3D Systems Q1 2025 Earnings Report
Key Takeaways
3D Systems reported a decrease in revenue for the first quarter of 2025, primarily due to lower materials sales despite growth in new hardware systems and related services. The company is implementing cost reduction initiatives and has withdrawn its full-year guidance due to uncertain customer capital spending.
Revenue decreased by 8% to $94.5 million compared to the prior year period.
Net loss attributable to 3D Systems Corporation increased significantly to $37.0 million.
The company is on track with its previously announced $50 million cost savings initiative and is launching an additional $20 million initiative.
Full-year guidance has been withdrawn due to risks associated with customer capital investment spending.
3D Systems
3D Systems
3D Systems Revenue by Segment
Forward Guidance
The company is withdrawing its full year 2025 guidance due to the risk of protracted weakness in customer capital investment spending. The focus is on delivering profitability at the current scale and leveraging the new product portfolio for future growth when capital expenditure rebounds.
Positive Outlook
- Strong new product portfolio across metal and polymer platforms positions the company for accelerated growth.
- Recent sale of Geomagic portfolio significantly strengthened the balance sheet with over $100 million post-tax cash increase.
- Additional cost reduction initiative of $20 million in 2025 to accelerate organizational alignment.
- Growth in new hardware systems and related services in Q1 2025.
- Strategic wins for all three metal printing platforms and steady growth in Aerospace and Defense markets.
Challenges Ahead
- Withdrawal of full year 2025 guidance due to market uncertainty.
- Risk of protracted weakness in customer capital investment spending.
- Continued challenging top-line pressures.
- Decline in materials sales driven by inventory management in the dental aligner market.
- Margins remained under pressure due to lower volumes and less favorable mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income