Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 27

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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207,139 Rest of World3,518 3,476 5,374 7,599 Total$250,721 $257,645 $478,514 $509,654 Timing of Revenue RecognitionGoods and services transferred at a point in time$243,876 $248,117 $467,898 $490,644 Goods and services transferred over time6,845 9,528 10,616 19,010 Total$250,721 $257,645 $478,514 $509,654 One of the Company's customers accounted for 15% and 12% of the Company's net accounts receivable as of June 30, 2025 and December 31, 2024, respectively. The Company recognizes revenue over time on contracts for the sale of large scale materials processing systems. The timing of customer payments on these contracts generally differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities are included within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. Certain deferred revenues related to extended warranties in excess of one year from 

7

Table of ContentsIPG PHOTONICS CORPORATIONNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(In thousands, except share and per share data)

the balance sheet date are included within other long-term liabilities and deferred income taxes on the Condensed Consolidated Balance Sheets.The following table reflects the changes in the Company's contract assets and liabilities for the six months ended June 30, 2025 and 2024:June 30,January 1,June 30,January 1,20252025Change20242024ChangeContract assetsContract assets$1,501 $4,737 $(3,236)$13,194 $9,383 $3,811 Contract liabilitiesContract liabilities - current60,615 56,454 4,161 57,452 69,219 (11,767)Contract liabilities - long-term3,382 2,882 500 2,593 2,851 (258)During the three months ended June 30, 2025 and 2024, the Company recognized revenue of $