Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 57

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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,644 Cash used in financing activities(34,457)(210,228)

25

Operating activities. Net cash provided by operating activities decreased by $96.9 million to $11.2 million for the six months ended June 30, 2025 from $108.1 million for the six months ended June 30, 2024, primarily due to an increase in cash used by working capital and a decrease in cash provided by net income after adding back non-cash expenses. Our largest working capital items typically are inventory and accounts receivable. Items such as accounts payable to third parties, prepaid expenses and other current assets and accrued expenses and other liabilities are not as significant as our working capital investment in accounts receivable and inventory because of the amount of value added within IPG due to our vertically integrated structure. Accruals and payables for personnel costs including bonuses and income and other taxes payable are largely dependent on the timing of payments for those items. 

The decrease in cash flow from operating activities in first half of 2025 when compared to the first half of 2024 primarily resulted from:

•an increase in cash used by accounts receivable due to higher sales at the end of the first half of 2025 and timing of collections;

•an increase in cash used by inventory as we manufactured more in the first half of 2025 compared to the first half of 2024 when we moderated our investments in inventory;

•an increase in cash used by income and other taxes payable due to the timing of estimated tax payments made and refunds received from filing tax returns; and

•a decrease in cash provided by net income after adjusting for non-cash operating activities, mainly due to lower revenues.

The decreases in cash provided by operating activities in the first half of 2025 when compared to the first half of 2024 were partially offset by: 

•an increase in cash provided by accrued expenses and other liabilities due to an increase in cash provided by customer deposits, an increase in cash provided by personnel and earn-out accruals, and a decrease in cash used by deferred revenue, partially offset by an increase in cash used by lease liabilities; and

•an increase in cash provided by accounts payable due to timing of payments.

Investing activities. Net cash used in investing activities was $261.5 million for the six months ended June 30, 2025 as compared to cash provided by investing activities of $308.6 million in 2024. The cash used in investing activities in 202