Velo3D, Inc. ("Velo3D" or the "Company"), a leading metal additive manufacturing ("AM") technology company focused on aerospace and defense supply chains, announced financial results for its third quarter ended September 30, 2026.
Arun Jeldi, Chief Executive Officer of Velo3D, said, "We delivered solid third quarter results, with revenue increasing approximately 50% year-over-year to $20.5 million and new bookings reaching $28.9 million, exceeding revenue for the quarter. These results reflect continued customer demand for our metal additive manufacturing technology and the progress we are making in executing our growth strategy. Operating expenses increased as we continued investing in the people, technology and operational capabilities needed to bring our Livermore Production Campus, Forge 1, online and prepare for expanded production. We believe these investments are an important step in positioning Velo3D to scale operations and meet customer demand.
Looking ahead, Forge 1 is central to Velo3D's next phase of growth and is expected to significantly expand our production capacity as it becomes fully operational, enabling us to pursue larger production programs and capture opportunities across aerospace, defense, space and energy. While a substantial portion of our planned capital expenditures is shifting into 2027, we believe these investments in infrastructure, talent and manufacturing capabilities are essential to scaling our operations, strengthening execution and building the foundation for sustainable, profitable growth."
Recent Business Developments
- Opened the new Livermore Production Campus, Forge 1 in July 2026. The campus has commenced operations in phases and is not yet operating at scale. It is expected to significantly expand the Company's manufacturing production capacity as it is brought to full operation, and to support demand from aerospace and defense customers for the Company's metal additive manufacturing solutions. The Company expects Forge 1 to serve as its primary production and manufacturing center.
- Joined the Government-Industry Data Exchange Program (GIDEP) to further strengthen quality, reliability and supply-chain risk management for defense manufacturing activities, providing access to critical technical and quality information that supports risk mitigation and the production of mission-critical components for U.S. defense programs.
- Expanded partnership with Mears Machine Corporation as Mears ordered its sixth Sapphire® XC system, dedicated to copper-nickel (CuNi) additive manufacturing. The system expands Velo3D's production platform into a material critical to shipbuilding and offshore applications, enabling U.S.-based production of corrosion-resistant components.
- Expanded technology and operational capabilities with the appointments of Vic Fryzel as Executive Vice President, Technology, and Robert Purnell as Senior Director, Operations, to advance platform reliability, manufacturing readiness, quality and delivery performance at Forge 1, supporting scalable production and Velo3D's Rapid Production Solutions offering.
|
($ in Millions, except percentages and per-share data) |
3rd Quarter 2026 |
3rd Quarter 2025 |
|
GAAP revenue |
$20.5 |
$13.6 |
|
GAAP gross margin |
26.5 % |
3.2 % |
|
GAAP net loss1 |
($16.7) |
($11.2) |
|
GAAP net loss per share – basic and diluted |
($0.52) |
($0.65) |
|
Non-GAAP net loss1,2 |
($10.8) |
($9.3) |
|
Non-GAAP net loss per share – basic and diluted1,2 |
($0.34) |
($0.54) |
- Information about Velo3D's use of non-GAAP information, including a reconciliation to accounting principles generally accepted in the United States of America ("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 basic and diluted share exclude stock-based compensation expense, loss on warrant cancellation, and fair value adjustments for the Company's warrants and earnout liability.
Summary of Third Quarter 2026 Results
Total revenue was $20.5 million. 3D Printer and parts revenue was $18.8 million and increased 57.0% compared to $12.0 million in the third quarter of 2025. This increase was driven by an increase in the number of 3D Printer systems sold, higher average selling prices and a more favorable product mix, as well as an increase in RPS revenue driven by higher production volume during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Gross margin for the third quarter was 26.5% compared to 3.2% in the third quarter of 2025. Gross profit and gross margin improved primarily due to higher average selling prices, a more favorable product mix, improved manufacturing efficiencies and increased production volumes that improved the absorption of fixed manufacturing costs, a net release of excess and obsolete inventory reserves in the current period, reflecting the utilization in production of previously reserved inventory, partially offset by increases in reserves for other inventory. Results also benefited from the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses, implemented in the second quarter of 2026 to better align such costs with current operational activities.
Operating expenses for the third quarter were $22.7 million compared to $10.4 million in the third quarter of 2025. Non-GAAP adjusted operating expenses, excluding stock-based compensation recorded in operating expenses of $5.7 million, were $17.0 million, up from $9.1 million in the third quarter of 2025.
GAAP net loss for the third quarter was ($16.7) million, or ($0.52) per basic and diluted share, compared to ($11.2) million, or ($0.65) per basic and diluted share in the third quarter of 2025.
Non-GAAP net loss for the third quarter was ($10.8) million compared to ($9.3) million in the third quarter of 2025. Adjusted EBITDA for the third quarter was ($9.8) million compared to ($7.3) million in the third quarter of 2025. For more information regarding the Company's non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Financial Information" below.
The Company had $28.9 million in new bookings during the third quarter and backlog of $40.1 million as of September 30, 2026.
As of September 30, 2026, the Company had $75.7 million of cash and cash equivalents, compared to $39.0 million as of December 31, 2025. The increase was driven primarily by net cash provided by financing activities of approximately $98.6 million during the first nine months of 2026, partially offset by approximately $52.2 million of cash used in operating activities and approximately $6.4 million of cash used in investing activities. In April 2026, the Company completed a firm commitment underwritten registered direct offering of 3,571,428 shares of its common stock, resulting in gross proceeds of approximately $50 million (approximately $46.6 million net of issuance costs). The Company also raised gross proceeds of approximately $59.4 million during the second quarter under its at-the-market offering program (approximately $57.4 million net of issuance costs). As a result of the conversion of the Company's convertible secured notes into common stock in March 2026, the repayment in full of its Secured Notes and scheduled repayments under its equipment loan, the Company's total outstanding debt decreased by approximately 76% to $7.4 million as of September 30, 2026, from $31.0 million as of December 31, 2025.
In connection with the preparation of its financial statements for the third quarter of 2026, management evaluated the Company's ability to continue as a going concern and concluded that there is no longer substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance of its third quarter 2026 financial statements. Management's assessment does not assume that additional financing is required to fund operations or satisfy obligations during that period. Additional information will be included in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Guidance
Management is reaffirming its full-year 2026 revenue and non-GAAP adjusted operating expense guidance, is revising its gross margin guidance and reducing its capital expenditure outlook, and is providing an expected timeline for achieving positive net cash from operations and an updated expected timeline for achieving positive EBITDA as follows:
- Revenue in the range of $65 million to $75 million.
- Sequential improvement in gross margin in the fourth quarter of 2026. The Company is no longer providing its prior expectation of greater than 30% gross margin in the second half of 2026.
- Non-GAAP adjusted operating expenses in the range of $45 million to $55 million.
- Capital expenditures in the range of $10 million to $20 million, reduced from the Company's prior expectation of $40 million to $50 million, primarily reflecting the shift of a substantial portion of planned capital expenditures into 2027.
- Positive net cash from operations and positive EBITDA in 2028, compared with the Company's prior expectation of positive EBITDA in the second half of 2026.
Conference Call
The Company will host a conference call for investors to discuss its third quarter 2026 financial results at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time on November 10, 2026. 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.
