Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 48

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 6.1 %4,985 31.6 % Pulsed Lasers 37,973 15.1 %42,536 16.5 %(4,563)(10.7)% Quasi-Continuous Wave ("QCW") Lasers 11,635 4.6 %10,549 4.1 %1,086 10.3 % Laser and Non-Laser Systems 39,754 15.9 %38,668 15.0 %1,086 2.8 % Other Revenue including Other Lasers, Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue 64,463 25.7 %67,909 26.4 %(3,446)(5.1)%Total$250,721 100.0 %$257,645 100.0 %$(6,924)(2.7)%

Materials processing sales accounted for 84.7% of total revenue and decreased 6.0% year over year, as a result of lower sales in cutting, welding applications and additive manufacturing applications, partially offset by higher revenue in micromachining and cleaning, mainly attributable to the cleanLASER acquisition. Other applications sales increased 20.7% year over year driven by higher revenue in advanced applications and medical procedures. The decrease in sales was also driven by a divestiture in the third quarter of 2024, resulting in a decrease of $11.1 million as compared to the three months ended June 30, 2024.

Cost of sales and gross margin. Cost of sales decreased by $4.4 million, or 2.7%, to $157.1 million for the three months ended June 30, 2025 from $161.5 million for the three months ended June 30, 2024. Our gross margin remained at 37.3% for both the three months ended June 30, 2025 and 2024. Higher product costs driven by mix and import duties driven by tariffs, as a percentage of sales, were offset by decreased provisions for excess and obsolete inventory and a decrease in unabsorbed manufacturing costs.

Sales and marketing expense. Sales and marketing expense increased by $3.1 million, or 13.8%, to $25.6 million for the three months ended June 30, 2025 from $22.5 million for the