Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 91

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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. The foreign exchange loss for the three months ended June 30, 2025 was primarily attributable to an appreciation of the euro as compared to the U.S. dollar. 

Interest income, net. Interest income, net was $8.0 million for the three months ended June 30, 2025 as compared to $12.8 million of income for three months ended June 30, 2024. The change in interest income, net was due to a reduction in cash and investment balances, 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. The provision for income taxes was an expense of $1.7 million and $4.9 million, for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate was 20.1% for the three months ended June 30, 2025. This compares to the effective tax rate for the three months ended June 30, 2024, of 19.4%.

The decrease in tax expense was primarily due to lower Income before provision for income taxes for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

The discrete tax detriment for the three months ended June 30, 2025 of $0.3 million is related primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes. This compares to a net discrete tax benefit of $0.1 million for the three months ended June 30, 2024, which is primarily a decrease in uncertain tax positions, partially offset by equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes.

Net income. Net income decreased by $13.6 million to a net income of $6.6 million for the three months ended June 30, 2025 compared to a net income of $20.2 million for the three months ended June 30, 2024 due to the factors described above.

Results of Operations for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024 

Net sales. Net sales decreased by $31.2 million, or 6.1% to $478.5 million for the six months ended June 30, 2025 from $509.7 million for the six months ended June