$IPGP

IPG PHOTONICS CORP

CIK:0001111928|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 278,580	$ 250,721	$ 544,077	$ 478,514
Cost of sales	166,056	157,148	332,054	295,129
Gross profit	112,524	93,573	212,023	183,385
Operating expenses:
Sales and marketing	23,818	25,552	48,352	49,982
Research and development	31,004	29,937	64,313	58,273
General and administrative	36,545	34,882	72,637	67,690
Impairment charges	17,574	0	17,574	0
Settlement of litigation matters	(166)	0	13,334	0
(Gain) loss on foreign exchange	(782)	3,098	(982)	5,509
Total operating expenses	107,993	93,469	215,228	181,454
Operating income (loss)	4,531	104	(3,205)	1,931
Other income, net:
Interest income, net	7,110	8,001	14,032	15,445
Other income, net	900	166	2,733	1,510
Total other income	8,010	8,167	16,765	16,955
Income before provision for income taxes	12,541	8,271	13,560	18,886
Provision for income taxes	7,299	1,666	6,734	8,523
Net income	$ 5,242	$ 6,605	$ 6,826	$ 10,363
Net income per common share:
Basic (in dollars per share)	$ 0.12	$ 0.16	$ 0.16	$ 0.24
Diluted (in dollars per share)	$ 0.12	$ 0.16	$ 0.16	$ 0.24
Weighted average common shares outstanding:
Basic (in shares)	42,470,438	42,480,862	42,358,092	42,542,517
Diluted (in shares)	42,912,927	42,577,327	42,913,831	42,720,402

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 6,826	$ 10,363
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,415	31,167
Deferred income taxes	5,473	(1,961)
Stock-based compensation	20,532	22,048
Impairment charges	17,574	0
Unrealized (gain) loss on foreign currency transactions	(1,489)	2,788
Provisions for inventory, warranty and bad debt	20,556	22,080
Amortization of premium/discount on investments	(3,309)	(8,308)
Other	2,159	2,595
Changes in assets and liabilities that (used) provided cash:
Accounts receivable	(1,737)	(23,001)
Inventories	(42,086)	(23,837)
Prepaid expenses and other assets	(8,035)	(8,516)
Accounts payable	5,548	8,940
Accrued expenses and other current liabilities	(18,894)	3,788
Income and other taxes payable	(2,204)	(26,917)
Net cash provided by operating activities	32,329	11,229
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment	(37,024)	(40,176)
Proceeds from sales of property, plant and equipment	1,006	563
Purchases of investments	(286,742)	(579,814)
Proceeds from maturities of investments	297,335	357,859
Deposit received from buyer for assets and liabilities held for sale	2,000	0
Other	85	52
Net cash used in investing activities	(23,340)	(261,516)
Cash flows from financing activities:
Payments for taxes related to net share settlement of equity awards less proceeds from issuance of common stock under employee stock option and purchase plans	(10,755)	(4,253)
Purchase of treasury stock net of excise tax, at cost	0	(30,204)
Net cash used in financing activities	(10,755)	(34,457)
Effect of changes in exchange rates on cash, cash equivalents and cash held for sale	(2,245)	23,888
Net decrease in cash, cash equivalents and cash held for sale	(4,011)	(260,856)
Cash and cash equivalents — Beginning of period	403,790	620,040
Cash, cash equivalents and cash held for sale — End of period (Note 15)	399,779	359,184
Supplemental disclosure of cash flow information:
Cash paid for interest	7	8
Cash paid for income taxes, net of refunds	3,408	32,918
Non-cash transactions:
Demonstration units transferred from inventory to other assets	5,570	3,874
Inventory transferred to machinery and equipment	3,882	970
Additions to property, plant and equipment included in accounts payable	2,417	1,337
Leased assets obtained in exchange for new operating lease liabilities	1,864	4,485
Excise tax on net share repurchases accrued in period	$ 0	$ 191

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 399,225	$ 403,790
Short-term investments	472,094	435,538
Accounts receivable, net	181,960	181,734
Inventories	330,801	313,416
Prepaid income taxes	39,423	43,196
Prepaid expenses and other current assets	55,269	45,766
Total current assets	1,478,772	1,423,440
Long-term investments	32,693	76,533
Deferred income taxes, net	116,831	123,889
Goodwill	70,480	71,735
Intangible assets, net	44,893	49,933
Property, plant and equipment, net	641,916	637,516
Other assets	38,982	41,234
Total assets	2,424,567	2,424,280
Current liabilities:
Accounts payable	42,879	39,288
Accrued expenses and other current liabilities	192,458	184,849
Income taxes payable	3,986	9,900
Total current liabilities	239,323	234,037
Other long-term liabilities and deferred income taxes	58,066	62,113
Total liabilities	297,389	296,150
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 57,371,639 and 42,533,767 shares issued and outstanding, respectively, at June 30, 2026; 56,964,939 and 42,127,067 shares issued and outstanding, respectively, at December 31, 2025.	6	6
Treasury stock, at cost, 14,837,872 shares held at June 30, 2026 and December 31, 2025, respectively.	(1,555,629)	(1,555,629)
Additional paid-in capital	1,086,949	1,077,172
Retained earnings	2,651,790	2,644,964
Accumulated other comprehensive loss	(55,938)	(38,383)
Total stockholders' equity	2,127,178	2,128,130
Total liabilities and stockholders' equity	$ 2,424,567	$ 2,424,280