Stratasys reported mixed results for Q1 2025, but what concerns me is something entirely different...
The Atomic Layers: S10E9 (00276)
Atomic Layer of the Day:
Lately, when publishing articles about the financial results of leading AM companies, one of the words I use most frequently is “mixed.”
Honestly, I might as well have a dedicated button on my keyboard. One press — boom, there it is.
Stratasys has released its financial results for the first quarter of 2025. And they are... Yes! You guessed it! Mixed.
In Q1 2025, the company reported revenues of $136.0 million, representing a decline of -5.6% compared to the same period in the previous year, when revenues were $144.1 million.
Fortunately, despite the drop in revenue, profitability indicators improved on a non-GAAP basis. GAAP net loss was estimated at -$13.1 million, compared to a net loss of -$26.0 million in Q1 2024. On a non-GAAP basis, the company posted a net income of +$2.9 million, a significant improvement over the -$1.7 million net loss from the prior year.
The GAAP gross margin stood at 44.3%, remaining roughly in line with the 44.4% from Q1 2024.
GAAP operating losses were reduced from -$24.5 million in Q1 2024 to -$12.4 million in the current quarter. On a non-GAAP basis, the company reported an operating profit of +$3.0 million, compared to a -$1.2 million loss a year earlier. Adjusted EBITDA increased significantly from $4.1 million to $8.2 million, indicating improved operational efficiency.
The company ended the quarter with $150.1 million in cash, cash equivalents, and short-term deposits, with no debt.
Following the close of the quarter, Stratasys secured an additional $120 million investment from Fortissimo Capital, further strengthening its liquidity and balance sheet position. Cash flow from operating activities was $4.5 million, compared to $7.3 million in Q1 2024.
Regarding the 2025 outlook, Stratasys maintained its revenue forecast in the range of $570–585 million, with revenue growth expected in the subsequent quarters.
In connection with the Fortissimo investment, Stratasys also raised its non-GAAP net income forecast for 2025 to a range of $24–30 million.
In summary – it’s not bad, but it’s not exactly great either. It’s... well, mixed.
But unfortunately, there are other developments that, frankly, concern me. According to a report by Vanesa Listek from 3DPrint.com, during the investors call, Stratasys CEO Yoav Zeif and CFO Eitan Zamir said a few things that push the situation from just “mixed” to “very mixed”. Like “blender mixed”.
Here’s what Zeif said:
Stratasys is in a strong position to lead industry consolidation, especially as other players struggle.
“We had the privilege over the last few years to learn the industry in-depth through several processes, and we understand the environment, competition, and the potential value creation. And now, add to it the market prices of the assets that currently exist in the market. Those are great opportunities, and we are practically in the driver’s seat to capture this value creation,” noted Zeif.
And Zamir added that:
the company also made selective reductions in R&D, which was referred to as a “focus,” not a “cut.” He explained this as a shift toward more selective and strategically aligned spending.
What does this mean? Two things:
Damn, they really want to buy someone again… As if the acquisition of Origin and the failed takeover of Desktop Metal hadn’t taught anyone a lesson.
They would rather buy someone else’s technology than invest more in their own. They prefer to reduce R&D spending and look for acquisitions in the market rather than focus on the development of their legacy solutions.
And that suggests they don’t believe they can get significantly better through FDM and PolyJet alone. Not to mention SAF nor Origin’s P3 DLP.
Unless I’m interpreting this wrong. In that case, feel free to correct me.
Atomic Layer from the Past:
05-09-2025: Stratasys unveiled the Multi-Cell Additive Manufacturing Platform.
News & Gossip:
FAME 3D launched LulzBot Direct, a U.S.-based 3D print service using their in-house print farm. Customers upload design files to receive custom parts on demand. Built for speed and scale, the service may benefit from new tariffs favoring domestic production. LulzBot printers handle all manufacturing internally.
BigRep unveiled the IPSO 105, a high-temperature industrial 3D printer, at DEFEA 2025 in Athens. Designed for defense and field operations, it enables on-demand production of strong, heat-resistant parts using advanced materials like PEKK-CF and PC. The system targets rapid, local manufacturing in mission-critical environments.
Australia is investing AUD 58 million in 3D printing R&D through the AMCRC, with a total program budget of AUD 271 million. Germany’s Fraunhofer IAPT is one of the partners, contributing expertise in materials, process optimization, and certification across sectors like aerospace, defense, and renewable energy.