Stratasys (SSYS) Q3 2025 earnings summary

Executive summary

• Delivered solid operating cash flow and positive adjusted EPS in Q3 2025, driven by disciplined cost management and operational excellence amid macro-driven caution in capital equipment sales.

• Focused on high-value verticals such as aerospace, defense, automotive, dental, and medical, with strong customer engagement, infrastructure investments, and technology leadership to drive growth.

• Strategic partnerships and wins in aerospace (Boeing, Embraer), defense (Honeywell, L3Harris), technology, and automotive (Andretti Global), with notable hardware sales growth year-over-year.

• Expanded partnerships and new product launches in dental and automotive, including new leadership and innovative post-processing solutions.

• Recurring revenue stability and expansion into key growth industries provide a foundation for future growth.

Financial highlights

• Q3 2025 consolidated revenue was $137 million, down 2.1% year-over-year due to continued capital equipment spending constraints.

• Product revenue was $94.1 million (flat year-over-year); service revenue was $42.9 million (down from $45.9 million).

• GAAP gross margin was 41% (down from 44.8%); non-GAAP gross margin was 45.3% (down from 49.6%), mainly due to higher tariffs.

• GAAP net loss was $55.6 million ($0.65/share), impacted by a $33.9 million non-cash impairment; non-GAAP net income was $1.5 million ($0.02/share).

• Adjusted EBITDA was $5 million (vs. $5.1 million); operating cash flow was $6.9 million (vs. -$4.5 million); ended quarter with $255 million in cash and no debt.

Outlook and guidance

• Reaffirmed full-year 2025 revenue guidance of $550–$560 million.

• Non-GAAP gross margin expected at 46.7%–47%; non-GAAP operating margin at 1.5%–2%.

• Adjusted EPS expected at $0.13–$0.16; adjusted EBITDA at $30–$32 million.

• Non-GAAP operating expenses projected at $248M–$251M; capital expenditures expected at $20M–$25M.

• Anticipates year-over-year growth in operating cash flow and gross margin improvement in Q4 2025 and into 2026, driven by price increases and cost actions.