Velo3D (VLD) Q4 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth in 2025, reaching $46 million, driven by strong demand for Rapid Production Solutions (RPS) and significant defense sector bookings, with backlog up 230% year-over-year to $31 million.

• Secured major defense contracts, including a $32.6 million Department of War contract, a milestone-based U.S. Army initiative, and an $11.5 million multi-year production contract with a prime contractor.

• Qualified as the first additive manufacturing vendor for the U.S. Army's Ground Vehicle Systems Center, accelerating adoption in defense supply chains.

• Expanded commercial aviation presence, notably with Intergalactic, enabling rapid production for complex aerospace components.

• Transitioning business model to leverage digital manufacturing data and analytics for future value creation.

Financial highlights

• Q4 2025 revenue was $9.4 million, down 25% year-over-year due to product mix and system sales volume; full-year 2025 revenue grew 12% to $46 million.

• Full-year 2025 gross margin was -16.1%, with Q4 gross margin at -73.6% due to a $7 million inventory write-down.

• Full-year GAAP net loss was $71.4 million; non-GAAP net loss improved to $41.3 million from $79.4 million in 2024.

• Adjusted EBITDA for 2025 improved to -$33.3 million from -$58.5 million in 2024.

• Cash and equivalents at year-end 2025 were $39 million, up from $1.2 million, aided by a $30 million private placement and $10 million equipment loan.

Outlook and guidance

• 2026 revenue expected between $60 million and $70 million, driven by RPS adoption and large format system expansion.

• Gross margins projected to exceed 30% in H2 2026 as production scales and efficiencies are realized.

• Non-GAAP operating expenses expected at $45 million–$55 million; capital expenditures at $40 million–$50 million.

• Targeting EBITDA positive in H2 2026, with plans to raise additional capital to support expansion.

• Long-term plan envisions up to 400 production systems over the next decade, subject to financing and demand.