poLight Q3 2025 slides: Revenue jumps 163% as AR/MR market gains momentum

Introduction & Market Context

poLight ASA (OSE:PLT) presented its Q3 2025 earnings on October 30, 2025, highlighting significant revenue growth and strategic advancements in the augmented and mixed reality (AR/MR) market. The optical solutions provider, known for its TLens® and TWedge® technologies, reported substantial progress across multiple market segments while positioning itself for future growth in emerging technology applications.

The company’s stock closed at NOK 7.16 following the earnings announcement, representing a 7.82% decline despite the positive revenue figures, suggesting investors may have concerns about the company’s increased operating expenses and path to profitability.

Quarterly Performance Highlights

poLight reported Q3 2025 revenue of NOK 5.0 million, a 163% increase compared to NOK 1.9 million in Q3 2024. This growth was primarily driven by sales of TLens® and materials for customer development projects, particularly in the AR/MR segment.

As shown in the following financial summary, despite the revenue growth, the company’s EBITDA was negative NOK 29.1 million, compared to negative NOK 25.2 million in the same period last year, reflecting increased investments in research and development, sales and marketing, and operational expenses:

The company’s cash position strengthened significantly to NOK 298.2 million at the end of Q3 2025, compared to NOK 166.8 million at year-end 2024. This improvement was largely due to a subsequent offering that generated NOK 48.1 million net during the quarter, as illustrated in the cash flow summary:

Strategic Initiatives and Market Expansion

poLight’s Q3 2025 presentation emphasized its focus on the AR/MR market, which the company views as a key growth driver. According to IDC data presented, the total AR/MR market is expected to reach approximately 6.6 million units in 2025 and grow to over 11.2 million units by 2026, with additional smart glasses (without displays) potentially adding more than 10 million units by 2025.

The company’s strategic positioning across various market segments is illustrated in the following slide:

A significant post-quarter development was a purchase order worth approximately NOK 5 million to support a top-tier U.S. consumer electronics OEM in designing a TLens®-based camera for AR applications. This represents an important strategic win in the company’s target growth market.

poLight has also made substantial progress in expanding its customer base and securing design wins across multiple sectors. The company now has 38 design wins (up from 33) and 5 design-ins (up from 4), with a pipeline of 134 completed proof of concepts (PoCs), 57 ongoing PoCs, and 47 planning PoCs.

The following comprehensive pipeline update illustrates the company’s progress across consumer, AR/MR, industrial, and other segments:

In the industrial and barcode segment, poLight announced five new products released to market during the quarter, with accumulated order intake of approximately NOK 2.2 million, a significant portion coming from existing customers. The company now has 26 design wins in this segment, up from 21 previously.

Detailed Financial Analysis

poLight’s financial performance for Q3 2025 showed mixed results. While revenue grew substantially year-over-year, operating expenses also increased significantly. Research and development expenses rose to NOK 12.3 million from NOK 8.7 million in Q3 2024, while sales and marketing expenses nearly doubled to NOK 5.1 million from NOK 2.6 million.

The company’s gross profit improved to NOK 2.6 million from NOK 0.2 million in the same period last year, despite a NOK 0.9 million provision for inventory obsolescence. Inventory levels decreased to NOK 54.8 million from NOK 62.4 million at the end of 2024, indicating improved inventory management.

poLight has made significant investments in its operational capabilities to prepare for future growth. The company has established assembly and final test lines in the Philippines and at Q Tech, with installed capacity of around 200,000 units per month for assembly and 400,000-500,000 units per month for testing, as detailed in the following slide:

Forward-Looking Statements

Looking ahead, poLight expressed optimism about its future prospects, particularly in the AR/MR market segment. The company noted growing interest from major OEMs for both its TLens® and TWedge® technologies for integration into future advanced AI/AR/MR glasses.

R&D efforts are focused on several key initiatives, including reference designs, lead-free TLens® and next-generation TLens®, bigger TLens® variants, and the TWedge® technology. Additionally, the company announced the MLens® project, which will create a family of standard lenses incorporating poLight’s TLens® technology for machine vision, automation, robotics, and AI applications. This project has secured funding from Innovation Norway of approximately NOK 1.2 million.

In the healthcare sector, poLight received a follow-on purchase order worth NOK 2.6 million for a Mini2P application, building on its existing four design wins in this area. The company also continues to explore opportunities in the automotive sector, though this remains at an earlier stage with one ongoing PoC and two planning PoCs.

Despite the positive outlook, investors should note the company’s continued negative EBITDA and increasing operating expenses, which may impact the timeline to profitability. The presentation did not address potential patent expiration concerns mentioned in analyst discussions, which could affect the company’s competitive positioning in the coming years.

Overall, poLight’s Q3 2025 presentation highlighted strong revenue growth and strategic positioning in high-growth markets, particularly AR/MR, while acknowledging the need for continued investment to capitalize on these opportunities.

Full presentation:

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