3D Systems (NYSE: DDD) just wrapped up a tough first quarter, facing ongoing challenges from customers holding off on buying new machines and materials.To adapt, the company is cutting costs, selling off non-core assets, and leaning into its next-generation printers.While the slowdown in customer spending is expected to last a while, 3D Systems expects these changes to show results once the market improves.
3D Systems at Formnext 2024.Image courtesy of 3D Systems.For the first quarter of 2025, the company brought in $94.5 million in revenue, down 8% from the same time last year.
The biggest drop came from materials sales, especially in the dental aligner segment, where customers slowed down purchases to use up existing inventory.This decline in materials sales outweighed gains in hardware and services, despite a second straight quarter of growth in new printer sales driven by the company’s latest systems.CEO Jeffrey Graves said capital spending has slowed, especially in consumer-facing and service bureau markets.
Still, 3D Systems reported wins across all three metal platforms and steady momentum in aerospace, defense, healthcare, and AI infrastructure, particularly in high-reliability applications.Despite those wins, the company ended the quarter with a net loss of $37 million, which was more than twice what it lost during the same period last year.Profit margins declined this quarter due to lower sales, and the gross margin fell compared to the previous year.
EBITDA came in at a loss of $31 million, pointing to the broader pressure on the business.Even after adjustments, the loss still stood at nearly $24 million.Cost cuts are a major part of 3D Systems’ strategy this year.
The company had already announced a $50 million savings plan and is adding another $20 million in cuts.These efforts will help the company better match today’s lower demand.In the first quarter alone, it spent over $11 million less than it did a year ago.
As part of the new cost-cutting move, the company also plans to reorganize its workforce “to better align with current market conditions,” which could involve reducing headcount, a step it also took in 2023 as part of earlier restructuring efforts.Jeffrey Graves speaks at AMS 2025.Image courtesy of 3DPrint.com.
Healthcare remains strong, particularly the personalized healthcare segment, which grew 17%, and the Food and Drug Administration (FDA)-approved manufacturing unit, which jumped 18%.These segments are key to 3D Systems’ long-term growth plans and continue to be strong despite the general slowdown.In April, the company also sold its Geomagic software portfolio, adding over $100 million in post-tax proceeds to its balance sheet.
As of April 30, 2025, cash reserves were roughly $250 million, up from $135 million at the end of Q1.This gives the company more room to invest in its key technologies and get through today’s tough market.Graves pointed out that the company’s major R&D investments over the last few years “have yielded a significant wave of new technology introduction across the entirety of our product portfolio, including both our polymer and metal platforms.” New hardware platforms are entering a commercialization phase, particularly in metal printing for high-end industrial and medical applications.
“While the short-term impact on profitability from these investments has been painful, based upon the strong customer interest we have received in these new products, we believe the strength of our offerings and the groundwork we have laid through our application specialists, will be a key competitive differentiator in the market as the headwinds on customer capex spending recede and new production inroads are expanded upon,” he said.Despite the long-term optimism, 3D Systems has decided to withdraw its full-year guidance for 2025.The company cited the unpredictability of customer capital spending and emphasized a more conservative approach moving forward.
With more cash on hand, new printers launching, and lower costs, 3D Systems is getting ready for a future rebound—just not yet.For now, the company is focused on staying flexible and preparing for when the market improves.Subscribe to Our Email Newsletter Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.
Print Services
Upload your 3D Models and get them printed quickly and efficiently.Powered by FacFox
Powered by 3D Systems
Powered by Craftcloud
Powered by Endeavor 3D
Powered by Xometry
3DPrinting Business Directory
3DPrinting Business Directory
