Laser cutting felt fabric is generally a smooth process as the density of the material ensures a clean consistent cut with few irregularities. The two most popular types of felt we cut are wool felt and polyester felt. Wool felt has a great feel and cuts well, the main thing to remember about this material is that it is an organic material, meaning that in order to cut through it the laser is burning the material which is, when you get down to it, hair. Burned hair does not smell good and wool felt is no exception so keep that in mind by allowing some time for it to air out after cutting. The cut edge will also have some degree of char depending on the composition and thickness, this is usually a dark brown color and is a clean edge, this can usually be cleaned by dry scrubbing, however this can take a bit of effort, the edges will open up a bit and be slightly more fuzzy than before but this is usually not a big deal.
Polyester felt is a synthetic material so the laser cuts through it by melting, leaving a sealed edge that is generally close to the same color of the felt or a little bit darker. You also will not have the smell issue like with wool felt, however it generally is not as dense as wool felt so it will have a different feel.