What Coherent Corp. told the SEC could break it.

Two customers each contributed more than 10% of total revenues in fiscal 2025; significant customer concentration is expected to continue, so loss or reduced orders from a large customer could harm the business.

“A small number of customers have consistently accounted for a significant portion of our revenues, with two customers each contributing more than 10% of total revenues in fiscal 2025. Our success will depend on our continued ability to develop and manage relationships with our large customers and their continued need for our products.”

Coherent uses rare-earth materials in some production processes and is working to diversify that supply chain for resilience — a material input exposed to concentrated (largely China-controlled) supply.

“We use rare-earth materials in some of our production processes. Like with other materials, we are constantly working to strengthen and diversify our supply chain for resilience.”

For some components and intermediary goods Coherent is the sole qualified manufacturer; relocating that production to another facility/CM would be costly and slow, risking supply interruptions.

“For some of the components and finished or intermediary goods, we are the sole qualified manufacturer. ... if we experience problems with our manufacturing facilities, it would be costly and require a long period of time to move the manufacture of these components and finished good products to a different facility or contract manufacturer, which could result in interruptions in supply and would likely materially impact our results of operations and financial condition.”

Early-2025 US tariffs and export restrictions (and retaliatory measures), including significant tariffs and trade sanctions between the US and China, remain partly in effect and could disrupt Coherent's globally dispersed (incl. China) operations and supply chain.

“As of June 2025, certain tariffs and retaliatory tariffs have been delayed, but a number of the new tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China.”

In the Lasers segment, Coherent buys several key components/materials — exotic materials, crystals and optics — from sole- or limited-source suppliers; cutting-edge components may be available from a single supplier, raising timely-supply risk.

“However, in the Lasers segment, we currently purchase several key components and materials used in the manufacture of our products, including exotic materials, crystals, and optics, from sole-source or limited-source suppliers.”