Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 80

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 contractor costs73,173 66,472 138,320 139,138 Other manufacturing expenses (b)29,879 31,200 60,745 66,697 Capitalized labor and overhead(70,100)(54,736)(131,464)(121,848)Cost of sales157,148 161,459 295,129 315,932 Gross profit93,573 96,186 183,385 193,722 Sales and marketing, research and development and general and administrative (c)90,371 81,576 175,945 165,113 Income before foreign exchange and other segment items3,202 14,610 7,440 28,609 Loss on foreign exchange(3,098)(3,244)(5,509)(4,919)Interest income, net8,001 12,778 15,445 26,955 Provision for income taxes(1,666)(4,858)(8,523)(14,361)Other segment items (d)166 868 1,510 7,969 Net income$6,605 $20,154 $10,363 $44,253 (a) Includes cost materials, shipping costs, scrap, and inventory reserves.(b) Includes depreciation and amortization, service, warranty, and other manufacturing expenses.

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

(c) Sales and marketing, research and development and general and administrative expenses are disclosed by period in the Company's Condensed Consolidated Statements of Operations.(d) Other segment items include gain on sale of assets and other income, net.

16. SUBSEQUENT EVENTS

On July 4, 2025, the U.S. enacted H.R. 1 "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14", commonly referred to as the One Big Beautiful Bill Act (OBBBA). The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and the Company's effective tax rate in the