What nLight, Inc. told the SEC could break it.

nLight sells to over 300 customers but a limited number drive a significant share: its top ten customers accounted for approximately 75%, 72% and 66% of revenue in 2025, 2024 and 2023 — a rising concentration. Its named top customers (BAE Systems, KORD Technologies, Mazak, Northrop Grumman, QinetiQ, Raytheon/RTX, and the U.S. Government — the latter via prime contracts and directed-energy development programs) are captured as edges. Because much of the book is Aerospace & Defense and directed-energy development contracts, the loss of a major program, a defense-budget cut, or a contract non-renewal would materially affect revenue. A high customer concentration with heavy defense/government exposure.

“In the aggregate, our top ten customers accounted for approximately 75%, 72% and 66% of our revenues in 2025, 2024 and 2023, respectively.”

As a maker of high-power lasers with directed-energy/defense applications that also sells into China's industrial market, nLight is exposed to U.S. export controls (ITAR/EAR): restrictions on exporting products/technology to China and on using certain integrated circuits in its products. It also warns that foreign governments could retaliate — for example by imposing new export-control regimes placing export-license requirements on certain materials — which could raise the cost of components/inputs and disrupt supply. It must export in compliance with U.S. controls and may not always secure necessary licenses. A specific dual-use export-control/China-retaliation exposure cutting both its sales access and its input supply.

“It is also possible that foreign governments will retaliate in ways that could impact our business, for example by imposing new export control regime placing export license requirements on certain materials.”

nLight's high-power semiconductor and fiber lasers require cutting-edge components that are technologically difficult to manufacture, and certain of these components may only be available from a single supplier. It also flags that suppliers may experience shortages of many of the components and raw materials it requires and may significantly raise prices. Any interruption, delay, or inability to obtain these single-source components or materials at acceptable prices and within a reasonable time could disrupt production of its lasers (including those for directed-energy and defense). A genuine sole-source component dependence.

“These types of components may only be available by a single supplier.”