Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 46

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 34,159 13.6 %33,470 14.3 %689 2.1 % Quasi-Continuous Wave ("QCW") Lasers 14,771 5.9 %10,180 4.4 %4,591 45.1 % Laser and Non-Laser Systems 35,590 14.2 %35,265 15.1 %325 0.9 % Other Revenue including Other Lasers, Amplifiers, Service, Parts, and Accessories68,584 27.4 %57,793 24.8 %10,791 18.7 %Total$250,792 100.0 %$233,143 100.0 %$17,649 7.6 %

Materials processing sales accounted for 87.5% of total revenue and increased 6.0% year over year, as a result of higher sales in welding, additive manufacturing applications, cleaning, and micromachining, partially offset by lower sales in marking. Other applications sales increased 20.3% year over year driven by higher revenue in  medical procedures and advanced applications.

Cost of sales and gross margin. Cost of sales decreased by $27.3 million, or 15.2%, to $151.8 million for the three months ended September 30, 2025 from $179.1 million for the three months ended September 30, 2024. The prior year costs of sales included additional inventory provisions of $29.5 million attributed to items previously considered safety stock and items that became technologically obsolete. Our gross margin increased to 39.5% for the three months ended September 30, 2025 from 23.2% for the three months ended September 30, 2024. Additionally, the increase in gross margin was due to a decrease in unabsorbed manufacturing costs of $10.2 million and cost of product sold of $17.1 million, primarily due to lower inventory provisions, partially offset by higher product costs due to product and geographic mix, and import duties driven by tariffs, as a percentage of sales. 

Sales and marketing expense. Sales and marketing expense increased by $1.6 million, or 7.2%, to $23.8 million for the three months ended September 30, 2025 from $22.2 million for the three months ended September 30,