Revenue growth remains highly volatile, swinging from a 27.4% decline in 2024Q1 to a 16.6% increase in 2026Q1, while operating margins have deteriorated to -2.9%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 1.04B | 1B | 977.13M | 1.29B | 1.43B | 1.46B | 1.2B | 1.31B | 1.46B | 1.41B | 1.01B | 901.26M | 769.83M | 648.03M | 562.53M | 474.48M | 299.26M | 185.89M | 229.08M | 188.68M | 143.22M | 96.39M | 60.71M |
| Revenue Growth % | 9.29% | 2.73% | -24.1% | -9.94% | -2.14% | 21.66% | -8.66% | -9.95% | 3.62% | 40.02% | 11.64% | 17.07% | 18.8% | 15.2% | 18.56% | 58.55% | 60.98% | -18.85% | 21.41% | 31.73% | 48.6% | 58.77% | - |
| Cost of Goods Sold | 650.33M | 622.31M | 638.98M | 745.74M | 874.13M | 764.46M | 661.73M | 708.37M | 659.61M | 611.98M | 453.93M | 409.39M | 353.31M | 308.14M | 257.8M | 217.23M | 152.8M | 121.63M | 121.78M | 103.69M | 79.93M | 62.48M | 42.27M |
| COGS % of Revenue | - | 62% | 65.39% | 57.92% | 61.15% | 52.33% | 55.11% | 53.89% | 45.18% | 43.44% | 45.11% | 45.42% | 45.89% | 47.55% | 45.83% | 45.78% | 51.06% | 65.43% | 53.16% | 54.96% | 55.81% | 64.82% | 69.64% |
| Gross Profit | 391.15M | 381.46M | 338.15M | 541.7M | 555.41M | 696.4M | 539M | 606.21M | 800.27M | 796.91M | 552.24M | 491.88M | 416.52M | 339.9M | 304.73M | 257.25M | 146.46M | 64.27M | 107.3M | 84.98M | 63.29M | 33.9M | 18.43M |
| Gross Margin % | 37.56% | 38% | 34.61% | 42.08% | 38.85% | 47.67% | 44.89% | 46.11% | 54.82% | 56.56% | 54.89% | 54.58% | 54.11% | 52.45% | 54.17% | 54.22% | 48.94% | 34.57% | 46.84% | 45.04% | 44.19% | 35.18% | 30.36% |
| Gross Profit Growth % | - | 12.81% | -37.57% | -2.47% | -20.24% | 29.2% | -11.09% | -24.25% | 0.42% | 44.31% | 12.27% | 18.09% | 22.54% | 11.54% | 18.45% | 75.65% | 127.89% | -40.1% | 26.26% | 34.27% | 86.69% | 83.93% | - |
| Operating Expenses | 387.61M | 368.36M | 546.41M | 309.73M | 385.91M | 328.51M | 340.34M | 372.42M | 276.86M | 245.8M | 187.93M | 149.83M | 132.76M | 121.75M | 95.84M | 81.73M | 66.06M | 55.21M | 50.1M | 38.66M | 27.29M | 19.62M | 15.37M |
| OpEx % of Revenue | - | 36.7% | 55.92% | 24.06% | 27% | 22.49% | 28.34% | 28.33% | 18.96% | 17.45% | 18.68% | 16.62% | 17.25% | 18.79% | 17.04% | 17.23% | 22.07% | 29.7% | 21.87% | 20.49% | 19.05% | 20.36% | 25.32% |
| Selling, General & Admin | 244.39M | 241M | 213.9M | 211.43M | 207.9M | 204.06M | 180.59M | 185.34M | 160.24M | 130.47M | 104.88M | 89.06M | 85.97M | 77.56M | 63.08M | 59.17M | 47.74M | 35.65M | 34.3M | 29.13M | 20.74M | 13.83M | 10.54M |
| SG&A % of Revenue | - | 24.01% | 21.89% | 16.42% | 14.54% | 13.97% | 15.04% | 14.1% | 10.98% | 9.26% | 10.42% | 9.88% | 11.17% | 11.97% | 11.21% | 12.47% | 15.95% | 19.18% | 14.97% | 15.44% | 14.48% | 14.35% | 17.37% |
| Research & Development | 122.38M | 117.4M | 109.78M | 98.7M | 116.11M | 139.57M | 126.9M | 130M | 122.77M | 100.87M | 78.55M | 63.33M | 53.4M | 41.66M | 31.4M | 25.42M | 19.16M | 18.54M | 15.8M | 9.53M | 6.54M | 5.79M | 4.83M |
| R&D % of Revenue | - | 11.7% | 11.24% | 7.67% | 8.12% | 9.55% | 10.57% | 9.89% | 8.41% | 7.16% | 7.81% | 7.03% | 6.94% | 6.43% | 5.58% | 5.36% | 6.4% | 9.98% | 6.9% | 5.05% | 4.57% | 6.01% | 7.96% |
| Other Operating Expenses | 4M | 9.96M | 222.73M | -407K | 61.9M | -15.12M | 32.85M | 57.08M | -6.15M | 14.46M | 4.5M | -2.56M | -6.62M | 2.54M | 1.36M | -2.86M | -848K | 1.02M | -2.8M | 0 | 0 | 0 | 0 |
| Operating Income | 3.54M | 13.1M | -208.25M | 231.97M | 169.5M | 367.88M | 198.66M | 233.79M | 523.4M | 551.11M | 364.31M | 342.04M | 283.76M | 218.15M | 208.89M | 175.52M | 80.4M | 9.06M | 57.2M | 46.32M | 36.01M | 14.28M | 3.06M |
| Operating Margin % | 0.34% | 1.31% | -21.31% | 18.02% | 11.86% | 25.18% | 16.54% | 17.78% | 35.85% | 39.12% | 36.21% | 37.95% | 36.86% | 33.66% | 37.13% | 36.99% | 26.87% | 4.87% | 24.97% | 24.55% | 25.14% | 14.82% | 5.04% |
| Operating Income Growth % | - | 106.29% | -189.78% | 36.86% | -53.93% | 85.18% | -15.03% | -55.33% | -5.03% | 51.27% | 6.51% | 20.54% | 30.08% | 4.43% | 19.01% | 118.31% | 787.72% | -84.17% | 23.47% | 28.66% | 152.11% | 366.73% | - |
| EBITDA | 55.05M | 79.96M | -146.81M | 301.59M | 260.06M | 464.21M | 293.21M | 330.06M | 603.68M | 615.68M | 415.79M | 384.46M | 319.37M | 249.67M | 235.03M | 199.48M | 102.25M | 28.23M | 73.03M | 58.63M | 45.11M | 21.86M | 10.21M |
| EBITDA Margin % | 5.29% | 7.97% | -15.02% | 23.43% | 18.19% | 31.78% | 24.42% | 25.11% | 41.35% | 43.7% | 41.32% | 42.66% | 41.49% | 38.53% | 41.78% | 42.04% | 34.17% | 15.19% | 31.88% | 31.07% | 31.5% | 22.69% | 16.83% |
| EBITDA Growth % | 133.37% | 154.46% | -148.68% | 15.97% | -43.98% | 58.32% | -11.16% | -45.32% | -1.95% | 48.08% | 8.15% | 20.38% | 27.92% | 6.23% | 17.82% | 95.1% | 262.2% | -61.35% | 24.57% | 29.96% | 106.32% | 114.07% | - |
| D&A (Non-Cash Add-back) | 51.51M | 66.85M | 61.44M | 69.62M | 90.56M | 96.33M | 94.55M | 96.27M | 80.27M | 64.57M | 51.48M | 42.41M | 35.61M | 31.52M | 26.14M | 23.96M | 21.84M | 19.17M | 15.83M | 12.3M | 9.11M | 7.58M | 7.15M |
| EBIT | 21.68M | 45.1M | 14.48M | 231.57M | 231.4M | 352.76M | 231.51M | 290.87M | 517.25M | 565.57M | 368.81M | 339.48M | 277.14M | 220.68M | 210.25M | 172.66M | 79.55M | 9.02M | 57.34M | 46.32M | 36.01M | 13.77M | 3.06M |
| Net Interest Income | 7.28M | 0 | 45.47M | 0 | 12.62M | 0 | 6.27M | 14.24M | 9.06M | 737K | 1.3M | 301K | -77K | -1K | 319K | -681K | -1.19M | -1.25M | -777K | 0 | 0 | 0 | 0 |
| Interest Income | 7.28M | 0 | 45.47M | 0 | 12.62M | 0 | 6.27M | 14.24M | 9.06M | 737K | 0 | 301K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.3M | 0 | 77K | 1K | 319K | 681K | 1.19M | 1.25M | 777K | 674K | 0 | 0 | 0 |
| Other Income/Expense | 31.96M | 31.99M | 46.37M | 42.9M | 13.85M | -1.4M | 7.03M | 14.58M | 10.99M | 759K | 2.25M | -426K | 716K | 154K | 327K | -938K | -1.15M | -1.29M | -632K | 1.29M | -7.89M | -2.35M | -2.57M |
| Pretax Income | 35.5M | 45.1M | -161.89M | 274.88M | 183.35M | 366.48M | 205.69M | 248.38M | 534.39M | 551.87M | 366.56M | 341.62M | 284.47M | 218.3M | 209.22M | 174.58M | 79.25M | 7.77M | 56.56M | 47.61M | 28.12M | 11.93M | 491K |
| Pretax Margin % | 3.41% | 4.49% | -16.57% | 21.35% | 12.83% | 25.09% | 17.13% | 18.89% | 36.61% | 39.17% | 36.43% | 37.9% | 36.95% | 33.69% | 37.19% | 36.79% | 26.48% | 4.18% | 24.69% | 25.23% | 19.63% | 12.38% | 0.81% |
| Income Tax | 6.58M | 14M | 19.64M | 56M | 72.59M | 88.61M | 45.35M | 68.11M | 130.23M | 204.28M | 105.85M | 99.59M | 84.03M | 62.52M | 61.47M | 53.58M | 24.9M | 2.48M | 18.11M | 15.52M | -3M | 4.08M | -1.6M |
| Effective Tax Rate % | 18.53% | 31.04% | -12.13% | 20.37% | 39.59% | 24.18% | 22.05% | 27.42% | 24.37% | 37.02% | 28.88% | 29.15% | 29.54% | 28.64% | 29.38% | 30.69% | 31.42% | 31.99% | 32.02% | 32.6% | -10.65% | 34.19% | -326.07% |
| Net Income | 28.92M | 31.1M | -181.53M | 218.88M | 109.91M | 278.42M | 159.57M | 180.23M | 404.03M | 347.61M | 260.75M | 242.15M | 200.44M | 155.78M | 145M | 117.76M | 53.99M | 5.42M | 36.65M | 29.89M | 29.23M | 7.43M | 2.01M |
| Net Margin % | 2.78% | 3.1% | -18.58% | 17% | 7.69% | 19.06% | 13.29% | 13.71% | 27.68% | 24.67% | 25.92% | 26.87% | 26.04% | 24.04% | 25.78% | 24.82% | 18.04% | 2.92% | 16% | 15.84% | 20.41% | 7.71% | 3.31% |
| Net Income Growth % | 114.33% | 117.13% | -182.93% | 99.14% | -60.52% | 74.48% | -11.46% | -55.39% | 16.23% | 33.31% | 7.68% | 20.81% | 28.67% | 7.43% | 23.14% | 118.11% | 896.33% | -85.22% | 22.61% | 2.26% | 293.6% | 269.14% | - |
| Net Income (Continuing) | 28.92M | 31.1M | -181.53M | 218.88M | 110.76M | 277.87M | 160.34M | 180.26M | 404.17M | 347.59M | 260.72M | 242.03M | 200.44M | 155.78M | 147.74M | 121.01M | 54.35M | 5.28M | 38.45M | 29.89M | 31.11M | 7.85M | 2.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 639K | 1.29M | 717K | 686K | 0 | 166K | 1.14M | 0 | 0 | 0 | 46.41M | 203K | 141K | 5.13M | 4.46M | 2.83M | 948K | 511K |
| EPS (Diluted) | 0.67 | 0.73 | -4.09 | 4.63 | 2.16 | 5.16 | 2.97 | 3.35 | 7.38 | 6.36 | 4.85 | 4.53 | 3.79 | 2.97 | 2.81 | 2.41 | 1.13 | 0.12 | 0.79 | 0.65 | 0.26 | 0.16 | 0.01 |
| EPS Growth % | 114.96% | 117.85% | -188.34% | 114.35% | -58.14% | 73.74% | -11.34% | -54.61% | 16.04% | 31.13% | 7.06% | 19.53% | 27.61% | 5.69% | 16.6% | 113.27% | 841.67% | -84.81% | 21.54% | 150% | 62.5% | 1500% | - |
| EPS (Basic) | - | 0.73 | -4.09 | 4.64 | 2.17 | 5.21 | 3.00 | 3.40 | 7.55 | 6.50 | 4.91 | 4.59 | 3.85 | 3.02 | 2.87 | 2.48 | 1.16 | 0.12 | 0.82 | 0.69 | 0.27 | 0.19 | 0.01 |
| Diluted Shares Outstanding | 42.91M | 42.65M | 44.34M | 47.32M | 50.92M | 53.93M | 53.78M | 53.84M | 54.73M | 54.7M | 53.8M | 53.43M | 52.82M | 52.38M | 51.54M | 48.69M | 47.59M | 46.59M | 46.22M | 45.75M | 33.01M | 30.17M | 38.55M |
| Basic Shares Outstanding | 42.24M | 42.6M | 44.34M | 47.15M | 50.76M | 53.41M | 53.19M | 53.06M | 53.52M | 53.49M | 53.07M | 52.68M | 52.1M | 51.55M | 50.48M | 47.37M | 46.42M | 45.49M | 44.51M | 43.27M | 27.9M | 39.35M | 38.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 23% | - | - | - | - | - | - | - | - |
Structural margin compression risk
According to recent quarterly filings, IPGP's revenue growth has exhibited significant volatility, shifting from a 27.4% decline in 2024Q1 to a 16.6% increase by 2026Q1, suggesting that the company remains highly sensitive to global industrial capital expenditure cycles rather than consistent organic expansion.
The recent return to positive year-over-year growth appears to be a recovery from a depressed base rather than a sign of structural acceleration. Investors should monitor whether this growth is driven by sustainable demand in EV battery manufacturing or merely a temporary rebound in legacy industrial cutting applications.
As reported in financial statements, IPGP's gross margin has struggled to maintain historical levels above 50%, currently hovering near 37.5% in 2026Q1, which indicates that intense pricing pressure in the fiber laser market may be permanently altering the company's profitability profile.
The inability to sustain higher margins suggests that the commoditization of lower-power laser sources is offsetting the benefits of vertical integration. This compression warrants further investigation into whether the company's proprietary diode technology still commands a meaningful price premium against lower-cost regional competitors.
Based on the provided income statement data, IPGP's operating margin has collapsed to -2.9% in 2026Q1, demonstrating that the company's high fixed-cost structure is failing to scale effectively with current revenue levels, leading to significant earnings volatility during periods of top-line contraction.
The transition from a 9.6% operating margin in 2023Q4 to recent losses suggests that the company's overhead is currently misaligned with its revenue generation capacity. This lack of operating leverage implies that management may need to aggressively rationalize its cost base to restore profitability.
While IPGP's vertical integration was historically a competitive moat, recent financial performance suggests it may now be a liability, as the company's inability to pivot to cheaper, standardized components has left it vulnerable to competitors who are successfully undercutting its pricing in key industrial markets.
Short-sellers may focus on the fact that the company's R&D and manufacturing overhead remains elevated despite declining market share in commoditized segments. This structural rigidity may prevent the company from achieving the cost flexibility required to compete effectively in a price-sensitive global environment.
Quick answers to the most common questions about buying IPGP stock.
For fiscal year 2025, IPG Photonics Corporation (IPGP) reported total revenue of $1.00B. This represents a 1553.5% increase compared to $60.7M in 2004.
IPG Photonics Corporation (IPGP) is profitable, generating $31.1M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
IPG Photonics Corporation (IPGP) reported an operating income of $13.1M, resulting in an operating profit margin of 1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
IPG Photonics Corporation (IPGP) generated $381.5M in gross profit for the year, representing a gross profit margin of 38.0%. This demonstrates the company's core pricing power and production efficiency.