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REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS 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,
20262025
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:
Three Months Ended March 31,
20262025
Sales by Product
Lasers and Components
$213,652 $187,343 
Systems
51,845 40,450 
Total$265,497 $227,793 

The following tables represent a disaggregation of revenue from contracts with customers by geography:
Three Months Ended March 31,
20262025
Sales by Geography
North America (1)
$71,523 $56,372 
Europe:
Germany23,019 24,703 
Other 36,000 32,166 
Total Europe59,019 56,869 
Asia:
China83,795 67,858 
Japan14,354 11,663 
Other
30,338 33,175 
Total Asia128,487 112,696 
Rest of World6,468 1,856 
Total$265,497 $227,793 
(1) The substantial majority of sales in North America are to customers in the United States.
Three Months Ended March 31,
2026
2025
Timing of Revenue Recognition
Goods and services transferred at a point in time$255,098 $224,022 
Goods and services transferred over time10,399 3,771 
Total$265,497 $227,793 
One of the Company's customers accounted for 12% and 11% of the Company's net accounts receivable as of March 31, 2026 and December 31, 2025, respectively.
The Company recognizes revenue over time on contracts for the sale of large scale industrial solutions systems. The timing of customer payments on these contracts generally differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities are included within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. Certain deferred revenues related to extended warranties in excess of one year from the balance sheet date are included within Other long-term liabilities and deferred income taxes on the Condensed Consolidated Balance Sheets.
The following table reflects the changes in the Company's contract assets and liabilities for the three months ended March 31, 2026 and 2025:
March 31,January 1,March 31,January 1,
20262026Change20252025Change
Contract assets
Contract assets$5,704 $3,464 $2,240 $1,078 $4,737 $(3,659)
Contract liabilities
Contract liabilities - current67,791 66,209 1,582 61,776 56,454 5,322 
Contract liabilities - long-term3,561 3,336 225 3,338 2,882 456 
During the three months ended March 31, 2026 and 2025, the Company recognized revenue of $27,410 and $21,214, respectively, that was included in contract liabilities at the beginning of each year.
The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of March 31, 2026:
Remaining Performance Obligations
2026 (a)
2027202820292030ThereafterTotal
Revenue expected to be recognized for extended warranty agreements$2,118 $1,789 $1,126 $677 $238 $207 $6,155 
Revenue to be earned over time from contracts to sell large scale materials processing systems
20,209 2,242 — — — — 22,451 
Total$22,327 $4,031 $1,126 $677 $238 $207 $28,606 
(a) For the nine-month period beginning April 1, 2026.