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Laser Photonics Reports Second Quarter 2026 Financial Results

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Laser Photonics (NASDAQ:LASE) reported Q2 2026 net sales of $1.8 million, down 30% year over year from $2.6 million but up 97% sequentially from Q1. Gross profit was $0.2 million, with gross margin improving sequentially to 8.4% from negative 42.4% in Q1. Operating expenses rose 23% year over year to $2.5 million, and net loss widened to $3.3 million from $1.8 million.

The company advanced its Laser Shield Anti-Drone System, developed with affiliate Fonon Technologies, through multiple U.S. government evaluation gates and began prototype demonstrations. It expanded its DefenseTech product line, entered the data center and medical device supply chains with a $0.8 million order from Vander-Bend and a $250,000 order from Johnson & Johnson, and received an additional six-figure order from REXA. Cash increased to $2.2 million at quarter end, plus approximately $2.2 million in net proceeds from a July warrant inducement.

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Positive

  • Sequential net sales growth to $1.8 million, up 97% from Q1 2026
  • Gross margin returned to positive 8.4% from negative 42.4% in Q1 2026
  • Defense traction with LSAD and Fonon solutions progressing through multiple U.S. government evaluation phases
  • New commercial orders: ~$0.8 million Vander-Bend cell and $250,000 Johnson & Johnson system plus six-figure REXA order
  • Cash balance rose to $2.2 million, supplemented by ~$2.2 million post-quarter warrant proceeds

Negative

  • Total net sales declined 30% year over year to $1.8 million in Q2 2026
  • Gross profit fell 86% year over year to $0.2 million; margin dropped from 42.4% to 8.4%
  • Operating expenses increased 23% year over year to $2.5 million
  • Net loss widened 85% year over year to $3.3 million, or $(0.08) per share

Market Context

Tag-matched earnings reactions ranged from -12.86% to 59.35%, providing a wide historical benchmark ...
Analysis

Tag-matched earnings reactions ranged from -12.86% to 59.35%, providing a wide historical benchmark for this report. Moderate short positioning remained a sourced risk factor; subsequent earnings execution warrants attention.

Key Figures

Q2 net sales: $1.8 million Sequential sales growth: 97% Gross margin: 8.4% +5 more
8 metrics
Q2 net sales $1.8 million Q2 2026, versus $2.6 million in Q2 2025
Sequential sales growth 97% Q2 2026 versus Q1 2026
Gross margin 8.4% Q2 2026, versus negative 42.4% in Q1 2026
Net loss $3.3 million Q2 2026, versus $1.8 million in Q2 2025
Loss per share $(0.08) per share Q2 2026 basic and diluted, versus $(0.12)
Cash $2.2 million Cash at June 30, 2026
Warrant proceeds $2.2 million Additional net proceeds raised after quarter end
Robotic cleaning cell order $0.8 million Order from Vander-Bend Manufacturing

Previous Earnings Reports

5 past events · Latest: Jun 11 (Negative)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jun 11 Q1 earnings report Negative -12.9% Lower sales, gross loss, and wider net loss accompanied the quarterly report.
Apr 21 Q4 earnings report Negative -10.7% Quarterly and annual losses outweighed higher sales and financing updates.
Mar 10 FY results report Positive -9.0% Revenue growth and restructuring progress were followed by a negative price reaction.
Dec 23 Q3 earnings report Positive +1.9% Year-over-year revenue growth was accompanied by a modest positive price reaction.
Aug 18 Q2 earnings report Positive +59.4% Strong revenue and gross-profit growth coincided with a sharply positive reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings reactions were mostly aligned with the reported direction, with one notable divergence.

Key Terms

gross margin, warrant inducement, revenue recognition milestones, under-absorption
4 terms
gross margin financial
"gross margin returned to positive territory at 8.4%"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
View in glossary
warrant inducement financial
"raised approximately $2.2 million in additional net proceeds through a July warrant inducement"
Warrant inducement is when a company offers new warrants—options to buy shares at a set price—as a sweetener to persuade investors, lenders, or shareholders to approve a deal or provide financing. Investors should care because these extra warrants can dilute existing ownership if exercised, change the company’s future share supply and potential upside, and alter the risk/reward balance much like giving a coupon that could reduce future prices for original buyers.
revenue recognition milestones financial
"project execution schedules and revenue recognition milestones"
Specific events or checkpoints that determine when a company records sales as revenue under accounting rules; they spell out the conditions that must be met—such as delivery, completion of a performance obligation, customer acceptance, or regulatory approval—before income is recognized. Like payment checkpoints on a construction project, these milestones affect the timing and amount of reported revenue, so they influence reported earnings, financial ratios, and how investors compare performance over time.
under-absorption technical
"the resulting under-absorption of fixed manufacturing overhead"
Under-absorption occurs when a company’s fixed manufacturing overhead costs are higher than the amount allocated to products because actual production or machine hours fell short of the level assumed when overhead rates were set. Think of it like spreading the same size pizza over fewer plates: each product bears a larger share of fixed costs, which can raise reported per-unit costs and create an expense variance on financial statements that investors use to assess profitability and operational efficiency.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Net Sales Nearly Double Sequentially and Gross Margin Returns to Positive Territory; Laser Shield Anti-Drone System, Developed with Affiliate Fonon Technologies, Advances Through Multiple U.S. Government Evaluation Gates

ORLANDO, FL / ACCESS Newswire / August 14, 2026 / Laser Photonics Corporation (NASDAQ:LASE) ("Laser Photonics" or the "Company"), a global leader in laser systems for industrial and defense applications, today reported financial results for the second quarter ended June 30, 2026.

$ in thousands

Q2 2026

Q2 2025

% Change

Total Net Sales

$

1,806

$

2,599

(30

%)

Gross Profit

$

152

$

1,103

(86

%)

Gross Margin %

8.4

%

42.4

%

(3,399) b

ps

Total Operating Expenses

$

2,541

$

2,065

23

%

Net Loss

$

(3,278

)

$

(1,774

)

(85

%)

Key Second Quarter Fiscal 2026 and Subsequent Operational Highlights:

  • Returned to sequential growth and positive gross margin. Net sales increased 97% sequentially to $1.8 million from $0.9 million in the first quarter of 2026, and gross margin returned to positive territory at 8.4%, compared to negative 42.4% in the first quarter, as higher equipment delivery volume improved absorption of the Company's fixed manufacturing cost base.

  • Advanced the Laser Shield Anti-Drone System through multiple U.S. government evaluation gates. The Laser Shield Anti-Drone System (LSAD), developed with affiliate Fonon Technologies, was selected by the U.S. Department of War under the MEIA "Vulcan" Call for Solutions as a top submission in the Counter-C5ISR-T category, earning an invitation to a technical exchange with government engineers. The Company completed final assembly of the LSAD prototype and began its demonstration phase with U.S. and international defense stakeholders. Subsequent to quarter end, Fonon Technologies was selected by the U.S. Air Force 20th Contracting Squadron to advance to Phase 2 of the Shaw Air Force Base Battle Lab Commercial Solutions Opening under Areas of Interest 2.1 (Rapid Point Defense) and 2.3 (Multi-Threat & Swarm Defeat).

  • Expanded the DefenseTech product line for military maintenance and logistics. Together with Fonon Technologies, the Company introduced portable Marlin (Marine Application Rust Laser Inhibitor) laser cleaners, the DefenseTech Blaster Cabinet 4020, the compact DTMM-5010 marking laser, and a fully automated laser wire processing solution for the avionics and military electronics sectors. The Company also demonstrated successful validation of its DefenseTech Missile Laser Rust Inhibitor (MLRI) systems during operational testing at Anniston Army Depot.

  • Entered the data center infrastructure supply chain and expanded the commercial pipeline. Delivered the Company's first robotic laser cleaning cell to Vander-Bend Manufacturing, a U.S.-based precision sheet metal manufacturer serving hyperscale data center operators, under an order valued at approximately $0.8 million. Through its subsidiary CMS Laser, the Company received a $250,000 custom laser drilling system order from Johnson & Johnson, marking its entry into medical device manufacturing. Subsequent to quarter end, the Company received a six-figure order from REXA, Inc. for a 2-kilowatt CleanTech™ Industrial Roughening Laser, marking its entry into REXA's manufacturing operations.

Management Commentary

Ann Tewari, Interim President of Laser Photonics, commented: "The second quarter marked a clear step forward in our operating performance. Net sales nearly doubled sequentially, and gross margin returned to positive territory as higher equipment delivery volume improved absorption across our manufacturing base. Revenue remains below the prior-year period, but the sequential trajectory reflects the delivery execution and operational discipline we have prioritized in the first half of the year.

"Our defense programs continued to gain traction across multiple government channels. The Laser Shield Anti-Drone System was selected by the U.S. Department of War under the MEIA Vulcan Call for Solutions, we completed final assembly of the LSAD prototype and entered our demonstration phase, and subsequent to quarter end Fonon Technologies was selected by the U.S. Air Force to advance to Phase 2 of the Shaw Air Force Base Battle Lab evaluation. Separately, USSOCOM's Joint Acquisition Task Force identified Fonon's solution brief as having the potential to help address the Command's mission requirements. Each of these is a competitive evaluation gate, and together they reflect a level of sustained engagement with the defense customer that we did not have a year ago.

"On the commercial side, we entered the data center infrastructure supply chain with the delivery of our first robotic laser cleaning cell to Vander-Bend Manufacturing, and subsequent to quarter end we received an initial order from REXA. We also continued to strengthen the balance sheet, ending the quarter with $2.2 million in cash, and raised approximately $2.2 million in additional net proceeds through a July warrant inducement.

"Looking ahead, our priorities are straightforward: scale production of the Beamer laser marking platform, where we expect revenue contribution to increase beginning in the third quarter; convert our defense and commercial pipeline into deliverable revenue; and continue to improve manufacturing absorption and margin," concluded Tewari.

Second Quarter 2026 Financial Results

Total net sales for the second quarter of 2026 were $1.8 million, as compared to $2.6 million in the same year-ago quarter. The decrease was primarily attributable to lower equipment deliveries during the period, the timing of customer purchasing decisions, project execution schedules and revenue recognition milestones, and the absence of affiliate revenue in the current period. On a sequential basis, second quarter net sales increased $0.9 million, or 97%, from the first quarter of 2026, reflecting improved equipment delivery volume as the quarter progressed.

Gross profit for the second quarter of 2026 was $0.2 million, or 8.4% of net sales, as compared to gross profit of $1.1 million, or 42.4% of net sales, in the same year-ago quarter. The year-over-year decline primarily reflected lower revenue volume and the resulting under-absorption of fixed manufacturing overhead, reduced production throughput, changes in product mix, and integration and facility-transition costs associated with the Beamer product line. Gross margin improved from negative 42.4% in the first quarter of 2026, reflecting higher revenue volume and improved absorption of fixed manufacturing costs.

Total operating expenses for the second quarter of 2026 were $2.5 million, as compared to $2.1 million in the same year-ago quarter. The increase primarily reflected higher sales and marketing expenses supporting the Beamer product line and the industrial marking and traceability markets, partially offset by general and administrative expenses that were essentially flat year-over-year.

Net loss for the second quarter of 2026 totaled $3.3 million, or $(0.08) per basic and diluted share, compared to a net loss of $1.8 million, or $(0.12) per basic and diluted share, in the same year-ago quarter.

The Company ended the quarter with $2.2 million in cash, an increase from $0.7 million at December 31, 2025. Subsequent to quarter end, the Company closed a warrant inducement transaction generating approximately $2.2 million in net proceeds.

About Laser Photonics Corporation

Laser Photonics Corporation (NASDAQ:LASE) is a global leader in laser systems for industrial and defense applications. The Company develops and manufactures advanced laser technologies used in cleaning, surface preparation, and precision material processing across demanding operating environments. Laser Photonics serves a broad range of end markets, including defense and government, aerospace, energy, maritime, automotive, and advanced manufacturing. Through a combination of internal development, strategic acquisitions, and partnerships, the Company continues to expand its product portfolio and address new applications where performance, efficiency, and environmental considerations are critical. For more information, please visit laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations as of the date of this press release and involve risks and uncertainties that may cause results to differ materially from those indicated by these forward-looking statements. These forward-looking statements include, among other things, statements regarding the expected increase in revenue contribution from the Beamer laser marking product line beginning in the third quarter of 2026, the Company's ability to convert its defense and commercial pipeline into revenue, the outcome and timing of ongoing U.S. government evaluation processes, including the Shaw Air Force Base Battle Lab and USSOCOM Commercial Solutions Openings, the potential for follow-on orders from new and existing customers, the Company's ability to improve manufacturing absorption and gross margin, and the Company's liquidity and its ability to obtain additional financing on acceptable terms. These risks and uncertainties include, but are not limited to, the impacts of federal government funding disruptions and shutdowns on our contracts, operations, capital-raising activities, and strategic initiatives. We encourage readers to review the "Risk Factors" in our Registration Statement and other filings with the Securities and Exchange Commission for a comprehensive understanding. Laser Photonics Corp. undertakes no obligation to revise or update any forward-looking statements, except as required by applicable laws or regulations, to reflect events or circumstances after the date of this press release.

Investor Relations Contact:

Lucas A. Zimmerman & Ian Scargill
MZ Group - MZ North America
(262) 357-2918
LASE@mzgroup.us
www.mzgroup.us

SOURCE: Laser Photonics Corp.



View the original press release on ACCESS Newswire

FAQ

How did Laser Photonics (NASDAQ:LASE) perform financially in Q2 2026?

Laser Photonics reported Q2 2026 net sales of $1.8 million and a net loss of $3.3 million. According to Laser Photonics, sales fell 30% year over year but rose 97% sequentially, while gross margin improved to 8.4% from negative 42.4% in Q1 2026.

Why did Laser Photonics (LASE) revenue change in Q2 2026 versus Q2 2025?

Laser Photonics’ Q2 2026 net sales declined to $1.8 million from $2.6 million a year earlier. According to Laser Photonics, the decrease reflected lower equipment deliveries, timing of customer purchases, project schedules, revenue recognition milestones, and the absence of affiliate revenue in the current period.

What is the Laser Shield Anti-Drone System (LSAD) mentioned in Laser Photonics’ Q2 2026 results?

The Laser Shield Anti-Drone System is a defense solution developed with affiliate Fonon Technologies. According to Laser Photonics, LSAD was selected under the MEIA “Vulcan” Call for Solutions, completed final prototype assembly, and entered demonstrations with U.S. and international defense stakeholders during and after Q2 2026.

What new orders did Laser Photonics (LASE) secure in Q2 2026?

Laser Photonics delivered a roughly $0.8 million robotic laser cleaning cell to Vander-Bend Manufacturing and a $250,000 custom drilling system to Johnson & Johnson. According to Laser Photonics, it also received a subsequent six-figure order from REXA for a 2-kilowatt CleanTech Industrial Roughening Laser.

How much cash does Laser Photonics (NASDAQ:LASE) have after Q2 2026?

Laser Photonics ended Q2 2026 with $2.2 million in cash, up from $0.7 million at year-end 2025. According to Laser Photonics, a post-quarter warrant inducement added approximately $2.2 million in net proceeds, further strengthening the company’s liquidity position going into the second half of 2026.

How did Laser Photonics’ margins and expenses evolve in Q2 2026?

Laser Photonics’ Q2 2026 gross margin was 8.4%, down from 42.4% a year earlier but improved from negative Q1 levels. According to Laser Photonics, operating expenses increased 23% year over year to $2.5 million, mainly from higher sales and marketing investment in the Beamer product line.

What are Laser Photonics’ strategic priorities after its Q2 2026 earnings report?

Laser Photonics aims to scale production of its Beamer laser marking platform and convert its defense and commercial pipeline into revenue. According to Laser Photonics, it also targets continued improvements in manufacturing absorption and margins, with expected Beamer revenue contribution increasing from the third quarter of 2026 onward.