |
| Operating CF Growth % | 49325.82% | 1004.2% | -123.38% | 169.39% | -95.38% | -157.07% | 407.5% | -227.17% | -2.23% | -42.76% | - |
| Net Income | -14.73M | -23.47M | -60.79M | -41.67M | -54.58M | -29.67M | -20.93M | -12.88M | 13.94M | 1.84M | -14.2M |
| Depreciation & Amortization | 13.41M | 12.33M | 17.6M | 16.03M | 15.7M | 15.06M | 13.69M | 9.56M | 8.29M | 7.92M | 8.1M |
| Stock-Based Compensation | 27.36M | 33.41M | 24.96M | 25.83M | 26.76M | 37.72M | 25.46M | 9.73M | 4.8M | 369K | 308K |
| Deferred Taxes | 159K | 159K | -651K | 7K | 4K | 37K | -11K | 3.04M | -1.31M | -424K | 226K |
| Other Non-Cash Items | 29.09M | -1.73M | 4.63M | 1.84M | 5.81M | 3.2M | 3M | -400K | 46K | 1.15M | 331K |
| Working Capital Changes | -24.25M | 622K | 11.9M | 8.05M | -8.24M | -33.79M | -8.17M | -13.29M | -22.43M | -7.45M | 11.2M |
| Change in Receivables | -17.32M | -1.11M | 2.85M | 27K | 2.76M | -9.51M | -4.01M | -395K | -13.73M | -3.52M | 569K |
| Change in Inventory | 3K | -4.15M | 11.05M | 14.89M | 4.62M | -18.99M | -6.94M | -10.67M | -6.14M | -9.88M | 8.97M |
| Change in Payables | 2.23M | 5.89M | 3.23M | -4.5M | -5.9M | 3.46M | 7.31M | 844K | 172K | 2.49M | 601K |
| Cash from Investing | -7.71M | -8.77M | 16.69M | -14.1M | -72.38M | -21.85M | -24.54M | -30.4M | -11.68M | -5.48M | -4.03M |
| Capital Expenditures | -8.86M | -9.03M | -7.93M | -5.34M | -21.72M | -19.32M | -24.35M | -12.4M | -11.71M | -5.48M | -4.06M |
| CapEx % of Revenue | 3.06% | 3.46% | 4% | 2.54% | 8.97% | 7.15% | 10.93% | 7.02% | 6.12% | 3.96% | 4.01% |
| Acquisitions | 890K | 0 | 0 | 0 | -664K | -291K | -190K | -17.4M | 35K | 6K | 36K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -348K | 542K | 0 | 0 | 0 | -2.25M | 0 | -601K | 35K | 6K | 36K |
| Cash from Financing | 192.58M | 20.11M | -1.3M | -859K | -1.31M | 73.74M | -3.77M | 2.45M | 121.3M | 24.42M | 3.64M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -428K | -115K | -55K | -17.36M | -2.82M | -8.33M |
| Equity Issued (Net) | 194.43M | 0 | 3.22M | 3.11M | 3.56M | 82.35M | 2.77M | 0 | 138.3M | 27.48M | 11.96M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.85M | 20.11M | -4.52M | -3.97M | -4.86M | -8.18M | -6.42M | 2.51M | 362K | -243K | 8K |
| Net Change in Cash | 216.02M | 32.93M | 12.62M | -4.61M | -88.71M | 44.21M | -14.72M | -32.23M | 112.79M | 23.19M | 6.64M |
| Free Cash Flow | 22.17M | 12.3M | -10.29M | 4.75M | -36.26M | -29M | -11.31M | -17.87M | -8.38M | -2.07M | 1.9M |
| FCF Margin % | 7.65% | 4.71% | -5.18% | 2.26% | -14.98% | -10.74% | -5.08% | -10.12% | -4.38% | -1.5% | 1.87% |
| FCF Growth % | 198.92% | 219.5% | -316.56% | 113.1% | -25.02% | -156.5% | 36.73% | -113.31% | -304.39% | -209.28% | - |
| FCF per Share | 0.37 | 0.24 | -0.21 | 0.10 | -0.82 | -0.69 | -0.29 | -0.48 | -0.28 | -0.07 | 0.07 |
| FCF Conversion (FCF/Net Income) | -1.51x | -0.91x | 0.04x | -0.24x | 0.27x | 0.25x | -0.62x | 0.33x | 0.24x | 1.86x | -0.42x |
| Interest Paid | 411K | 0 | 61K | 40K | 0 | 117K | 0 | 0 | 941K | 1.44M | 2.06M |
| Taxes Paid | 164K | 0 | 716K | 256K | 442K | 526K | 647K | 2.33M | 3.67M | 3.49M | 1.27M |
High fixed cost sensitivity
Based on reported quarterly filings, nLIGHT exhibits a significant disconnect between GAAP net income and operating cash flow, as evidenced by the 15.01 OCF/NI ratio in 2026Q1, which suggests that non-cash charges and working capital fluctuations remain the primary drivers of reported cash flow volatility.
The wide variance between net income and operating cash flow indicates that the company's bottom line is heavily influenced by accounting adjustments rather than pure cash generation. Investors should monitor whether this conversion gap narrows as the company scales, as persistent reliance on non-cash add-backs may obscure the underlying cash-generating capacity of the core laser business.
As reported in recent financial statements, nLIGHT has demonstrated a volatile free cash flow trajectory, shifting from a $6.5 million outflow in 2024Q4 to a $7.6 million inflow by 2026Q1, reflecting the company's ongoing struggle to achieve consistent positive cash margins amidst its strategic pivot.
The recent swing to positive free cash flow suggests that the company may be beginning to benefit from its transition toward higher-value defense contracts. However, the sustainability of this trend remains uncertain, as the company's cash flow profile appears highly sensitive to the timing of milestone-based government payments and the associated working capital requirements.
According to historical data, nLIGHT maintains a relatively disciplined capital expenditure profile, with CapEx/Revenue ratios fluctuating between 1.8% and 5.5% over the last ten quarters, indicating that the company is currently prioritizing the utilization of existing fabrication capacity over aggressive new facility expansion.
The moderate capital intensity suggests that the company is focused on sweating its existing assets rather than heavy reinvestment, which is appropriate given the current underutilization of its semiconductor fabrication facilities. Future capital requirements warrant close monitoring, as any move to scale production for large-scale defense programs could necessitate a significant step-up in maintenance and growth-related capital spending.
Based on the provided cash flow statements, working capital changes have been a major source of cash flow instability, with a $6.0 million outflow in 2026Q1 following a $9.2 million inflow in 2024Q4, highlighting the lumpy nature of the company's project-based revenue recognition and inventory management.
The erratic nature of working capital movements suggests that the company's cash cycle is heavily influenced by the timing of government contract milestones and the accumulation of inventory for specialized laser components. This volatility implies that investors should look past quarterly fluctuations to assess the underlying efficiency of the company's cash conversion cycle.
Analysis of recent SEC filings reveals that stock-based compensation remains a material non-cash expense, reaching $11.6 million in 2025Q4, which effectively masks the true cash cost of operations and suggests that shareholders are bearing a significant dilution burden during this period of negative GAAP profitability.
While stock-based compensation is a standard industry practice, its magnitude relative to the company's cash flow suggests that it should be treated as a real economic cost rather than a mere accounting adjustment. This persistent dilution warrants further investigation, as it may continue to weigh on per-share value even if the company eventually achieves sustainable operating cash flow.
Quick answers to the most common questions about buying LASR stock.
nLIGHT, Inc. (LASR) generated $21.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
nLIGHT, Inc. (LASR) generated $12.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
nLIGHT, Inc. (LASR) spent $9.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.