Core Insights - 3D Systems (DDD) reported a non-GAAP loss of 8 cents per share for Q3 2025, which was better than the Zacks Consensus Estimate by 11.11% and an improvement from a loss of 9 cents per share in the same quarter last year [1][9] - The company's revenues for the quarter were $91.2 million, down 19.2% year over year, and missed the Zacks Consensus Estimate by 1.41% [1][9] Financial Performance - Product revenues decreased by 28.3% year over year to $52.3 million, making up 57.3% of total revenues, while services revenues accounted for 42.7% of total revenues and fell by 2.6% year over year to $38.9 million [3] - Non-GAAP gross profit fell 30.4% year over year to $29.6 million, with a gross profit margin decline of 520 basis points to 32.4% due to lower sales volumes and the divestiture of the Geomagic business [6] - Adjusted EBITDA loss was $10.8 million, which was an improvement of $3.5 million due to a 27.2% reduction in operating expenses to $44.7 million [6] Segment Performance - Healthcare Solutions revenues decreased by 22.3% year over year to $42.8 million, while MedTech revenues increased by over 8% year over year [5] - Industrial Solutions revenues declined by 16.3% year over year to $48.5 million, although Aerospace and Defense revenues grew by 50% year over year [5] Balance Sheet - As of September 30, 2025, cash and cash equivalents were $95.5 million, down from $116.4 million as of June 30 [7] - Total debt remained unchanged at $122.6 million, with $34.7 million maturing in Q4 2026 and the remaining $92 million maturing in 2030 [7] Future Outlook - The company anticipates revenue growth of 8-10% for Q4 2025, driven by increased printer sales and healthcare demand [9][10] - Strong sales of new printer systems and rising materials consumption are expected to contribute to this growth, along with anticipated increases in customer capital expenditures [10]

Core Insights - 3D Systems reported a significant drop in revenue for the third quarter, leading to a 10.1% decline in its share price [1][2] - The company posted a loss per share of $0.08, which was better than the expected loss of $0.12, but revenue of $91.2 million fell short of the anticipated $97.68 million, marking a 19% decline year-over-year [2] - Both the Industrial Solutions and Healthcare Solutions segments experienced substantial revenue drops of 16% and 22%, respectively, contributing to the negative investor reaction despite better-than-expected earnings [2] Financial Performance - The reported revenue of $91.2 million was significantly below expectations, indicating broader weaknesses in the company's performance [2] - The loss per share of $0.08 was an improvement over the forecasted loss, but overall financial results did not meet market expectations [2] Market Reaction - The stock's volatility is highlighted by 73 moves greater than 5% over the past year, indicating that this news has significantly impacted market perception [4] - The stock has decreased by 27.8% since the beginning of the year and is currently trading at $2.31 per share, which is 51.1% below its 52-week high of $4.72 [8] Broader Market Context - The overall market has seen positive momentum, with major indices like the Dow Jones, S&P 500, and Nasdaq Composite climbing significantly, driven by strong corporate earnings and easing trade tensions [6][7] - Despite the positive market environment, 3D Systems' performance stands out negatively, suggesting company-specific challenges [2][8]

Financial Data and Key Metrics Changes - The company's third quarter revenue was $91.2 million, down 13.8% year over year, consistent with normal seasonality trends [4][25] - Non-GAAP gross margin for the third quarter was 33%, compared to 38% in the prior year [26] - GAAP net loss for the quarter was $18 million, or a loss per share of $0.14, an improvement from a loss of $1.35 per share in the prior year [28][29] Business Line Data and Key Metrics Changes - Industrial solutions revenue was $48 million, down 16% year over year, primarily due to softness in printers and material sales in consumer-facing markets [25] - Healthcare solutions revenue decreased by 22% to $43 million, driven by lower sales in dental, while MedTech grew by 8% [26][12] - The dental market is expected to reach $1 billion in industry revenue across the US and Europe over the next several years [10] Market Data and Key Metrics Changes - The overall market for 3D printing remains challenging, with customers showing muted Capex spending due to uncertainty around tariffs [5] - The aerospace and defense segment grew nearly 50% year over year, indicating strong demand in that area [26] - The company is focusing on expanding its presence in the dental market, which is transitioning to 3D printing from traditional methods [11] Company Strategy and Development Direction - The company is rationalizing non-core assets and focusing on strategic investments in metal and polymer printing technology [6] - New printer platforms have been launched, particularly in the jewelry and dental markets, to drive future growth [7][9] - The company is also expanding its initiatives in Saudi Arabia to support local manufacturing and industrialization through 3D printing [17][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging but is taking aggressive actions to adjust the cost structure while maintaining core R&D investments [5] - The company expects continued reductions in operating expenses through the end of the year, targeting over $50 million in annualized savings by year-end [27][31] - Management expressed optimism about the growth potential in the dental market and the overall healthcare segment, anticipating it to be one of the largest revenue streams in the future [11][67] Other Important Information - The company completed the divestiture of its Geomagic software business, which will allow for a more accurate comparison of performance across periods [24] - The financial impact of the recent asset sales is expected to be approximately $1.2 million in revenue and $1 million on gross margin for Q4 [6] Q&A Session Summary Question: Can you touch on the decline in gross margins? - Management explained that the decline was due to the absence of a prior quarter's milestone revenue and some manufacturing variances [34][35] Question: Is there more to do on the cost cut efforts? - Management indicated that while significant strides have been made, there are still some facility consolidations to complete, with continued declines in operating expenses expected [36][39] Question: Can you provide more detail on the partnerships with Lockheed Martin and initiatives in the Middle East? - Management highlighted the importance of local manufacturing and innovation in Saudi Arabia, driven by defense contracts and local sourcing requirements [44][46] Question: What is driving the stabilization in the dental business? - Management noted that the dental market has several revenue streams, with materials for repairs being consistent, while aligner revenue is more volatile [51][54] Question: How will the denture initiative impact revenue? - Management expressed confidence that the denture market will become a more stable revenue stream due to the aging population and the efficiency of 3D printing [66][67]

Third Quarter 2025 Financial Results Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Phyllis Nordstrom Executive Vice President & Interim Chief Financial Officer Monica Gould November 5, 2025 Investor Relations 2 Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involv ...

Core Insights - 3D Systems reported a quarterly loss of $0.08 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.09, and an improvement from a loss of $0.12 per share a year ago, resulting in an earnings surprise of +11.11% [1] - The company generated revenues of $91.25 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.41%, and down from $112.94 million in the same quarter last year [2] - 3D Systems shares have declined approximately 15.9% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of 3D Systems' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $98.42 million, and for the current fiscal year, it is -$0.40 on revenues of $380.35 million [7] Industry Context - The Commercial Printing industry, to which 3D Systems belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact 3D Systems' stock performance [5][6]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $91.2 million, a decrease of $21.7 million (approximately 19.3%) compared to $112.9 million for the same period in 2024[144]. - Revenue for the nine months ended September 30, 2025, was $280.6 million, down $48.5 million (approximately 14.7%) from $329.1 million in the prior year[144]. - For the three months ended September 30, 2025, total revenue decreased by $21.7 million, or 19.2%, to $91.2 million compared to the same period in 2024, primarily due to a decline in product revenue of $20.7 million[146]. - For the nine months ended September 30, 2025, total revenue decreased by $48.5 million, or 14.7%, to $280.6 million compared to the same period in 2024, driven by a decline in product revenue of $47.9 million[147]. Cost and Expenses - Cost of sales for the three months ended September 30, 2025, was $61.8 million, a decrease of $9.4 million (approximately 13.2%) from $71.2 million in 2024[144]. - Selling, general and administrative expenses (SG&A) for the three months ended September 30, 2025, were $34.7 million, down $23.3 million (approximately 40.2%) from $58.0 million in 2024[144]. - Research and development expenses (R&D) for the three months ended September 30, 2025, were $16.0 million, a decrease of $4.7 million (approximately 22.8%) compared to $20.8 million in 2024[144]. - Selling, general and administrative expenses (SG&A) for the three months ended September 30, 2025, decreased by $23.3 million, or 40.1%, compared to the same period in 2024[151]. - Research and development expenses (R&D) for the three months ended September 30, 2025, decreased by $4.7 million, or 22.8%, compared to the same period in 2024[152]. Profitability - The company reported a loss from operations of $21.3 million for the three months ended September 30, 2025, an improvement of $159.4 million compared to a loss of $180.8 million in the same period of 2024[144]. - Gross profit for the three months ended September 30, 2025, decreased by $12.3 million, or 29.4%, to $29.4 million, with a gross profit margin of 32.3% compared to 36.9% in the prior year[149]. - Gross profit for the nine months ended September 30, 2025, decreased by $31.5 million, or 24.3%, to $98.3 million, with a gross profit margin of 35.0% compared to 39.4% in the prior year[150]. Business Transactions - The company recorded a pre-tax gain of $125.7 million from the sale of its Geomagic software business in the nine months ended September 30, 2025[135]. - The company completed the sale of its 3DXpert and Oqton businesses for $3.5 million plus a potential revenue-based royalty of up to $12.9 million[137]. - The gain on disposition of $125.7 million for the nine months ended September 30, 2025, was due to the sale of the Geomagic business on April 1, 2025[168]. Cash Flow and Debt - Cash and cash equivalents totaled $95.5 million, a decrease of $75.8 million since December 31, 2024, primarily from cash used in operations of $73.1 million and capital expenditures of $8.0 million[174]. - Cash flow used in operating activities was $73.1 million during the nine months ended September 30, 2025, an increase of $36.0 million compared to the prior year[178]. - Net cash provided by investing activities was $108.3 million during the nine months ended September 30, 2025, an increase of $121.4 million, driven primarily by proceeds from the sale of the Geomagic business[178]. - Net cash used in financing activities was $98.3 million during the nine months ended September 30, 2025, an increase of $7.6 million, primarily due to net repayments of long-term debt of $81.4 million[179]. - As of September 30, 2025, the company had $126.7 million of outstanding long-term debt, comprising $34.7 million of 2026 Notes and $92.0 million of 2030 Notes[187]. Restructuring and Future Plans - The company expects to incur approximately $8.5 million to $14.5 million in pre-tax restructuring costs by the end of the second fiscal quarter of 2026[133]. - The company has initiated a 2025 Restructuring Plan aimed at delivering sustainable growth and profitability through cost savings and streamlining operations[132]. Market and Risk Assessment - The company has no material changes to its critical accounting estimates as described in the 2024 Annual Report on Form 10-K[200]. - There have been no material changes or developments affecting the market risk assessment since December 31, 2024[201]. - The company evaluates its estimates and assumptions on an ongoing basis, acknowledging that actual results may differ from these estimates[193]. Goodwill and Impairment - Goodwill is assigned to the Healthcare reporting unit, and the company assesses goodwill for impairment at least annually[195][196]. - The remaining goodwill assigned to the Healthcare reporting unit could be subject to impairment if there is a decrease in its estimated fair value[199]. - The quantitative goodwill impairment test compares the carrying value of a reporting unit to its fair value, with charges recognized when the carrying value exceeds fair value[197]. - Impairment losses are measured as the excess of the carrying value of a long-lived asset over its estimated fair value, determined using discounted projected cash flows[194]. - The company uses a guideline company valuation method to estimate fair values, which involves selecting appropriate comparable publicly traded companies[198].

Revenue Performance - Total revenue for Q3 2025 was $91.2 million, a decrease of 19% compared to $112.9 million in Q3 2024[3] - Total revenue for the three months ended September 30, 2025, was $91,249,000, a decrease of 19.3% compared to $112,940,000 for the same period in 2024[20] - Revenue for the fourth quarter is expected to grow sequentially by 8% to 10% compared to Q3 2025, driven by increased sales in healthcare and industrial markets[5][12] Profitability Metrics - Gross profit margin decreased to 32.3% in Q3 2025 from 36.9% in Q3 2024, primarily due to lower sales volume and the divestiture of the Geomagic business[8] - Gross profit for the nine months ended September 30, 2025, was $98,270,000, down from $129,733,000 in 2024, representing a decline of 24.2%[20] - Non-GAAP gross profit for the three months ended September 30, 2025, was $29.6 million, with a gross profit margin of 32.5%, compared to $42.5 million and 37.6% for the same period in 2024[32] - Gross profit (GAAP) for the nine months ended September 30, 2025, was $98.3 million, with a gross profit margin of 35.0%, down from $129.7 million and 39.4% in the same period of 2024[32] Operating Expenses - Operating expenses decreased significantly to $50.7 million in Q3 2025 from $222.5 million in Q3 2024, reflecting progress on cost reduction initiatives[3] - Operating expenses for the three months ended September 30, 2025, were $50,741,000, significantly lower than $222,471,000 in the same period of 2024, primarily due to a reduction in selling, general, and administrative expenses[20] - GAAP operating expenses for the nine months ended September 30, 2025, totaled $171.7 million, while non-GAAP operating expenses were $153.1 million, a decrease from $191.9 million in the same period of 2024[33] Net Loss and Adjusted EBITDA - Net loss attributable to 3D Systems Corporation was $18.1 million in Q3 2025, a decrease of $160.6 million compared to the prior year period[9] - The net loss attributable to 3D Systems Corporation for the three months ended September 30, 2025, was $18.1 million, compared to a net loss of $178.6 million for the same period in 2024[34] - Adjusted EBITDA improved to a loss of $10.8 million in Q3 2025, an improvement of $3.5 million year-over-year[9] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(40.1) million, an improvement from $(47.3) million in the same period of 2024[34] Cash and Debt Position - Cash and cash equivalents decreased by $75.8 million since December 31, 2024, primarily due to cash used in operations[11] - Total cash as of September 30, 2025, was $114.2 million, with total debt of $122.6 million[10] - Cash, cash equivalents, and restricted cash at the end of the period were $114,239,000, down from $191,573,000 at the end of September 30, 2024[21] - Net cash used in operating activities for the nine months ended September 30, 2025, was $73,131,000, compared to $37,109,000 in 2024, indicating increased cash outflow[21] Healthcare and Industrial Solutions - Healthcare Solutions revenue decreased by 22% to $42.8 million in Q3 2025 compared to the prior year period[8] - Healthcare Solutions revenue for the nine months ended September 30, 2025, was $129,123,000, a decrease of 13.5% from $149,369,000 in 2024[23] - Industrial Solutions revenue for the nine months ended September 30, 2025, was $151,504,000, down 15.7% from $179,728,000 in 2024[23] Foreign Exchange and Other Charges - The company reported a foreign exchange gain of $2,623,000 for the three months ended September 30, 2025, compared to a loss of $1,960,000 in the same period of 2024[20] - The company reported a restructuring expense of $1.0 million for the nine months ended September 30, 2025, compared to a benefit of $(0.5) million in the same period of 2024[33] - The company incurred asset impairment charges of $143.7 million for the nine months ended September 30, 2024, with no such charges reported for the same period in 2025[33] Earnings Per Share - The basic net loss per common share for the three months ended September 30, 2025, was $(0.14), compared to $(1.35) for the same period in 2024[20] - The diluted loss per share (GAAP) for the three months ended September 30, 2025, was $(0.14), compared to $(1.35) for the same period in 2024[35] - Non-GAAP diluted loss per share for the nine months ended September 30, 2025, was $(0.27), compared to $(0.42) for the same period in 2024[35]

Core Viewpoint - 3D Systems Corporation reported a decrease in revenue and net loss for the third quarter of 2025, but anticipates sequential growth in the fourth quarter driven by improvements in key markets and new product launches [4][5][6]. Financial Results Summary - Revenue for Q3 2025 was $91.2 million, a 19% decrease from $112.9 million in Q3 2024 [3][6]. - Gross profit was $29.4 million with a gross profit margin of 32.3%, down from 36.9% in the prior year [3][7]. - Operating expenses were $50.7 million, significantly lower than $222.5 million in Q3 2024, leading to an operating loss of $21.3 million [3][8]. - Net loss attributable to 3D Systems Corporation was $18.1 million, an improvement from a loss of $178.6 million in the same quarter last year [3][8]. - Diluted loss per share was $(0.14), compared to $(1.35) in Q3 2024 [3][8]. Segment Performance - Healthcare Solutions revenue decreased by 22% to $42.8 million compared to the prior year [7]. - Industrial Solutions revenue decreased by 16% to $48.5 million compared to the prior year [7]. - The decline in revenue was attributed to lower sales volume and the divestiture of the Geomagic business [7]. Outlook - The company expects sequential revenue growth of 8% to 10% in Q4 2025, driven by increased sales in Healthcare, Industrial markets, and consumer markets [4][5]. - Gross margins are anticipated to stabilize, with increased volumes expected to offset short-term pressures from a heavier mix of printer sales [4][5]. Financial Liquidity - As of September 30, 2025, total cash was $114.2 million, with total debt of $122.6 million [9][10]. - Cash and cash equivalents decreased by $75.8 million since December 31, 2024, primarily due to cash used in operations and financing activities [10].

Core Insights - 3D Systems will release its financial results for Q3 2025 on November 4, 2025, after market close [1] - A conference call and webcast to discuss these results is scheduled for November 5, 2025, at 8:30 a.m. Eastern Time [2] Company Overview - 3D Systems has been a pioneer in 3D printing and additive manufacturing for nearly 40 years, founded by Chuck Hull [3] - The company provides industry-leading 3D printing technologies, materials, and software across various high-value markets, including medical, aerospace, and AI infrastructure [3] - 3D Systems aims to transform manufacturing through innovative solutions and a commitment to collaboration with customers [3]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term stronger price trend but weaker medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares dropped 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Cautious market sentiment persists, with positioning remaining hedged and skeptical, which Siegel views as a healthy sign for future growth [11]