Laser Photonics Reports Fourth Quarter 2025 Financial Results

Q4 Total Net Sales Increases 90% Year-Over-Year to $2.5 Million; Full Year Total Net Sales Increases 144% to $8.3 Million

ORLANDO, FL / April 21, 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 fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Financial Summary:

$ in thousands Q4 2025 Q4 2024 % Change
Total Net Sales $2,533 $1,332 90%
Gross Profit ($1,143) ($896)
Gross Margin % (45%) (67%) +2,214 bps
Total Operating Expenses $6,397 $2,382 169%
Net Income (Loss) ($9,346) $586

Key Fourth Quarter Fiscal 2025 and Subsequent Operational Highlights:

  • Consolidated all manufacturing operations into the Company’s state-of-the-art 50,000 square-foot Lake Mary, Florida facility, eliminating overlapping functions and reducing facility, utilities, and maintenance costs, which is expected to improve the bottom line by approximately $1 million annually beginning in 2026.
  • Strengthened the Company’s capital structure and financial flexibility by raising approximately $5.0 million in a public offering and an additional $1.5 million through the exercise of warrants, while also eliminating approximately $4.1 million in convertible debt and extinguishing variable conversion warrants. These actions significantly reduced interest expense, simplified the balance sheet, and provided the Company with capital to fund its acquisition-driven growth strategy.
  • Full year 2025 total net sales increased 144% to $8.3 million, compared to $3.4 million in the prior year, driven by a full year of contributions from the CMS Laser acquisition and growing demand across the Company’s diversified industrial end markets.
  • Secured multi-system orders from a top 5 global semiconductor capital equipment company and delivered a multi-unit sale through MSC Industrial Direct to a leading aerospace manufacturer, reinforcing the Company’s penetration into high-value industrial verticals.
  • Presented a joint remote nuclear decontamination robot at WM Symposia in partnership with Brokk, and introduced a next-generation CleanTech® laser cleaning system custom engineered for a major nuclear power plant client, advancing the Company’s presence in the nuclear and energy sector.
  • Announced a strategic milestone on the advanced Laser Shield Anti-Drone System (LSAD), successfully reaching the prototype stage with the LASE Group’s joint initiative, which demonstrated the capability to neutralize a Class 1 drone through laser engagement. Technical drawings and system documentation were submitted to U.S. Special Operations Command in support of REPTILE 26 and to Naval Special Warfare Command.
  • Engaged MZ Group as the Company’s investor relations advisor, underscoring a renewed commitment to proactive institutional investor engagement, broadening market awareness, and transparent communication with the investment community.

Management Commentary

Wayne Tupuola, Chief Executive Officer of Laser Photonics, commented: “2025 was a breakthrough year for Laser Photonics. We more than doubled revenue to $8.3 million, consolidated our manufacturing footprint into a single state-of-the-art facility, expanded our customer base across high-value verticals including semiconductor, aerospace, and defense, and meaningfully strengthened our capital structure and balance sheet. Fourth quarter revenue increased 90% year-over-year to $2.5 million, capping a year of accelerating momentum across our platform.

“We enter 2026 from a position of strength. Our facility consolidation is expected to generate nearly $1 million in annual cost savings, our balance sheet has been simplified with the elimination of $4.1 million in convertible debt, and our recent capital raise provides the financial flexibility to invest in our highest-return growth opportunities. While the quarter included non-cash charges related to our restructuring and integration activities, these were deliberate actions to position the Company for sustainable, profitable growth. With the combination of our leaner cost structure, diversified revenue base, and expanding product portfolio, we are well positioned to reinvest in scalable growth initiatives heading into the remainder of 2026.

“Looking ahead, our priorities are clear: drive higher-margin revenue in our core industrial and defense platforms, capture the full cost and efficiency benefits of our consolidation, and continue to selectively pursue accretive acquisitions that strengthen our market position. We are particularly excited by the progress of our Laser Shield Anti-Drone System, which recently reached the prototype stage. We believe the rapidly expanding counter-drone market represents a meaningful new growth vector for the Company, and we are well-capitalized to pursue it. We have never been more optimistic about the future of Laser Photonics and the value we are building for our shareholders.”

Fourth Quarter 2025 Financial Results

Total net sales for the fourth quarter of 2025 increased 90% to $2.5 million, as compared to $1.3 million in the same year-ago quarter. For the full year 2025, total net sales increased 144% to $8.3 million, compared to $3.4 million in the prior year. Revenue growth was driven by a full year of contributions from the CMS Laser acquisition, expanded product offerings following the Beamer acquisition, and continued organic growth across industrial and defense end markets.

Gross profit for the fourth quarter of 2025 was ($1.1) million, compared to ($0.9) million in the same year-ago quarter. The negative gross margin in both periods primarily reflected purchase accounting adjustments and inventory charges associated with the CMS Laser acquisition. For the full year 2025, gross profit was $1.2 million, or 14% of total revenues, compared to $0.4 million, or 12% of total revenues, in the prior year, reflecting improving underlying margins as integration efforts progress.

Total operating expenses for the fourth quarter of 2025 were $6.4 million, as compared to $2.4 million in the same year-ago quarter. The increase was primarily attributable to $4.1 million in non-cash impairment charges on intangible assets and property, $1.8 million in stock-based compensation and shares issued for services, and investments in scaling the business following the CMS Laser and Beamer acquisitions.

Net loss for the fourth quarter of 2025 totaled $9.4 million, as compared to net income of $0.6 million in the same year-ago quarter. The increase in net loss was from the change in other income (expenses), increased operating expenses, offset by increased gross profit. For the full year 2025, net loss totaled $17.5 million, compared to $2.5 million in the prior year.

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 our preliminary internal financial information, which is unaudited, subject to completion of our financial closing and audit procedures and may differ materially from our actual results. 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
[email protected]
www.mzgroup.us

LASER PHOTONICS CORPORATION
CONSOLIDATED BALANCE SHEETS
As of December 31, 2025 and 2024

As of
December 31, 2025
As of
December 31, 2024
ASSETS
Current Assets
Cash
$ 650,339 $ 533,871
Accounts receivable, net of allowance for expected credit losses of $0 and $285,486, respectively
547,848 973,605
Contract assets
258,037 759,658
Inventories, net of reserve of $503,835 and $776,638, respectively
1,287,127 2,338,759
Deferred financing costs
125,000
Prepaid expenses and other current assets
120,825 58,567
Total Current Assets
2,989,176 4,664,460
Property, plant, and equipment, net
1,125,194 1,872,034
Intangible assets, net
922,701 5,458,522
Right-of-use asset
4,110,531 4,840,753
Other long-term assets
302,000 316,378
TOTAL ASSETS
$ 9,449,602 $ 17,152,147
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
Accounts payable
$ 1,595,333 $ 531,268
Accounts payable – related party
349,461 27,988
Accrued expenses
918,328 266,717
Deferred revenue
1,157,128 55,383
Contract liabilities
1,205,007 1,042,090
Notes payable – ($3,212,500 past due)
3,804,610
Notes payable – related party – past due
751,000
Lease liability, current
214,044 649,989
Derivative liability
338,902
Total Current Liabilities
10,333,813 2,573,435
Lease liability, non-current
4,152,375 4,366,419
Total Liabilities
14,486,188 6,939,854
Commitments and Contingencies (Note 9)
Stockholders’ (Deficit) Equity
Preferred shares Par value $0.001: 10,000,000 shares authorized, no shares were issued and outstanding at December 31, 2025 and 2024, respectively
Common Shares Par Value $0.001: 100,000,000 shares authorized; 22,845,345 and 14,257,458 issued and outstanding at December 31, 2025 and 2024, respectively
22,853 14,257
Treasury shares
(10,003 ) (33,810 )
Additional paid in capital
20,160,923 17,886,159
Shares to be issued
100,000
Accumulated deficit
(25,210,359 ) (7,754,313 )
Total Stockholders’ (Deficit) Equity
(5,036,586 ) 10,212,293
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
$ 9,449,602 $ 17,152,147

LASER PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2025 and 2024

Year Ending December 31,
2025 2024
Net sales
$ 7,921,919 $ 3,367,681
Net sales – related party
420,089 47,515
Total Net Sales
8,342,008 3,415,196
Cost of Sales
7,139,754 3,000,202
Gross Profit
1,202,254 414,994
Operating expenses:
Sales and marketing
1,784,659 1,779,966
General and administrative
8,057,013 3,586,816
Research and development
513,563 578,886
Impairment of property, plant and equipment
236,717
Impairment of intangible assets
3,902,378 932,669
Total Operating Expenses
14,494,330 6,878,337
Operating Loss
(13,292,076 ) (6,463,343 )
Other income (expenses):
Financing costs – additional notes principal added on default
(738,889 )
Interest expense, net
(3,649,808 )
Change in fair value of derivative liability
313,892
Bargain purchase of acquisition
(89,165 ) 3,857,999
Other income
86,517
Total other income (expenses)
(4,163,970 ) 3,944,516
Net Loss
$ (17,456,046 ) $ (2,518,827 )
Deemed dividend from software acquisition
(6,615,000 )
Deemed dividend on common control acquisitions
(8,835,228 )
Deemed dividend on cashless exercise of warrant
(6,312,970 )
Net Comprehensive Loss Attributed to Common Shareholders
$ (32,604,244 ) $ (9,133,827 )
Loss per share – basic and diluted
$ (1.02 ) $ (0.22 )
Loss per share (attributable to common shareholders)
$ (1.91 ) $ (0.79 )
Weighted average shares outstanding – basic and diluted
17,113,914 11,631,999

LASER PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended on December 31,
2025 2024
Cash Flows from Operating Activities
Net Loss
$ (17,456,046 ) $ (2,518,827 )
Adjustments to reconcile net loss to net cash used in operating activities:
Bargain purchase of acquisition
(3,857,999 )
Change in allowance for expected credit losses
(285,486 ) 285,486
Change in inventory reserve
(272,803 )
Depreciation and amortization
1,110,503 972,135
Debt discount amortization
869,236
Financing costs for the additional note principal on default
738,889
Financing costs from the issuance of notes payable
242,794
Shares issued for compensation
1,579,050 33,336
Shares issued for services
755,900
Distribution to affiliate
(3,552,695 ) (5,780,578 )
Impairment of property, plant, and equipment
236,717
Impairment of intangible assets
3,902,379 932,669
Right-of-use assets
730,222 448,160
Change in fair value of derivative liability
(313,892 )
Change in Operating Assets & Liabilities:
Accounts receivable
711,243 176,066
Contract assets
501,621 (759,658 )
Inventory
1,632,798 329,100
Deferred financing costs
(125,000 )
Prepaid expenses and other current assets
(62,258 ) 14,905
Other long-term assets
14,378 (316,378 )
Accounts payable
1,064,065 334,406
Accounts payable – related party
321,473
Accrued expenses
651,611 56,969
Deferred revenue
1,101,745 (157,931 )
Contract liabilities
162,917 942,090
Lease liability
(649,988 ) (272,506 )
Net cash used in operating activities
(6,390,628 ) (9,138,555 )
Cash Flows from Investing Activities
Purchase of property and equipment
(19,477 ) (352,821 )
Cash paid for acquisition, net of cash received
(625,000 )
Net cash used in investing activities
(19,477 ) (977,821 )
Cash Flows from Financing Activities
Proceeds from note payable, net of original issuance discount
6,729,226
Repayment of notes payable
(4,485,241 )
Proceeds from note payable – related party
751,000
Proceeds from the sale of treasury stock
44,235
Proceeds from the sale of common shares
3,487,353 4,449,110
Net cash provided by financing activities
6,526,573 4,449,110
Net increase (decrease) in cash flow for period
116,468 (5,667,266 )
Cash – beginning of period
533,871 6,201,137
Cash end of period
$ 650,339 $ 533,871
Supplemental disclosures of cash flow information:
Cash paid for interest
$ $
Cash paid for income taxes
$ $
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Recording of Right-of-Use property lease
$ $ 4,755,728
Shares issued for commons shares issuable
$ 100,000 $
Inventory transferred to property, plant and equipment
$ $ 507,931
Property, plant and equipment transferred to inventory
$ 70,309 $
Promissory note to extinguish warrants
$ 362,500 $
Fair value of common stock issued upon cashless exercise of warrant
$ 6,323,696 $ 62
Fair value of warrants accounted as a derivative liability
$ 652,794 $
Fair value of common stock issued upon acquisition of entity under common control
$ 8,400,000 $
Assets acquired from common controlled entity
$ 255,824 $
Shares issued for license agreement
$ $ 6,615,000
Treasury stock adjustment
$ $ (8,570 )

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