Edge-emitting laser diodes having high confinement factors and lattice-matched, porous cladding layers are described. The laser diodes may be formed from layers of III-nitride material. A cladding layer may be electrochemically etched to form a porous cladding layer having a high refractive index contrast with an active junction of the device. A transparent conductive oxide layer may be deposited to form a top-side cladding layer with high refractive index contrast and low resistivity.