Velo3D, Inc., a leader in additive manufacturing ("AM") technology known for transforming aerospace and defense supply chains through world-class metal AM, announced financial results for its second quarter ended June 30, 2025.
Recent Business Developments
- Strong momentum continues in Rapid Production Services (RPS)
- RPS bookings increased 79% quarter over quarter
- New customers represented more than 78% of 2Q'25 bookings
- 54% bookings from Space and 33% bookings from Defense sector
- Signed a Cooperative Research and Development Agreement (CRADA) with two Naval Air Systems Command (NAVAIR) federal laboratories to advance additive manufacturing capabilities for the aerospace and defense sectors
- Signed a $4 million, two-year Master Services Agreement (MSA) with Vaya Space to collaborate on production and innovation efforts in high-performance additive manufacturing
- Announced and advanced $22.0 million strategic partnership with Amaero following achievement of powder qualification milestone by Auburn University's National Center for Additive Manufacturing Excellence
- Signed a five-year, $15 million master services agreement (MSA) with Momentus, Inc. to leverage to RPS Offering
- Received an order for a fourth Sapphire XC printer from Mears Machine Corporation to support the continued development of aerospace and industrial-related programs
- Announced an agreement with Ohio Ordinance Works, Inc. to provide RPS as part of its 3D Printed Military Weapons Development initiative.
- Appointed retired U.S. Army Green Beret, Brice Cooper, as Vice President of Defense and Government Relations
- Appointed retired Navy Rear Admiral Jason Lloyd and Kenneth Thieneman to Board of Directors
"Our second quarter results reflect solid topline performance" said Arun Jeldi, CEO of Velo3D. "More importantly, the composition of our backlog made a significant shift toward RPS driven by strong demand from the Space and Defense sectors."
"This quarter marked a pivotal period of strategic advancement for our business," said Arun Jeldi, CEO of Velo3D. "We are proud to have signed a Cooperative Research and Development Agreement with two NAVAIR federal laboratories, which positions us at the forefront of innovation in additive manufacturing for aerospace and defense. Additionally, our new $4 million Master Services Agreement with Vaya Space underscores the growing demand for our high-performance production capabilities. We also deepened our collaboration with Amaero, bolstered by a key powder qualification milestone achieved by Auburn University's National Center for Additive Manufacturing Excellence. These milestones reflect our continued momentum and commitment to advancing next-generation manufacturing solutions across critical sectors."
Jeldi concluded, "Momentum is building as several of our strategic initiatives begin to take hold. We remain focused on operational discipline and initial indications point to improved performance across the business. Looking ahead, we expect to build on this progress quarter by quarter as we continue advancing our position in the additive manufacturing industry."
|
($ in Millions, except percentages and per-share data) |
2nd Quarter 2025 |
2nd Quarter 2024 |
|
GAAP revenue |
$13.6 |
$10.3 |
|
GAAP gross margin |
(11.7) % |
(28.0) % |
|
GAAP net loss1 |
($13.8) |
($0.2) |
|
GAAP net loss per share - basic and diluted |
($0.98) |
($0.30) |
|
Non-GAAP net loss2 |
($11.3) |
($21.7) |
|
Non-GAAP net loss per share - basic and diluted2 |
($0.81) |
($38.49) |
- Information about Velo3D's use of non-GAAP information, including a reconciliation to accounting principles generally accepted in the United States ("GAAP"), is provided at the end of this release under "Non-GAAP Financial Information". The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company's performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP.
- Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, gain on exchange of debt for common stock, fair value adjustments for the Company's warrants, contingent earnout and debt derivative and loss on extinguishment of debt.
Summary of Second Quarter 2025 Results
Revenue was $13.6 million. System revenue increased compared to the second quarter of 2024, driven by product mix and the number of systems sold. While system sales are expected to remain the primary driver of revenue in 2025, the company anticipates that, under its new go-to-market strategy, its RPS parts production business will contribute an increasing share of revenue beginning in the second half of the year.
Gross margin for the second quarter was (11.7%) compared to (28.0%) in the second quarter of 2024. While the year-over-year comparison illustrates improvement, the negative margin was the result of a number of the systems sold being manufactured in 2024 when the Company had significantly higher fixed cost and overhead. The company expects gross margin to improve going forward as historical factors become a less significant driver of margin and as a result of operational efficiencies and an anticipated ramp-up of its RPS business.
Operating expenses for the second quarter were $10.5 million compared to $17.6 million in the second quarter of 2024. Non-GAAP operating expenses, excluding stock-based compensation expense of $2.4 million, were $8.1 million, down from $13.4 million in the second quarter of 2024.
GAAP net loss for the second quarter was ($13.8) million compared to ($172,000) in the second quarter of 2024.
Non-GAAP net loss was ($11.3) million in the three months ended June 30, 2025. Adjusted EBITDA for the quarter was ($8.9) million. For more information regarding the company's non-GAAP financial measures, see "Non-GAAP Financial Information" below.
As of June 30, 2025, the Company had $854,000 of cash and cash equivalents compared to $1.2 million as of December 31, 2024.
Guidance
Management reaffirms expectations for the following for the full year 2025:
- Revenue in the range of $50 million to $60 million.
- Sequential improvement in gross margin
- Greater than 30% gross margin in fourth quarter of 2025
- Non-GAAP operating expenses in the range of $40 million to $50 million
- CapEx in the range of $15 million to $20 million
- EBITDA positive in the first half of 2026
Conference Call
The company will host a conference call for investors this afternoon to discuss its second quarter 2025 financial results at 5 p.m. Eastern time / 2 p.m. Pacific time on August 6, 2025. The call will be webcast and can be accessed from the Events page of the Investor Relations section of Velo3D's website at ir.velo3d.com.
