3D Systems (NYSE: DDD) ended the third quarter on a more hopeful note.Results suggest its key markets are starting to recover, helped by better printer sales and ongoing cost cuts.Management said that customer spending is picking up after several slow quarters and expects more improvement by the end of the year.
3D Systems at Formnext 2024.Image courtesy of 3D Systems.For the quarter ended September 30, 3D Systems reported revenue of $91.2 million, down from $112.9 million a year earlier.
Revenue was also lower than the first two quarters of 2025, which came in at $93 million and $96 million, respectively.The company said the drop mainly reflects lower sales across its healthcare and industrial units, but noted that printer shipments have improved and some key markets are beginning to stabilize.The company posted a net loss of $18.1 million, a major improvement from the $178.6 million loss recorded a year ago.
Adjusted EBITDA improved to a loss of $10.8 million, a $3.5 million year-over-year improvement driven by reduced spending.CEO Jeffrey Graves told investors during the company’s earnings call that “macro conditions remain challenging,” but added that several of 3D Systems’ core end markets—especially healthcare, aerospace, and defense — are showing early signs of recovery.He said the company expects revenue to rise 8% to 10% sequentially in the fourth quarter, supported by new product launches and a typical year-end boost in customer capital expenditures.
“We’re beginning to see improvements in our key markets as we enter the fourth quarter,” Graves said.“Our strong pipeline of new products positions us well for better sales, which we expect to increase sequentially over Q3.Healthcare, aerospace and defense, and, for the first time in several quarters, consumer markets are leading that improvement.” 3D Systems at Formnext 2024.
Image courtesy of 3D Systems.Stronger printer sales helped make up for weaker results in other areas.The company’s Healthcare Solutions business generated $42.8 million in revenue, down 22% from last year, while Industrial Solutions fell 16% to $48.5 million.
While this decline points to slower spending earlier in the year, the rate of decline has now eased, explained management, indicating that demand in healthcare and industrial markets is no longer falling as sharply as before.Graves noted that this heavier mix of hardware sales is “pressuring margins in the short term, but could strengthen recurring revenue over time as more systems begin consuming materials and services.While printer sales lower gross margin now, they set us up for stronger consumables growth in 2026.” Gross profit for the quarter was $29.4 million, giving the company a margin of 32.3%, down from 36.9% a year ago.
The drop mainly came from lower sales and the sale of the Geomagic software business last year.Leak-free Copper Liquid Cooler for NVIDIA A4000 GPU.Image courtesy of 3D Systems.
Operating expenses continued to fall as 3D Systems carried out its cost-cutting and restructuring plans.Total operating expense dropped to $50.7 million from $222 million a year earlier, when results were weighed down by large one-time impairment charges.The company also continued to streamline operations and lower spending across departments.
Interim CFO Phyllis Nordstrom said the company remains “focused on maintaining financial discipline, continuing to streamline our cost structure, and strengthening our balance sheet.” At the end of the quarter, 3D Systems had $114 million in total cash, including $95.5 million in cash and equivalents and $18.7 million in restricted cash.Total debt was $122.6 million.Nordstrom emphasized that the balance-sheet position “gives the company the flexibility to keep investing in growth while improving consistency of results.” 3D Systems CEO Jeffrey Graves at Formnext 2024.
Image courtesy of 3D Systems via LinkedIn.Management expects sales to improve slightly in the fourth quarter.The company projected 8% to 10% sequential revenue growth, driven by new system sales, higher materials consumption, and a seasonal pickup in customer spending.
Gross margins and operating expenses are expected to remain roughly at current levels.In the healthcare segment, Graves said personalized health services, which slowed in the third quarter due to seasonality, should rebound and deliver double-digit growth for the full year.The dental business, affected earlier by weakness in the aligner market, is stabilizing, supported by strong demand for the company’s new monolithic denture line.
After months of uncertainty in industrial capital spending, management seems optimistic about the recent “market tone.” 3D Systems is now focusing more tightly on its main 3D printing business after selling off several non-core units, including its software arm, Geomagic, and the bioprinting subsidiary, Systemic Bio, earlier this year.The company continues to emphasize metal and polymer printing systems, healthcare applications, and materials.Although year-over-year results still reflect the slowdown across the broader industrial 3D printing market, the company hopes to see gradual improvement through 2026.
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