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.

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.