Segment Information
Overview
We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. We organize our business segments based on the nature of products and services offered.
Laser Products
This segment includes high-power semiconductor lasers and fiber lasers that are typically integrated into laser systems or manufacturing tools built by our customers. We also make high energy continuous wave (CW) and pulsed fiber lasers, fiber amplifiers, and beam combination and control systems for use in high-energy laser (HEL) systems for directed energy and laser sensing systems used in a wide range of defense applications.
Advanced Development
This segment focuses on research, design, and prototyping of advanced and next-generation laser technologies, leveraging our expertise in high-power laser technology development, beam control, and advanced optics for the defense industry. This segment capabilities include the development of custom high-power fiber lasers and advanced beam combining technologies.
Selected Financial Data by Business Segment
Our Chief Executive Officer serves as the chief operating decision maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM uses metrics such as revenue, gross profit, and gross margin to evaluate each segment's performance by comparing the metrics to historical results and previously forecasted financial information. Our CODM does not evaluate operating segments using asset or liability information. The following table summarizes the operating results by reportable segment for the periods presented (dollars in thousands):
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| Year Ended December 31, 2025 |
| Laser Products | | Advanced Development | | Corporate and Other | | Totals |
| Revenue | $ | 179,236 | | | $ | 82,094 | | | $ | — | | | $ | 261,330 | |
| Gross profit | 70,252 | | | 10,181 | | | (2,470) | | | 77,963 | |
| Gross margin | 39.2 | % | | 12.4 | % | | NM* | | 29.8 | % |
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| Year Ended December 31, 2024 |
| Laser Products | | Advanced Development | | Corporate and Other | | Totals |
| Revenue | $ | 136,659 | | | $ | 61,889 | | | $ | — | | | $ | 198,548 | |
| Gross profit | 31,094 | | | 4,363 | | | (2,438) | | | 33,019 | |
| Gross margin | 22.8 | % | | 7.0 | % | | NM* | | 16.6 | % |
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| Year Ended December 31, 2023 |
| Laser Products | | Advanced Development | | Corporate and Other | | Totals |
| Revenue | $ | 156,666 | | | $ | 53,255 | | | $ | — | | | $ | 209,921 | |
| Gross profit | 44,891 | | | 3,628 | | | (2,406) | | | 46,113 | |
| Gross margin | 28.7 | % | | 6.8 | % | | NM* | | 22.0 | % |
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*NM = not meaningful
Corporate and Other consists of general and administrative overhead costs and unallocated expenses related to stock-based compensation and purchased intangible amortization, which are not used in evaluating the results of, or in the allocation of resources to, our reportable segments.
The geographic location of our long-lived assets, net, based on location of the assets, was as follows (in thousands):
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| As of December 31, |
| 2025 | | 2024 |
| North America | $ | 66,056 | | | $ | 68,637 | |
| Asia Pacific | 1,687 | | | 3,983 | |
| EMEA | 4,277 | | | 3,532 | |
| $ | 72,020 | | | $ | 76,152 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.