Stratasys Ltd., a leader in polymer 3D printing solutions, announced its financial results for the first quarter ended March 31, 2025.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “We delivered another quarter of net profitability on an adjusted basis and positive cash from operating activities. It's particularly encouraging to see 7% sequential growth in our recurring revenue Consumables, demonstrating continued solid utilization of existing systems by our customers. Our ongoing strategic efforts to streamline the business are proving successful, and we are positioned to deliver improved profitability, while maintaining our ability to scale when capital spending recovers.”
Dr. Zeif continued, “With the recent close of the $120 million Fortissimo investment we further strengthened our balance sheet, which will support our ability to invest in profitable growth, both organically and through attractive opportunities. We continue to strengthen our position in additive manufacturing by expanding our portfolio of best-in-class technology, materials, and software. We believe we are well-positioned to drive increased cash flow and profitability from our streamlined operations and recurring stream of revenue as we move through the balance of the year.”
Summary - First Quarter 2025 Financial Results Compared to First Quarter 2024:
- Revenue of $136.0 million compared to $144.1 million.
- GAAP gross margin of 44.3%, compared to 44.4%.
- Non-GAAP gross margin of 48.3%, compared to 48.6%.
- GAAP operating loss of $12.4 million, compared to an operating loss of $24.5 million.
- Non-GAAP operating income of $3.0 million, compared to an operating loss of $1.2 million.
- GAAP net loss of $13.1 million, or $0.18 per diluted share, compared to a net loss of $26.0 million, or $0.37 per diluted share.
- Non-GAAP net income of $2.9 million, or $0.04 per diluted share, compared to a net loss of $1.7 million, or $0.02 per diluted share.
- Adjusted EBITDA of $8.2 million, compared to $4.1 million.
- Cash provided by operating activities of $4.5 million, compared to $7.3 million.
Financial Outlook:
Based on current market conditions and assuming that the impacts of tariff policy, global inflationary pressures, relatively high interest rates and supply chain costs do not impede economic activity further, the Company is reiterating the following outlook for 2025:
- Full year revenue of $570 million to $585 million, improving sequentially over the course of the year.
- Based on current logistics and materials costs, full-year non-GAAP gross margins of 48.8%-49.2%, improving sequentially over the course of the year.
- Full year operating expenses in a range of $254 million to $257 million.
- Full year non-GAAP operating margins in a range of 4.0% to 5.0%.
- Adjusted EBITDA of $44 million to $50 million, or 7.8% to 8.5% of revenue.
- Capital expenditures of $25 million to $30 million.
- Expects to generate improved operating and free cashflow, at higher levels than in 2024.
As a result of the Fortissimo investment, the Company’s share count as of April 8 increased by approximately 11.65 million shares. The interest income the Company expects to generate from the $120 million investment will offset any potential dilution related to the share count. As a result, the Company is raising its 2025 annual earnings forecast as follows:
- GAAP net loss of $64 million to $49 million, up from $68 million to $53 million previously, and GAAP EPS of ($0.80) to ($0.61), an improvement as compared to ($0.93) to ($0.72) previously.
- Non-GAAP net income of $24 million to $30 million, up from $20 million to $26 million previously, and Non-GAAP EPS of $0.30 to $0.37, up from $0.28 to $0.35 previously.
Appropriate reconciliations between our historical GAAP and non-GAAP financial measures, as well as between the GAAP and non-GAAP financial measures included in our updated financial outlook for 2025, are provided in the tables at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures. We have not included, however, a reconciliation of our guidance for non-GAAP gross margins to the most directly comparable GAAP financial measure, as we are unable to do so without unreasonable effort or with reasonable certainty from a quantitative perspective.
Stratasys Ltd. First Quarter 2025 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its first quarter 2025 financial results on Thursday, May 8, 2025, at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=pGlPRdRX
To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address.
