Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 121

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 121
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 100.0 %$742,797 100.0 %$(13,491)(1.8)%

22

The table below sets forth sales by type of product and other revenue:

Nine Months Ended September 30,20252024Change(In thousands, except for percentages)Sales by Product% of Total% of TotalHigh Power CW Lasers$222,121 30.5 %$254,343 34.2 %$(32,222)(12.7)%Medium Power CW Lasers66,274 9.1 %47,082 6.3 %19,192 40.8 %Pulsed Lasers108,793 14.9 %110,825 14.9 %(2,032)(1.8)%QCW Lasers37,300 5.1 %36,520 4.9 %780 2.1 %Laser and Non-Laser Systems108,398 14.9 %111,436 15.0 %(3,038)(2.7)%Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue186,420 25.5 %182,591 24.7 %3,829 2.1 %Total$729,306 100.0 %$742,797 100.0 %$(13,491)(1.8)%

Materials processing sales accounted for 86.0% of total revenue and decreased 4.8% year over year, as a result of lower  sales in cutting, welding, and marking applications, partially offset by higher revenue in cleaning, additive manufacturing, and micromachining. Other applications sales increased 21.9% year over year driven by higher revenue in medical procedures and advanced applications.

Cost of sales and gross margin. Cost of sales decreased by $48.1 million, or 9.7%, to $446.9 million for the nine months ended September 30, 2025 from $495.0 million for the nine 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 38.7% for the nine months ended September 30, 2025 from 33.4% for the nine months ended September