nLIGHT designs and manufactures high-power semiconductor lasers, fiber lasers, and fiber amplifiers. The company supplies laser components — the "engines" inside larger systems — rather than building end-use weapons or machines itself. nLIGHT serves three end markets: aerospace and defense (A&D), microfabrication, and industrial. A&D has grown to roughly 67% of total revenue, driven by directed energy weapons (which disable threats like drones and missiles using concentrated optical energy) and laser sensing applications like missile guidance and range finding. Microfabrication lasers are used for drilling, etching, and precision marking in electronics and medical devices, while industrial lasers serve cutting, welding, and metal 3D printing. nLIGHT sells directly to the U.S. government and prime contractors like Northrop Grumman, Raytheon, and BAE Systems in defense, and through a direct sales force and distributors in commercial markets. A key differentiator is nLIGHT's vertical integration — the company manufactures its own semiconductor laser chips, proprietary active fiber, and finished laser systems, controlling the full technology stack from chip to beam-combined laser. nLIGHT generates revenue through product sales and government-funded development contracts. Product margins scale with volume; development contracts carry lower margins but fund next-generation technologies that can later transition to product revenue. nLIGHT has been exiting its lower-margin commercial businesses — it has already left Shanghai manufacturing and is exiting cutting and welding entirely — to focus on A&D and metal additive manufacturing.