poLight ASA (“poLight” or “the Company”) published on February the 24th, 2026, the Company’s quarterly report for the fourth quarter 2025. poLight closed the year characterized by increasing commercial traction within AR/MR and continued expansion of the industrial pipeline. The following are some key financial metrics that we have chosen to highlight in connection with the report:
- Total revenues of NOK 8.6m (1.2) in Q4-25 – record quarterly level driven by strong AR/MR activity
- Full year revenues of NOK 20.5m (9.6) – exceeding Analyst Group’s estimates by 13%
- Gross margin above expectations, supported by development-phase ASPs and inventory effects
- EBITDA of NOK -32.8m in Q4-25 and NOK -116.5m for FY 2025 – reflecting continued investment in scaling and qualification programs
- Cash position of NOK 284m at year-end
Summary
poLight delivered a strong Q4-25 report, highlighted by record quarterly revenues of NOK 8.6m and full-year revenues of NOK 20.5m, exceeding Analyst Group’s estimates. Growth was primarily driven by increased activity within AR/MR development programs, which accounted for approximately 70% of Q4 revenues. While volumes remain tied to qualification programs and Proof-of-Concept engagements, increasing order magnitude and repeat activity indicate strengthening late-stage customer engagement, although poLight remains in a pre-volume phase.
Gross margin development was solid and above expectations, supported by high development-phase ASPs and inventory adjustments. However, margins should be interpreted cautiously given the relatively low absolute volumes. Operating expenses increased as anticipated, reflecting continued investments in R&D, supply chain readiness, and organizational scaling ahead of potential consumer ramps. poLight ended the year with a robust cash position of NOK 284m, providing substantial financial runway to execute on strategic priorities.
With several consumer AR/MR programs potentially approaching important milestones in 2026, poLight enters the year with strengthening commercial momentum and a gradually de-risked pathway toward larger-scale commercialization.
Revenue Beat Driven by AR/MR and Strong Momentum
During the fourth quarter of 2025, poLight reported total revenues of NOK 8.6m (1.2), corresponding to a substantial YoY increase of approximately 605% and a QoQ increase of approximately 73%. The growth was primarily driven by TLens® deliveries into AR/MR development programs, alongside continued deliveries to industrial and healthcare customers, including non-recurring engineering (NRE) projects. Total revenues in Q4-25 consisted of sale of goods of NOK 7.8m and rendering of services of NOK 0.9m. The quarterly revenue level of NOK 8.6m represents an all-time high for the Company, reflecting a period of elevated commercial activity. For the full year 2025, total revenues amounted to NOK 20.5m (9.6), representing growth of approximately 113% YoY.
Compared to Analyst Group’s estimates, the reported revenues represent a clear beat. We had estimated full year sale of goods of NOK 17.8m and Rendering of Services of NOK 0.3m, implying total revenues of NOK 18.1m. The reported outcome of NOK 20.5m is therefore approximately NOK 2.4m, or 13%, above our forecast. The deviation is primarily attributable to stronger-than-anticipated execution during Q4, particularly within AR/MR-related customer programs. According to CEO Øyvind Isaksen, the AR/MR market accounted for nearly 70% of total revenues in Q4-25, underlining the increasing commercial weight of this segment.
During H2-25, poLight demonstrated clearly increasing commercial activity, characterized by high order intensity and continued momentum within AR/MR. The positive topline development in Q4-25 should be viewed as a confirmation of this trajectory. However, we emphasize that volumes are still assessed to be at relatively low levels, as AR/MR-related orders remain tied to customer qualification programs, including Proof-of-Concepts (PoCs). This implies that current revenues likely reflect comparatively high average selling prices (ASPs).
From a segment perspective, Q4-25 included continued activity linked to the top-tier U.S. consumer electronics OEM qualification program, as well as repeat and follow-on orders from both consumer and industrial customers. Post quarter, poLight also announced the launch of MLens®, an off-the-shelf portfolio targeting industrial machine vision. While MLens® is expected to gradually broaden the Company’s near-term addressable revenue base, its strategic importance lies primarily in lowering adoption thresholds, expanding the addressable market, and position poLight further up the value chain through a more integrated, system-level offering.
Analyst Group views the revenue outperformance as validation that poLight’s expanding AR/MR engagement is translating into tangible purchase orders, strengthening confidence in late-stage program intensity, even though the Company remains in a pre-volume phase within the consumer segment.
Strong Gross Margin Development During the Quarter
poLight reported total cost of goods sold of NOK 0.9m in Q4-25. Combined with an inventory obsolescence provision of NOK 2.5m, this resulted in total COGS of NOK 3.4m and a reported gross profit of NOK 5.3m, corresponding to a gross margin of approximately 61%. Excluding the inventory obsolescence provision, the implied gross margin would have amounted to approximately 89%, partly reflecting the high ASP structure associated with development-phase deliveries.
For the full year 2025, total COGS amounted to NOK 11.5m, implying a gross profit of NOK 9m and a gross margin of approximately 44%. Excluding inventory obsolescence provisions, the adjusted gross margin would amount to approximately 83% for the full year.
The quarterly gross margin includes both the age-based inventory provision policy and an additional NOK 1.2m provision related to certain assembled products under internal review, reflecting a prudent accounting approach. This strengthens the quality of the reported figures.
While the gross margin development is clearly encouraging and exceeded our expectations, it should be interpreted with caution. At the current stage, margins are significantly influenced by low absolute volumes and development-phase ASPs. In a future consumer volume ramp scenario, ASPs are expected to normalize, which would likely result in structurally lower but more stable gross margins. At the same time, increased scale, improved cost absorption, and greater system-level value capture through MLens® could partially offset this normalization effect.
Increased Cost Base Reflects Strategic Scaling
EBITDA for Q4-25 amounted to NOK -32.8m (-32.3), while full-year EBITDA for 2025 was NOK -116.5m (-98.1), marginally weaker than Analyst Group’s estimate of NOK -115.2m. The deviation is primarily attributable to higher-than-expected Research and Development expenses and operational and supply chain expenses. For FY 2025, R&D expenses amounted to NOK -49.1m compared to our estimate of NOK -45.6m, while operational and supply chain expenses amounted to NOK -28.5m versus our estimate of NOK -25.0m. Sales and marketing expenses were broadly in line with expectations at NOK -20.1m, while administrative expenses came in below our forecast.
The quarterly cost increase was primarily driven by higher personnel-related expenses and NOK 3.0m in increased external R&D costs. Operational expenses rose by NOK 5.8m YoY, partly offset by a NOK 5.3m improvement in gross profit. Share option plan expenses, including employer’s national insurance contributions, amounted to NOK 6.5m in Q4-25, compared to NOK 3.7m in Q4-24, reflecting the higher share price during the quarter. Importantly, these costs are non-cash in nature.
The cost profile reflects continued investment in customer interaction and support, product innovation, strategic partnerships, and organizational scaling across TLens®, TWedge®, and MLens®. In line with poLight’s communicated strategy, capturing the expanding opportunity within AR/MR and adjacent optical segments requires strengthening both industrial readiness and ecosystem positioning. The elevated operating cost base should therefore be viewed as a strategic allocation of capital toward long-term competitive positioning.
Given the long qualification cycles within consumer AR/MR, sustained customer engagement and supply chain robustness remain critical. Analyst Group therefore expects operating expenses to remain elevated in the near term as poLight continues to invest in technology development, customer-specific qualification processes, and organizational readiness ahead of a potential commercial inflection.
Cash Flow and Financial Position
As of 31 December 2025, poLight reported cash and cash equivalents of NOK 284.0m, compared to NOK 166.8m at year-end 2024, providing substantial financial flexibility to execute ongoing strategic initiatives.
Net cash outflow from operating activities amounted to NOK 14.4m in Q4-25 (NOK 11.8m in Q4-24), corresponding to an average quarterly operational burn of approximately NOK 4.8m per month. Working capital improved by NOK 11.5m during the quarter, although to a lesser extent than in Q4-24. Interest income amounted to NOK 8.8m in the quarter, benefiting from the strengthened cash position. As previously highlighted, the key variable to monitor into 2026 is not short-term cost containment but the pace of conversion from advanced qualification programs into formal design-ins and eventual production commitments.
Pipeline Expansion and Strategic Positioning into 2026
As of Q4-25, poLight’s total pipeline comprised 42 design-wins (38), 3 design-ins (5), 139 completed PoCs (134), 43 ongoing PoCs (57), and 54 planning PoCs (47). Although nine university-related PoCs were removed from the overview, the commercially relevant pipeline remains broad and increasingly concentrated toward AR/MR and industrial applications, which represent the Company’s primary long-term value drivers.
Within AR/MR, Q4 was characterized by continued purchase activity related to the top-tier U.S. consumer electronics OEM qualification program, including previously announced development-related orders and subsequent follow-on activity. Post quarter, the final call-off under the August 2025 purchase order, totaling approximately NOK 1.8m with a final tranche of approximately NOK 1.0m, confirmed continued program progression. While these orders remain development-phase in nature, their magnitude and recurrence suggest structured advancement within a defined qualification framework rather than exploratory engagement.
Importantly, several consumer-oriented AR/MR programs may approach important milestones in 2026. In Analyst Group’s view, this increases the relevance of the current qualification phase, as milestone progression represents a necessary step toward formal design-in and eventual volume commitments.
TWedge® continued to generate technical sample orders from major consumer OEMs during the quarter, indicating sustained evaluation of advanced optical architectures beyond early feasibility testing. The continuity of these engagements supports the view that poLight is positioning itself within next-generation optical stacks rather than isolated component testing.
In industrial and machine vision, order intake remained stable, including repeat orders and two new design-wins during the quarter. The launch of MLens® introduces a standardized off-the-shelf product platform with shorter integration cycles and lower adoption barriers compared to custom component solutions. Strategically, this broadens poLight’s addressable market and strengthens its position in the value chain. Over time, increased system-level value capture through MLens® could support improved gross margin resilience relative to a pure component-based model.
Taken together, poLight enters 2026 with a strengthened commercial position and increasing strategic relevance within AR/MR optical ecosystems. The Company remains in a pre-volume phase within consumer AR/MR; however, increasing order magnitude, repeat engagement, and milestone progression indicate gradual de-risking of the commercialization pathway.
We will return with an updated equity research report of poLight.
