Where is 3D Systems headed? Because their Q1 2025 results are heading south...
The Atomic Layers: S10E13 (00280)
Atomic Layer of the Day:
Last week, we checked off Stratasys, and yesterday we were treated to 3D Systems' financial results for Q1 2025.
With the former, I described the situation as “mixed results”—which basically means it's not bad, but it's not particularly great either.
As for 3D Systems, I can only say this: I wish I had better news…
The company’s financial results for the first quarter of 2025, despite a few positive signals, continue a long-standing downward trend. It’s not a dramatic collapse—just a slow but steady decline.
The core numbers are undeniably poor: revenue dropped by -8% (to $94.5 million), net loss doubled (to -$37 million), and gross margin shrank by over -5 percentage points (down to 34.6%).
Not only did the company withdraw its annual guidance, but despite promised cost savings, it burned through $36.3 million in cash during the quarter (including $33.8 million from operating activities). Even with the sale of Geomagic in April for $250 million, that doesn’t guarantee long-term financial security—especially with debt reaching $212.3 million.
There are some bright spots: growth in the Personalized Healthcare segment (+17%) and in the production of FDA-compliant parts (+18%).
But these areas represent only a portion of the overall portfolio (Healthcare Solutions brought in $41.3 million in revenue). That doesn't change the fact that both major segments—Healthcare and Industrial—saw declines (–9% and –7%, respectively), indicating a broader issue with scaling the business.
What’s more, even though the company reported a “second consecutive quarter of 3D printer sales growth,” the pace of that growth was not enough to offset declines elsewhere. And if the company is pinning its hopes on the commercialization of new systems, one has to ask—why hasn’t this translated into improved margins or smaller losses?
In his commentary on the results, CEO Dr. Jeffrey Graves stated that 3D Systems is “preparing for future growth,” citing strengthened liquidity and reduced fixed costs. But cost savings alone ($50 million by 2026 + $20 million in 2025) do not solve the profitability problem.
In Q1, the company reported an EBITDA loss of -$23.9 million (and -$31 million when including restructuring costs), and it still needs several quarters to reach break-even.
That’s assuming, of course, that revenue doesn’t decline any further.
That’s a risky assumption, considering the withdrawal of forward guidance and the “prolonged weakness” in customer spending.
Theoretically, one possible answer to these challenges could be the protectionist economic policies of a future Trump administration and the reshoring of manufacturing to the U.S. But let’s be honest—those are fragile hopes at best…
3D Systems is taking logical steps under difficult macroeconomic conditions, but the scale of the challenges is significant.
And we still don’t quite know what 3D Systems actually is. Is it an industrial company? A healthcare company? Or just a 3D printing company at large?
That identity crisis is broader than just 3D Systems. Maybe it’s a topic worth returning to in a future article?
Atomic Layer from the Past:
05-13-2024: My first historical post on LinkedIn.
News & Gossip:
Bambu Lab has launched the Lightbox Maker, a new tool in its MakerLab kit that lets users turn logos or graphics into colorful 3D-printed lightboxes. When you upload an image, the tool prepares it for multi-filament printing. LED kits are sold separately via Bambu Lab’s Maker Supply store.
CDG 3D TECH has opened a new additive manufacturing facility in Basingstoke, UK. The site will serve as a showroom, service center, and warehouse for industrial 3D printers, scanners, and post-processing equipment, supporting metal, polymer, and ceramic AM solutions. The move aims to expand services and UK manufacturing adoption.
As reported by VoxelMatters, Aectual and Hermès have renewed their collaboration with a striking 3D-printed installation at Hermès’ Amsterdam store. Designed with MVRDV, “Galloping through the Park” spans two floors, blending sustainability, storytelling, and digital craftsmanship using plant-based materials—showcasing how innovation and tradition can redefine luxury retail experiences. See the photos here…