Checking financials of the miraculously rescued Velo3D
The Atomic Layers: S10E19 (00286)
Atomic Layer of the Day:
Last year, Velo3D narrowly avoided an embarrassing collapse by falling into the hands of Arrayed Additive, which was kind enough to pay off most of its debts in exchange for acquiring 95% ownership of the company.
Since then, under the leadership of its new CEO, Arun Jeldi, the company has returned to its former media-savvy form, frequently boasting about various achievements. One day it signs a contract with someone, the next day it announces the arrival of highly authoritative specialists (mostly military) joining its ranks. A super-efficient and agile company!
And as I mentioned before, Velo3D very firmly positions itself as “The Only True American Metal 3D Printer Manufacturer”—a message perfectly aligned with the current political climate in the U.S.:
But now there is a unique opportunity to finally see how all of this translates into financials.
Last week, Velo3D published its Q1 2025 report—the first under the new leadership and new strategy.
Here’s how they did…
Revenue came in at $9.3 million, marking a slight decline compared to the same period in 2024 ($9.8 million). However, there was a significant improvement in profitability—gross margin reached 7.5%, whereas a year earlier it was negative at -28.8%.
This improvement was mainly due to reduced bill of materials costs and optimization of production processes. The company forecasts further margin growth in the coming quarters, especially with the expansion of its Rapid Production Services, which are expected to become a major revenue stream going forward.
When it comes to debt and liquidity, Velo3D’s situation calls for more cautious analysis. Net losses under GAAP standards totaled -$25.4 million, which is a slight improvement from -$28.3 million in Q1 2024.
However, after excluding one-time costs, such as warrant-related transactions, the adjusted non-GAAP net loss was -$8.9 million.
Velo3D ended the quarter with $3.9 million in cash, an increase from $1.2 million at the end of 2024. Still, this level remains relatively low in light of planned capital expenditures (CapEx estimated at $15–20 million for 2025) and ongoing operating losses.
The growth outlook appears promising, albeit risky. The company maintains its forecast of over 30% revenue growth in 2025 and aims to achieve positive EBITDA in the first half of 2026.
One major positive is a growing order backlog valued at $18 million, including a strong increase in orders for RPS services, which are expected to account for up to 40% of revenue by 2026.
Additionally, Velo3D has signed long-term agreements, including a five-year, $15 million contract with Momentus and an exclusive deal with Amaero, which could help stabilize future revenue streams.
In summary, Velo3D’s financial condition is showing signs of improvement, particularly in terms of profitability, but the company is still grappling with losses and relatively low cash reserves.
If Velo3D can maintain its declared pace of growth and achieve positive EBITDA by 2026, its financial position could stabilize. Otherwise, additional sources of funding may be necessary—and that could prove extremely difficult in the current economic climate and in light of the investment sector’s attitude toward AM.
And toward Velo3D itself—considering its history...
Atomic Layer from the Past:
05-19-2014: MakerBot started shipping Replicator Mini.
News & Gossip:
Prague-based Additive Appearance launched PrismSlicer, advanced software for full-color, multi-material 3D printing. It enables precise volumetric control, photorealistic previews, and efficient design workflows. Tailored for inkjet-based printing, PrismSlicer improves accuracy, reduces material waste, and supports industries like healthcare, prototyping, and visual effects. Compatible with major platforms and systems.
Croom Medical and Global Advanced Metals have launched the TALOS platform for 3D printing tantalum implants. TALOS enables strong, porous structures with high biocompatibility and fatigue resistance. It supports tailored implant design and hybrid printing with titanium. The platform also emphasizes sustainability with a closed-loop tantalum powder supply chain.
Developer Ben Wolpert has unveiled a Delta 3D printer with an integrated magnetic tool changer. It uses a cable-driven rotating magnet system for precise, repeatable hotend swaps without mechanical locking. Controlled via RepRapFirmware macros, the open-source design combines delta kinematics and automated tool changing in a novel way.