A month has gone by since the last earnings report for Stratasys (SSYS) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Stratasys, Ltd. before we dive into how investors and analysts have reacted as of late.Stratasys Q2 Earnings In Lin ...

Core Viewpoint - Stratasys Ltd. (NASDAQ: SSYS) reported Q2 numbers that were not positively received, indicating potential challenges ahead for the company [1]. Financial Performance - The Q2 results of Stratasys did not meet expectations, suggesting a need for further analysis of the company's financial health and operational performance [1]. Investment Perspective - The company is viewed through a long-term investment lens, with a focus on maintaining a balanced portfolio that includes growth, value, and dividend-paying stocks, although there is a stronger inclination towards value investments [1]. Market Sentiment - The overall sentiment surrounding Stratasys's recent performance appears to be cautious, reflecting investor concerns about the company's future prospects [1].

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Stratasys' total assets grew to $1.14 billion by June 30, 2025, with equity increasing to $902.4 million from a PIPE transaction Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $614,846 | $512,961 | | **Total Assets** | $1,138,987 | $1,029,746 | | **Total Current Liabilities** | $166,049 | $167,214 | | **Total Liabilities** | $236,606 | $236,755 | | **Total Equity** | $902,381 | $792,991 | [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenues were flat at $138.1 million, with operating loss narrowing to $16.6 million and net loss per share improving to $(0.20) Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenues** | $138,086 | $138,041 | | **Gross Profit** | $59,494 | $60,500 | | **Operating Loss** | $(16,620) | $(26,043) | | **Net Loss** | $(16,745) | $(25,743) | | **Net Loss Per Share** | $(0.20) | $(0.36) | H1 2025 vs H1 2024 Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $274,132 | $282,091 | | **Gross Profit** | $119,733 | $124,397 | | **Operating Loss** | $(29,024) | $(50,496) | | **Net Loss** | $(29,799) | $(51,726) | | **Net Loss Per Share** | $(0.38) | $(0.74) | [Consolidated Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to $902.4 million by June 30, 2025, primarily due to $119.3 million net proceeds from a PIPE transaction - A Private Investment in Public Equity (PIPE) transaction resulted in the issuance of 11.65 million new ordinary shares, providing net proceeds of **$119.3 million**, which was the main contributor to the increase in total equity[7](index=7&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $3.4 million for H1 2025, with significant investing outflows offset by $118.3 million from financing activities Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $3,431 | $4,901 | | **Net cash used in investing activities** | $(123,943) | $(14,941) | | **Net cash provided by (used in) financing activities** | $118,284 | $(701) | | **Net change in cash, cash equivalents and restricted cash** | $841 | $(11,728) | [Notes to Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1. Business Description and Basis of Presentation](index=11&type=section&id=Note%201.%20Business%20Description%20and%20Basis%20of%20Presentation) Stratasys, a global leader in polymer-based 3D printing, prepares financial statements under U.S. GAAP, noting limited impact from the Israel conflict - Stratasys is a global leader in connected, polymer-based 3D printing solutions, focusing on the manufacturing sector[11](index=11&type=chunk) - The military conflict in Israel has had a **limited impact** on the company's operations and financial condition for the first half of 2025[14](index=14&type=chunk) [Note 2. New Accounting Pronouncements](index=11&type=section&id=Note%202.%20New%20Accounting%20Pronouncements) The company is evaluating new accounting standards for income tax disclosures, expense disaggregation, and business combinations, effective in future periods - The company is assessing new accounting standards that will enhance disclosures for income taxes (ASU 2023-09), expense disaggregation (ASU 2024-03), and business combinations (ASU 2025-03), which are effective in future periods[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Note 3. Certain Transactions](index=13&type=section&id=Note%203.%20Certain%20Transactions) The company's equity investment in Ultimaker was **$35.1 million**, with a **$4.0 million** share of losses, and completed minor acquisitions including Forward AM - The company's equity investment in Ultimaker amounted to **$35.1 million** as of June 30, 2025. The share in Ultimaker's losses for the first six months of 2025 was approximately **$4.0 million**[23](index=23&type=chunk) - During the first half of 2025, the company completed several small acquisitions, including Forward AM and certain assets from Nexa3D Inc[24](index=24&type=chunk) [Note 4. Revenues](index=14&type=section&id=Note%204.%20Revenues) H1 2025 revenue slightly decreased to $274.1 million, with Americas as the largest market and remaining performance obligations at **$95.1 million** Revenue by Geographical Region - Six Months Ended June 30 (in thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Americas | $165,095 | $170,296 | | EMEA | $74,001 | $75,526 | | Asia Pacific | $35,036 | $36,269 | | **Total Revenues** | **$274,132** | **$282,091** | - As of June 30, 2025, the company had **$95.1 million** in Remaining Performance Obligations (RPO), with **$63.7 million** expected to be recognized as revenue within the next 12 months[31](index=31&type=chunk) [Note 5. Inventories](index=17&type=section&id=Note%205.%20Inventories) Total inventories decreased to **$164.6 million** by June 30, 2025, from **$179.8 million** at year-end 2024, reflecting improved management Inventory Breakdown (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Finished goods | $83,589 | $90,702 | | Work-in-process | $7,856 | $7,491 | | Raw materials | $73,140 | $81,616 | | **Total** | **$164,585** | **$179,809** | [Note 6. Goodwill and Other Intangible Assets](index=17&type=section&id=Note%206.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased to **$101.6 million** due to acquisitions and currency adjustments, with other intangible assets stable at **$106.0 million** - Goodwill increased by **$2.5 million** in the first half of 2025, primarily from acquisitions (**$0.7 million**) and currency translation adjustments (**$1.8 million**)[34](index=34&type=chunk) - The net book value of other intangible assets was **$106.0 million** as of June 30, 2025, with developed technology (**$78.9 million**) being the largest component[35](index=35&type=chunk) [Note 7. Net Loss Per Share](index=18&type=section&id=Note%207.%20Net%20Loss%20Per%20Share) Net loss per share significantly improved to **$(0.20)** for Q2 2025 and **$(0.38)** for H1 2025, with no dilutive shares included Net Loss Per Share (Basic and Diluted) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | $(0.20) | $(0.36) | | **Six Months Ended June 30** | $(0.38) | $(0.74) | [Note 8. Income Taxes](index=18&type=section&id=Note%208.%20Income%20Taxes) Income tax expense for H1 2025 was **$1.5 million**, consistent with the prior year, influenced by geographic earnings distribution - The company recorded income tax expenses of **$1.5 million** for the six-month period ended June 30, 2025, consistent with the same period in 2024[39](index=39&type=chunk) [Note 9. Fair Value Measurements](index=19&type=section&id=Note%209.%20Fair%20Value%20Measurements) Significant Level 3 fair value measurements include **$11.8 million** in convertible notes assets and **$13.0 million** in contingent consideration liabilities - The company's most significant Level 3 fair value measurements are convertible notes assets of **$11.8 million** and contingent consideration liabilities of **$13.0 million**[40](index=40&type=chunk) [Note 10. Derivative instruments and hedging activities](index=20&type=section&id=Note%2010.%20Derivative%20instruments%20and%20hedging%20activities) The company uses foreign currency forward contracts to hedge exchange rate volatility, with a total notional amount of **$213.4 million** as of June 30, 2025 - The company uses derivative financial instruments to manage its net exposure to foreign currency exchange rates, primarily the NIS, Euro, British Pound, and several Asian currencies[43](index=43&type=chunk)[44](index=44&type=chunk) - As of June 30, 2025, the company had foreign exchange forward contracts designated as cash flow hedges for the conversion of **$30.2 million** into NIS and **€68.4 million** into dollars[47](index=47&type=chunk)[49](index=49&type=chunk) [Note 11. Equity](index=21&type=section&id=Note%2011.%20Equity) Equity changes include a **$120 million** PIPE transaction, no share repurchases, and **$12.4 million** in share-based compensation for H1 2025 - On April 8, 2025, the company completed a **$120 million** private investment in public equity (PIPE) transaction, issuing **11.65 million** new shares at **$10.30** per share[53](index=53&type=chunk) - The company has a **$50 million** share repurchase program authorized in September 2024, but no shares were repurchased during the first six months of 2025[51](index=51&type=chunk)[52](index=52&type=chunk) Share-Based Compensation Expenses (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | $6,138 | $7,346 | | **Six Months Ended June 30** | $12,351 | $15,995 | [Note 12. Contingencies](index=24&type=section&id=Note%2012.%20Contingencies) The company is involved in ordinary course legal proceedings, which management expects will not significantly impact its financial position or results - The company is a party to various ordinary course legal proceedings, which management does not expect to have a **significant effect** on its financial position, profitability, or cash flows[58](index=58&type=chunk) [Note 13. Segment](index=25&type=section&id=Note%2013.%20Segment) Stratasys operates as a **single operating and reportable segment**, focusing on 3D printing systems, services, and consumables - The company's business is managed as a **single operating and reportable segment**, generating revenues from 3D printing systems, related services, consumables, and additive manufacturing solutions[59](index=59&type=chunk) [Note 14. Restructuring costs](index=25&type=section&id=Note%2014.%20Restructuring%20costs) The 2024 Restructuring Plan was substantially completed by year-end 2024, with a remaining liability of **$3.6 million** as of June 30, 2025 - The 2024 Restructuring Plan, aimed at achieving **$40 million** in annualized cost savings, was substantially completed by the end of 2024[60](index=60&type=chunk) - As of June 30, 2025, the accrued liability for the 2024 Restructuring Plan was **$3.6 million**[61](index=61&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $138.1 million, slightly higher than Q2 2024, reflecting ongoing customer deferral of major capital spending due to market uncertainty [21] - GAAP gross margin was 43.1%, down from 43.8% in the same period last year, while non-GAAP gross margin was 47.7%, down from 49% [22] - GAAP operating loss for the quarter was $16.6 million, an improvement from a loss of $26 million in the same period last year, while non-GAAP operating income was $1.1 million compared to a loss of $3.2 million [23][24] - Cash flow used in operating activities was $1.1 million, an improvement from $2.4 million in Q2 2024, with an expectation of positive operating cash flow for the full year 2025 [24] Business Line Data and Key Metrics Changes - Product revenue was $94.8 million, up from $93.6 million in the same period last year, while service revenue was $43.3 million, down from $44.4 million [21] - Within product revenue, system revenue increased to $30.6 million from $29 million, and consumables revenue was $64.2 million, slightly down from $64.6 million but up 2.6% sequentially [21] Market Data and Key Metrics Changes - Customer engagement remains strong despite macroeconomic challenges, with ongoing investment in R&D and new technology offerings [6][20] - The company launched the North American Stratasys Tooling Center to help manufacturers validate and scale additive manufacturing applications [9] Company Strategy and Development Direction - The long-term growth strategy focuses on capturing opportunities in high-growth sectors influenced by megatrends such as supply chain localization and sustainability [7][8] - The company emphasizes innovation and execution, aiming to solidify its leadership in digital manufacturing as market dynamics stabilize [6][30] Management's Comments on Operating Environment and Future Outlook - Management noted that customer spending remains challenged, impacting near-term business views, but the long-term outlook remains positive [19][20] - The return to normalized capital spending has been delayed, with expectations for significant opportunities in production applications to close potentially moving into 2026 [25][26] Other Important Information - The company ended the quarter with $254.6 million in cash and equivalents, bolstered by a $120 million investment [25] - New material offerings include P3 Silicon 25A, designed for the Stratasys Origin DLP platform, enhancing capabilities in industrial 3D printing [16] Q&A Session Summary Question: Can you clarify which specific verticals or regions are seeing the most pronounced slowdown or delays? - Management clarified that there is no slowdown, only delays, particularly in larger production application deals which have longer sales cycles [32][34] Question: What assumptions are baked into the fourth quarter adjusted EBITDA margin? - The guidance for Q4 is largely based on cost monitoring and reductions, with no large deals factored into the model [39][40] Question: What is impacting the gross margin? - Gross margin changes are attributed to sales mix changes, inventory absorption issues, and tariff impacts [43][46] Question: Can you elaborate on the Nexa asset acquisition? - The acquisition included valuable IP and R&D knowledge, positioning the company stronger in key use cases [56][59] Question: Do you anticipate additional partnerships with other vehicle OEMs? - Management expressed optimism about expanding partnerships, leveraging proven use cases from collaborations with GM and Toyota [72][74]

Stratasys (SSYS) came out with quarterly earnings of $0.03 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items. While Stratasys has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only ...

Group 1: CoreWeave Inc Financial Results - CoreWeave reported a revenue of $1.21 billion for the second quarter, exceeding analysts' expectations of $1.08 billion [1] - The company's adjusted loss per share was 27 cents, which was worse than the anticipated loss of 17 cents per share [1] Group 2: Stock Movements - CoreWeave shares fell 8.8% to $135.72 in pre-market trading following the mixed quarterly results [2] - Profrac Holding Corp shares tumbled 29.4% to $4.46 after pricing a $75 million stock offering at $4 per share [4] - CAVA Group Inc shares dipped 24% to $64.26 after reporting worse-than-expected quarterly sales results [4] - Journey Medical Corp shares declined 20.5% to $6.79 after reporting disappointing second-quarter EPS results [4] - Ondas Holdings Inc shares fell 17.5% to $3.54 after announcing a proposed public offering [4] - KinderCare Learning Companies Inc shares dropped 16.4% to $8.20 after missing second-quarter earnings estimates and narrowing 2025 guidance [4] - Endeavour Silver Corp shares fell 13.9% to $4.95 after posting a loss for the second quarter [4] - Stratasys Ltd shares dipped 13.4% to $9.80 following second-quarter results [4] - Denison Mines Corp shares declined 8.8% to $1.97 as the company announced the pricing of upsized $300 million convertible senior notes offering [4] - Hanesbrands Inc shares fell 7.7% to $5.70 after a previous jump of 28% due to acquisition news [4] - Penguin Solutions Inc shares fell 5.8% to $22.84 in pre-market trading [4]

Financial Performance - Q2 2025 revenue was $138.1 million, a 0.1% increase year-over-year[26, 48] - GAAP gross margin was 43.1% in Q2 2025, a decrease of 0.7% compared to Q2 2024's 43.8%[30, 48] - Non-GAAP gross margin was 47.7% in Q2 2025, a decrease of 1.3% compared to Q2 2024's 49.0%[30, 48] - GAAP operating loss improved to $16.6 million in Q2 2025 from $26.0 million in Q2 2024[36, 48] - Non-GAAP operating income was $1.1 million in Q2 2025, compared to a loss of $3.2 million in Q2 2024[36, 48] - GAAP net loss improved to $16.7 million in Q2 2025 from $25.7 million in Q2 2024[36, 48] - Non-GAAP net income was $2.2 million in Q2 2025, compared to a loss of $3.0 million in Q2 2024[36, 48] Balance Sheet and Cash Flow - The company's cash and cash equivalents and short-term deposits were $254.6 million in Q2 2025[39] - Net working capital was $448.8 million in Q2 2025[39] - Cash flow from operating activities was negative $1.1 million in Q2 2025[38] Outlook - The company expects full-year 2025 revenue between $550 million and $560 million[42] - The company expects full-year 2025 non-GAAP gross margins between 46.7% and 47.0%[42] - The company expects full-year 2025 non-GAAP operating expenses between $248 million and $251 million[42]

Group 1 - The focus is on identifying and analyzing companies that can play a significant role in today's geopolitics and leverage their intellectual property to become future leaders [1] - The investment strategy targets growth companies, particularly in the mid-cap segment, with a focus on sectors such as biotechnology, computer chips, cloud technology, energy, and commodities [1] - A systematic balance sheet analysis will be conducted, as many growing businesses often struggle with funding, while a stress test will be used to evaluate the safety of each business model [1] Group 2 - Long-term capital appreciation is prioritized over short-term speculation, indicating a strategic investment approach [1] - The analyst has a background in communication and an MBA, enhancing the depth of analysis provided [1] - The analyst aims to provide extensive coverage on the relevant themes and welcomes feedback to improve the quality of insights shared [1]

Company Overview - Stratasys (SSYS) shares increased by 6.9% to close at $11.73, with notable trading volume compared to typical sessions, and a 2.1% gain over the past four weeks [1] - The company is focused on ongoing R&D investments that lead to new products, materials, and software solutions, including the launch of GrabCAD Print Pro 2025 [2] Earnings Expectations - Stratasys is expected to report quarterly earnings of $0.03 per share, reflecting a year-over-year increase of 175%, while revenues are projected at $137.43 million, a slight decline of 0.4% from the previous year [3] - The consensus EPS estimate for Stratasys has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Stratasys operates within the Zacks Commercial Printing industry, where Quad/Graphics (QUAD) also resides, with QUAD closing 3.8% higher at $5.69 and returning 0.7% over the past month [4] - Quad/Graphics has an unchanged consensus EPS estimate of $0.12 for the upcoming report, consistent with the previous year's results, and also holds a Zacks Rank of 3 (Hold) [5]

Company Overview - Stratasys Ltd. (SSYS) is currently experiencing significant activity in the options market, particularly with the Sep 19, 2025 $17.50 Put option showing high implied volatility, indicating potential for a major price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant change in Stratasys shares, possibly due to an upcoming event [2] Analyst Sentiment - Stratasys holds a Zacks Rank 3 (Hold) in the Commercial Printing industry, which is in the bottom 30% of the Zacks Industry Rank. Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one has lowered the estimate, reducing the Zacks Consensus Estimate from 4 cents to 3 cents per share [3] Trading Strategy Implications - The high implied volatility surrounding Stratasys may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the stock does not move as much as expected [4]