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Stockholders' Equity and Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Restricted Stock Awards and Units
Restricted stock award (RSA) and restricted stock unit (RSU) activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values):
Number of Restricted Stock AwardsWeighted-Average Grant Date Fair Value
RSAs at December 31, 2023133 $30.44 
Awards vested(96)29.20 
RSAs at December 31, 202437 33.66 

Number of Restricted Stock UnitsWeighted-Average Grant Date Fair Value
RSUs at December 31, 20231,968 $14.35 
Awards granted1,319 12.31 
Awards vested(1,208)14.40 
Awards forfeited(175)13.51 
RSUs at December 31, 20241,904 12.99 
Share-Based Payment Arrangement, Performance Shares, Activity The table below reflects details relating to the payout factor of our outstanding PRSUs:
ObjectiveBelow ThresholdThresholdTarget
Maximum(1)
Percentile Rank of our TSR against the Russell 2000
Below the 25th percentile
25th percentile50th percentile75th percentile or higher
Percentage of PRSUs Eligible for Vesting(2)
0% - no PRSUs vest
50%100%200%
(1)The percentage of PRSUs eligible for vesting is capped at 100% if our TSR over the performance period is negative.
(2)If our TSR over the performance period is between the 25th and 50th percentile, or it is positive and between the 50th and 75th percentile, then the percentage of the target number of PRSUs that will be eligible to vest will be interpolated linearly between the corresponding percentages designated for those percentiles.

PRSU grant activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values):
Fiscal Year Granted
 202420232022
Performance periodApril 1, 2024 - March 31, 2027April 1, 2023 - March 31, 2026July 1, 2022 - June 30, 2025
Weighted-average grant date fair value$18.51$14.21$14.89
Number of awards originally granted514 484 411 
Number of awards forfeited as of December 31, 2024(6)(6)(52)
Number of awards outstanding at December 31, 2024508 478 359 
Schedule of Share-Based Payment Award, Performance Shares, Valuation Assumptions
The fair value of the PRSUs was measured on the grant date using a Monte Carlo simulation model utilizing several key assumptions, including the following:
Fiscal Year Ended December 31,
 
2024(1)
2023(1)
2022
Expected share price volatility (nLIGHT)
54.5% - 56.4%
58.5% - 59.7%
65.2%
Expected share price volatility (peer group)
54.1% - 55.5%
56.1% - 57.8%
62.6%
Expected correlation to peer group companies
52.4% - 61.6%
53.8% - 60.0%
54.1%
Risk-free rate of return
3.45% - 4.55%
3.89% - 4.75%
2.83%
(1) Certain years have up to three unique PRSU grant dates. The given range encompasses all valuation assumptions used on the unique grant dates.
Schedule of Stock Option Activity
Stock option activity was as follows (in thousands, except weighted-average exercise prices):
 Number of OptionsWeighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value
Outstanding, December 31, 20231,398 $1.242.5$17,142
Options exercised(539)0.93 5,694 
Outstanding, December 31, 2024859 1.43 2.07,783 
Options exercisable at December 31, 2024859 1.43 2.07,783 
Options vested as of December 31, 2024, and expected to vest after December 31, 2024859 1.43 2.07,783 
Schedule of Employee Stock Purchase Plan
Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows:
 Year Ended
December 31, 2024
Shares issued (in thousands)303 
Weighted-average per share purchase price$8.99 
Weighted-average per share discount from the fair value of our common stock on date of issuance$1.59 
Schedule of stock-based compensation expense
Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
Year Ended December 31,
202420232022
Cost of revenues$2,438 $2,406 $2,677 
Research and development7,505 9,866 11,675 
Sales, general and administrative15,018 13,560 12,405 
$24,961 $25,832 $26,757