Ipg Photonics Corp 10-K for FY2025

Ipg Photonics Corp (IPGP)

10-K 2026-02-23 For: 2025-12-31

Added on April 12, 2026

About this 10-K

Ipg Photonics Corp filed this 10-K on February 23, 2026, covering the fiscal year ended December 31, 2025 (FY2025).

Headline figures

Fiscal year ended December 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1B; up 2.7% from $977.13M a year earlier
Net income: $31.1M; compared with a net loss of $181.53M a year earlier
Diluted EPS: $0.73; compared with -$4.09 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						04-3444218
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)
377 Simarano Drive, Marlborough, Massachusetts						01752
(Address of principal executive offices)						(Zip Code)


Title of Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, Par Value $0.0001 per share	IPGP	The Nasdaq Stock Market LLC


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐



	PART I
ITEM 1.	BUSINESS	3
ITEM 1A.	RISK FACTORS	14
ITEM 1B.	UNRESOLVED STAFF COMMENTS	30
ITEM 1C.	CYBERSECURITY	30
ITEM 2.	PROPERTIES	31
ITEM 3.	LEGAL PROCEEDINGS	31
ITEM 4.	MINE SAFETY DISCLOSURES	31

	PART II
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	32
ITEM 6.	RESERVED	33
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	33
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	46
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	47
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	47
ITEM 9A.	CONTROLS AND PROCEDURES	47
ITEM 9B.	OTHER INFORMATION	50
ITEM 9C.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	50

	PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	51
ITEM 11.	EXECUTIVE COMPENSATION	51
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	51
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	51
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	51

	PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	52
ITEM 16.	FORM 10-K SUMMARY	55

SIGNATURES		56

INDEX TO FINANCIAL STATEMENTS		F-1


End Market	Applications	Principal Products
General Manufacturing	Welding, brazing and soldering	Continuous Wave ("CW") lasers (1-125 kW), Quasi-CW ("QCW") lasers (100-1,200 W), diode lasers (50-2,000 W), and IPG systems
	Hardening and cladding	CW Lasers (1-125 kW) and IPG systems
	Flat sheet, tube and 3D cutting and drilling	CW lasers (1-60 kW), QCW lasers (100-2,400 W), and IPG systems
	Marking, engraving and printing	Nanosecond ("NS") pulsed lasers (10-1,000 W) and QCW lasers (100-2,400 W)
	Surface cleaning and texturing, paint and coating stripping	NS pulsed lasers (100-3,000 W), single-mode CW and QCW lasers (1-6 kW), and IPG systems
	Heating and drying	Diode lasers (1-100 kW)
	Additive manufacturing (3D printing and selective laser sintering)	Single-mode CW lasers (200-8,000 W), green NS pulsed laser (500 W), diode lasers (1-6 kW)
Automotive (including Electric Vehicles)	EV battery: welding, cleaning, slurry drying, ablation and texturing, cutting, including foil cutting	CW and QCW lasers (1-10 kW), NS pulsed lasers (100-3,000 W), diode lasers (1-100 kW), and IPG systems
	Welding EV power train components: stators, inverters, electrical connections	CW and QCW lasers (1-10 kW), and IPG systems
	Cutting of high-strength steel and aluminum	CW lasers (1-30 kW)
	Welding tailored blanks, frames and auto parts	CW lasers (1-50 kW)
	Seam welding and brazing	CW lasers( 1-20 kW) and IPG systems
Consumer Goods	Metal micro welding, cutting, drilling, texturing, ablation and marking	QCW, NS, Picosecond ("PS") and Femtosecond ("FS") pulsed lasers, and IPG systems
	Cutting, drilling, welding and marking of polymers and other non-metals	Infrared ("IR"), CW and pulsed lasers, diode lasers, green and ultraviolet ("UV") pulsed lasers, and IPG systems
Medical Devices	Stent, pacemaker and other medical device manufacturing	CW, NS, PS and FS pulsed lasers and IPG systems
Energy/Renewable Energy	Hardening and welding of tubes and pipes	CW lasers (4-50 kW) and IPG systems
	Cladding of turbine blades and drill bits	CW lasers (1-20 kW)
	Solar cell processing	Green NS pulsed lasers
	Energy storage battery: welding, cleaning, slurry drying, ablation and texturing, cutting, including foil cutting	CW and QCW lasers (1-10 kW), NS pulsed lasers (100-3,000 W), diode lasers (1-100 kW), and IPG systems
Aerospace, Rail and Shipbuilding	Welding/cutting thick steel plates, titanium	CW lasers (1-60 kW) and IPG systems
	Percussion drilling of aerospace parts	QCW lasers (1-2.4 kW)
	Surface cleaning and texturing, paint and coating stripping and powder coat curing	NS pulsed lasers (100-3,000 W), single-mode CW lasers (1-6 kW), diode lasers (1-100 kW), and IPG systems
Micro Electronics	Wafer inspection and annealing, disk mastering, flat panel display, LED lift-off	Green, ultraviolet CW and NS pulsed lasers
	Processing of glass, ceramics, sapphire, silicon, diamond, Teflon, PCB, CFRP, parylene and other non-metals	IR, green and UV NS pulsed lasers, PS and FS pulsed lasers, QCW lasers, and IPG systems


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


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


	Year Ended December 31,
	2025				2024				2023
			% of Total				% of Total				% of Total
Materials processing	$	860,191	85.7	%	$	857,336	87.7	%	$	1,152,804	89.5	%
Medical procedures	73,974		7.4	%	61,040		6.3	%	71,571		5.6	%
Advanced applications	69,594		6.9	%	53,778		5.5	%	55,576		4.3	%
Communications	18		—	%	4,980		0.5	%	7,488		0.6	%
Total	$	1,003,777	100.0	%	$	977,134	100.0	%	$	1,287,439	100.0	%


	Base Period		5-Year Cumulative Total Return
	12/31/2020		12/31/2021		12/31/2022		12/31/2023		12/31/2024		12/31/2025
IPG Photonics Corporation	$	100.00	$	76.92	$	42.30	$	48.50	$	32.49	$	31.99

Russell 3000 Index	$	100.00	$	124.00	$	98.61	$	122.23	$	149.30	$	172.69
S&P Composite 1500 - Electronic Equipment, Instruments & Components Index	$	100.00	$	129.18	$	101.05	$	121.68	$	142.03	$	205.05


Date	Total Number of Shares (or Units) Purchased (1)	Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs









October 1, 2025 — October 31, 2025	7,928	$	79.57	7,928	$	3,077
November 1, 2025 — November 30, 2025	41,504	76.95		40,141	—
December 1, 2025 — December 31, 2025	—	—		—	—
Total	49,432	$	77.37	48,069	$	—


	As of December 31,
	2025		2024
	(In thousands)
Cash and cash equivalents	$	403,790	$	620,040
Short-term investments	435,538		310,152
Unused credit lines and overdraft facilities	224,432		78,115
Working capital (defined as current assets, excluding cash and cash equivalents and short-term investments, minus current liabilities)	350,075		295,784


	Payments Due in
	Total		Less Than 1 Year
	(In thousands)
Operating lease obligations	$	18,994	$	5,692
Purchase obligations	65,245		64,026


Total (1)	$	84,239	$	69,718


Plan Category	Number of Securities to be Issued upon Exercise of Outstanding Options, RSUs and PSUs (a)	Weighted-Average Exercise Price of Outstanding Options, RSUs and PSUs (b)		Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)
Equity Compensation Plans Approved by Security Holders (1)	1,824,226	$	100.68	2,366,752
Equity Compensation Plans Not Approved by Security Holders	—			—
Total	1,824,226			2,366,752


Exhibit Number						Description
3.1						Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Quarterly Report on Form 10-Q filed with the Commission on August 1, 2023)

3.2						Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed with the Commission on January 23, 2023)

4.1						Specimen Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement No. 333-136521 filed with the Commission on November 14, 2006)

4.2						Description of the Registrant's Securities Registered under Section 12 of the Exchange Act (incorporated by reference to Exhibit 4.2 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 24, 2020)

10.1†						20 25 Incentive Compensation Plan effective May 20, 2025 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8 -K filed with the Commission on May 2 1, 202 5 )

10.2†						IPG Photonics Corporation Non-Employee Director Compensation Plan , as amended and restated effective September 30, 2025 (incorporated by reference to Exhibit 10.5 to the Registrant’s Current Report on Form 8-K filed with the Commission on October 3, 2025 )

10.3†						IPG Photonics Corporation 2008 Employee Stock Purchase Plan, as amended and restated effective December 1, 2018 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on June 3, 2019)

10.4†						IPG Photonics Corporation Senior Executive Annual Incentive Plan, as amended and restated September 30, 2025 (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the Commission on October 3, 2025)

10.5						Form of Indemnification Agreement between the Registrant and each of its Directors and Executive Officers (incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.6†						Confidentiality, Non-Competition and Confirmatory Assignment Agreement dated May 4, 2021 between the Registrant and Dr. Eugene Scherbakov (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q filed with the Commission on August 4, 2021)

10.7†						Advisor Agreement dated April 25, 2024 between the Registrant and Dr. Eugene Scherbakov (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the Commission on April 30, 2024)

10.8†						Employment Agreement dated April 25, 2024 between the Registrant and Dr. Mark Gitin (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on April 30, 2024)

10.9†						Amendment to Employment Agreement between the Registrant and Dr. Mark Gitin, dated September 30, 2025 (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the Commission on October 3, 2025)

10.10†						Form of Confidentiality, Non-Competition and Confirmatory Assignment Agreement between the Registrant and each of the named executive officers and certain other executive officers, (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the Commission on October 15, 2013)

10.11†						Form of Letter amending Confidentiality, Non-Competition and Confirmatory Assignment Agreements between the Registrant and each of the named executive officers and certain other executive officers (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.12†						IPG Photonics Corporation Executive Severance Plan, amended and restated on September 30, 2025 (incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed with the Commission on October 3, 2025)

10.13†						Form of Severance Plan Participation Agreements dated September 30, 2025 between the Registrant and each of Angelo Lopresti, Timothy Mammen, Trevor Ness and Dr. Igor Samartsev (incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed with the Commission on October 3, 2025)


10.14†						Services Agreement dated August 15, 2024 between the Registrant and Dr. Alexander Ovtchinnikov (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on August 16, 2024)

10.15†						Amendment to Services Agreement dated April 8 , 202 5 between the Registrant and Dr. Alexander Ovtchinnikov (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8 -K filed with the Commission on April 1 1 , 202 5 )

10.16†						M an aging Director's Service Contract dated July 1, 2025 between IPG Photonics GmbH & Co. KG and Dr. Paulus Bucher (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on July 8, 2025)

10.17						Credit Agreement dated as of June 24, 2025 among the Registrant and certain subsidiaries, and Bank of America, N.A., in its capacity as Administrative Age nt, Swing Line Lender and L/C Issuer, the other L/C Issuers, and the other Lenders from time to time a party thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on June 30 , 202 5 )

10.18						T he Registration Rights Agreement by and between IQ EQ Trust Company, U.S., LLC, as trustee of each of The Val entin Gap ontsev Trust I, and The Valentin Gapontsev Trust III and the Registrant dated February 20, 2025 (incorporated by reference to Exhibit 10.1 to the Form S-3 Registration Statement filed with the Commission on February 20, 2025)

19						Insider Trading Policy

21.1*						List of Subsidiaries

23.1*						Consent of Deloitte & Touche LLP

31.1*						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended

31.2*						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended

32.1**						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 1350

97						IPG Photonics Corporation Incentive Based Compensation Recoupment Policy

101.INS*						Inline XBRL Instance Document

101.SCH*						Inline XBRL Taxonomy Extension Schema

101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF*						Inline XBRL Taxonomy Definition Linkbase

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase

104*						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


End Market	Applications	Principal Products
Aerospace and Defense	Directed energy	Single-mode CW lasers (1-8 kW), CW "low order" lasers (10-30 kW), narrow line amplifiers (3-4 kW), diode lasers, and IPG systems
	Target designation	Erbium CW lasers
	Dazzlers	Green pulsed laser (1 kW)
	IR countermeasures, thermal imaging	Mid-IR NS pulsed lasers
Medical Procedures	Surgery, urology and soft tissue	Mid-infrared, thulium, FS lasers and laser systems
	Therapeutic procedures	Diode lasers
	Aesthetic procedures - skin, wrinkle/hair/tattoo removal	Erbium, thulium, green lasers
	Dental procedures	Diode lasers
	Diagnostic procedures	Mid-infrared and FS lasers
OEM Instrument Manufacturing	Biomedical analytical instruments, metrology, disinfection/sterilization, environmental and security monitoring, quantum computing	FS, PS, NS and CW lasers, Mid-infrared, IR, visible and UV lasers, linearly polarized and single frequency CW lasers and amplifiers
Scientific	Academic research: sensing, imaging, microscopy, spectroscopy, quantum optics	Mid-infrared, IR, visible and UV lasers; diode, FS, PS, NS and CW lasers, linearly polarized and single frequency CW lasers and amplifiers


	Year Ended December 31,
	2025				2024				2023
	(In thousands, except percentages and per share data)
Net sales	$	1,003,777	100.0	%	$	977,134	100.0	%	$	1,287,439	100.0	%
Cost of sales	622,314		62.0		638,979		65.4		745,741		57.9
Gross profit	381,463		38.0		338,155		34.6		541,698		42.1
Operating expenses:
Sales and marketing	97,862		9.7		89,582		9.2		85,679		6.7
Research and development	117,402		11.7		109,783		11.2		98,704		7.7
General and administrative	143,140		14.3		124,313		12.7		125,749		9.7

Net loss from divestitures and sale of assets	—		—		190,201		19.5		—		—
Impairment of long-lived assets	—		—		27,006		2.7		1,237		0.1
Restructuring charges (recoveries), net	601		0.1		—		—		(288)		—
Loss (gain) on foreign exchange	9,354		0.9		5,524		0.6		(1,356)		(0.1)
Total operating expenses	368,359		36.7		546,409		55.9		309,725		24.1
Operating income (loss)	13,104		1.3		(208,254)		(21.3)		231,973		18.0

Interest income, net	29,857		3.0		45,467		4.7		41,735		3.2
Other income, net	2,135		0.2		899		0.1		1,167		0.1
Income (loss) before provision for income taxes	45,096		4.5		(161,888)		(16.5)		274,875		21.3
Provision for income taxes	14,000		1.4		19,638		2.0		55,997		4.3
Net income (loss)	31,096		3.1	%	$	(181,526)	(18.5)	%	$	218,878	17.0	%
Net income (loss) per common share:
Basic	$	0.73			$	(4.09)			$	4.64
Diluted	$	0.73			$	(4.09)			$	4.63
Weighted average common shares outstanding:
Basic	42,345				44,336				47,154
Diluted	42,650				44,336				47,320


	Year Ended December 31,
	2025				2024				Change
	(In thousands, except for percentages)
Sales by Product			% of Total				% of Total
High Power Continuous Wave ("CW") Lasers	$	308,825	30.8	%	$	332,743	34.1	%	$	(23,918)	(7.2)	%
Medium Power CW Lasers	88,178		8.8	%	63,685		6.5	%	24,493		38.5	%
Pulsed Lasers	143,251		14.3	%	146,759		15.0	%	(3,508)		(2.4)	%
Quasi-Continuous Wave ("QCW") Lasers	51,772		5.2	%	48,016		4.9	%	3,756		7.8	%
Laser and Non-Laser Systems	147,243		14.6	%	139,145		14.3	%	8,098		5.8	%
Other Revenue including Other Lasers, Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	264,508		26.3	%	246,786		25.2	%	17,722		7.2	%
Total	$	1,003,777	100.0	%	$	977,134	100.0	%	$	26,643	2.7	%


	Year Ended December 31,
	2025				2024				Change
	(In thousands, except for percentages)
Sales by Geography			% of Total				% of Total
North America (1)	$	267,183	26.6	%	$	258,888	26.5	%	$	8,295	3.2	%
Europe:
Germany	105,160		10.5	%	87,800		9.0	%	17,360		19.8	%
Other Europe	138,543		13.8	%	197,152		20.1	%	(58,609)		(29.7)	%
Total Europe (2)	243,703		24.3	%	284,952		29.1	%	(41,249)		(14.5)	%
Asia:
China	291,905		29.1	%	244,996		25.1	%	46,909		19.1	%
Japan	66,369		6.6	%	62,352		6.4	%	4,017		6.4	%
Other Asia	121,805		12.1	%	113,232		11.6	%	8,573		7.6	%
Total Asia	480,079		47.8	%	420,580		43.1	%	59,499		14.1	%
Rest of World	12,812		1.3	%	12,714		1.3	%	98		0.8	%
Total	$	1,003,777	100.0	%	$	977,134	100.0	%	$	26,643	2.7	%


IPG PHOTONICS CORPORATION

By:			/s/ Mark M. Gitin
			Mark M. Gitin Chief Executive Officer


	December 31,
	2025		2024
	(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	403,790	$	620,040
Short-term investments	435,538		310,152
Accounts receivable, net	181,734		171,131
Inventories	313,416		284,780
Prepaid income taxes	43,196		17,592
Prepaid expenses and other current assets	45,766		27,300

Total current assets	1,423,440		1,430,995
Long-term investments	76,533		—
Deferred income taxes, net	123,889		115,031
Goodwill	71,735		67,241
Intangible assets, net	49,933		55,376
Property, plant and equipment, net	637,516		588,375
Other assets	41,234		32,246
Total assets	$	2,424,280	$	2,289,264
LIABILITIES AND EQUITY
Current liabilities:



Accounts payable	$	39,288	$	35,385
Accrued expenses and other current liabilities	184,849		152,048

Income taxes payable	9,900		17,586
Total current liabilities	234,037		205,019
Other long-term liabilities and deferred income taxes	62,113		59,774

Total liabilities	296,150		264,793

Commitments and contingencies (Note 13)
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,964,939 and 42,127,067 shares issued and outstanding, respectively, at December 31, 2025; 56,632,974 and 42,548,561 shares issued and outstanding, respectively, at December 31, 2024.	6		6
Treasury stock, at cost, 14,837,872 and 14,084,413 shares held at December 31, 2025 and December 31, 2024, respectively.	(1,555,629)		(1,505,321)
Additional paid-in capital	1,077,172		1,035,285
Retained earnings	2,644,964		2,613,868
Accumulated other comprehensive loss	(38,383)		(119,367)
Total stockholders' equity	2,128,130		2,024,471


Total liabilities and stockholders' equity	$	2,424,280	$	2,289,264


	Year Ended December 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, 2023	48,138,257	$	6	(7,879,415)	$	(938,009)	$	951,371	$	2,576,516	$	(204,524)	$	2,385,360
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options	241,782	—		—	—		(1,891)		—		—		(1,891)
Common stock issued under employee stock purchase plan	57,984	—		—	—		5,038		—		—		5,038
Purchased common stock	(2,117,352)	—		(2,117,352)	(223,496)		—		—		—		(223,496)
Stock-based compensation	—	—		—	—		39,502		—		—		39,502


Net income	—	—		—	—		—		218,878		—		218,878
Foreign currency translation adjustments and other	—	—		—	—		—		—		(7,854)		(7,854)

Unrealized loss on derivatives, net of tax	—	—		—	—		—		—		(152)		(152)


Balance, December 31, 2023	46,320,671	$	6	(9,996,767)	$	(1,161,505)	$	994,020	$	2,795,394	$	(212,530)	$	2,415,385
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options	241,475	—		—	—		(728)		—		—		(728)
Common stock issued under employee stock purchase plan	74,061	—		—	—		4,923		—		—		4,923
Purchased common stock	(4,087,646)	—		(4,087,646)	(343,816)		—		—		—		(343,816)
Stock-based compensation	—	—		—	—		37,070		—		—		37,070


Net loss	—	—		—	—		—		(181,526)		—		(181,526)
Foreign currency translation adjustments and other	—	—		—	—		—		—		93,163		93,163




Balance, December 31, 2024	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, and exercise of stock options	245,713	—		—	—		(6,184)		—		—		(6,184)
Common stock issued under employee stock purchase plan	86,252	—		—	—		5,124		—		—		5,124
Purchased common stock	(753,459)	—		(753,459)	(50,308)		—		—		—		(50,308)
Stock-based compensation	—	—		—	—		42,947		—		—		42,947



Net income	—	—		—	—		—		31,096		—		31,096
Foreign currency translation adjustments and other	—	—		—	—		—		—		80,984		80,984



Balance, December 31, 2025	42,127,067	$	6	(14,837,872)	$	(1,555,629)	$	1,077,172	$	2,644,964	$	(38,383)	$	2,128,130



Category						Economic Useful Life
Buildings						20-30 years
Machinery and equipment						5-10 years
Office furniture and fixtures						5-7 years


	Foreign currency translation adjustments and other		Unrealized (loss) gain on derivatives, net of tax		Total
Balance, January 1, 2023	$	(204,676)	$	152	$	(204,524)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $151	(7,854)		—		(7,854)

Unrealized loss on derivatives, net of tax benefit of $46	—		(152)		(152)
Total other comprehensive loss	(7,854)		(152)		(8,006)
Balance, December 31, 2023	$	(212,530)	$	—	$	(212,530)
Other comprehensive income, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $161	(43,507)		—		(43,507)
Reclassification for foreign currency translation adjustments related to the divestiture of Russian operations to net loss, net of tax expense of $1,324	136,670		—		136,670
Total other comprehensive income	93,163		—		93,163
Balance, December 31, 2024	$	(119,367)	$	—	$	(119,367)
Other comprehensive income, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $195	80,984		—		80,984


Total other comprehensive income	80,984		—		80,984
Balance, December 31, 2025	$	(38,383)	$	—	$	(38,383)




Sales by Geography
North America	$	267,183	$	258,888	$	313,986
Europe:
Germany	105,160		87,800		88,026
Other Europe	138,543		197,152		291,336
Total Europe	243,703		284,952		379,362
Asia:
China	291,905		244,996		355,321
Japan	66,369		62,352		72,333
Other	121,805		113,232		142,378
Total Asia	480,079		420,580		570,032
Rest of World	12,812		12,714		24,059
Total	$	1,003,777	$	977,134	$	1,287,439


	December 31,		January 1,				December 31,		January 1,
	2025		2025		Change		2024		2024		Change
Contract assets
Contract assets	$	3,464	$	4,737	$	(1,273)	$	4,737	$	9,383	$	(4,646)
Contract liabilities
Contract liabilities - current	66,209		56,454		9,755		56,454		69,219		(12,765)
Contract liabilities - long-term	3,336		2,882		454		2,882		2,851		31


	Remaining Performance Obligations
	2026		2027		2028		2029		2030		Thereafter		Total
Revenue expected to be recognized for extended warranty agreements	$	2,546	$	1,703	$	1,013	$	491	$	106	$	23	$	5,882
Revenue to be earned over time from contracts to sell large scale materials processing systems	24,995		4,403		—		—		—		—		29,398

Total	$	27,541	$	6,106	$	1,013	$	491	$	106	$	23	$	35,280


	Fair Value Measurements at December 31, 2025
	Total		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market fund deposits	$	173,538	$	173,538	$	—	$	—



Term deposits	58,782		—		58,782		—

Total cash equivalents	232,320		173,538		58,782		—
Short-term investments:
Corporate bonds	264,431		—		264,431		—
Commercial paper	101,922		—		101,922		—
U.S. Treasury and agency obligations	66,469		—		66,469		—

Term deposits	3,104		—		3,104		—

Total short-term investments	435,926		—		435,926		—
Long-term investments:
Corporate bonds	52,294		—		52,294		—
U.S. Treasury and agency obligations	24,300		—		24,300		—


Total long-term investments	76,594		—		76,594		—
Total	$	744,840	$	173,538	$	571,302	$	—


	December 31, 2025				December 31, 2024
	Book Value		Fair Value		Book Value		Fair Value
Investment maturity

Less than 1 year	$	435,538	$	435,926	$	310,152	$	310,057
1 through 5 years	76,533		76,594		—		—
Total	$	512,071	$	512,520	$	310,152	$	310,057


	2025		2024
Balance at January 1	$	67,241	$	38,540

Goodwill arising from business combination	—		29,652


Foreign exchange adjustment	4,494		(951)
Balance at December 31	$	71,735	$	67,241


	December 31, 2025							December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives
Customer relationships	$	64,815	$	(36,101)	$	28,714	11 years	$	62,671	$	(29,747)	$	32,924	11 years
Technology, and Production know-how	43,267		(25,638)		17,629		8 years	40,823		(22,891)		17,932		8 years
Trademarks and trade names	16,117		(12,527)		3,590		8 years	15,665		(11,145)		4,520		8 years
Patents	8,034		(8,034)		—		8 years	8,034		(8,034)		—		8 years
Total	$	132,233	$	(82,300)	$	49,933		$	127,193	$	(71,817)	$	55,376


		December 31,
Account	Classification	2025		2024
Right-of-use assets	Other assets	$	17,006	$	14,524

Short-term lease liabilities	Accrued expenses and other current liabilities	5,074		4,835
Long-term lease liabilities	Other long-term liabilities and deferred income taxes	12,176		13,124
Total lease liabilities		$	17,250	$	17,959


	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value









Outstanding at January 1, 2025	615,363	$	153.29
Granted	—	—
Exercised	(9,383)	83.48
Canceled	(105,879)	114.38
Outstanding at December 31, 2025	500,101	$	162.84	1.97 years	$	—

Exercisable at December 31, 2025	500,101	$	162.84	1.97 years	$	—


	Number of Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2025	743,266	$	103.41
Granted	704,376	64.61
Vested	(355,015)	113.11
Forfeited	(64,488)	77.52
Nonvested at December 31, 2025	1,028,139	$	75.07


	Year Ended December 31, 2025
	($)		(%)

Tax at statutory rate	$	9,470	21.0	%
Effect of Cross-Border Tax Laws:
FDII	(2,886)		(6.4)	%

Other	173		0.4	%
Total Effect of Cross-Border Tax Laws	(2,713)		(6.0)	%
Tax Credits:
R&D Credit	(3,638)		(8.1)	%

Other	250		0.6	%
Total Tax Credits	(3,388)		(7.5)	%


Nontaxable or Nondeductible items:
Stock Compensation	6,004		13.3	%
162(m) Limitation	769		1.7	%
Other	132		0.3	%
Total Nontaxable or Nondeductible items	6,905		15.3	%




State and Local Income Taxes, Net of Federal Income Tax Effect	(1,604)		(3.6)	%
Foreign Tax Effects:
Belarus:
Losses not benefitted	1,329		2.9	%
Other	108		0.2	%
Total Belarus	1,437		3.2	%
China:
Stock Compensation	1,112		2.5	%
Non-U.S. rate differential - net	427		0.9	%

Total China	1,539		3.4	%
Germany:
Non-U.S. rate differential - net	(1,059)		(2.3)	%
Trade Tax	3,195		7.1	%
Changes in tax laws or rates enacted in the current period	(1,120)		(2.5)	%

Profit in Ending Inventory	(723)		(1.6)	%

Stock Compensation	642		1.4	%
Other	35		0.1	%
Total Germany	970		2.2	%
United Kingdom:
Change in valuation allowance	(614)		(1.4)	%
Other	(115)		(0.3)	%
Total United Kingdom	(729)		(1.7)	%
Other Foreign Jurisdictions	160		0.4	%
Worldwide changes in Unrecognized Tax Benefits	2,000		4.4	%
Other	(47)		(0.1)	%
Total	$	14,000	31.0	%


Jurisdiction						Open Tax Years
United States						2022 - 2025
Germany						2024 - 2025
China						2013 - 2025


	Year Ended December 31,
	2025

US federal	$	14,739
US state & local	2,277
Foreign:
Germany federal	15,008
Germany local	14,795
China federal	6,120

Other	4,069
Total	$	57,008


1.			I have reviewed this Annual Report on Form 10-K of IPG Photonics Corporation for the year ended December 31, 2025;