Stratasys (Nasdaq: SSYS) started the year with strong momentum, adding fresh cash to its balance sheet and achieving profitability on an adjusted basis.The company also gained a new investor, strengthened its cash position, and doubled down on its focus by prioritizing industrial manufacturing and recurring revenue.Even as customers pulled back on major spending and the macro environment remained tough, Stratasys stuck to its game plan and came out ahead.
For the first quarter of 2025, Stratasys reported revenue of $136 million, slightly down from $144.1 million in the same period last year.Although the company posted a net loss of $13.1 million under standard accounting rules (or GAAP), it showed a profit of $2.9 million, or 4 cents per share, on an adjusted basis, which was in line with analyst expectations.This adjusted profit reflects the impact of recent cost-cutting efforts and leaves out expenses like stock-based pay and one-time charges.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $8.2 million, doubling last year’s result.And despite lower revenue, the company improved its profitability metrics.It ended the quarter with $150 million in cash and no debt.
However, that number grew to $270 million in April after a $120 million cash injection from Fortissimo Capital, which also secured a board seat.Thanks to the new investment, Stratasys raised its 2025 adjusted earnings forecast.It now expects full-year net income between $24 million and $30 million, up from the earlier $20 to 26 million range.
Management said revenue guidance remains steady at $570 to $585 million, with the company forecasting sequential growth each quarter.The investment from Fortissimo will primarily support acquisitions.CEO Yoav Zeif told investors during an earnings call on May 8, 2025, that Stratasys is in a strong position to lead industry consolidation, especially as other players struggle.
“We had the privilege over the last few years to learn the industry in-depth through several processes, and we understand the environment, competition, and the potential value creation.And now, add to it the market prices of the assets that currently exist in the market.Those are great opportunities, and we are practically in the driver’s seat to capture this value creation,” noted Zeif.
Yoav Zeif gives a keynote speech at AMS 2025.Image courtesy of 3DPrint.com The executive added that management prioritizes profitability in every aspect of the business: “Even with uncertainty, our focus is on profitability and building a cost structure that is agile and sustainable.We’re working internally on our costs and strengthening the assets we already have—like our relationships with key customers and our position in industries like aerospace and defense—so that when manufacturing picks up again, we’ll be in the best position to grow profitably.” One highlight of the quarter was a 7% sequential boost in consumables, which are materials used in the company’s printers.
This is a key indicator of how much customers are using their machines.Zeif pointed out that this reflects “solid utilization across the installed base, especially in manufacturing settings.” In fact, that growth helped make up for declines in hardware and service revenue.System sales fell slightly to $31.2 million from $32.9 million last year, and service revenue declined to $42.2 million.
But even with those declines, Stratasys managed to cut costs.It reported that operating expenses dropped significantly thanks to a restructuring plan that started last year.The company also made selective reductions in R&D, or what CFO Eitan Zamir called a “focus,” not a “cut.” This, he explained, was a result of making spending more selective and aligned with strategic goals.
Although he did not disclose which specific R&D initiatives were scaled back, he stated that “if you look at our R&D as a percentage of revenue, we continue to deliver to keep it at a level that is very similar to the multiyear R&D percentage.” During the earnings call, Cantor Fitzgerald analyst Troy Jensen raised concerns about growing competition from low-cost manufacturers like Bambu Labs.While this segment of the market has expanded, Zeif was clear, stating it’s not their focus.“This is not our area,” he said.
“When I joined Stratasys five years ago, I said, prototyping is great, but it will be commoditized.The low-end prototype will be commoditized, and this is not the way to leverage the unique assets and capabilities that Stratasys has.” While Stratasys does hold a stake in Ultimaker, a desktop 3D printer company formed through the merger of MakerBot and Ultimaker, its main strategy remains focused on industrial manufacturing.That means prioritizing reliability, performance, and long-term customer support in demanding sectors like aerospace, defense, and healthcare.
In fact, during the quarter, Stratasys printers were used to make over 350 parts for BOOM Supersonic’s XB-1 jet, including components that helped the aircraft break the sound barrier.As an example of how additive manufacturing has a clear economic advantage, Zeif said the flight-controlled test ring tooling for the XB-1 resulted in a 90% savings on cost and lead time as compared to conventionally produced alternatives.The company also unveiled upgraded models like the NEO800 Plus and the next-generation Fortus 450MC, aimed at production-level applications.
Output of a Stratasys Fortus industrial 3D printer.Image courtesy of Stratasys.Beyond its core operations, Stratasys is already building AI into its work by using it to improve print accuracy, enable predictive maintenance, and even develop new service models.
Zeif pointed to Riven, a company Stratasys acquired in 2022, whose technology helps correct printed parts using AI and data analysis—a major step toward better repeatability.He also mentioned a new service model in development that uses AI for predictive maintenance.To do this, Stratasys is working closely with major manufacturers like Boeing, Lockheed Martin, and Toyota through an initiative called OneStream, part of its broader advisory board focused on what companies actually want from AI in manufacturing.
Yoav Zeif, CEO of Stratasys, at AMS 2024 alongside 3DPrint.com Executive Editor Joris Peels.Image courtesy of 3DPrint.com.Even with economic uncertainty, Stratasys says it’s planning for what’s ahead.
The company expects steady growth in areas like localized manufacturing, digital design, and demand for consumables used in everyday production.For now, it’s focused on keeping margins healthy, growing recurring revenue through materials and software, and staying prepared for a broader recovery in manufacturing.If that recovery comes, Stratasys “wants to be in the right position,” with the cash, the products, and the customers already in place.
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