- Consolidated Revenue: $136 million, down from $144.1 million in Q1 2024.
- Product Revenue: $93.8 million, compared to $99.2 million in the same period last year.
- Service Revenue: $42.2 million, compared to $44.9 million in the same period last year.
- System Revenue: $31.2 million, compared to $32.9 million in the same period last year.
- Consumables Revenue: $62.6 million, compared to $66.3 million in the same period last year; up 7% sequentially.
- Customer Support Revenue: $30 million, compared to $31.4 million in the same period last year.
- GAAP Gross Margin: 44.3%, compared to 44.4% in the same period last year.
- Non-GAAP Gross Margin: 48.3%, compared to 48.6% in the same period last year.
- GAAP Operating Expenses: $72.6 million, 53.4% of revenue, down from $88.4 million or 61.3% of revenue last year.
- Non-GAAP Operating Expenses: $62.6 million, 46% of revenue, down from $71.2 million or 49.5% of revenue last year.
- GAAP Operating Loss: $12.4 million, compared to a loss of $24.5 million last year.
- Non-GAAP Operating Income: $3 million, compared to a loss of $1.2 million last year.
- GAAP Net Loss: $13.1 million or $0.18 per diluted share, compared to a net loss of $26 million or $0.37 per diluted share last year.
- Non-GAAP Net Income: $2.9 million or $0.04 per diluted share, compared to a net loss of $1.7 million or $0.02 per diluted share last year.
- Adjusted EBITDA: $8.2 million, compared to $4.1 million last year.
- Cash from Operating Activities: $4.5 million, compared to $7.3 million last year.
- Cash and Equivalents: $150.1 million, relatively flat compared to year-end 2024.
- Full Year 2025 Revenue Outlook: $570 million to $585 million.
- GAAP Net Loss Outlook: Improved to a range of minus $64 million to minus $49 million.
- Non-GAAP Net Income Guidance: Increased to a range of $24 million to $30 million.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Stratasys Ltd (SSYS, Financial) demonstrated resilience in its recurring revenue model with high utilization rates across its customer base.
- The company reported a 7% sequential growth in consumables, indicating strong demand for its additive manufacturing systems.
- Stratasys Ltd (SSYS) closed a $120 million strategic investment from Fortissimo Capital, boosting its cash reserves to $270 million with no debt.
- The launch of the Neo 800+ 3D printer and new materials like Antero and PolyJet ToughONE highlight Stratasys Ltd (SSYS)'s commitment to innovation.
- The company achieved significant operating expense savings, leading to a non-GAAP operating income of $3 million compared to a loss in the previous year.
Negative Points
- Stratasys Ltd (SSYS) experienced a decline in consolidated revenue to $136 million from $144.1 million in the same quarter last year.
- Product revenue decreased, with system revenue falling to $31.2 million from $32.9 million and consumables revenue dropping to $62.6 million from $66.3 million year-over-year.
- Service revenue also declined to $42.2 million from $44.9 million in the same period last year.
- The company reported a GAAP net loss of $13.1 million, although this was an improvement from the previous year's loss.
- Stratasys Ltd (SSYS) faces ongoing market uncertainty, with customers deferring major capital spending, impacting revenue growth.
Q & A Highlights
Q: How do tariffs affect Stratasys when importing systems from Israel to the United States?
A: Yoav Zeif, CEO, explained that when importing from Israel to the US, Stratasys pays a 10% tariff on the cost of goods sold. However, this is not considered material to their financials.
Q: What economic conditions are factored into Stratasys' forecast for the second half of 2025?
A: Eitan Zamir, CFO, stated that despite market uncertainties, the forecast assumes a slight increase in revenue in the second half compared to the first half, with a focus on securing EBITDA. The company expects sequential revenue growth each quarter.
Q: Can you provide more details on the recent performance and future expectations for consumables?
A: Eitan Zamir, CFO, noted that consumables revenue rebounded to $62-$63 million, with higher utilization rates as manufacturing increases. The company expects full-year 2025 consumables revenue to surpass 2024 levels.
Q: How will the Fortissimo investment impact Stratasys' capital allocation strategy?
A: Yoav Zeif, CEO, indicated that the primary use of the Fortissimo investment will be for inorganic growth, focusing on strategic acquisitions that align with their strategy of building recurring revenue models and penetrating manufacturing.
Q: What is Stratasys' approach to R&D spending, given the recent reductions?
A: Eitan Zamir, CFO, clarified that the reduction is not a cut but a focus on investing in the right areas and technologies. The R&D spending as a percentage of revenue remains consistent with historical levels.
Q: How does Stratasys view competition from low-end 3D printing companies like Bambu Lab?
A: Yoav Zeif, CEO, emphasized that Stratasys focuses on industrial-grade, reliable solutions for high-end markets such as aerospace and defense, where reliability and total cost of ownership are critical. The company does not compete in the low-end prototyping market.
Q: Is Stratasys involved in the broader automation and AI ecosystem, particularly with companies like NVIDIA?
A: Yoav Zeif, CEO, confirmed that Stratasys is engaged in the digital and AI space, leveraging AI for design and manufacturing processes. They have an AI solution for part correction and are exploring further AI applications with customer advisory boards.
Q: What is the current sentiment among Stratasys' larger customers regarding their business outlook?
A: Yoav Zeif, CEO, noted that while there is macroeconomic uncertainty and constraints on capital expenditure, customer engagement remains strong, with additive manufacturing seen as a tool to mitigate uncertainties.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
