Stratasys (SSYS) Q1 2026 earnings summary

Executive summary

• Q1 2026 results showed resilience with recurring revenue from consumables and services providing stability amid cautious customer spending and capital discipline.

• Stratasys Direct achieved 23% organic year-over-year growth, driven by U.S. drone and industrial customers.

• Aerospace and defense demand remained robust, supported by mission-critical requirements, new program wins like JAMA IV, and increased U.S. Department of War investment.

• Dental segment advanced with CE Class IIa certification for TrueDent, expanding the addressable market in Europe.

• Positive operating cash flow and a debt-free balance sheet position the company for both organic and inorganic growth opportunities.

Financial highlights

• Q1 2026 consolidated revenue was $132.7 million, down 2.4% year-over-year; product revenue declined 5.3%, while services grew 4.0%.

• GAAP gross margin was 41.7% (down from 44.3%); non-GAAP gross margin was 46.3% (down from 48.3%).

• GAAP operating loss was $26.5M (vs. $12.4M prior year); non-GAAP operating loss $3.2M (vs. $3M income); adjusted EBITDA $2M (vs. $8.2M).

• GAAP net loss was $23.8M or $0.28/share; non-GAAP net loss $1.3M or $0.01/share.

• Cash, equivalents, and short-term deposits totaled $237.8M with no debt; operating cash flow was $2.4M in Q1.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $565M–$575M, with sequential quarterly growth expected.

• Non-GAAP gross margin expected at 46.7%–47.1%, with $7M adverse FX/tariff impact.

• Non-GAAP operating expenses forecast at $260M–$262M, including ~$10M FX impact.

• Adjusted EBITDA projected at $25M–$30M (4.5%–5.0% margin), with $17M FX/tariff headwind.

• Positive operating cash flow expected for 2026; GAAP net loss projected at $83–$67M, non-GAAP net income at $8–$12.5M.