ipgp-20260331

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 001-33155

IPG PHOTONICS CORPORATION

(Exact name of registrant as specified in its charter)


Delaware			04-3444218
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification Number)

377 Simarano Drive, Marlborough, Massachusetts			01752
(Address of principal executive offices)			(Zip code)

Registrant’s telephone number, including area code: (508) 373-1100

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	IPGP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☑

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 4, 2026, there were 42,443,616 shares of the registrant's common stock outstanding.

TABLE OF CONTENTS



Part I. Financial Information			1
Item 1. Unaudited Interim Financial Statements			1
Condensed Consolidated Balance Sheets: Mar ch 31, 2026 and December 31, 20 25			1
Condensed Consolidated Statements of Operations: Three Months Ended March 31, 2026 and 202 5			2
Condensed Consolidated Statements of Comprehensive (Loss) Income: Three Months Ended Mar ch 31, 2026 and 2025			3
Condensed Consolidated Statements of Cash Flows: Three Months Ended March 31, 2026 and 202 5			4
Condensed Consolidated Statements of Equity: Three Months E nded March 31, 2026 and 2025			5
Notes to Condensed Consolidated Financial Statements			6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk			26
Item 4. Controls and Procedures			27
Part II. Other Information			28
Item 1. Legal Proceedings			28
Item 1A. Risk Factors			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28
Item 3. Defaults Upon Senior Securities			28
Item 4. Mine Safety Disclosures			28
Item 5. Other Information			29
Item 6. Exhibits			29
Signatures			30

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PART I—FINANCIAL INFORMATION

ITEM 1. UNAUDITED INTERIM FINANCIAL STATEMENTS

IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	March 31,		December 31,
	2026		2025
	(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	480,761	$	403,790
Short-term investments	332,144		435,538
Accounts receivable, net	192,437		181,734
Inventories	319,006		313,416
Prepaid income taxes	51,203		43,196
Prepaid expenses and other current assets	57,587		45,766

Total current assets	1,433,138		1,423,440
Long-term investments	70,567		76,533
Deferred income taxes, net	120,934		123,889
Goodwill	70,913		71,735
Intangible assets, net	47,171		49,933
Property, plant and equipment, net	636,242		637,516
Other assets	42,677		41,234
Total assets	$	2,421,642	$	2,424,280
LIABILITIES AND EQUITY
Current liabilities:



Accounts payable	$	54,724	$	39,288
Accrued expenses and other current liabilities	184,849		184,849

Income taxes payable	7,603		9,900
Total current liabilities	247,176		234,037
Other long-term liabilities and deferred income taxes	58,671		62,113

Total liabilities	305,847		296,150

Commitments and contingencies (Note 10)
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 57,281,253 and 42,443,381 shares issued and outstanding, respectively, at March 31, 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 March 31, 2026 and December 31, 2025, respectively.	(1,555,629)		(1,555,629)
Additional paid-in capital	1,075,709		1,077,172
Retained earnings	2,646,548		2,644,964
Accumulated other comprehensive loss	(50,839)		(38,383)
Total stockholders' equity	2,115,795		2,128,130


Total liabilities and stockholders' equity	$	2,421,642	$	2,424,280

See notes to Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three Months Ended March 31,
	2026		2025
	(In thousands, except per share data)
Net sales	$	265,497	$	227,793
Cost of sales	165,998		137,981
Gross profit	99,499		89,812
Operating expenses:
Sales and marketing	24,534		24,430
Research and development	33,309		28,336
General and administrative	36,092		32,808




Settlement of litigation matters	13,500		—

(Gain) loss on foreign exchange	(200)		2,411
Total operating expenses	107,235		87,985
Operating (loss) income	(7,736)		1,827
Other income, net:
Interest income, net	6,922		7,444
Other income, net	1,833		1,344
Total other income	8,755		8,788
Income before provision for income taxes	1,019		10,615
(Benefit) provision for income taxes	(565)		6,857


Net income	$	1,584	$	3,758
Net income per common share:
Basic	$	0.04	$	0.09
Diluted	$	0.04	$	0.09
Weighted average common shares outstanding:
Basic	42,245		42,605
Diluted	42,912		42,832

See notes to Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Net income	$	1,584	$	3,758
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other	(12,456)		27,129




Total other comprehensive (loss) income	(12,456)		27,129


Comprehensive (loss) income	$	(10,872)	$	30,887

See notes to Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Cash flows from operating activities:
Net income	$	1,584	$	3,758
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	15,892		15,341
Deferred income taxes	2,177		6,476
Stock-based compensation	10,249		10,754


Unrealized (gain) loss on foreign currency transactions	(672)		42

Provisions for inventory, warranty and bad debt	9,348		11,876
Amortization of premium/discount on investments	(1,308)		(3,878)
Other	979		1,402
Changes in assets and liabilities that (used) provided cash:
Accounts receivable	(11,843)		(4,113)
Inventories	(19,417)		(8,967)
Prepaid expenses and other assets	(11,434)		(6,087)
Accounts payable	17,281		5,491
Accrued expenses and other current liabilities	(4,960)		(6,965)
Income and other taxes payable	(13,339)		(11,685)

Net cash (used in) provided by operating activities	(5,463)		13,445
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment	(16,311)		(24,818)

Proceeds from sales of property, plant and equipment	812		183
Purchases of investments	(32,870)		(333,009)
Proceeds from maturities of investments	143,538		83,206


Other	77		52
Net cash provided by (used in) investing activities	95,246		(274,386)
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 plans	(11,712)		(5,775)


Purchase of treasury stock net of excise tax, at cost	—		105


Net cash used in financing activities	(11,712)		(5,670)
Effect of changes in exchange rates on cash and cash equivalents	(1,100)		9,617
Net increase (decrease) in cash and cash equivalents	76,971		(256,994)
Cash and cash equivalents — Beginning of period	403,790		620,040
Cash and cash equivalents — End of period	$	480,761	$	363,046
Supplemental disclosure of cash flow information:
Cash paid for interest	$	3	$	5
Cash paid for income taxes, net of refunds	$	7,689	$	10,574

Non-cash transactions:
Demonstration units transferred from inventory to other assets	$	1,917	$	1,532
Inventory transferred to machinery and equipment	$	3,532	$	644
Additions to property, plant and equipment included in accounts payable	$	2,433	$	2,462
Leased assets obtained in exchange for new operating lease liabilities	$	854	$	2,979
Excise tax on net share repurchases accrued in period	$	—	$	(105)

See notes to Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)


	Three Months Ended March 31,
	Common Stock			Treasury Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Total Stockholders' Equity
(In thousands, except share data)	Shares	Amount		Shares	Amount
Balance, January 1, 2026	42,127,067	$	6	(14,837,872)	$	(1,555,629)	$	1,077,172	$	2,644,964	$	(38,383)	$	2,128,130
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options	316,314	—		—	—		(11,712)		—		—		(11,712)


Stock-based compensation	—	—		—	—		10,249		—		—		10,249


Net income	—	—		—	—		—		1,584		—		1,584
Foreign currency translation adjustments and other	—	—		—	—		—		—		(12,456)		(12,456)



Balance, March 31, 2026	42,443,381	$	6	(14,837,872)	$	(1,555,629)	$	1,075,709	$	2,646,548	$	(50,839)	$	2,115,795

Balance, January 1, 2025	42,548,561	$	6	(14,084,413)	$	(1,505,321)	$	1,035,285	$	2,613,868	$	(119,367)	$	2,024,471
Vesting of RSUs and PSUs, net of shares withheld for taxes	180,865	—		—	—		(5,775)		—		—		(5,775)

Purchased common stock	—	—		—	105		—		—		—		105
Stock-based compensation	—	—		—	—		10,754		—		—		10,754

Net income	—	—		—	—		—		3,758		—		3,758
Foreign currency translation adjustments and other	—	—		—	—		—		—		27,129		27,129



Balance, March 31, 2025	42,729,426	$	6	(14,084,413)	$	(1,505,216)	$	1,040,264	$	2,617,626	$	(92,238)	$	2,060,442

See notes to Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share data)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by IPG Photonics Corporation, or "IPG", "its" or the "Company". Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Condensed Consolidated Financial Statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Beginning in the current period, the Company revised the categories used to disaggregate revenue by application and by product to better reflect how management evaluates the business. Certain prior-period amounts have been reclassified to conform to the current-period presentation. These changes had no impact on total revenue or other previously reported condensed consolidated financial statement amounts. See further details in Note 3, "Revenues From Contracts With Customers".

In the opinion of the Company's management, the financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these Condensed Consolidated Financial Statements are not necessarily indicative of results that may be expected for the entire year.

Subsequent Events — The Company has considered the impact of subsequent events through the filing date of these financial statements. There were no events through the filing date of these financial statements required to be disclosed other than from the Trumpf settlement agreement disclosed within Note 10 "Commitments and Contingencies".

2. RECENT ACCOUNTING PRONOUNCEMENTS

Adopted Pronouncement — In July 2025, the FASB issued ASU No. 2025-05, "Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"), which provides a practical expedient to apply ASC 326 to current accounts receivable and current contract assets. The practical expedient allows the Company to make a policy election to assume that current conditions as of the balance sheet date will not change for the remaining lives of the assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those years. The Company has adopted ASU No. 2025-05 in the first quarter of fiscal year 2026 and it did not have a material impact on the Condensed Consolidated Financial Statements and disclosures as a result of the adoption.

Pronouncements Currently Under Evaluation — In November 2024, the FASB issued ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Aggregation Disclosures (Subtopic 220-40)" ("ASU 2024-03"), which requires more detailed disaggregated disclosure of income statement expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is evaluating the impact of this ASU on its Condensed Consolidated Financial Statements.

In September 2025, the FASB issued ASU No. 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)" ("ASU 2025-06"), which updates guidance regarding the requirements to begin capitalizing internal-use software. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The Company is evaluating the impact of this ASU on its Condensed Consolidated Financial Statements.

In December 2025, the FASB issued ASU No. 2025‑10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities” (“ASU 2025‑10”), which establishes authoritative guidance on the accounting for government grants received by business entities, including guidance for a grant related to an asset and a grant related to income. The new standard allows for a number of accounting policy elections to be made upon adoption and be applied to the subsequent grants received on a prospective basis. ASU 2025‑10 is effective for annual reporting periods beginning after December 15, 2028, and interim periods within those annual reporting periods. The Company is currently evaluating the impact of this ASU on its Condensed Consolidated Financial Statements.

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IPG PHOTONICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(In thousands, except share and per share data)

In December 2025, the FASB issued ASU No. 2025‑11, “Interim Reporting (Topic 270): Narrow‑Scope Improvements” (“ASU 2025‑11”), which improves the navigability of the required interim disclosures and clarifies when that guidance is applicable. The ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The amendments can be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the adoption of this ASU on its Condensed Consolidated Financial Statements.

In December 2025, the FASB issued ASU No. 2025‑12, “Codification Improvements” (“ASU 2025‑12”), as part of its ongoing project to enhance the clarity and usability of the FASB Codification. The amendments address a broad range of topics and include technical corrections, clarifications, updates for unintended application issues, and other minor improvements. ASU 2025‑12 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. The Company is currently evaluating the impact of this ASU on its Condensed Consolidated Financial Statements.

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

Sales are derived from products for different applications: lasers, systems, and components are sold into industrial solutions and advanced solutions which includes medical, defense, micromachining, scientific, instrumentation and other advanced solutions.

Effective in the first quarter of fiscal 2026, the Company revised its sales by application presentation to better reflect the Company's strategic growth initiatives and provides a clearer separation between the Company's industrial and non-industrial businesses, giving better visibility into the distinct performance and growth profiles of each. Under the revised presentation, sales are presented in two application categories: Industrial Solutions and Advanced Solutions, and prior-period amounts have been reclassified to conform to the current-period presentation. The revised categories substantially correspond to the Company’s historical application categories, with sales previously classified as materials processing generally presented within Industrial Solutions and sales previously classified as other applications generally presented within Advanced Solutions. The only quantitative reclassification in conforming prior-period amounts was the reclassification of micromachining sales from Industrial Solutions to Advanced Solutions, which increased Advanced Solutions sales and decreased Industrial Solutions sales by $7,702, respectively, for the three months ended March 31, 2025. This presentation change did not affect total sales. The following table presents the disaggregation of revenue under the new application framework:


	Three Months Ended March 31,
	2026		2025
Sales by Application
Industrial Solutions	$	227,590	$	188,016
Advanced Solutions	37,907		39,777
Total	$	265,497	$	227,793

Additionally, beginning in the first quarter of fiscal 2026, the Company updated its presentation of sales by product to align with its current product reporting framework. Sales by product are now presented in two categories: Lasers and Components and Systems, and prior-period amounts have been conformed to the current-period presentation. Under the historical presentation, sales were disaggregated into High Power Continuous Wave (“CW”) Lasers, Medium Power CW Lasers, Pulsed Lasers, Quasi-Continuous Wave (“QCW”) Lasers, Laser and Non-Laser Systems, and Other Revenue including Other Lasers, Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue ("Other Revenue"). Under the updated presentation, the historical non-system laser categories, including High and Medium Power CW, QCW and Pulsed lasers, are included within Lasers and Components, while Laser and Non-Laser Systems is included within Systems. Amounts historically presented within Other Revenue have been allocated between Lasers and Components and Systems based on the nature of the underlying products. For the three months ended March 31, 2025, $45,977 and $7,397 of sales previously included in Other Revenue were reclassified to Lasers and Components and Systems, respectively. These presentation changes did not affect total sales. The following table presents revenue disaggregated under the new product framework:

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IPG PHOTONICS CORPORATION

SEC Form 10-Q filed by IPG Photonics Corporation