Company: LASR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001124796-25-000053
Chunk: 37

Company: NLIGHT, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 37
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The increase in Laser Products gross margin for the three months ended March 31, 2025 compared to the same period in 2024 was driven primarily by product sales mix and the impact of increased production volumes on fixed manufacturing costs due to the overall increase in sales as previously discussed. The first quarter of 2025 also benefited from an increase in duty reclaim.  The increase in Advanced Development gross margin for the three months ended March 31, 2025 compared to the same period in 2024 was primarily the result of an increase in revenue from fixed priced contracts that carried higher average gross margins than cost-plus fixed fee contracts. 

Operating Expenses  

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

Research and Development

Three Months Ended March 31,Change20252024$%Research and development$11,374 $10,659 $715 6.7 %

The increase in research and development expense for the three months ended March 31, 2025 compared to the same period in 2024 was driven by an increase in project-related expenses, incentive compensation, and an increase in stock-based compensation of $0.2 million, partially offset by a decrease in employee compensation due to a reduction in headcount. 

Sales, General and Administrative

Three Months Ended March 31,Change20252024$%Sales, general, and administrative$12,035 $11,547 $488 4.2 %

The increase in sales, general and administrative expense for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to an increase in stock-based compensation of $0.4 million, an increase in incentive compensation, and an increase in employee compensation, partially offset by recoveries of bad debt from the prior year.  

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Interest Income, net

Three Months Ended March 31,Change20252024$%Interest income, net$1,640 $455 $1,185 260.4%

The increase in interest income, net, for the three months ended March 31, 2025 compared to the same period in 2024 was driven primarily by an increase in income earned from marketable securities and imputed interest on a long-term customer receivable.

Interest income is primarily earned from our marketable securities (U.S. treasuries), recognized using the effective yield method, and cash equivalents (money market securities). Interest expense on the line of credit