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Key Takeaways HP posted a Q2 adjusted loss of 38 cents per share as revenues fell 8.2% year over year.HP's International Solutions unit logged a near $100M operating loss tied to Middle East costs.HP secured a five-year bp offshore Azerbaijan renewal with potential revenues above $1B. Helmerich & Payne, Inc. (HP - Free Report) reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

Q3 & 2026 GuidanceThe company expects steady operational performance in the third quarter of fiscal 2026. Within North America Solutions, direct margins are projected at $230-$240 million, supported by average rig activity of 137-143. International Solutions is expected to operate 58-68 rigs, generating direct margins of $12-$32 million. In Offshore Solutions, management forecasts 30-35 rigs, contributing $24-$28 million in direct margin. Other operations are expected to deliver up to $3 million in direct margin during the quarter.

For fiscal 2026, this Zacks Rank #3 (Hold) company anticipates average rig activity of 138-144 in North America and 58-68 internationally, while offshore operations are expected to contribute $100-$115 million in direct margin with 30-35 rigs under management. Broader financial guidance includes gross capital expenditures of $270-$310 million, depreciation of approximately $700 million, research and development expenses of about $28 million and selling, general and administrative costs of $265-$285 million. Additionally, cash taxes are projected at $125-$150 million, while interest expense is forecasted at roughly $100 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a GlanceWhile we have discussed HP’s second-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company,Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

On May 21, 2026, Helmerich & Payne Inc HP shares fell 3.1% today, closing at $39.61. Over the past 52 weeks, the stock has traded as high as $41.82 and as low as $14.65, reflecting significant volatility. The recent price drop contrasts with a year-to-date increase of 40.1% and an impressive 170.2% gain over the past year.

GF Value™ verdict: Current price of $39.61 is 17.3% below GF Value™ of $47.90.GF Score™: 72/100, indicating above-average performance potential.Most notable signal: Insiders sold $3.3M in stock over the last three months, with no buying activity reported. Is HP Overvalued or Undervalued? Currently, Helmerich & Payne Inc is trading at $39.61, which is 17.3% below its GF Value™ of $47.90. This suggests that the stock may be undervalued, providing a potential margin of safety for investors. The GF Valuation label categorizes HP as "Modestly Undervalued," indicating a favorable investment opportunity, albeit with caveats. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation suggests an opportunity, it is essential to consider the broader market conditions and potential risks associated with the oil and gas industry. Factors such as fluctuating oil prices, regulatory changes, and geopolitical risks can significantly impact HP's performance. Investors should weigh these considerations against the current price to make informed decisions.

How Does HP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 155.9x 10.3x Helmerich & Payne's current P/E ratio of 155.9x is significantly above its 5-year median P/E of 10.3x. This stark contrast indicates that the stock is trading well above its historical valuation levels. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value, it is trading at a high multiple compared to its historical earnings, warranting caution.

What Does HP's GF Score™ Tell Us? Metric Rating GF Score™ 72 Financial Strength 4/10 Profitability 5/10 Growth 7/10 Valuation 10/10 Momentum 3/10 The GF Score™ of 72/100 indicates that Helmerich & Payne has above-average potential for long-term returns. The strongest area is the Valuation rank at 10/10, highlighting that the stock may be attractively priced relative to its intrinsic value. Conversely, the weakest area is Momentum at 3/10, suggesting that recent price performance has not been strong. Financial Strength and Profitability scores of 4/10 and 5/10, respectively, indicate that while there is room for improvement, the company's fundamentals are not exceptionally robust at this time.

What Are Insiders Doing with HP Stock? In recent months, insider activity has shown a trend of selling, with insiders offloading $3.3 million worth of shares without any reported buying. This pattern can be interpreted as a lack of confidence from insiders regarding the company's short-term prospects. While insider selling does not necessarily indicate negative performance, it is a noteworthy signal that potential investors may want to consider when evaluating the stock.

What This Means for Investors Based on the GF Value™ assessment, Helmerich & Payne Inc appears to be undervalued at its current price of $39.61. However, potential investors should exercise caution due to the high P/E ratio compared to historical levels and the recent insider selling activity.

For the complete analysis, visit the Helmerich & Payne Inc HP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is HP's GF Score™?

HP has a GF Score™ of 72/100, indicating above-average performance potential based on key financial metrics.

Is HP overvalued or undervalued?

HP is considered undervalued according to GF Value™, trading at 17.3% below its intrinsic value.

What is HP's P/E ratio?

HP's current P/E ratio is 155.9x, significantly higher than its historical 5-year median of 10.3x, suggesting it is trading at a premium relative to its past earnings.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Zacks Oil and Gas - Drilling industry appears to be entering a more constructive phase. While producers are still cautious with capital spending, the broader demand picture is improving. Tight oil supply, geopolitical uncertainty and rising energy-security needs could support future drilling plans. Natural gas adds another layer of opportunity, as LNG exports, new power demand and AI-related electricity use point to steady long-term growth. The industry is also benefiting from a shift toward better equipment. Longer laterals, deeper wells and complex drilling programs require advanced rigs, automation and digital tools. That gives well-equipped contractors a stronger pricing opportunity when customer activity picks up. The group’s solid Zacks Industry Rank and sharp outperformance over the past year add to the positive case. The recovery may be gradual, but the outlook is clearly brighter. In this improving setup, Patterson-UTI Energy (PTEN - Free Report) , Helmerich & Payne (HP - Free Report) and Nabors Industries (NBR - Free Report) stand out as attractive drilling names to watch.

Industry Overview The Zacks Oil and Gas - Drilling industry consists of companies that provide rigs (or specialized vehicles) on a contractual basis to explore and develop oil and gas. These operators offer drilling rigs (both land-based/onshore and offshore), equipment, services and workforce to exploration and production companies worldwide. Drilling for hydrocarbons is costly and technically difficult, and its future primarily depends on contracting activity and the total number of available rigs at a given time rather than the price of oil or gas. Within the industry, it's interesting to note that the volatility associated with offshore drilling companies is much higher than that of their onshore counterparts, and their share prices are more correlated to the price of oil. Overall, oil and gas drilling stocks are among the most volatile in the entire equity market.

4 Trends Defining the Oil and Gas - Drilling Industry's Future Oil Supply Tightness Can Lift Drilling Demand:Oil and gas drilling activity could improve if global supply stays tight. Recent Middle East disruptions have made energy security a bigger concern and could keep oil markets supported. When producers worry about future supply, they often need more wells to maintain or grow output. U.S. shale may benefit because it can respond faster than many global projects. That said, activity may not jump overnight. Customers usually wait for clearer price signals before changing budgets, but the setup is becoming more supportive for drilling demand.

Natural Gas Has a Stronger Long-Term Growth Story:Natural gas is becoming a key demand driver for drillers. LNG exports, new export facilities and rising electricity needs from data centers and AI are all adding to the long-term call on gas. Investors should know that gas wells still need rigs, crews and related drilling services. International gas development, especially in regions like the Middle East and Latin America, also supports activity. In simple terms, if the world needs more gas for power and exports, the drilling industry gets another growth path beyond oil.

Better Rigs and Automation Can Support Higher Pricing:The industry is no longer just about adding more rigs. Operators are drilling deeper wells and longer laterals, which require stronger, more advanced equipment. That favors high-spec rigs, automation and digital tools that can improve safety, speed and well performance. Since the supply of top-tier rigs is limited, drilling contractors may have more room to push pricing higher when demand improves. This is important for investors because better pricing, tied to better technology, can help margins recover even without a huge jump in overall rig counts.

Customer Caution Can Delay the Recovery:The biggest near-term risk is that producers remain careful with spending. Even with higher oil prices, many operators are not rushing to add rigs because price volatility makes planning harder. Public exploration and production companies are especially focused on capital discipline, returns and sticking to budgets. At the same time, the Middle East conflict has added logistics, crew rotation and supply-chain costs for the industry. So, while the backdrop is improving, the recovery may be gradual rather than sharp. For drillers, that means timing remains uncertain.

Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Drilling industry is a nine-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #70, which places it in the top 29% of 245 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - Drilling industry has fared better than the broader Zacks Oil – Energy sector as well as the Zacks S&P 500 composite over the past year.

The industry has gone up 117.8% over this period compared with the broader sector’s increase of 42% and the S&P 500’s gain of 30.3%.

One-Year Price Performance

Industry's Current Valuation Since oil and gas drilling companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not only equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 14.35X, lower than the S&P 500’s 18.65X. It is, however, above the sector’s trailing 12-month EV/EBITDA of 7.03X.

Over the past five years, the industry has traded as high as 24.81X, as low as 4.16X, with a median of 13.75X, as the chart below shows.

Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)

3 Oil and Gas - Drilling Stocks to Watch Patterson-UTI Energy: Patterson-UTI is an integrated oilfield services company focused on drilling, completion and drilling products markets. Its platform combines contract drilling, hydraulic fracturing, wireline, cementing, natural gas fueling, directional services and drill bits, supported by digital tools that help improve wellsite efficiency. The Zacks Rank #2 (Buy) company operates 137 Tier-1 super-spec rigs and 2.7 million hydraulic horsepower of completion capacity.

You can see the complete list of today’s Zacks #1 Rank stocks here.

With cash flow spread across drilling services, completion services and drilling products, Patterson-UTI positions itself as a balanced leader in U.S. shale. It is investing in upgraded rigs, natural gas-powered fleets and data-driven operations while maintaining a strong balance sheet and an investment-grade credit profile. The company also emphasizes shareholder returns and long-term sustainability.

Patterson-UTI has a market capitalization of $4.7 billion. Over the past 60 days, the Zacks Consensus Estimate for the firm’s 2026 earnings has moved up 40.6%. PTEN stock has surged 116% in a year.

Price and Consensus: PTEN

Nabors Industries: It is a global provider of advanced drilling technology and services, operating in more than 20 countries. Nabors combines drilling operations, rig equipment and digital solutions to improve performance, safety and efficiency. Its vertically integrated model allows it to design automated rig technologies and deliver specialized services directly through its fleet. Nabors is a leading provider of high-specification rigs in the United States and deploys fit-for-purpose rigs across key international markets.

The Zacks #2 Ranked company is also focused on innovation, sustainability and reducing debt. Nabors’ recent moves include acquiring Parker Wellbore, divesting Quail Tools and refinancing debt to extend maturities. These steps strengthen its balance sheet while supporting long-term growth and energy transition goals.

Nabors has a market capitalization of $1.6 billion. The Zacks Consensus Estimate for 2026 earnings for the firm indicates 71.2% growth. NBR stock has gained 304% in a year.

Price and Consensus: NBR

Helmerich & Payne: Helmerich & Payne is a global drilling solutions company focused on onshore, offshore and international markets. It operates more than 200 land rigs, with a broad geographic reach and portfolio flexibility to serve rising drilling activity. The Zacks Rank #3 (Hold) company is also a technology leader, running advanced onshore rigs and expanding customer-led FlexRobotics deployments.

In fiscal second-quarter 2026, HP delivered resilient results in a changing energy market, supported by North America performance, offshore execution and steady international operations. It is also sharpening its portfolio, reducing debt and keeping capital spending disciplined. With $1.1 billion in liquidity and a long dividend record, Helmerich & Payne remains focused on long-term shareholder value.

The firm has a market capitalization of $4 billion. The Zacks Consensus Estimate for fiscal 2026 revenues for Helmerich & Payne indicates 5.1% growth. HP stock has surged 164.8% in a year.

Price and Consensus: HP

A month has gone by since the last earnings report for Helmerich & Payne (HP - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Helmerich & Payne due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Helmerich & Payne, Inc. before we dive into how investors and analysts have reacted as of late.

Helmerich & Payne Q2 Earnings & Revenues Miss EstimatesHelmerich & Payne reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 45.12% due to these changes.

VGM ScoresAt this time, Helmerich & Payne has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Helmerich & Payne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerHelmerich & Payne belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Patterson-UTI (PTEN - Free Report) , has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Patterson-UTI reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of -12.7%. EPS of -$0.06 for the same period compares with $0.00 a year ago.

For the current quarter, Patterson-UTI is expected to post a loss of $0.05 per share, indicating a change of +16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +20% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Patterson-UTI. Also, the stock has a VGM Score of B.

March 16, 2026 16:01 ET  | Source: IPG Photonics Corporation

MARLBOROUGH, Mass., March 16, 2026 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP), the global leader in fiber laser technology, announced today that the Local Division of the Unified Patent Court (UPC) located in Düsseldorf, Germany has issued a decision in a patent infringement case brought by Trumpf SE & Co. KG (“Trumpf”).

The court ruled that certain uses and designs of IPG’s adjustable mode beam (AMB) lasers infringed European Patent 2,624,031. The decision impacts AMB laser products sold in Germany, France and Italy, affecting less than 1% of IPG’s total sales.

The Company is implementing contingency measures to support AMB customers. Other lasers models made by IPG were not involved in the lawsuit and IPG’s product portfolio remains broadly available. Remedies available to the patent owner, including an injunction, recall and damages, may be enforced and determined at a subsequent time after the required conditions have been satisfied.

IPG respectfully disagrees with the decision and plans to file an appeal with the UPC Court of Appeal and pursue other measures available to it.

IPG previously disclosed that affiliates of Trumpf have brought two separate actions in the Unified Patent Courts in Mannheim, Germany and Düsseldorf, Germany asserting two different patents against IPG’s AMB lasers. IPG previously announced the Mannheim court’s decision and IPG’s intention to appeal. Today’s announcement relates solely to a different patent asserted in the separate Düsseldorf proceeding.

Contact

Eugene Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
[email protected]

About IPG Photonics Corporation

IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions, making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability, and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.

Safe Harbor Statement

Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those related to the percentage of total sales impacted by the decision, remedies available to the patent owner, the enforcement and determination of damages, implementing contingency measures to support AMB customers, and filing an appeal with the UPC Court of Appeals and pursuing other measures available to it. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with intellectual property and litigation, and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 23, 2026) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Posted by Defense World Staff on Mar 30th, 2026

Assenagon Asset Management S.A. acquired a new stake in IPG Photonics Corporation (NASDAQ:IPGP – Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 47,981 shares of the semiconductor company’s stock, valued at approximately $3,435,000. Assenagon Asset Management S.A. owned 0.11% of IPG Photonics at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. Versant Capital Management Inc boosted its position in shares of IPG Photonics by 51.1% in the third quarter. Versant Capital Management Inc now owns 343 shares of the semiconductor company’s stock worth $27,000 after buying an additional 116 shares during the period. Allworth Financial LP raised its holdings in shares of IPG Photonics by 10.2% during the 3rd quarter. Allworth Financial LP now owns 1,449 shares of the semiconductor company’s stock valued at $115,000 after buying an additional 134 shares during the period. PNC Financial Services Group Inc. lifted its position in IPG Photonics by 8.9% during the 2nd quarter. PNC Financial Services Group Inc. now owns 1,813 shares of the semiconductor company’s stock worth $124,000 after acquiring an additional 148 shares in the last quarter. Ballast Asset Management LP lifted its position in IPG Photonics by 0.6% during the 3rd quarter. Ballast Asset Management LP now owns 34,941 shares of the semiconductor company’s stock worth $2,767,000 after acquiring an additional 197 shares in the last quarter. Finally, Orion Porfolio Solutions LLC boosted its holdings in IPG Photonics by 2.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 7,922 shares of the semiconductor company’s stock worth $544,000 after acquiring an additional 215 shares during the period. Institutional investors and hedge funds own 93.79% of the company’s stock.

Insider Buying and Selling In other news, Director Eugene A. Scherbakov sold 2,700 shares of the company’s stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $80.96, for a total value of $218,592.00. Following the sale, the director owned 59,330 shares in the company, valued at approximately $4,803,356.80. This represents a 4.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Fibre Devices Ltd Ip sold 13,381 shares of the stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $81.52, for a total transaction of $1,090,819.12. Following the transaction, the insider directly owned 6,593,169 shares in the company, valued at $537,475,136.88. The trade was a 0.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 134,617 shares of company stock worth $10,636,883. 39.50% of the stock is currently owned by insiders.

Analyst Ratings Changes Several analysts have issued reports on IPGP shares. Raymond James Financial downgraded shares of IPG Photonics from a “strong-buy” rating to an “outperform” rating and increased their price objective for the company from $97.00 to $180.00 in a research report on Friday, February 13th. Zacks Research raised shares of IPG Photonics from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 15th. Wall Street Zen downgraded shares of IPG Photonics from a “buy” rating to a “hold” rating in a research note on Sunday. Stifel Nicolaus lifted their price target on shares of IPG Photonics from $92.00 to $165.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Finally, Roth Mkm boosted their price objective on shares of IPG Photonics from $105.00 to $110.00 and gave the stock a “buy” rating in a report on Tuesday, February 3rd. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $131.40.

View Our Latest Research Report on IPG Photonics

IPG Photonics Price Performance IPGP stock opened at $115.70 on Monday. The stock’s 50 day moving average is $115.71 and its two-hundred day moving average is $93.05. IPG Photonics Corporation has a 52-week low of $48.59 and a 52-week high of $155.82. The company has a market capitalization of $4.88 billion, a PE ratio of 156.35, a P/E/G ratio of 2.84 and a beta of 0.94.

IPG Photonics (NASDAQ:IPGP – Get Free Report) last released its earnings results on Thursday, February 12th. The semiconductor company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.25 by $0.21. The company had revenue of $274.47 million during the quarter, compared to analysts’ expectations of $249.58 million. IPG Photonics had a return on equity of 2.89% and a net margin of 3.10%.The business’s revenue was up 17.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.18 EPS. IPG Photonics has set its Q1 2026 guidance at 0.100-0.400 EPS. As a group, sell-side analysts anticipate that IPG Photonics Corporation will post 1.54 EPS for the current year.

IPG Photonics Profile (Free Report)

IPG Photonics Corporation is a global leader in the design and manufacture of high-performance fiber lasers and amplifiers used in industrial, medical, scientific, and telecommunications applications. The company’s core products include ytterbium and erbium fiber lasers, diode lasers, and fiber amplifiers that deliver high power and efficiency for precision cutting, welding, marking, and engraving. IPG’s systems are engineered to optimize process speed, reliability, and energy consumption, making them a preferred choice for advanced manufacturing environments.

In addition to stand-alone laser sources, IPG offers turnkey laser systems and integrated solutions tailored to sectors such as automotive, electronics, aerospace, additive manufacturing, and life sciences.

Further Reading Five stocks we like better than IPG Photonics

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SG Americas Securities LLC increased its position in IPG Photonics Corporation (NASDAQ:IPGP – Free Report) by 374.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 35,007 shares of the semiconductor company’s stock after buying an additional 27,629 shares during the period. SG Americas Securities LLC owned about 0.08% of IPG Photonics worth $2,507,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the company. Emerald Mutual Fund Advisers Trust acquired a new position in IPG Photonics in the 3rd quarter valued at $6,645,000. Allianz Asset Management GmbH boosted its holdings in shares of IPG Photonics by 45.2% during the third quarter. Allianz Asset Management GmbH now owns 200,138 shares of the semiconductor company’s stock worth $15,849,000 after purchasing an additional 62,286 shares during the last quarter. Polar Asset Management Partners Inc. grew its position in shares of IPG Photonics by 27.4% in the third quarter. Polar Asset Management Partners Inc. now owns 79,721 shares of the semiconductor company’s stock valued at $6,313,000 after purchasing an additional 17,132 shares during the period. Assenagon Asset Management S.A. acquired a new position in IPG Photonics in the fourth quarter valued at $3,435,000. Finally, Old West Investment Management LLC increased its stake in IPG Photonics by 138.0% in the third quarter. Old West Investment Management LLC now owns 20,842 shares of the semiconductor company’s stock valued at $1,650,000 after purchasing an additional 12,085 shares during the last quarter. Hedge funds and other institutional investors own 93.79% of the company’s stock.

Analyst Upgrades and Downgrades Several equities analysts recently weighed in on IPGP shares. Wall Street Zen downgraded IPG Photonics from a “buy” rating to a “hold” rating in a research report on Sunday, March 29th. Benchmark reaffirmed a “hold” rating on shares of IPG Photonics in a research note on Wednesday, December 10th. Raymond James Financial cut shares of IPG Photonics from a “strong-buy” rating to an “outperform” rating and raised their target price for the stock from $97.00 to $180.00 in a research report on Friday, February 13th. Stifel Nicolaus boosted their target price on shares of IPG Photonics from $92.00 to $165.00 and gave the company a “buy” rating in a report on Friday, February 13th. Finally, Roth Mkm upped their price target on shares of IPG Photonics from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $131.40.

View Our Latest Stock Report on IPG Photonics

Insider Activity In other IPG Photonics news, Director Eric Meurice sold 750 shares of IPG Photonics stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $95.00, for a total transaction of $71,250.00. Following the transaction, the director directly owned 22,803 shares of the company’s stock, valued at $2,166,285. The trade was a 3.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Valentin Gapontsev Trust I sold 23,029 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $76.98, for a total transaction of $1,772,772.42. Following the completion of the sale, the insider directly owned 6,818,577 shares of the company’s stock, valued at $524,894,057.46. The trade was a 0.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 134,617 shares of company stock valued at $10,636,883 over the last quarter. 39.50% of the stock is owned by insiders.

IPG Photonics Stock Performance IPGP stock opened at $113.94 on Friday. The company has a market cap of $4.84 billion, a PE ratio of 153.97, a price-to-earnings-growth ratio of 2.79 and a beta of 1.01. The stock has a 50-day moving average price of $118.65 and a two-hundred day moving average price of $94.00. IPG Photonics Corporation has a 12-month low of $48.59 and a 12-month high of $155.82.

IPG Photonics (NASDAQ:IPGP – Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.21. IPG Photonics had a return on equity of 2.89% and a net margin of 3.10%.The company had revenue of $274.47 million for the quarter, compared to the consensus estimate of $249.58 million. During the same period last year, the business posted $0.18 EPS. The company’s quarterly revenue was up 17.2% compared to the same quarter last year. IPG Photonics has set its Q1 2026 guidance at 0.100-0.400 EPS. Equities analysts forecast that IPG Photonics Corporation will post 1.54 EPS for the current fiscal year.

IPG Photonics Company Profile (Free Report)

IPG Photonics Corporation is a global leader in the design and manufacture of high-performance fiber lasers and amplifiers used in industrial, medical, scientific, and telecommunications applications. The company’s core products include ytterbium and erbium fiber lasers, diode lasers, and fiber amplifiers that deliver high power and efficiency for precision cutting, welding, marking, and engraving. IPG’s systems are engineered to optimize process speed, reliability, and energy consumption, making them a preferred choice for advanced manufacturing environments.

In addition to stand-alone laser sources, IPG offers turnkey laser systems and integrated solutions tailored to sectors such as automotive, electronics, aerospace, additive manufacturing, and life sciences.

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MARLBOROUGH, Mass., April 21, 2026 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (Nasdaq: IPGP) will release its first quarter 2026 financial results before the market opens on Tuesday, May 5, 2026. The Company will hold a conference call to review these results at 10:00 a.m. ET on the same day. To access the call, please dial 877-407-6184 in the United States or 201-389-0877 internationally. A live webcast of the call will also be available and archived in the investor relations section of the Company’s website at investor.ipgphotonics.com.

About IPG Photonics Corporation
IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.

Contact:
Eugene Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
[email protected]

Most robotics coverage in the media focuses on the headliners. The humanoid unveil. The next big deployment announcement. While we do cover these newer and “hot” technologies in-depth, it’s important to remember that the majority of innovation and deployment in physical automation continues to happen on the factory floor. 

Below, we highlight six companies in the ROBO Global Robotics and Automation Index (ROBO) that showcase a different side of the robotics story than you often hear in the news. Some have reported recently. Others are reporting soon. Taken together, they span the entire globe and are involved in almost every product you use. These are not companies you normally see trending on X.  

See more: ROBO Index-Linked Assets Double as Investors Pivot to Physical AI

FANUC Corporation (6954.T) If you want to understand industrial robotics, start with FANUC. Founded in 1956 as part of Fujitsu and spun out as an independent company in 1972, FANUC is the company that automated the machines that make the machines. It commands the top global market share in CNC (computerized numerical control) systems and industrial robots, and its yellow machines are embedded in manufacturing facilities across automotive, aerospace, electronics, and more.

In August 2023, it became the first industrial robot manufacturer to ship a cumulative one million robots. Today, with over a million units running factory floors across more than 100 countries, FANUC’s record FY2025 results provide a clear blueprint of where industrial automation capital is flowing.

In its fiscal year ending March 2026, FANUC posted record net sales of JPY 857 billion, up 8% year over year, with operating margin improving 150 basis points to 21.4%. For fiscal 2026, management guided 6% further sales growth and margin expansion to 23.3%. 

The drivers: strong factory automation demand in China and the Americas, and continued investment from customers navigating persistent labor shortages. FANUC’s tariff commentary is notable. After initial capital investment hesitancy, management said companies with sufficient liquidity are now investing again, partly because labor shortages in the U.S. show no sign of easing.

ABB (ABB) ABB is one of the foundational names in industrial automation. The Swiss-headquartered company spans robotics and discrete automation, electrification, process automation, and motion control. Its products are embedded in factories, power grids, data centers, ports, and electric vehicle infrastructure across 100 countries. If FANUC owns the CNC and robot controller layer, ABB owns much of the electrical infrastructure that powers the machines FANUC, and other ROBO constituents in the Manufacturing and Industrial Automation subsector controls.

That context makes its Q1 2026 results worth reading carefully. ABB posted orders of $11.3 billion against a consensus of $9.77 billion, beating it by more than $1.5 billion and up 32% year over year. Revenue grew 18%. Free cash flow hit a Q1 record of $1.3 billion. Management raised full-year guidance, targeting high single-digit to low double-digit revenue growth for 2026. The standout driver: electrification, where data center-related demand grew triple digits.

The same AI infrastructure buildout pulling through demand for Koh Young’s inspection systems and Han’s Laser’s processing equipment is simultaneously driving explosive demand for the electrical switchgear, power distribution, and automation systems that ABB makes. The factories building AI hardware need ABB products to run. The data centers running AI need ABB products to stay powered. Electrification is core to the supply and demand of robotics and AI. 

Han’s Laser (002008.SZ) Han’s Laser is China’s dominant laser processing equipment manufacturer and one of the world’s largest. The company’s machines cut, weld, mark, and process materials across electronics, automotive, new energy, and semiconductor manufacturing. It is the industrial laser equivalent of infrastructure.

Its 2025 annual report, released earlier this month, tells a similar story. Revenue hit $2.67 billion, up 27% year over year, a three-year high. Core operating profit, excluding non-recurring gains, surged 82%. Q4 2025 revenue was up 18.55% quarter over quarter, the fourth consecutive quarter of sequential improvement. The growth drivers tell you exactly where intelligent manufacturing capital is flowing: AI server infrastructure, new energy, and semiconductor domestic substitution across China. Looking ahead, management explicitly called out embodied intelligence as a 2026 opportunity. 

Koh Young Technology (098460.KQ) Most people have never heard of Koh Young. That is a mistake. The South Korean company is the global leader in 3D measurement-based inspection systems. In practice, that means Koh Young’s machines sit on electronics manufacturing lines around the world and verify, with sub-micron precision, that every solder joint, every component placement, and every semiconductor package is exactly where it should be. No inspection, no yield. No yield, no product.

Last week, Koh Young reported Q1 2026 results that deserve more attention than they got. Revenue of 72.7 billion won was up 42% year over year, a record first quarter. Operating profit jumped 209%. Net profit jumped 389%. The growth came from two simultaneous drivers: expanded sales of 3D semiconductor packaging inspection equipment to what the company described as a global No.1 AI data center optical communications module customer, and surging demand for its AI smart factory software across the same customer base. Both pillars grew at the same time. The company said that dynamic is exactly what they expect to continue.

IPG Photonics (IPGP) IPG Photonics (IPGP) invented the modern fiber laser. The Massachusetts-based company builds the high-power laser sources that sit inside cutting, welding, and materials processing systems across manufacturing globally. Where Han’s Laser makes the machine, IPG makes the engine inside the machine.

IPG does not report Q1 2026 until May 5, but its Q4 2025 results, released in February, made clear the recovery is real. Revenue of $274.5 million was up 17.2% year over year, beating consensus by a wide margin. The stock jumped over 35% on that print. Management guided Q1 2026 revenue of $235 to $265 million, acknowledging ongoing tariff uncertainty. The underlying demand driver is the same one running through this entire piece: manufacturers building out AI infrastructure, new energy capacity, and precision automation are buying more laser processing equipment. As a bonus, they are now seeing new demand from utilization in medical and even counter-drone technology that feels a bit like Star Wars.

Microchip Technology (MCHP) Microchip Technology (MCHP) is the backbone of embedded control in industrial robotics. Its microcontrollers, FPGAs, and analog chips are inside motor drives, robotic arms, sensors, and automation controllers across the industrial stack. When a robot moves, there is often a Microchip part deciding how.

Microchip spent most of 2024 and the first half of 2025 working through one of the worst inventory corrections in the semiconductor industry, which appears to have escaped from the bottom. In Q3 fiscal 2026 (the quarter ended December 31, 2025), revenue hit $1.186 billion, up 15.6% year over year and well above guidance. Non-GAAP gross margins recovered from 52% at the trough to 60.5%. Management guided Q4 fiscal 2026 revenue of approximately $1.26 billion at the midpoint, up 29.8% year over year. CEO Steve Sanghi called it a broad-based recovery across end markets, with industrials leading. 

Robotics Ecosystem Takeaways  These six companies touch different parts of the robotics and automation stack. CNC and robot controllers. Electrical infrastructure and power systems. Laser processing and materials manufacturing. Precision inspection. Embedded semiconductors. Precise robot arms and manipulation. 

Capital is coming back into industrial automation. The AI infrastructure buildout is pulling through demand for intelligent manufacturing equipment, not just data center hardware. Labor economics are reinforcing the automation case in the Americas and across Asia. Electrification is the connective tissue binding it all together. And companies that held margins through the cycle are now positioned to expand them as volumes return.

The continued march of Robotics as a fundamental part of our modern world has been the thesis since the inception of the ROBO Index back in 2013. What is clarifying right now is the breadth of confirmation. Across the world, the same buildout is showing up in orders, revenue, margins, and guidance. 

The factory floor is speaking, are you listening? 

ROBO is the underlying index for the ROBO Global Robotics & Automation ETF (ROBO), the L&G ROBO Global Robotics and Automation UCITS ETF (ROBO.LN), and the Global X ROBO Global Robotics & Automation ETF (ROBO.AU).  

Looking for regular updates? Subscribe here for weekly insights on robotics, AI, and healthcare technology, delivered straight to your inbox.

For more news, information, and analysis, visit our Artificial Intelligence & Disruptive Technology Content Hubs.

VettaFi is the index provider for ROBO ETFs, for which it receives an index licensing fee. However, ROBO ETFs are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of ROBO ETFs. 

U.S. Fund A Shares (without sales charge*) posted a return of 1.17% in first quarter 2026. Leading contributors in the First Eagle U.S. Fund this quarter included gold bullion, Exxon Mobil Corporation, Noble Corporation PLC Class A, IPG Photonics Corporation and SLB Limited. The leading detractors in the quarter were Workday, Inc. Class A, Oracle Corporation, Salesforce.com, Inc., Meta Platforms, Inc. Class A and Universal Health Services, Inc, Class B.

 Strong Start to the Year on Growing Demand and Continued Focus on Execution of Strategic Initiatives

Managing Costs and Mitigating Tariff Impact on Gross Margin

MARLBOROUGH, Mass., May 05, 2026 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the first quarter ended March 31, 2026.

  Three Months Ended March 31,(In millions, except per share data and percentages)  2026   2025  ChangeRevenue $265.5  $227.8  17%Gross margin  37.5%  39.4%  Operating income (loss) $(7.7) $1.8  NMOperating margin (2.9)%  0.8%  Net income $1.6  $3.8  (58)%Earnings per diluted share $0.04  $0.09  (56)%Non-GAAP Measures*      Adjusted gross margin  37.8%  40.0%  Adjusted EBITDA $35.2  $32.7  8%Adjusted earnings per diluted share $0.29  $0.31  (6)%
*Adjusted gross margin, adjusted EBITDA and adjusted earnings per diluted share include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this earnings release.

NM - not meaningful.

Management Comments

“I am pleased to share that first-quarter revenue came in above our expectations. The team delivered our second consecutive quarter of double-digit year-over-year revenue growth, driven by disciplined execution of our key strategic initiatives and continued strong demand for our laser solutions,” said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics.

Financial Highlights

Beginning in the first quarter, the Company revised its revenue disaggregation by application into two categories: Industrial Solutions and Advanced Solutions. This structure better reflects 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.

 Three Months Ended March 31, 2026
 2025
 ChangeSales by Application     Industrial Solutions$227,590 $188,016 21%Advanced Solutions 37,907  39,777 (5)%Total$265,497 $227,793 17%
First quarter revenue of $265 million increased 17% year over year, driven by growth in Industrial Solutions. Changes in foreign exchange rates increased revenue growth by approximately 4%. Industrial Solutions sales accounted for 86% of total revenue and increased 21% year over year, driven by growth in welding, cutting, marking, and cleaning applications. Advanced Solutions sales decreased 5% year over year due to lower revenue in micromachining and defense applications, partially offset by increased sales in medical and semiconductor applications. Emerging growth products accounted for 53% of total revenue, consistent with the prior quarter. By region, sales increased 14% in Asia, 27% in North America, and 4% in Europe on a year-over-year basis.

GAAP gross margin of 37.5% and adjusted gross margin of 37.8% decreased year over year due to tariffs and higher product cost, partially offset by lower inventory provisions. Adjusted EBITDA was $35.2 million and adjusted earnings per diluted share (EPS) was $0.29 in the first quarter. During the first quarter, IPG spent $16 million on capital expenditures.

Business Outlook and Financial Guidance

“Our book-to-bill was once again firmly above one in the first quarter, reflecting robust demand for our solutions despite elevated macroeconomic uncertainty. We remain focused on executing on our growth strategy supported by operational excellence and an innovation engine that is unlocking areas of significant additional opportunities. This foundation gives us confidence in our ability to achieve above-market growth and deliver lasting value for our customers and shareholders.” concluded Dr. Gitin.

For the second quarter of 2026, IPG expects revenue of $260 million to $290 million, adjusted gross margin between 37% and 40% and adjusted operating expenses of $92 million to $95 million. IPG anticipates delivering adjusted earnings per diluted share in the range of $0.25 to $0.55 and adjusted EBITDA in the range of $32 million to $48 million.

As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, product demand, order cancellations and delays, competition, tariffs and retaliatory tariffs, currency fluctuations and general economic conditions. The current uncertainty related to the trade environment and tariff policies increases the risks to the outlook that we have provided. This guidance is based upon current market conditions and expectations, and is subject to the risks outlined in the Company's reports filed with the SEC, and assumes exchange rates relative to the U.S. dollar of euro 0.87, Japanese yen 159 and Chinese yuan 6.92, respectively.

Supplemental Financial Information

Additional supplemental financial information is provided in the unaudited Financial Data Workbook and First Quarter 2026 Earnings Call Presentation available on the investor relations section of the Company's website at investor.ipgphotonics.com.

Conference Call Reminder

The Company will hold a conference call today, May 5, 2026 at 10:00 am ET. To access the call, please dial 877-407-6184 in the US or 201-389-0877 internationally. A live webcast of the call will also be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com.

Contact

Eugene Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
[email protected]

About IPG Photonics Corporation

IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions, making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability, and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.

Safe Harbor Statement

Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those statements related to operational excellence, an innovation engine that is unlocking areas of significant additional opportunities, and the ability to achieve above-market growth and deliver lasting value for our customers and shareholders, and statements related to shares repurchases, revenue, adjusted gross margin and operating expenses outlook, adjusted earnings per diluted share and adjusted EBITDA guidance, including the expected impact of tariffs, and the impact of the U.S. dollar on our guidance for the second quarter of 2026. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and tariff policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 23, 2026) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
   Three Months Ended March 31,   2026  2025
  (In thousands, except per share data)Net sales $265,497  $227,793Cost of sales  165,998   137,981Gross profit  99,499   89,812Operating expenses:    Sales and marketing  24,534   24,430Research and development  33,309   28,336General and administrative  36,092   32,808Settlement of litigation matters  13,500   —(Gain) loss on foreign exchange  (200)  2,411Total operating expenses  107,235   87,985Operating (loss) income  (7,736)  1,827Other income, net:    Interest income, net  6,922   7,444Other income, net  1,833   1,344Total other income  8,755   8,788Income before provision for income taxes  1,019   10,615(Benefit) provision for income taxes  (565)  6,857Net income $1,584  $3,758Net income per common share:    Basic $0.04  $0.09Diluted $0.04  $0.09Weighted average common shares outstanding:    Basic  42,245   42,605Diluted  42,912   42,832 IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
   March 31, December 31,   2026   2025   (In thousands, except share and
per share data)ASSETSCurrent assets:    Cash and cash equivalents $480,761  $403,790 Short-term investments  332,144   435,538 Accounts receivable, net  192,437   181,734 Inventories  319,006   313,416 Prepaid income taxes  51,203   43,196 Prepaid expenses and other current assets  57,587   45,766 Total current assets  1,433,138   1,423,440 Long-term investments  70,567   76,533 Deferred income taxes, net  120,934   123,889 Goodwill  70,913   71,735 Intangible assets, net  47,171   49,933 Property, plant and equipment, net  636,242   637,516 Other assets  42,677   41,234 Total assets $2,421,642  $2,424,280 LIABILITIES AND EQUITYCurrent liabilities:    Accounts payable $54,724  $39,288 Accrued expenses and other current liabilities  184,849   184,849 Income taxes payable  7,603   9,900 Total current liabilities  247,176   234,037 Other long-term liabilities and deferred income taxes  58,671   62,113 Total liabilities  305,847   296,150 Commitments and contingencies    IPG Photonics Corporation equity:    Common stock, $0.0001 par value, 175,000,000 shares authorized; 57,281,253 and 42,443,381 shares issued and outstanding, respectively, at March 31, 2026; 56,964,939 and 42,127,067 shares issued and outstanding, respectively, at December 31, 2025.  6   6 Treasury stock, at cost, 14,837,872 shares held at March 31, 2026 and December 31, 2025, respectively.  (1,555,629)  (1,555,629)Additional paid-in capital  1,075,709   1,077,172 Retained earnings  2,646,548   2,644,964 Accumulated other comprehensive loss  (50,839)  (38,383)Total stockholders' equity  2,115,795   2,128,130 Total liabilities and stockholders' equity $2,421,642  $2,424,280  IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
   Three Months Ended March 31,   2026   2025   (In thousands)Cash flows from operating activities:    Net income $1,584  $3,758 Adjustments to reconcile net income to net cash (used in) provided by operating activities:    Depreciation and amortization  15,892   15,341 Provisions for inventory, warranty & bad debt  9,348   11,876 Other  11,425   14,796 Changes in assets and liabilities that (used) provided cash:    Accounts receivable and accounts payable  5,438   1,378 Inventories  (19,417)  (8,967)Other  (29,733)  (24,737)Net cash (used in) provided by operating activities  (5,463)  13,445 Cash flows from investing activities:    Purchases of and deposits on property, plant and equipment  (16,311)  (24,818)Proceeds from sales of property, plant and equipment  812   183 Purchases of investments  (32,870)  (333,009)Proceeds from maturities of investments  143,538   83,206 Other  77   52 Net cash provided by (used in) investing activities  95,246   (274,386)Cash flows from financing activities:    Payments for taxes related to net share settlement of equity awards less proceeds from issuance of common stock under employee stock option plans  (11,712)  (5,775)Purchase of treasury stock net of excise tax, at cost  —   105 Net cash used in financing activities  (11,712)  (5,670)Effect of changes in exchange rates on cash and cash equivalents  (1,100)  9,617 Net increase (decrease) in cash and cash equivalents  76,971   (256,994)Cash and cash equivalents — Beginning of period  403,790   620,040 Cash and cash equivalents — End of period $480,761  $363,046 Supplemental disclosures of cash flow information:    Cash paid for interest $3  $5 Cash paid for income taxes, net of refunds $7,689  $10,574 
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Use of Non-GAAP Adjusted Financial Information

We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”) and are provided as supplemental information to enhance understanding of the Company’s financial performance. These measures should not be considered as a substitute for, or superior to, GAAP financial measures. The following information provides the definition of adjusted gross profit, adjusted gross margin, adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, adjusted net earnings per share (EPS), and adjusted tax rate as presented, which are financial measures that are not calculated or presented in accordance with GAAP, and reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided adjusted gross profit, adjusted gross margin, adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, adjusted EPS, and an adjusted tax rate as supplemental information and in addition to the financial measures presented by the Company that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measure presented by the Company.

We define adjusted gross profit as reported gross profit, adjusted for non-recurring, infrequent, or unusual changes, including acquisition and integration charges and amortization of acquisition-related intangibles.

We define adjusted gross margin as adjusted gross profit divided by total revenue.

We define adjusted operating income as reported income from operations, adjusted for non-recurring, infrequent, or unusual charges, including acquisition and integration charges, amortization of acquisition-related intangibles, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.

We define EBITDA as net income plus interest expense (income), provision for income taxes, depreciation expense, and amortization expense.

We define adjusted EBITDA as EBITDA adjusted for non-recurring, infrequent, or unusual charges, and other adjustments that the Company believes appropriate, including stock-based compensation, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.

We define adjusted net income as reported net income, adjusted for non-recurring, infrequent, or unusual changes, and other adjustments that the Company believes appropriate, including amortization of acquisition-related intangibles, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture, certain discrete tax items and non-GAAP income tax reconciling adjustments.

We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.

We define adjusted tax rate as the GAAP tax rate, adjusted for discrete tax items and the net impact of non-GAAP adjustments.

Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. Specifically, these non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts.

In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies. Management may, however, utilize other measures to illustrate performance in the future. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided below. These non-GAAP measures exclude (i) special inventory provisions, (ii) amortization of acquisition-related intangibles, (iii) restructuring charges, (iv) acquisition and integration costs, (v) goodwill and intangible asset impairments, (vi) long-lived asset impairments and accelerated depreciation of certain long-lived assets, (vii) foreign exchange gains/losses, (viii) interest income, (ix) benefit (provision) from income taxes, (x) depreciation, (xi) amortization, (xii) stock-based compensation, (xiii) gain/loss on disposal of assets/divestiture, (xiv) settlement and fees of litigation matters (xv) certain discrete tax items, and (xvi) non-GAAP income tax reconciling adjustments.

We have not provided a quantitative reconciliation of forward-looking Non-GAAP adjusted earnings per diluted share and adjusted EBITDA to their most directly comparable GAAP financial measures because we are unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact adjusted earnings per diluted share and adjusted EBITDA. This includes items that have not yet occurred, are out of the Company’s control, cannot be reasonably predicted and/or for which there would not be any meaningful adjustment or difference. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Our non-GAAP tax provision for the fiscal first quarter of 2026 is 30%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments.

IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-GAAP MEASUREMENTS (UNAUDITED)

Reconciliation of Gross Profit to Adjusted Gross Profit, Adjusted Gross Margin
   Three Months Ended March 31,   2026   2025   (in thousands, except percentages)Gross profit $99,499  $89,812 Gross margin  37.5%  39.4%Amortization of acquisition-related intangibles  852   1,016 Acquisition and integration charges  —   222 Adjusted gross profit $100,351  $91,050 Adjusted gross margin  37.8%  40.0% Reconciliation of Operating income (loss) to Adjusted Operating Income
   Three Months Ended March 31,   2026  2025
  (in thousands)Operating (loss) income $(7,736) $1,827Amortization of acquisition-related intangibles  2,089   2,502Restructuring charges  66   —Acquisition and integration charges  906   991Settlement and fees of litigation matters  14,128   —(Gain) loss on foreign exchange  (200)  2,411Adjusted operating income $9,253  $7,731 Reconciliation of Net income to Adjusted EBITDA
   Three Months Ended March 31,   2026   2025   (in thousands)Net income $1,584  $3,758 Interest income, net  (6,922)  (7,444)Provision for income taxes  (565)  6,857 Depreciation  12,747   11,556 Amortization  3,145   3,785 EBITDA $9,989  $18,512 Stock based compensation  10,341   10,767 Restructuring charges  66   — Acquisition and integration charges  906   991 Settlement and fees of litigation matters  14,128   — (Gain) loss on foreign exchange  (200)  2,411 Adjusted EBITDA $35,230  $32,681  Reconciliation of GAAP to Non-GAAP Net Income, and GAAP to Non-GAAP Net Income per Share, Diluted
     Three Months Ended March 31,   2026   2025   (in thousands, except per share data)Net income $1,584  $3,758 Amortization of acquisition-related intangibles  2,089   2,502 Restructuring charges  66   — Acquisition and integration charges  906   991 Settlement and fees of litigation matters  14,128   — (Gain) loss on foreign exchange  (200)  2,411 Certain discrete tax items  (1,119)  4,614 Tax impact of non-GAAP adjustments  (4,873)  (1,148)Adjusted net income $12,581  $13,128 Adjusted net earnings per diluted share $0.29  $0.31 Weighted average diluted shares outstanding  42,912   42,832  Reconciliation of GAAP to Non-GAAP Effective Tax Rate
   Three Months Ended March 31,  2026
 2025
Tax rate (55)% 65%
Discrete tax items 110%
 (43)%Net impact of non-GAAP adjustments (25)% (1)%Adjusted tax rate 30%
 21%

Laser company IPG Photonics (IPGP +2.26%) stock got blasted for a 24.8% loss through 11:45 a.m. ET Tuesday morning despite beating on in its Q1 earnings report.

Heading into the report, analysts forecast IPG to earn $0.27 per share (pro forma) on $256.5 million in sales. In fact, IPG earned $0.29 per share on $265.5 million in sales.

Image source: Getty Images.

IPG Photonics Q1 earnings Not all the news was good.

IPG grew sales an impressive 17% year over year, but profitability declined due to tariff costs. Gross profit margin dropped nearly two percentage points to 37.5%, pushing IPG into an operating loss. Interest on savings and "other" income helped even things out, but IPG's GAAP net profit of $0.04 per share was a whole lot less than the $0.29 per share pro forma profit noted above.

It was also more than 50% less than last year's Q1 profit.

Today's Change

(

2.26

%) $

2.51

Current Price

$

113.70

What's next for IPG Photonics stock? Turning to guidance, IPO highlighted a book-to-bill ratio 1.0, indicating "robust demand for our solutions" and suggesting further sales growth ahead. In Q2, management forecasts sales between $260 million and $290 million, some improvement in gross margin on those sales, and pro forma profit between $0.25 to $0.55.

The bad news? While IPG's sales target looks fine and in line with analyst expectations, Wall Street was hoping IPG would promise $0.43 per share in profit -- and the midpoint of a range stretching from $0.25 to $0.55 is only $0.40 per share.

It's likely to be a small Q2 miss, but it's still a bigger miss than the Q1 beat. For a stock trading for 167 times earnings, it's too big for investors to forgive -- and that's why they're selling IPG Photonics stock today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends IPG Photonics. The Motley Fool has a disclosure policy.

Key Takeaways IPGP Q1 revenues rose 16.5% to $265.5M, but adjusted EPS fell 6% to 29 cents.Industrial Solutions made 86% of IPGP sales, up 21% y/y, with emerging growth products at 53%.IPG Photonics sees Q2 revenues of $260M-$290M; tariffs to cut adjusted gross margin by 150 bps. IPG Photonics (IPGP - Free Report) reported first-quarter 2026 adjusted earnings of 29 cents per share, which missed the Zacks Consensus Estimate by 9.4% and decreased 6% year over year.

Revenues of $265.5 million increased 16.5% year over year and beat the consensus mark by 3.9%. Emerging growth products accounted for 53% of total revenue in the quarter.

IPGP Revenue Mix Tilts Toward Industrial SolutionsIPGP’s first-quarter growth was driven by improved demand in Industrial Solutions. Industrial Solutions revenues were $227.6 million, representing 86% of total sales and rising 21% year over year, supported by higher revenues in welding, cutting, marking and cleaning applications.

Advanced Solutions revenues were $37.9 million, down 5% year over year. Management noted that growth in medical and semiconductor applications was offset by lower micromachining sales tied to cyclical demand in solar cell manufacturing, alongside lower defense revenue.

IPG Photonics Benefits From Battery And Medical DemandWithin Industrial Solutions, IPG Photonics highlighted continued strength in battery manufacturing demand, which supported results in welding and cutting. The company also pointed to progress in expanding system-level offerings, an area it said is helping IPGP move up the value chain by integrating fiber lasers into complete solutions across applications like welding and cleaning.

In Advanced Solutions, IPG Photonics emphasized traction in medical and semiconductor markets. Medical revenues grew significantly year over year, aided by sales to a new customer, and the company expects several new product approvals and introductions across 2026 and 2027. Semiconductor revenue also improved as IPG ramps new business in lithography, metrology and inspection with large equipment manufacturers.

IPGP Margins Hit by Tariffs Despite Inventory ImprovementsProfitability reflected a mix of operational progress and external cost pressure. GAAP gross margin was 37.5% versus 39.4% in the year-ago quarter, while adjusted gross margin was 37.8% compared with 40% a year ago. Management attributed the year-over-year decline primarily to tariffs and higher product costs, partially offset by lower inventory provisions tied to improved inventory management.

Sequentially, both GAAP and adjusted gross margins improved, benefiting from improved absorption and lower inventory provisions. The company reiterated its focus on pricing and cost-reduction initiatives to support margin improvement, while noting that underabsorbed expenses remain higher than targeted in the medium term.

Operating expenses were impacted by a significant one-time item. Total GAAP operating expenses were $107.2 million, which included a $13.5 million settlement payment and license related to an agreement with TRUMPF Laser- und Systemtechnik, settling all parts of litigation worldwide. Excluding the settlement payment, litigation expenses, amortization and acquisition-related expenses, adjusted operating expenses were approximately $91 million.

GAAP operating loss was $7.7 million in the reported quarter, compared with operating income of $1.8 million in the year-ago quarter. On an adjusted basis, operating income was $9.3 million, up 21% year over year, highlighting that the primary variance in GAAP profitability was tied to non-recurring items.

IPGP Maintains Strong Liquidity and a Debt-Free Balance SheetIPGP ended the first quarter with $813 million in cash and short-term investments, plus $71 million in long-term investments, and no debt. Inventories stood at $319 million, while days sales outstanding were 65.

Cash used in operations was $5.5 million in the first quarter, a period management described as typically weaker for cash generation due to annual bonus payments. Capital expenditures were $16.3 million, reflecting the timing of investments in the company’s major fiber manufacturing facility in Germany.

IPG Photonics Issues Q2 View and Flags Tariff ImpactFor the second quarter of 2026, IPG Photonics expects revenues of $260 million to $290 million. Adjusted gross margin is projected between 37% and 40%, including an estimated tariff-related impact of about 150 basis points.

The company guided adjusted operating expenses of $92 million to $95 million and expects adjusted earnings between 25 cents and 55 cents per share. Adjusted EBITDA is expected to be between $32 million and $48 million, with management noting a cautiously optimistic stance that assumes a generally stable operating environment.

Zacks Rank & Stocks to ConsiderIPG Photonics currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Docebo (DCBO - Free Report) , Diodes (DIOD - Free Report) and Keysight Technologies (KEYS - Free Report) . Each of the three stocks carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diodes, Docebo and Keysight Technologies are set to report their quarterly results on May 7, 8 and 19, respectively. Year to date, shares of Diodes and Keysight Technologies have jumped 128% and 75.2%, respectively, while Docebo has dropped 8.4%.

It has been about a month since the last earnings report for IPG Photonics (IPGP - Free Report) . Shares have added about 19.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is IPG due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for IPG Photonics Corporation before we dive into how investors and analysts have reacted as of late.

IPGP Q1 Earnings Miss Estimates, Strong Industrial Growth Aids RevenueIPG Photonics reported first-quarter 2026 adjusted earnings of 29 cents per share, which missed the Zacks Consensus Estimate by 9.4% and decreased 6% year over year. 

Revenues of $265.5 million increased 16.5% year over year and beat the consensus mark by 3.9%. Emerging growth products accounted for 53% of total revenue in the quarter.

IPGP Revenue Mix Tilts Toward Industrial SolutionsIPGP’s first-quarter growth was driven by improved demand in Industrial Solutions. Industrial Solutions revenues were $227.6 million, representing 86% of total sales and rising 21% year over year, supported by higher revenues in welding, cutting, marking, and cleaning applications.

Advanced Solutions' revenues were $37.9 million, down 5% year over year. Management noted that growth in medical and semiconductor applications was offset by lower micromachining sales tied to cyclical demand in solar cell manufacturing, alongside lower defense revenue.

IPG Photonics Benefits From Battery And Medical DemandWithin Industrial Solutions, IPG Photonics highlighted continued strength in battery manufacturing demand, which supported results in welding and cutting. The company also pointed to progress in expanding system-level offerings, an area it said is helping IPGP move up the value chain by integrating fiber lasers into complete solutions across applications like welding and cleaning.

In Advanced Solutions, IPG Photonics emphasized traction in medical and semiconductor markets. Medical revenues grew significantly year over year, aided by sales to a new customer, and the company expects several new product approvals and introductions across 2026 and 2027. Semiconductor revenue also improved as IPG ramps new business in lithography, metrology, and inspection with large equipment manufacturers.

IPGP Margins Hit by Tariffs Despite Inventory ImprovementsProfitability reflected a mix of operational progress and external cost pressure. GAAP gross margin was 37.5% versus 39.4% in the year-ago quarter, while adjusted gross margin was 37.8% compared with 40% a year ago. Management attributed the year-over-year decline primarily to tariffs and higher product costs, partially offset by lower inventory provisions tied to improved inventory management.

Sequentially, both GAAP and adjusted gross margins improved, benefiting from improved absorption and lower inventory provisions. The company reiterated its focus on pricing and cost-reduction initiatives to support margin improvement, while noting that underabsorbed expenses remain higher than targeted in the medium term.

Operating expenses were impacted by a significant one-time item. Total GAAP operating expenses were $107.2 million, which included a $13.5 million settlement payment and license related to an agreement with TRUMPF Laser- und Systemtechnik, settling all parts of litigation worldwide. Excluding the settlement payment, litigation expenses, amortization, and acquisition-related expenses, adjusted operating expenses were approximately $91 million.

GAAP operating loss was $7.7 million in the reported quarter, compared with operating income of $1.8 million in the year-ago quarter. On an adjusted basis, operating income was $9.3 million, up 21% year over year, highlighting that the primary variance in GAAP profitability was tied to non-recurring items.

IPGP Maintains Strong Liquidity and a Debt-Free Balance SheetIPGP ended the first quarter with $813 million in cash and short-term investments, plus $71 million in long-term investments, and no debt. Inventories stood at $319 million, while days sales outstanding were 65.

Cash used in operations was $5.5 million in the first quarter, a period management described as typically weaker for cash generation due to annual bonus payments. Capital expenditures were $16.3 million, reflecting the timing of investments in the company’s major fiber manufacturing facility in Germany.

IPG Photonics Issues Q2 View and Flags Tariff ImpactFor the second quarter of 2026, IPG Photonics expects revenues of $260 million to $290 million. Adjusted gross margin is projected between 37% and 40%, including an estimated tariff-related impact of about 150 basis points.

The company guided adjusted operating expenses of $92 million to $95 million and expects adjusted earnings between 25 cents and 55 cents per share. Adjusted EBITDA is expected to be between $32 million and $48 million, with management noting a cautiously optimistic stance that assumes a generally stable operating environment.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -6.67% due to these changes.

VGM ScoresAt this time, IPG has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise IPG has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Total revenue of $788.7 million increased 11.7% over the prior year quarter Net income of $88.1 million increased 15.8% over the prior year quarter Diluted EPS of $0.39 increased 14.7% over the prior year quarter Adjusted net income of $96.2 million increased 27.4% over the prior year quarter Adjusted EBITDA of $226.7 million increased 18.3% over the prior year quarter Adjusted diluted EPS of $0.42 increased 23.5% over the prior year quarter Raised 2026 outlook , /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced its financial results for the fiscal first quarter ended March 31, 2026.

Bahram Akradi, Founder, Chairman and CEO, stated: "Our first quarter results reflect strong execution and continued momentum across our business. Our growth strategy remains on track. We are on schedule to open this year's planned 12 to 14 new clubs, which are predominantly large-format, ground-up athletic country clubs. Membership engagement continues to rise, our membership mix is improving, and in-center performance remains robust. Supported by a solid balance sheet, low leverage, and strong cash generation, we are well positioned for continued growth."

Financial Summary

Three Months Ended

($ in millions, except for Average center revenue per center membership data)

March 31,

2026

2025

Percent
Change

Total revenue

$788.7

$706.0

11.7 %

Center operations expenses

$406.7

$371.0

9.6 %

Rent

$89.9

$81.2

10.7 %

General, administrative and marketing expenses (1)

$59.6

$57.8

3.1 %

Net income

$88.1

$76.1

15.8 %

Adjusted net income

$96.2

$75.5

27.4 %

Adjusted EBITDA

$226.7

$191.6

18.3 %

Comparable center revenue (2)

8.6 %

12.9 %

Center memberships, end of period

837,903

826,374

1.4 %

Average center revenue per center membership

$930

$844

10.2 %

(1)

The three months ended March 31, 2026 and 2025 included non-cash share-based compensation expense of $9.1 million and $10.3 million, respectively.

(2)

The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

First Quarter 2026 Information

Revenue increased 11.7% to $788.7 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues including from improved membership mix, membership growth in our new and ramping centers and higher member utilization of our in-center offerings, particularly in Dynamic Personal Training. Center memberships of 837,903 increased by 11,529, or 1.4%, when compared to March 31, 2025, and increased by 15,523, or 1.9%, from December 31, 2025, consistent with seasonality expectations and continued improvement in membership mix, including a significant reduction in qualified memberships administered through medical insurance providers, which have significantly lower average dues. Total subscriptions, which include center memberships and on-hold memberships, of 888,050 increased 0.9% compared to March 31, 2025. Center operations expenses increased 9.6% to $406.7 million primarily due to operating costs related to our new and ramping centers, additional center operating expenses related to increased club utilization in our mature centers, as well as costs to support in-center business revenue growth. General, administrative and marketing expenses increased 3.1% to $59.6 million primarily due to increases in center support overhead to enhance and broaden our member services and experiences. Net income increased 15.8% to $88.1 million primarily due to business performance, slightly offset by $12.6 million of income tax benefits in the prior period due to a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025. Adjusted net income increased 27.4% to $96.2 million and Adjusted EBITDA increased 18.3% to $226.7 million as we experienced greater flow through of our increased revenue. New Center Openings

We opened one new center during the first quarter of 2026. As of March 31, 2026, we operated a total of 190 centers. Cash Flow Highlights

Net cash provided by operating activities for the three months ended March 31, 2026 was $198.8 million, an increase of 8.1% compared to the prior year period. On April 29 and April 30, 2026, we completed two sale-leaseback transactions for five properties and net proceeds of approximately $200 million. Our capital expenditures by type of expenditure were as follows:
Three Months Ended

($ in millions)

March 31,

2026

2025

Percent
Change

Growth capital expenditures (1)

$205.2

$93.5

119.5 %

Maintenance capital expenditures (2)

$31.5

$29.4

7.1 %

Modernization and technology capital expenditures (3)

$23.3

$19.6

18.9 %

Total capital expenditures

$260.0

$142.5

82.5 %

(1)

Consist of new center land and construction, initial major remodels of acquired centers, major remodels of existing centers that expand existing square footage, asset acquisitions including the purchase of previously leased centers and other growth initiatives.

(2)

Consist of capital expenditures required to maintain the operating condition of our existing centers.

(3)

Consist of capital expenditures related to updates and enhancements to our existing centers, technology investments, and corporate infrastructure.

Liquidity and Capital Resources

Our net debt leverage ratio improved to 1.6 times as of March 31, 2026, from 2.0 times as of March 31, 2025. As of March 31, 2026, our total available liquidity was $736.9 million, which included $616.9 million of availability on our $650.0 million revolving credit facility and $120.0 million of cash and cash equivalents. At March 31, 2026, there were no outstanding borrowings under our revolving credit facility and there were $33.1 million of outstanding letters of credit. 2026 Outlook

Full-Year 2026 Guidance

Percent

Year Ending

Year Ending

Year Ended

Change

December 31, 2026

December 31, 2026

December 31, 2025

(Using

(Guidance as of

($ in millions)

(Guidance)

(Actual)

Midpoints)

February 24, 2026)

Total revenue

$3,320 – $3,350

$2,995.3

11.3 %

$3,300 – $3,330

Rent

$378 – $386

$339.2

12.6 %

$378 – $388

Net Income

$340 – $345

$373.7

(8.3) %

$330 – $336

Adjusted net income

$378 – $386

$325.5

17.4 %

$369 – $378

Adjusted EBITDA

$925 – $940

$825.2

13.0 %

$910 – $925

The Company is reiterating the following expectations for fiscal 2026 as outlined in its fourth quarter and full-year 2025 results announced on February 24, 2026:

Open 12 to 14 new clubs, most of which will be large-format, ground-up construction clubs. We expect the total square footage of our 2026 class of clubs to be approximately 1.2 million square feet, nearly double the square footage of each of our 2024 class and 2025 class of clubs. We expect the majority of our 2026 class of clubs to open in the back half of the year, including six to seven in the fourth quarter of 2026. Maintenance capital expenditures of $140 to $150 million, modernization and technology capital expenditures of $130 to $140 million, and growth capital expenditures of $875 to $915 million.   Manage our net debt to Adjusted EBITDA leverage ratio to maintain at or below 2.00 times. Provision for income tax rate estimate of 28%. The Company is also updating the following operational and financial expectations for fiscal 2026:

Complete approximately $400 million of sale-leaseback transactions, increased from $300 million. Comparable center revenue growth of 6.9% to 7.5%, which includes our ramping and mature centers, increased from 6.3% to 7.3%.   Rent to include non-cash rent expense of $31 million to $34 million, increased from $24 million to $27 million. Cash income tax expense of $80 million to $83 million, increased from $57 million to $59 million, reflecting the normalization of cash taxes following the utilization of net operating loss carryforwards in the prior year and lower tax depreciation. Interest expense, net of interest income, of approximately $59 million to $63 million, and net of $28 million to $30 million of capitalized interest expense related to construction in progress. This is an increase from $56 million to $60 million, net of $33 million to $35 million of capitalized interest expense related to construction in progress. Year-end weighted-average diluted common shares outstanding of approximately 228 million to 230 million, not including any incremental impact that may occur as a result of our $500 million share buyback program, decreased from 229 million to 231 million. Conference Call Details

A conference call to discuss our first quarter financial results is scheduled for today:

Date: Tuesday, May 5, 2026 Time: 10:00 a.m. ET (9:00 a.m. CT) U.S. dial-in number: 1-877-451-6152 International dial-in number: 1-201-389-0879 Webcast: LTH 1Q 2026 Earnings Call A link to the live audio webcast of the conference call will be available at https://ir.lifetime.life. Replay Information

Webcast – A recorded replay of the webcast will be available within approximately three hours of the call's conclusion and may be accessed at: https://ir.lifetime.life.

Conference Call – A replay of the conference call will be available after 1:00 p.m. ET the same day through May 22, 2026:

U.S. replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 1375 6339 Earnings Supplement Presentation

The Company has made available supplemental material regarding its revenue growth strategy, memberships, and cash flow on its investor relations website at https://ir.lifetime.life.

About Life Time

Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complementary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 45,000 team members.

Use of Non-GAAP Financial Measures and Key Performance Indicators

This press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted net income per common share, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net income per common share, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.

Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.

The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.

The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its financial outlook for fiscal year 2026, growth, strength of its balance sheet, net debt and leverage, capital expenditures, interest expense, consumer demand, industry and economic trends, member engagement and mix, tax rates and expense, rent expense, expected number of diluted common shares outstanding, expected number, size and timing of new center openings, successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof) and the timing, amount and price of any share repurchase. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and the growth of our business including the competitive and economic environment, risks relating to our brand, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2026 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Revenue:

Center revenue

$       767,566

$     685,654

Other revenue

21,134

20,387

Total revenue

788,700

706,041

Operating expenses:

Center operations

406,704

370,987

Rent

89,891

81,165

General, administrative and marketing

59,631

57,847

Depreciation and amortization

80,693

70,919

Other operating expense

16,943

17,453

Total operating expenses

653,862

598,371

Income from operations

134,838

107,670

Other income (expense):

Interest expense, net of interest income

(15,697)

(25,107)

Equity in earnings (loss) of affiliates

126

(16)

Total other expense

(15,571)

(25,123)

Income before income taxes

119,267

82,547

Provision for income taxes

31,169

6,405

Net income

$         88,098

$      76,142

Income per common share:

Basic

$            0.40

$         0.36

Diluted

$            0.39

$         0.34

Weighted-average common shares outstanding:

Basic

221,853

211,958

Diluted

227,454

223,619

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

March 31,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$       119,951

$       204,807

Restricted cash and cash equivalents

30,232

27,362

Accounts receivable, net

25,476

24,092

Center operating supplies and inventories

67,028

67,618

Prepaid expenses and other current assets

80,315

61,881

Total current assets

323,002

385,760

Property and equipment, net

3,799,840

3,633,229

Goodwill

1,235,359

1,235,359

Operating lease right-of-use assets

2,472,648

2,479,804

Intangible assets, net

180,532

180,810

Other assets

94,489

92,989

Total assets

$     8,105,870

$     8,007,951

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$         92,193

$         90,249

Construction accounts payable

124,844

143,545

Deferred revenue

63,250

60,309

Accrued expenses and other current liabilities

226,100

214,351

Current maturities of debt

20,705

21,848

Current maturities of operating lease liabilities

81,585

79,208

Total current liabilities

608,677

609,510

Long-term debt, net of current portion

1,482,099

1,485,939

Operating lease liabilities, net of current portion

2,558,596

2,555,513

Deferred income taxes, net

182,122

172,217

Other liabilities

55,105

58,561

Total liabilities

4,886,599

4,881,740

Stockholders' equity:

Common stock, $0.01 par value per share; 500,000 shares authorized; 222,447 and 221,077 shares issued and outstanding, respectively

2,225

2,211

Additional paid-in capital

3,184,562

3,183,032

Retained earnings (accumulated deficit)

41,196

(46,902)

Accumulated other comprehensive loss

(8,712)

(12,130)

Total stockholders' equity

3,219,271

3,126,211

Total liabilities and stockholders' equity

$     8,105,870

$     8,007,951

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Cash flows from operating activities:

Net income

$         88,098

$         76,142

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

80,693

70,919

Deferred income taxes

8,429

1,177

Share-based compensation

10,548

11,909

Non-cash rent expense

2,354

3,403

Impairment charges associated with long-lived assets

18

966

Loss on disposal of property and equipment, net

827

128

Amortization of debt discounts and issuance costs

930

906

Changes in operating assets and liabilities

5,526

17,926

Other

1,370

380

Net cash provided by operating activities

198,793

183,856

Cash flows from investing activities:

Capital expenditures

(260,016)

(142,482)

Other

(96)

839

Net cash used in investing activities

(260,112)

(141,643)

Cash flows from financing activities:

Repayments of debt

(5,686)

(5,559)

Proceeds from revolving credit facility

—

125,000

Repayments of revolving credit facility

—

(135,000)

Repayments of finance lease liabilities

(417)

(842)

Proceeds from stock option exercises

7,328

27,880

Common stock share repurchases

(10,702)

—

Employee tax withholding associated with net share-settled share-based awards

(11,017)

(4,069)

Other

(4)

(30)

Net cash (used in) provided by financing activities

(20,498)

7,380

Effect of exchange rates on cash and cash equivalents and restricted cash and cash equivalents

(169)

—

(Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents

(81,986)

49,593

Cash and cash equivalents and restricted cash and cash equivalents – beginning of period

232,169

27,878

Cash and cash equivalents and restricted cash and cash equivalents – end of period

$        150,183

$         77,471

Non-GAAP Measurements and Key Performance Indicators

See "Use of Non-GAAP Financial Measures and Key Performance Indicators" for a discussion of the Non-GAAP financial measures reconciled below.

Key Performance Indicators

($ in thousands, except for Average Center revenue per center membership data)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Membership Data

Center memberships

837,903

826,374

On-hold memberships

50,147

53,377

Total memberships

888,050

879,751

Revenue Data

Membership dues and enrollment fees

73.1 %

73.2 %

In-center revenue

26.9 %

26.8 %

Total Center revenue

100.0 %

100.0 %

Membership dues and enrollment fees

$       561,454

$       501,653

In-center revenue

206,112

184,001

Total Center revenue

$       767,566

$       685,654

Average Center revenue per center membership (1)

$          930

$          844

Comparable center revenue (2)

8.6 %

12.9 %

Center Data

Net new center openings (3)

1

1

Total centers (end of period) (3)

190

180

Total center square footage (end of period) (4)

18,400,000

17,700,000

GAAP and Non-GAAP Financial Measures

Net income

$      88,098

$      76,142

Net income margin (5)

11.2 %

10.8 %

Adjusted net income (6)

$        96,222

$        75,537

Adjusted net income margin (6)

12.2 %

10.7 %

Adjusted EBITDA (7)

$     226,655

$     191,588

Adjusted EBITDA margin (7)

28.7 %

27.1 %

Center operations expense

$     406,704

$     370,987

Pre-opening expenses (8)

$        2,212

$        1,373

Rent

$      89,891

$      81,165

Non-cash rent expense (open properties) (9)

$          800

$        2,295

Non-cash rent expense (properties under development) (9)

$        1,554

$        1,108

Net cash provided by operating activities

$     198,793

$     183,856

Free cash flow (10)

$     (61,223)

$      41,374

(1)

We define Average Center revenue per center membership as Center revenue less On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.

(2)

We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

(3)

Net new center openings is calculated as the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. During the three months ended March 31, 2026, we opened one center.

(4)

Total center square footage (end of period) reflects the aggregate square footage, excluding the areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. We use this metric for evaluating the efficiencies of a center as of the end of the period. These figures are approximations.

(5)

Net income margin is calculated as net income divided by total revenue.

(6)

We present Adjusted net income as a supplemental measure of our performance. We define Adjusted net income as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments.

Adjusted net income margin is calculated as Adjusted net income divided by total revenue.

The following table provides a reconciliation of net income and income per common share, the most directly comparable GAAP measures, to Adjusted net income and Adjusted net income per common share:

Three Months Ended

March 31,

($ in thousands, except per share data)

2026

2025

Net income

$          88,098

$          76,142

Share-based compensation expense (a)

10,548

11,909

Capital transaction costs (b)

—

920

Other (c)

450

186

Taxes (d)

(2,874)

(13,620)

Adjusted net income

$          96,222

$          75,537

Income per common share:

Basic

$            0.40

$            0.36

Diluted

$            0.39

$            0.34

Adjusted income per common share:

Basic

$            0.43

$            0.36

Diluted

$            0.42

$            0.34

Weighted-average common shares outstanding:

Basic

221,853

211,958

Diluted

227,454

223,619

(a)

Share-based compensation expense recognized during the three months ended March 31, 2026 was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan ("ESPP"), and liability-classified awards related to our 2026 short-term incentive plan. Share-based compensation expense recognized during the three months ended March 31, 2025 was associated with stock options, restricted stock units, performance stock units, our ESPP and liability-classified awards related to our 2025 short-term incentive plan.

(b)

Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature.

(c)

Includes (i) legal-related expenses in pursuit of our claim against Zurich of $0.1 million for the three months ended March 31, 2025 and (ii) other immaterial transactions or items that are unusual or non-recurring in nature of $0.5 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

(d)

Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. We updated the Taxes amount used to arrive at Adjusted net income for the three months ended March 31, 2025 to include $12.6 million in income tax benefits resulting from a significant exercise of stock options by our Chief Executive Officer that were set to expire in 2025. This change did not impact our condensed consolidated financial statements prepared in accordance with GAAP, but it did decrease our non-GAAP Adjusted net income and Adjusted income per common share for the three months ended March 31, 2025.

(7)

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations.

Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA:

Three Months Ended

March 31,

($ in thousands)

2026

2025

Net income

$          88,098

$          76,142

Interest expense, net of interest income

15,697

25,107

Provision for income taxes

31,169

6,405

Depreciation and amortization

80,693

70,919

Share-based compensation expense (a)

10,548

11,909

Capital transaction costs (b)

—

920

Other (c)

450

186

Adjusted EBITDA

$        226,655

$        191,588

(a) – (c)

See the corresponding footnotes to the table in footnote 6 immediately above.  

(8)

Represents non-capital expenditures associated with opening new centers that are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.

(9)

Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.

(10)

Free cash flow, a non-GAAP financial measure, is calculated as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales.

The following table provides a reconciliation from net cash provided by operating activities to free cash flow:

Three Months Ended

March 31,

($ in thousands)

2026

2025

Net cash provided by operating activities

$        198,793

$        183,856

Capital expenditures, net of construction reimbursements

(260,016)

(142,482)

Free cash flow

$         (61,223)

$          41,374

Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months

($ in thousands)

(Unaudited)

Twelve

Twelve

Months Ended

Months Ended

March 31, 2026

March 31, 2025

Net income

$             385,627

$             207,465

Interest expense, net of interest income

72,853

135,799

Provision for income taxes

144,596

49,019

Depreciation and amortization

306,119

279,697

Share-based compensation expense

50,389

55,317

Gain on sale-leaseback transactions

(12,785)

(2,618)

Capital transaction costs

611

920

Legal settlements

(38,629)

1,815

Asset impairments

5,791

—

Employee retention credits

(54,572)

—

Other

242

(5,023)

Adjusted EBITDA

$             860,242

$             722,391

Reconciliation of Net Debt and Leverage Calculation

($ in thousands)

(Unaudited)

Twelve

Twelve

Months Ended

Months Ended

March 31, 2026

March 31, 2025

Current maturities of debt

$              20,705

$              22,732

Long-term debt, net of current portion

1,482,099

1,498,106

Total Debt

$           1,502,804

$           1,520,838

Less: Fair value adjustment

91

246

Less: Unamortized debt discounts and issuance costs

(16,835)

(19,162)

Less: Cash and cash equivalents

119,951

59,001

Net Debt

$           1,399,597

$           1,480,753

Trailing twelve-month Adjusted EBITDA

860,242

722,391

Net Debt Leverage Ratio

1.6x

2.0x

Reconciliation of Net Income to Adjusted Net Income Guidance for the Year Ending 2026

($ in millions)

(Unaudited)

Year Ending

December 31, 2026

Net income

$340 – $345

Share-based compensation expense

53 – 57

Taxes

(15) – (16)

Adjusted net income

$378 – $386

Reconciliation of Net Income to Adjusted EBITDA Guidance for the Year Ending 2026

($ in millions)

(Unaudited)

Year Ending

December 31, 2026

Net income

$340 – $345

Interest expense, net of interest income

63 – 59

Provision for income taxes

132 – 134

Depreciation and amortization

337 – 345

Share-based compensation expense

53 – 57

Adjusted EBITDA

$925 – $940

SOURCE Life Time Group Holdings, Inc.

Life Time Group Holdings, Inc. (LTH - Free Report) reported $788.7 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 11.7%. EPS of $0.42 for the same period compares to $0.39 a year ago.

The reported revenue represents a surprise of +0.09% over the Zacks Consensus Estimate of $788 million. With the consensus EPS estimate being $0.39, the EPS surprise was +8.39%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Life Time Group Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average center revenue per center membership: $930.00 versus $911.47 estimated by three analysts on average.Total center square footage (end of period): 18.4 billion compared to the 18.6 billion average estimate based on two analysts.Total centers (end of period): 190 versus the two-analyst average estimate of 191.Comparable center revenue: 8.6% versus the two-analyst average estimate of 8.1%.Net new center openings: 1 versus 2 estimated by two analysts on average.Total revenue- Center revenue: $767.57 million versus $764.82 million estimated by four analysts on average.Total revenue- Other revenue: $21.13 million versus the four-analyst average estimate of $23.19 million.Center revenue- In-center revenue: $206.11 million versus the four-analyst average estimate of $205.6 million.Center revenue- Membership dues and enrollment fees: $561.45 million compared to the $559.23 million average estimate based on four analysts.View all Key Company Metrics for Life Time Group Holdings here>>>

Shares of Life Time Group Holdings have returned -5.5% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

, /PRNewswire/ -- Life Time Group Holdings, Inc. (NYSE: LTH) ("Life Time" or the "Company") announced today that it has agreed to purchase an aggregate of 2,192,500 shares of its common stock at a price of $28.60 per share for an aggregate purchase price of $62,705,500 in a private transaction (the "Share Repurchase") from certain of its existing stockholders, including affiliates of Leonard Green & Partners, L.P., TPG Inc. and Partners Group (USA) Inc. (the "Selling Stockholders").

In addition to the Share Repurchase, the Selling Stockholders informed the Company that they have agreed to sell 8,770,000 shares of the Company's common stock at a price of $28.60 per share for an aggregate purchase price of $250,822,000 to an affiliate of Atairos Group, Inc. in a private transaction exempt from registration under the Securities Act of 1933 (the "Investor Purchase"), for a total of 10,962,500 shares sold by the Selling Stockholders. The Investor Purchase is expected to be settled in two tranches, with the second tranche of shares of Common Stock related to the Investor Purchase expected to be acquired after satisfaction of customary closing conditions, including that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired or been terminated.

Following the closings of the Share Repurchase and the Investor Purchase, funds associated with Leonard Green & Partners, L.P., funds associated with TPG Inc. and funds associated with Partners Group (USA) Inc. will hold approximately 8.5%, 6.1% and 1.3%, respectively, of the Company's common stock (based on 222,602,738 shares outstanding as of May 1, 2026).

The Company intends to fund the Share Repurchase with cash on hand. The Share Repurchase is being conducted pursuant to the Company's stock repurchase program approved by its board of directors in February 2026.

About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complementary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 45,000 team members.

About Atairos
Atairos is an independent strategic investment company focused on supporting growth-oriented businesses across a wide range of industries. Atairos provides a unique combination of active strategic partnership and patient long-term capital to high-potential companies and their management teams. Atairos was launched in 2016 and has over $6 billion of equity capital. Atairos has offices in New York City and Philadelphia. For more information, please visit www.atairos.com.

Cautionary Statement Concerning Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, statements relating to the consummation of the Investor Purchase. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include the factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2026 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Life Time Group Holdings, Inc.

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Life Time draws on 30+ years of aquatics expertise, 500+ pools and a vast lifeguard certification operation to help families make safer choices in and around water 

Key Highlights:

Life Time certifies more lifeguards than any other business nationwide through StarGuard Elite. Life Time teaches more than 30,000 people crucial swim safety skills every month across its athletic country clubs through swim lessons and clinics. Life Time's proprietary 25:10 Rule helps families reduce risk around water. Life Time aquatics experts and lifeguards are available for media interviews and pool-side demonstrations throughout May through September. , /PRNewswire/ -- As families head back to pools and lakes this summer, Life Time (NYSE: LTH) is marking National Water Safety Month in May with a practical set of swim-safety guidelines designed to help keep kids and adults safer in and around water. With drowning ranking as the leading cause of unintentional injury death for children ages 1 to 4 and the second leading cause for children ages 5 to 14 (CDC), Life Time is drawing on more than three decades of aquatics expertise to help families have a safe and confident summer in the water.

Alicia Kockler, Life Time's Senior Vice President of Kids and Aquatics, explains the importance of swim lessons.

Every month, Life Time teaches more than 30,000 people crucial swim safety skills through swim lessons and clinics held across many of its 190+ athletic country clubs in the United States and Canada. While children face the greatest risk, Life Time's aquatics programs welcome swimmers of every age and ability, because confidence in the water is a lifelong skill.

Every month, Life Time teaches more than 30,000 people crucial swim safety skills through swim lessons and clinics held across many of its 190+ athletic country clubs in the United States and Canada. While children face the greatest risk, Life Time's aquatics programs welcome swimmers of every age and ability, because confidence in the water is a lifelong skill. The company operates more than 500 indoor and outdoor pools spanning everything from resort-style beach club pool decks to indoor lap pools and aquatics centers.

"We want families to have fun all summer, and a fun summer is a safe summer," said Alicia Kockler, Life Time's Senior Vice President of Kids and Aquatics. "It really comes down to a few simple things: Keep your eyes on your kids at all times and invest in swim lessons to teach them how to swim."

Life Time's Golden Rule for Swim Safety: The 25:10 Rule

At the center of Life Time's swim safety education is the 25:10 Rule: If a child cannot swim a standard 25-meter pool length without assistance, a parent or guardian should always remain within 10 feet. Drowning can happen silently and within seconds, often without the splashing or cries for help that most people expect. Staying alert and close is key.

Additional Swim Safety Tips from Life Time's Aquatics Team

Start swim lessons early. Early access to water and structured lessons help children become stronger swimmers and smarter decision-makers around water as they grow. Wear bright swimsuits. Neon and bright-colored swimwear are easier to spot in the water. Blue and pale colors can blend in. Skip the floaties. Many inflatable flotation devices provide a false sense of security. Only Coast Guard-approved life jackets provide reliable protection. Maintain a 1:3 guardian-to-swimmer ratio. One adult should never be responsible for monitoring more than three swimmers at a time. Put the phone and book down. Distractions are a leading contributing factor in water incidents. Get CPR certified. This skill may one day save a life. As summer gets underway, Life Time's athletic country clubs across North America are opening outdoor pools, beach club deck experiences and expanded aquatics programming. Swim lessons, clinics, and kids programming are available at Life Time locations nationwide. Kids enrolled in Life Time summer camps receive swim lessons twice weekly, included in the camp price. Life Time aims to ensure all campers become more confident swimmers.

For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the complimentary Life Time App. 

Frequently Asked Questions:

What is the best age to start swim lessons?
The earlier, the better. Enrolling children in swim lessons as early as four months old provides them the opportunity to learn basic swim skills early in life, grow comfortable in and around water faster and learn the importance of necessary safety measures.

What is the 25:10 swimming rule and why does it matter?
The 25:10 rule is Life Time's foundational swim safety guideline: If a child cannot swim a standard 25-meter pool length without assistance, an adult should always be within 10 feet.

How does Life Time keep its pools safe?
Life Time certifies more lifeguards than any other business in the country through its partnership with StarGuard Elite. With more than 30 years of aquatics expertise and 500+ pools across North America, Life Time's commitment to water safety is built into every aspect of its operations.

Where can I find swim lessons near me?
Life Time offers swim lessons and aquatics programming at select athletic country clubs across the United States and Canada. Visit lifetime.life or the Life Time app to find a club near you and explore available swim lesson schedules, clinics, and Kids programming.

About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.

SOURCE Life Time, Inc.

More than 500 nutrition coaches across more than 190 locations expands Life Time's wellness offerings beyond the workout floor

Key Highlights:

What: Dynamic Nutrition Coaching is a personalized, in-club offering designed to help members achieve lasting results through metabolism-driven food guidance that feels realistic. How it Works: Members begin with a complimentary consultation and personalized assessment, then work one-on-one with a Life Time nutrition coach to build a customized plan that fits their schedule, budget, and goals. Scale: Delivered by more than 500 Life Time nutrition coaches nationwide, providing in-person guidance across the company's athletic country clubs. Why: Most people know nutrition matters, but real-life schedules and demands make it challenging to find an approach that sticks. Dynamic Nutrition Coaching bridges that gap, available exclusively in-club at Life Time's more than 190 athletic country clubs across North America. , /PRNewswire/ -- Getting stronger, losing body fat and feeling your best all start with what you eat, but with conflicting nutrition advice everywhere, many people don't know where to begin, or why their current approach isn't working. Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, is cutting through the noise with the launch of Dynamic Nutrition Coaching, an in-club coaching service that pairs members with expert coaches to deliver personalized nutrition guidance built around their metabolism, training and lifestyle.

Building on Life Time’s three-decade commitment to in-club nutrition support, Dynamic Nutrition Coaching marks a significant evolution of that offering. It introduces a standardized, metabolism-driven framework that formally integrates nutrition into Life Time's Dynamic service ecosystem alongside Dynamic Personal Training and Dynamic Stretch, designed to meet members where they are and help them go further than they could on their own. Building on Life Time's three-decade commitment to in-club nutrition support, Dynamic Nutrition Coaching marks a significant evolution of that offering. It introduces a standardized, metabolism-driven framework that formally integrates nutrition into Life Time's Dynamic service ecosystem alongside Dynamic Personal Training and Dynamic Stretch, designed to meet members where they are and help them go further than they could on their own.

"Nutrition advice is everywhere, but most people don't need more information — they need a plan built for their goals, lifestyle and body," said Anika Christ, Senior Director of Life Time Health. "Without understanding their baseline or having the right support and accountability, lasting progress can be difficult to achieve. Dynamic Nutrition Coaching gives members personalized guidance and sustainable strategies designed to help them see real results"

Dynamic Nutrition Coaching is designed to work in concert with Life Time's broader in-club Dynamic ecosystem. Members pursuing strength, body composition or performance goals can pair nutrition guidance with Dynamic Personal Training to align fueling with their training demands and Dynamic Stretch to support recovery and mobility. Many members also begin by taking Life Time's proprietary  resting and active metabolic assessment, which provides a personalized look at how their body uses energy and gives coaches a shared baseline to build from. Together, these offerings create a connected, data-informed approach to training, recovery, and nutrition, all delivered in-person at a member's club.

Clients begin with a complimentary consultation and personalized assessment. From there, they work with a dedicated coach to build a clear plan around their individual goals, preferences, and training demands.

Unlike nutrition programs that operate entirely online, Dynamic Nutrition Coaching is delivered in-person, inside Life Time clubs, by coaches who understand both exercise science and nutrition. Supported by a network of more than 500 nutrition coaches nationwide along with corporate and club-based registered dietitians, Life Time's coaching team understands how training, recovery and metabolism work together and adjusts guidance as a member's body and goals evolve.

Dynamic Nutrition Coaching reinforces nutrition as a core pillar alongside the fitness, recovery, and lifestyle programming already available across Life Time's 190 athletic country clubs. Members can also access foundational nutrition education through the Life Time app and Experience Life magazine.

This launch comes as Americans are increasingly focused on sustainable health. According to Life Time's annual Health and Wellness Survey, 82% of respondents said they plan to focus more on their overall health this year, with strength training and body composition among their top goals.

Members can connect with a Life Time nutrition coach for a consultation at their home club. To learn more, visit www.lifetime.life or speak with a team member at your local Life Time. You can also learn more about Dynamic Personal Training at Life Time by following along on Instagram.

For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the Life Time app. You can also find Life Time's collection of supplements, equipment and apparel on the LT Shop by following its Instagram page.

About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.

SOURCE Life Time, Inc.

Investors interested in Leisure and Recreation Services stocks are likely familiar with Life Time Group Holdings, Inc. (LTH - Free Report) and Viking Holdings (VIK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Life Time Group Holdings, Inc. is sporting a Zacks Rank of #2 (Buy), while Viking Holdings has a Zacks Rank of #3 (Hold). This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

LTH currently has a forward P/E ratio of 20.00, while VIK has a forward P/E of 28.08. We also note that LTH has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIK currently has a PEG ratio of 1.33.

Another notable valuation metric for LTH is its P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VIK has a P/B of 38.48.

These are just a few of the metrics contributing to LTH's Value grade of B and VIK's Value grade of D.

LTH sticks out from VIK in both our Zacks Rank and Style Scores models, so value investors will likely feel that LTH is the better option right now.

Life Time coaches reveal why strength training, not just more miles, is the breakthrough, and how GTX and Ultra Fit help runners of every level unlock it this Global Running Day and beyond

Key Highlights:

Expert Life Time coaches say strength training is the most overlooked piece of a runner's program, and it is essential for prevention of injury, faster recovery and long-term performance. GTX and Ultra Fit, two of Life Time's exclusive Signature Group Training formats, give runners the strength, power and variety to build and complement a running schedule. Life Time experts share their top tips for first-time runners, the four strength movements every runner should be doing, and how to make Global Running Day the start of a lasting habit. , /PRNewswire/ -- As running continues to surge in popularity, Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, is underscoring an often-overlooked truth in endurance training: Runners who want to go farther, faster and stay injury-free need more than mileage. They need consistent strength training.

GTX and Ultra Fit, two of Life Time's exclusive Signature Group Training formats, give runners the strength, power and variety to build and complement a running schedule. Life Time coaches say that building the strength to handle that load is what separates runners who progress from runners who plateau or get sidelined by injury. It is also what makes Life Time's GTX and Ultra Fit programs natural complements to any running routine, whether a member is lacing up for the first time today or training for the next marathon.

"Running is the most global sport we have. There are no barriers, just movement," said Frankie Ruiz, Chief Running Officer at Life Time and Co-Founder of the Miami Marathon. "Global Running Day is an invitation for anyone, anywhere, to take that first step and realize we get more out of it when we do it together. At Life Time, we see every day how one run can spark connection, confidence, and even change the course of someone's life."

For new and experienced runners alike: Strength work is an essential ingredient in finding success. It can aid with muscular endurance, power, joint stability and much more (NASM).

"Strength training for newer runners is essential because we are training not only the resilience of our muscles, but our tendons and ligaments are getting stronger as well," said Donovan Stewart, Certified Personal Trainer and Run Coach at Life Time. "With hundreds of pounds of force happening on our bodies during a run, having the strength to support us will provide a lower chance of injury and help with coming back from injury quicker."

To build that foundation, Stewart recommends focusing on four essential movements every runner should master:

Bulgarian Split Squats Calf Raises Kettlebell Swings Single-Leg Deadlifts Where GTX and Ultra Fit Slot In
Life Time's GTX and Ultra Fit Signature Group Training classes are designed to build strength, power and conditioning that running alone cannot deliver. GTX uses a 50/50 structure that layers strength and conditioning into 60-minute sessions led by certified coaches. Ultra Fit blends total-body strength with challenging balance work and sprint interval training, building the metabolic health and mental resilience that runners rely on at every distance.

Together, the two formats give runners progressive overload, mobility work, and group motivation inside one membership, along with access to best-in-class treadmills, recovery amenities and Life Time's portfolio of athletic events to work toward.

Tips for New Runners on Global Running Day

For those lacing up for the first time this Global Running Day, Ruiz emphasizes one mindset: start small, stay consistent and make it social:

Run less and slower than you think you should. Move for no more than 20 minutes. Do it with others. Keep it social and conversational. Joining a group is the best way to start. Do not skip your warm-up, even if it is just a brisk walk. "Global Running Day reminds us that while running can feel personal, its real power is collective," Ruiz said. "Different reasons, same direction. We move, we grow, we inspire ourselves and others. Through Life Time events and communities, we are creating spaces where that shared energy turns a simple run into something much bigger."

For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the Life Time app. You can also find Life Time's collection of supplements, equipment and apparel on the LT Shop by following its Instagram page.

Frequently Asked Questions

Why should runners do strength training? Strength training builds the muscles, tendons and ligaments that absorb the repeated impact of running.

What are the best strength exercises for runners?
Life Time Trainer and Certified Run Coach Donovan Stewart recommends Bulgarian split squats, calf raises, kettlebell swings and single-leg deadlifts. These moves target the lower body, aid with balance and posterior strength that runners rely on.

How often should runners strength train?
Life Time trainers recommend two to three strength sessions per week, layered in alongside easy runs and recovery days. GTX and Ultra Fit classes are built to deliver that strength stimulus in a structured group setting. Ultra Fit can also slot in as a high-intensity workout in weekly training.

About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.

SOURCE Life Time, Inc.

An updated edition of the April 23, 2026 article.

The health and fitness industry has grown well beyond its former niche status to become a powerful global market, supported by a broad shift toward healthier lifestyles. Consumers are no longer satisfied with occasional exercise alone. They are placing greater emphasis on balanced nutrition, consistent workout routines and more holistic wellness solutions. Demand continues to rise across gyms, supplements and personalized programs, while technological innovation has made managing health easier and more interactive. Wearables, fitness apps and virtual coaching platforms now offer real-time insights, tailored plans and ongoing encouragement. Meanwhile, growing awareness around obesity, chronic illnesses and mental well-being has strengthened the focus on preventive care as part of everyday life.

Major technology companies are helping accelerate this transformation. Apple (AAPL - Free Report) , with its Apple Watch ecosystem and Fitness+ service, integrates activity monitoring with guided fitness experiences. Amazon (AMZN - Free Report) is deepening its presence in healthcare through One Medical, pairing AI-enabled tools with virtual care to enhance accessibility and convenience. These efforts are changing the way consumers approach wellness, bringing together fitness, healthcare and daily habits, while simultaneously supporting the industry’s long-term expansion.

Market forecasts underscore the scale of this opportunity. The global health and wellness market is projected to reach $7.76 trillion by 2035, at a steady CAGR of 4.94% from 2026. Preventive healthcare initiatives, workplace wellness programs and favorable policy support continue to fuel demand. At the same time, niche offerings such as boutique fitness studios and premium wellness clubs point to a more integrated view of physical, nutritional and mental health. This changing landscape is creating fresh growth opportunities for companies such as Columbia Sportswear Company (COLM - Free Report) , Beyond Meat (BYND - Free Report) and Life Time Group Holdings (LTH - Free Report) .

For investors, the takeaway is straightforward: wellness remains a durable long-term trend. As people continue to make health a priority, demand for fitness, nutrition and digital health solutions is likely to remain resilient. This Health & Fitness Screen highlights key companies in the space — including the names mentioned above — helping investors identify opportunities in a market positioned for continued growth.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

3 Health & Fitness Stocks to Buy Now

Columbia Sportswear Company’s health and fitness-related business is built around outdoor, active and lifestyle products across apparel, footwear, accessories and equipment. Its portfolio spans Columbia, SOREL, Mountain Hardwear and prAna, giving the company exposure to everyday activity as well as more demanding outdoor pursuits. Columbia serves hikers, trail runners, snow-sport consumers, anglers, hunters and people looking for daily outdoor essentials. Mountain Hardwear focuses on technical apparel, accessories and equipment for climbers, mountaineers, skiers, snowboarders and trail athletes. prAna adds a softer active-lifestyle angle, combining versatile apparel and accessories with movement, mindfulness and personal style.

Over time, the business has moved from functional outdoor utility toward a broader wellness-and-active-living platform. Columbia began in 1938 as a regional hat distributor and has grown into a global designer, marketer and distributor of products meant to help people stay active outdoors. The Zacks Rank #1 (Strong Buy) company’s offerings are not positioned as gym equipment or medical wellness products; rather, its connection to health and fitness comes through enabling movement, recreation and comfort in outdoor settings. Product design has remained central to this evolution, with the company emphasizing innovation, fit, construction, technical performance, quality, value, versatility and style. You can see the complete list of today’s Zacks #1 Rank stocks here.

More recently, Columbia has tried to sharpen this active positioning through its ACCELERATE Growth Strategy. Announced in 2024, the strategy is aimed at bringing younger, more active consumers into the Columbia brand while retaining existing value-oriented shoppers. In 2025, the company marked progress by launching the “Engineered for Whatever” brand platform, introducing products designed for a younger active consumer and refreshing Columbia.com with stronger features and photography. The strategy also calls for more focused demand creation, elevated omni-channel brand experiences, fewer and clearer product collections, and continued delivery of durable, high-value outdoor essentials.

Beyond Meat offers plant-based meats and newer plant-based food and beverage products built around beef, pork and poultry platforms. Its portfolio includes Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Steak, Beyond Sun Sausage, value-added meals such as Beyond Bakes, Beyond Skillet Meals and Beyond Bowls, and the newer Beyond Ground, Beyond Steak Filet and Beyond Chicken Pieces. These products are designed to give consumers the taste, texture and everyday use of animal-based meat while using plant-derived proteins and ingredients.

The Zacks Rank #2 (Buy) company’s intent of health and fitness has become more direct over time. Its mission ties plant-based eating to human health, while its product work focuses on nutrition, macronutrients and simpler ingredients. In 2024, Beyond Burger IV, Beyond Beef IV and Beyond Sausage IV moved to avocado oil, simplified ingredient lists, 0 mg cholesterol, no added antibiotics or hormones and no GMOs. Beyond Steak also became the first plant-based meat product to meet the nutritional guidelines of the American Diabetes Association’s Better Choices for Life program. Beyond Sun Sausage followed with similar nutrition-focused positioning, while the value-added meals line extended Beyond Meat protein into convenient, ready-to-heat formats.

By 2025 and early 2026, the business had evolved beyond meat analogues into broader plant-based protein. Beyond Ground was launched as a four-ingredient, unseasoned protein base, while Beyond Steak Filet and Beyond Chicken Pieces added more center-of-plate options with avocado oil and plant proteins. The clearest step into fitness-oriented adjacencies was Beyond Immerse, a protein drink combining plant protein, fiber, antioxidants and electrolytes through the Beyond Test Kitchen direct-to-consumer platform.

This shift reflects a company trying to respond to weaker plant-based meat demand by improving health perception, working with nutrition and medical organizations, and broadening into products built around protein, fiber and other functional macronutrients.

Life Time Group Holdings is a provider of premium health, fitness and wellness experiences through resort-like athletic country clubs, supported by a broader physical and digital ecosystem. Its centers typically include large fitness floors with high-end equipment, locker rooms, group fitness studios, recovery areas, indoor and outdoor pools, bistros, tennis and pickleball courts, basketball courts, LifeSpa, LifeCafe, childcare and Kids Academy spaces. The company serves nearly 1.6 million individual members, representing about 873,000 memberships as of December 31, 2025, across more than 185 centers in the United States and Canada. Its offerings are delivered by more than 44,000 team members, including over 11,100 certified fitness professionals.

Life Time’s business has evolved from a traditional fitness-center concept into what it describes as a “Healthy Way of Life” lifestyle and leisure brand. Over more than 30 years, the company has built a model that combines fitness, wellness, community and country club-style amenities. Member engagement is central to this model. Life Time offers services and activities for different age groups and needs, including Dynamic Personal Training, Dynamic Stretch, small group training, swim lessons, sport-specific coaching, nutrition coaching, ARORA for older adults, MIORA performance and longevity health services, athletic events, kids’ programs and social events. In 2025, it also organized about 51,800 events, reinforcing its role as a community hub.

The #2 Ranked company has continued to broaden the health and fitness theme through new services, digital tools and adjacent lifestyle offerings. Recent initiatives include pickleball expansion, LT Games, broader sales of LTH nutritional products and an integrated digital app with live fitness classes, remote personal training, nutrition and weight-loss support, wellness content and the L•AI•C personal companion. Life Time has also extended its ecosystem into healthy work and living environments through Life Time Work and Life Time Living, helping members connect health and wellness with daily routines beyond the club.

PriceSmart remains a soft 'buy' after significant outperformance, supported by consistent growth and undervaluation versus peers. PSMT's Q1 2026 revenue rose 9.9% to $1.38B, driven by strong Colombia comps (+27.9%) and membership expansion. Membership income reached $89M, with platinum penetration increasing to 19.3%, enhancing recurring revenue and customer engagement.

Posted by Defense World Staff on Apr 6th, 2026

SG Americas Securities LLC reduced its stake in shares of PriceSmart, Inc. (NASDAQ:PSMT – Free Report) by 39.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,908 shares of the company’s stock after selling 9,887 shares during the quarter. SG Americas Securities LLC’s holdings in PriceSmart were worth $1,829,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of PSMT. Geneos Wealth Management Inc. lifted its holdings in shares of PriceSmart by 560.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock valued at $26,000 after buying an additional 252 shares during the last quarter. First Horizon Corp bought a new stake in shares of PriceSmart during the 3rd quarter worth $30,000. Steward Partners Investment Advisory LLC boosted its holdings in PriceSmart by 52.5% during the second quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company’s stock valued at $38,000 after acquiring an additional 125 shares during the period. Mather Group LLC. acquired a new stake in PriceSmart in the 3rd quarter valued at approximately $39,000. Finally, AlphaQuest LLC grew its stake in shares of PriceSmart by 127.5% in the third quarter. AlphaQuest LLC now owns 414 shares of the company’s stock worth $50,000 after acquiring an additional 232 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

Insider Activity In other PriceSmart news, Director Leon C. Janks sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $137.29, for a total value of $411,870.00. Following the completion of the sale, the director owned 30,734 shares of the company’s stock, valued at approximately $4,219,470.86. This represents a 8.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul Kovaleski sold 4,255 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $136.86, for a total transaction of $582,339.30. Following the completion of the sale, the executive vice president owned 38,854 shares in the company, valued at approximately $5,317,558.44. This trade represents a 9.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 16,671 shares of company stock valued at $2,283,051. Insiders own 17.00% of the company’s stock.

PriceSmart Stock Performance Shares of NASDAQ:PSMT opened at $152.48 on Monday. The company has a current ratio of 1.33, a quick ratio of 0.55 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $4.70 billion, a P/E ratio of 31.12 and a beta of 0.74. The business has a 50-day moving average price of $149.66 and a two-hundred day moving average price of $133.15. PriceSmart, Inc. has a 1-year low of $81.25 and a 1-year high of $158.01.

PriceSmart (NASDAQ:PSMT – Get Free Report) last announced its quarterly earnings data on Wednesday, January 7th. The company reported $1.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.01. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same period last year, the firm earned $1.21 earnings per share. The business’s revenue for the quarter was up 9.9% on a year-over-year basis. Equities analysts predict that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

PriceSmart Announces Dividend The business also recently declared a dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be paid a $0.70 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a dividend yield of 89.0%. PriceSmart’s dividend payout ratio is 28.57%.

Analyst Upgrades and Downgrades Several brokerages recently issued reports on PSMT. Weiss Ratings upgraded PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, March 10th. Wall Street Zen cut shares of PriceSmart from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. One research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, the stock currently has an average rating of “Strong Buy”.

Read Our Latest Report on PriceSmart

PriceSmart Profile (Free Report)

PriceSmart, Inc (NASDAQ: PSMT) is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart’s value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.

The company’s product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.

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