3D Systems Corporation announced its financial results for the second quarter ended June 30, 2025.
- Revenue of $95 million led by double-digit growth in Medical Technology and Aerospace & Defense markets
- Regenerative Medicine partnership with United Therapeutics targeted on manufacture of human lungs reached a new printing milestone resulting in a $2 million award in the quarter
- Cost reduction and efficiency programs resulted in over $20 million of savings in operating expenses in Q2
- Company’s previously announced cost initiatives are on track to support a return to positive cash flow in 2026
- Successful balance sheet restructuring, combining debt retirement, refinancing, and share repurchase, allows for execution of restructuring program while maintaining continuity of critical growth and efficiency investments
- Net income benefited from improved operating performance, gains on the sale of the Geomagic software platform and gains recognized on the extinguishment of debt at a discount
Summary Comments on Results
Dr. Jeffrey Graves, president and CEO of 3D Systems said, “We delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry. Our cost savings initiatives, which we first announced in March, favorably impacted both gross margins and operating expenses on a sequential basis for the second quarter. Key elements of our cost and efficiency initiative include consolidation of our operational footprint, restructuring of our workforce, and various efficiency initiatives across the business. As announced, these savings initiatives will extend through mid-2026, paced in part by the rate at which real-estate leases for exited facilities are curtailed. We are benefiting from our prior efforts to fully in-source manufacturing and supply chain operations, an initiative which is now virtually complete and helping to offset headwinds from tariffs. In the second quarter, tariffs increased our costs by roughly $1 million, but were largely countered through improved operating efficiencies in manufacturing operations which supported our gross margin performance. Looking ahead we expect the impact of tariffs to continue impacting our operating costs as we move through the second half of the year."
Dr. Graves continued, "From a revenue standpoint, consolidated revenue for the second quarter declined 16% year-over-year, reflecting the significant softness we have experienced in our customers’ capex spending for new production capacity over the last several quarters. We attribute this softness to the uncertainties created by the extreme volatility in tariffs, which is expected to continue for some time. However, when viewed on a sequential quarterly basis revenues grew slightly, despite the sale of the Geomagic software business which occurred at the very beginning of Q2. Excluding first quarter revenues from Geomagic of just over $7 million, revenues in the second quarter were up roughly 8% on a sequential basis. This sequential growth was the net effect of two strong opposing factors, with the first being headwinds from continuing softness in our customers’ capex spending. This drag, which particularly affected our customers in consumer-related businesses, was offset by strength in our Med Tech and high-reliability industrial markets. For our Med Tech business, performance in our Personal Health Services led the way, growing 13% year-over-year and 16% sequentially. This performance was driven by the continued growth in orthopedic procedures using 3D printing technology and through our expansion into trauma-related orthopedic surgeries. With market adjacencies now opening, we anticipate growth in these medical markets to continue. Our dental business was down 3% for the quarter, driven entirely by a sharp decline in demand from customers serving the aligner market, which experienced a 19% reduction sequentially in the quarter. For our industrial customers, while consumer-facing markets were weak, we experienced strong demand in Aerospace & Defense, with revenues growing 84% from prior year, and 53% sequentially from the first quarter. Total A&D revenues now exceed $30 million annually and are a significant focus moving forward. Central to our growth in A&D is our unique ability to meet customers’ needs from the inception of process development, through initial part production, and ultimately to full-scale printer supply when demand rises. We are the only US provider of 3D printing technologies who can offer this full spectrum of capability, and do so over the entire breadth of polymer and metal printing technologies. Moreover, we can do this regionally within the US, and within EMEA for industrial customers needing high reliability components. For this reason, we are excited about our future growth in these markets that demand the highest component reliability, such as Aerospace & Defense, AI infrastructure, and Oil & Gas, to name a few.”
Dr. Graves concluded, “As previously announced, late in the second quarter, we took significant steps to bolster our balance sheet, permanently retiring $88 million in outstanding debt at a meaningful discount to par, extending maturities for the majority of our remaining debt to 2030, and repurchasing 8 million shares of our common stock to reduce dilution to shareholders. We believe this balance sheet transformation, in combination with continued execution against our restructuring actions and critical new product introductions will deliver increasing shareholder value in the future.”
Second Quarter 2025 Results
Revenue for the second quarter of 2025 decreased 16% to $94.8 million compared to the same period last year.
Healthcare Solutions revenue decreased8% to $45.0 million compared to the prior year period.
Industrial Solutions revenue decreased23% to $49.8 million compared to the prior year period.
Gross profit margin for the second quarter of 2025 was 38.1% compared to 41.6% in the same period last year. Non-GAAP gross profit margin was 39.2% compared to 40.9% in the same period last year and decreased primarily due to less favorable mix following the divestiture of the Geomagic business in the second quarter of 2025.
Net income attributable to 3D Systems Corporation increased by $131.7 million to $104.4 million in the second quarter of 2025 compared to the same period in the prior year.
Adjusted EBITDA improved by $7.6 million to a loss of $5.3 million in the second quarter of 2025 compared to the same period last year primarily driven by a reduction in operating expenses.
Financial Liquidity
At June 30, 2025, cash and cash equivalents totaled $116.4 million and decreased by $55.0 million since December 31, 2024. This decrease resulted primarily from cash used in operations of $59.6 million and cash used in financing activities of $97.3 million, partially offset by cash provided by investing activities of $112.9 million. At June 30, 2025, the company had cash, cash equivalents and restricted cash of $133.9 million and total debt, net of deferred financing costs of $122.6 million.
Q2 2025 Conference Call and Webcast
The company will host a conference call and simultaneous webcast to discuss these results on August 12, 2025, which may be accessed as follows:
Date: Tuesday, August 12, 2025
Time: 8:30 a.m. Eastern Time
Listen via webcast: www.3dsystems.com/investor
Participate via telephone: 201-689-8345
A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.
