Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 97

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 97
---
 due to a reduction in total cash and investments, lower weighted average interest rates across our investment portfolio and geographic mix in the current period as compared to the prior year.

Provision for income taxes. Provision for income taxes was $16.7 million for the nine months ended September 30, 2025 compared to $5.4 million for the nine months ended September 30, 2024. The effective tax rate was 48.4% for the nine months ended September 30, 2025. There was a tax expense provided on Loss before income taxes for the nine months ended September 2024. In 2024, there was a tax detriment primarily related to $41.5 million of losses not benefitted from the loss on divestiture of Russian operations. Excluding the divestiture, the increase in tax expense in 2025 was driven by higher income before provision for income taxes as well as an increase in discrete tax items of $7.3 million primarily due to increases in uncertain tax positions resulting from tax audit activity, compared to the same period in 2024.

The discrete tax detriment of $8.7 million for the nine months ended September 30, 2025, relates primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes and increases in uncertain tax positions due to tax audit activity in the period. This compares to a net discrete tax detriment of $41.5 million for the nine month period ended September 30, 2024, which is primarily related to losses on the divestiture of Russian operations.

Net income (loss). Net income (loss) increased by $207.1 million to a net income of $17.8 million for the nine months ended September 30, 2025 compared to a net loss of $189.3 million for the nine months ended September 30, 2024, due to the factors described above.

Liquidity and Capital Resources

We believe that our existing cash and cash equivalents, short and long-term investments, our cash flows from operations and our existing lines of credit provide us with the financial flexibility to meet our liquidity and capital needs. We expect to continue making investments in capital expenditures, assess acquisition opportunities, repurchase shares of our stock in accordance with our repurchase program, carry out research and development and invest in resources to strengthen our organization. The extent and timing of such expenditures may vary from period to period. Our future long-term capital requirements will depend on many