IPG PHOTONICS CORPIPGP

IPG PHOTONICS CORP Earnings Per Share Disclosure

10-KFiled Feb 23, 20262 min read
NET INCOME (LOSS) PER COMMON SHARE
The following table sets forth the computation of diluted net income (loss) per common share following the treasury stock method: 
Year Ended December 31,
 202520242023
Net income (loss)
$31,096 $(181,526)$218,878 
Basic weighted average common shares42,344,616 44,335,857 47,154,217 
Dilutive effect of common stock equivalents305,096 — 165,858 
Diluted weighted average common shares42,649,712 44,335,857 47,320,075 
Basic net income (loss) per common share
$0.73 $(4.09)$4.64 
Diluted net income (loss) per common share
$0.73 $(4.09)$4.63 
The computation of diluted weighted average common shares excludes certain common stock equivalents, including non-qualified stock options, PSUs, RSUs and the ESPP because the effect of including them would be anti-dilutive. The weighted average anti-dilutive shares outstanding for the years ended December 31, 2025, 2024 and 2023, respectively, were as follows:
Year Ended December 31,
202520242023
Restricted stock units94,041 715,728 246,481 
Non-qualified stock options539,338 696,189 533,402 
Performance stock units49,684 235,897 51,851 
Employee stock purchase plan— 42,900 30,951 
Total weighed average anti-dilutive shares outstanding683,063 1,690,714 862,685 
On February 13, 2024, the Company announced that its board of directors has authorized the purchase of up to $300,000 of IPG common stock. This authorization is in addition to the Company's previously authorized stock repurchase programs.
For the years ended December 31, 2025, 2024 and 2023, respectively, the Company repurchased 753,459 shares, 4,087,646 shares, and 2,117,352 shares of its common stock with an average price of $66.36, $83.30 and $104.68 per share in the open market, respectively. The May 2023 authorization to repurchase common stock was completed in 2024 and the February 2024 authorization was completed in 2025. The impact on the reduction of weighted average shares for years ended December 31, 2025, 2024 and 2023 was 407,542 shares, 2,195,177 shares and 1,167,412 shares, respectively.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance