The cake is too small for such a large party
The Atomic Layers: 00311
Atomic Layer of the Week:
In this chaotic and disordered world, one thing that remains constant is that the 3D printing market continues to grow.
Additive manufacturing technologies have entered aerospace, medicine, automotive, and the defense industry, and for some time now they have also begun making inroads into the consumer sector. The outlook appears promising.
And yet the two most recognizable and historically significant companies in the sector - 3D Systems and Stratasys - closed 2025 with lower revenues than the year before. And the year before that was also lower than the previous one.
This is neither a coincidence nor a temporary market fluctuation. It is a structural paradox that has defined the AM industry for years and which I described two years ago as the Third Law of the 3D Printing Market:
An increase in the value of the 3D printing market may or may not correspond to an increase in the value of the 3D printing companies that make up that market. Market value and company value are not correlated.
This stems from the fact that the number of entities operating in the sector is still disproportionately large relative to its overall value. As a result, at any given moment only a small number of companies are capable of generating above-average profits.
Paradoxically, despite market growth, the companies that build it may lose value simply because there is not enough money for everyone.
And the latest results of 3D Systems and Stratasys for 2025 are - unfortunately - proof of this law.
3D Systems: restructuring underway, profitability still out of reach
3D Systems closed the 2025 with $386.9 million in revenue, representing a 12% decline compared to 2024. Excluding the sale of Geomagic, the decline would be approximately 7%.
The Healthcare Solutions segment recorded $179.6 million in revenue (down 5%), while Industrial Solutions generated $207.3 million (down 17%, or 9% on a comparable basis).
Against this overall decline, the aerospace and defense sector stands out, achieving its targeted growth of 15–16% year-over-year. Management expects this trend to continue, forecasting around 20% growth in 2026.
Gross margins remain under pressure. For the full year 2025, gross margin was 33.9% (34.3% non-GAAP), compared to 37.3–37.4% the year before.
The margin decline is partly the result of a shift in revenue mix following the sale of Geomagic and a higher share of printer system sales. These systems generate lower margins than materials and services, although they create the installed base for future recurring revenue.
Net income for the full year amounted to $29.9 million, marking the first clearly positive net result in years. However, it must be emphasized that this figure was largely shaped by one-off events - primarily gains from the sale of Geomagic and debt-related transactions.
Adjusted EBITDA remains deeply negative: a $45.4 million loss for the full year and a $5.3 million loss in the fourth quarter alone.
The company ended the year with $97.1 million in cash. Long-term debt of $92 million matures in 2030, representing a clear improvement compared to the company’s previous debt structure.
Additionally, cost-cutting programs generated approximately $55 million in annual savings.
Stratasys: stability as a strategy
Stratasys closed 2025 with revenue of $551.1 million, compared to $572.5 million in 2024, a decline of almost 3.7%.
It is clear that revenue stagnation - though milder than in the case of 3D Systems - is a reality and affects nearly every business line.
A relatively positive signal was the 2.4% year-over-year increase in consumables revenue, reaching $59.8 million, indicating more active utilization of the installed base of machines. Service revenue amounted to $170.8 million for the full year.
Margins also declined here. GAAP gross margin in the fourth quarter fell from 46.3% to 36.8%, although this dramatic change was driven by one-time effects related to the earlier investment in UltiMaker. For the full year, non-GAAP margin reached 46.9%, compared to 49.2% in 2024.
The cost side is where Stratasys distinguishes itself within the sector. The company generate Adjusted EBITDA of $28.5 million for the full year, an increase of 9.6% year-over-year despite lower revenue.
Full-year non-GAAP net income reached $12.7 million, compared to $4.2 million the previous year - a significant improvement. On a GAAP basis, however, the company reported a net loss of $104.3 million, largely driven by write-downs and investment losses.
Operating cash flow was positive, reaching $15.1 million for the full year, nearly double the $7.8 million recorded in 2024.
The company ended the year with $244.5 million in cash and equivalents and no debt- a balance sheet that is difficult to overestimate in the AM industry.
What these results really represent
Comparing both reports reveals two companies in different financial positions but facing similar fundamental challenges.
3D Systems is still experiencing a more pronounced revenue decline and continues to operate with deeply negative Adjusted EBITDA. Stratasys is more stable, operationally more profitable, and significantly better capitalized in cash. Yet neither company is growing in a way that would match the narrative of rapid AM market expansion.
The problem with 3D Systems becomes clear when looking at the broader picture: revenue declined from around $610 million in 2021 to less than $387 million in 2025 - a roughly 37% contraction in four years. Adjustments related to Geomagic explain part of this drop, but not all of it. Adjusted EBITDA remains persistently negative, and negative operating cash flow has been a reality for many years.
In the case of Stratasys, the situation is more nuanced. The company has managed to maintain revenue at around $550 million, generates positive operating cash flow, and improves non-GAAP profitability despite difficult market conditions. A debt-free balance sheet with a quarter-billion dollars in cash gives it flexibility that 3D Systems simply does not possess.
At the same time, it is worth noting that at the peak of its strength - around 2014 - Stratasys generated over $750 million in revenue. The current level is more than 25% lower. What management describes as “stability” and “operational resilience” can also be interpreted as standing still.
The market grows, the companies shrink
Market data is clear: the global 3D printing market is growing, and virtually all forecasts indicate that this growth will continue for at least the next decade.
The problem is that a growing market and growing revenue for a specific company are two different things.
Increasing demand for AM technologies does not automatically mean that 3D Systems or Stratasys are the primary beneficiaries of that expansion. The market space is increasingly populated by hundreds of entities - from software startups to materials manufacturers and new hardware players.
Some of them grow dynamically at the expense of mature, long-established players.
The market is growing, but the value created by this growth is dispersed among an ever-larger number of participants, rather than concentrated in the hands of historical leaders.
The results of 3D Systems and Stratasys for 2025 are therefore a precise illustration of the Third Law of the Additive Market:
The AM market grows. But AM companies may or may not grow; or they grow more slowly than the market; or they shrink despite overall market expansion.
The problem is structural.
And no improvement in quarterly results, no balance-sheet restructuring, and no change in investor-relations narratives will alter this fundamental market arithmetic - as long as the number of entities competing for the value of the AM market remains disproportionately large relative to that value.
Atomic Layer from the Past:
8 years ago, Zortrax launched the M200 Plus, a significant upgrade to its iconic M200 printer. While it looked very similar, the Plus model was a technological leap, introducing features that were revolutionary for desktop 3D printing at the time.
It offered WiFi and Ethernet for remote management of entire printer fleets - a precursor to today’s cloud systems. A new extruder, touchscreen, and support for flexible materials further set it apart from 90% of its FFF competitors, re-establishing Zortrax as an industry pioneer long before such features became standard.
Read all:
News & Gossip:
#1
So, speaking of Zortrax… The Polish company has announced its “Creativity is Our Superpower” strategy for 2026-2028. Following internal restructuring, Zortrax claims that 2026 will be a transition year aimed at recovering from past management errors. The plan focuses on restoring the brand to its former glory and rebuilding the R&D team.
The company’s rebirth will be led by Zortrax co-founder Rafał Tomasiak. As part of the new strategy, the company will expand into the health, biotech, and defence sectors. Key initiatives include launching two new products, pursuing acquisitions, and securing financing to restore profitability and strengthen its market position.
More on: www.pap.pl
#2
On the other hand, the Czech company Prusa Research has decided to start paying people for recommending its 3D printers to new customers. The company has enhanced its community referral program, now offering a $30 voucher for each qualifying printer sale, on top of the existing Prusameters rewards.
Only verified Prusa owners can generate referral codes.
New buyers receive a free spool of Prusament with certain models. The stackable, no-cap program provides significant value for active community members, with payouts issued monthly. It is permanent and accessible via a Printables account.
More on: www.all3dp.com
#3
Creality decided to release two different 3D printers at the same time that look almost identical. One of them is a new version of the iconic Ender 3.
The Ender-3 V4 Combo features a rigid, one-piece gantry and comes standard with the CFS Lite unit, enabling multi-color printing for $399. Simultaneously, Creality launched the SPARKX i7 Combo, a new bedslinger focused on automated workflows. Priced at €369, it offers a larger build volume, AI monitoring, and a simplified, pre-assembled setup for beginners.
More on: www.3druck.com
#4
Construction 3D printing firm ICON has launched the Titan program, allowing builders to directly purchase its large-scale robotic systems for the first time. The technology promises to cut wall system costs by up to 40%, addressing labor shortages and the U.S. housing gap. The comprehensive package includes robotics, software, and training. Reservations are open now with a $5,000 deposit, with first deliveries expected in early 2027.
More on: www.3dprint.com
#5
Materialise also published its 2025 financial report, and the results were basically identical to those of Stratasys. The Belgian company reported strong Q4 2025 results, with revenue up 6.8% to €70.2 million, but full-year revenue was flat compared to 2024, at €267.6 million, due to weak prototype demand in the Manufacturing segment. Profitability improved significantly, with gross margin rising to 58.1% in Q4. The company maintains a solid financial position with €134 million in cash.
More on: www.3druck.com
#6
And finally some real good news: AFM Capital Partners has acquired a majority stake in Incodema3D, a leading US metal 3D printing service provider.
The Ithaca, New York-based company operates a 60,000-square-foot facility with one of North America’s largest metal printer fleets, serving defense, aerospace, and energy sectors. Founder Sean Whittaker and his team retained significant equity and will continue to lead the business. The partnership aims to accelerate growth, expand production capabilities, and invest in advanced additive technologies.
More on: www.voxelmatters.com