IPG Optoelectronics 2025 Year-Quality Report

(Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period endedMarch31, 2025 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 IPG PHOTONICS CORPORATION Indicate by check mark whether the registrant: (1)has filed all reports required to be filed by Section13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submittedpursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reportingcompany, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," Large Accelerated FilerNon-Accelerated FilerEmerging Growth Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying 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 Rule12b-2 of the Exchange Act).Yes☐No☑ As of May5, 2025, there were42,534,662shares of the registrant's common stock outstanding. TABLE OF CONTENTS Part I. Financial Information Item1. Unaudited Interim Financial StatementsCondensed Consolidated Balance Sheets:March31, 2025and December31, 2024Condensed Consolidated Statements ofOperations: ThreeMonths EndedMarch31, 2025 and 2024Condensed Consolidated Statements of Comprehensive Income: ThreeMonths EndedMarch 31, 2025 and 2024Condensed Consolidated Statements of Cash Flows: Three Months Ended March 31, 2025 and 2024Condensed Consolidated Statements of Equity:Three Months EndedMarch 31, 2025 and 2024Notes to Condensed Consolidated Financial StatementsItem2. Management's Discussion and Analysis of Financial Condition and Results of OperationsItem3. Quantitative and Qualitative Disclosures About Market RiskItem4. Controls and ProceduresPart II. Other InformationItem1. Legal ProceedingsItem1A. Risk FactorsItem2. Unregistered Sales of Equity Securities and Use of ProceedsItem3. Defaults Upon Senior SecuritiesItem4. Mine Safety DisclosuresItem5. Other InformationItem6. ExhibitsSignatures PART I—FINANCIAL INFORMATION IPG PHOTONICS CORPORATIONNOTESTO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1.BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation— The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by IPGPhotonics Corporation, or "IPG", "its" or the "Company". Certain information and footnote disclosures normally included in financialstatements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed oromitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Condensed Consolidated Financial In the opinion of the Company's management, the financial information for the interim periods presented reflects all adjustmentsnecessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these Change in Accounting Estimate— During the fourth quarter of 2024, the Company completed an assessment of the useful lives ofcertain machinery and equipment, resulting in a change in the upper end of the range for these assets from7years to10years based upon the 2.RECENT ACCOUNTING PRONOUNCEMENTS Adopted Pronouncement— In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280):Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which improves reportable segment disclosure requirements,primarily through enhanced disclosures about significant segment expenses on an annual and interim basis. Under the new guidance anentity is required to disclose the title and position of the chief operating decision maker ("CODM") and an explanation of how the CODMuses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU Pronouncements Currently Under Evaluation— In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic740): Improvements to Income Tax Disclosures" ("ASU 2023-07"), which requires an entity on an annual basis to disclose specificcategories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidancealso requires an entity to disclose on an annual basis information about income taxes paid.