Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 90

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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30, 2024. The increase is due to increases in personnel and related expenses as well as in depreciation and amortization expense. As a percentage of sales, sales and marketing expense increased to 10.2% from 8.7% for the three months ended June 30, 2025 and 2024, respectively. 

Research and development expense. Research and development expense increased by $2.4 million, or 8.7%, to $29.9 million for the three months ended June 30, 2025, compared to $27.5 million for the three months ended June 30, 2024. The increase is primarily due to increases in personnel and related expenses. As a percentage of sales, research and development expense increased to 11.9% from 10.7% for the three months ended June 30, 2025 and 2024, respectively. 

General and administrative expense. General and administrative expense increased by $3.3 million, or 10.4%, to $34.9 million for the three months ended June 30, 2025 from $31.6 million for the three months ended June 30, 2024. The increase was primarily due to increases in personnel and related expenses. As a percentage of sales, general and administrative expense increased to 13.9% from 12.3% for the three months ended June 30, 2025 and 2024, respectively.

Effect of exchange rates on net sales, gross profit and operating expenses. If exchange rates relative to the U.S. dollar had been the same as the comparable quarter one year ago, which were on average euro 0.93, Japanese yen 156 and Chinese yuan 7.24, respectively, we estimate that net sales for the three months ended June 30, 2025 would have been $3.5 million lower, 

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gross profit would have been $1.2 million lower and total sales and marketing, research and development, and general and administrative expenses would have been $0.9 million lower.

Loss on foreign exchange. We incurred a foreign exchange transaction loss of $3.1 million for the three months ended June 30, 2025 as compared to a $3.2 million loss for the three months ended June 30, 2024. Our European subsidiaries have certain net assets denominated in U.S. dollars, and our Chinese subsidiary has certain net liabilities denominated in U.S. dollars