Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 25

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities are included within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. Certain deferred revenues related to extended warranties in excess of one year from 

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

the balance sheet date are included within other long-term liabilities and deferred income taxes on the Condensed Consolidated Balance Sheets.The following table reflects the changes in the Company's contract assets and liabilities for the three months ended March 31, 2025 and 2024:March 31,January 1,March 31,January 1,20252025Change20242024ChangeContract assetsContract assets$1,078 $4,737 $(3,659)$10,996 $9,383 $1,613 Contract liabilitiesContract liabilities - current61,776 56,454 5,322 60,171 69,219 (9,048)Contract liabilities - long-term3,338 2,882 456 2,732 2,851 (119)During the three months ended March 31, 2025 and 2024 the Company recognized revenue of $21,214 and $30,500, respectively, that was included in contract liabilities at the beginning of each year.The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of March 31, 2025:Remaining Performance Obligations2025 (a)2026202720282029ThereafterTotalRevenue expected to be recognized for extended warranty agreements$1,928 $1,612 $1,175 $586 $324 $69 $5,694 Revenue to be earned over time from contracts to sell large scale materials processing systems12,137 2,121 — — — — 14,258 Total$14,065 $3,733 $1,175 $586 $324 $69 $19,952 (a) For the nine-month period beginning April 1, 2025.

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