Stratasys (SSYS) Q1 2025 earnings summary

Executive summary

• Q1 2025 demonstrated resilience with a solid recurring revenue model, high system utilization, and improved profitability despite lower revenue and ongoing market uncertainty.

• Strategic focus on high-growth end-markets, innovation, and launches such as Neo 800 Plus, advanced aerospace materials, and the Fortus 450 MC Gen 3.

• Cost control and streamlining initiatives led to significant operating expense savings and improved bottom-line results.

• Closed $120 million strategic investment from Fortissimo Capital, boosting cash to $270 million with no debt and adding Yuval Cohen to the board.

• Well-positioned for organic growth and strategic acquisitions, supported by a strong balance sheet.

Financial highlights

• Q1 2025 consolidated revenue was $136 million, down from $144.1 million year-over-year due to deferred capital spending.

• Product revenue was $93.8 million (vs. $99.2M YoY); service revenue was $42.2 million (vs. $44.9M YoY).

• Consumables revenue grew 7% sequentially to $62.6 million, though down from $66.3 million YoY.

• GAAP gross margin was 44.3% (vs. 44.4% YoY); non-GAAP gross margin was 48.3% (vs. 48.6% YoY).

• GAAP operating loss improved to $12.4 million (vs. $24.5M YoY); non-GAAP operating income was $3 million (vs. -$1.2M YoY).

• GAAP net loss was $13.1 million or $0.18/share (vs. $26M or $0.37/share YoY); non-GAAP net income was $2.9 million or $0.04/share (vs. -$1.7M or -$0.02/share YoY).

• Adjusted EBITDA was $8.2 million (6.0% margin), up from $4.1 million (2.9% margin) YoY.

• Cash, equivalents, and short-term deposits totaled $150.1 million at quarter-end, with $270 million post-Fortissimo investment and no debt.

Outlook and guidance

• Reiterated 2025 revenue guidance of $570–$585 million, expecting sequential growth through the year.

• Raised non-GAAP net income guidance to $24–$30 million and EPS to $0.30–$0.37/share; adjusted EBITDA forecasted at $44–$50 million (7.8%–8.5% margin).

• Non-GAAP gross margin guided at 48.8%–49.2%; non-GAAP operating margin at 4.0%–5.0%.

• GAAP net loss guidance improved to $64–$49 million; GAAP EPS to -$0.80 to -$0.61/share.

• Expecting improved operating and free cash flow over 2024 levels.