Stratasys Ltd. (SSYS) , a leader in polymer 3D printing solutions, has successfully closed a $120 million strategic investment from Fortissimo Capital, a move that significantly bolsters the company's financial position amid ongoing industry challenges. The investment, which was first announced in March and closed on April 10, 2025, provides Fortissimo with approximately 14% ownership of Stratasys' outstanding ordinary shares through the purchase of 11,650,485 newly issued shares at $10.30 each.With the inv ...

The company has launched AIS Antero 800NA and AIS Antero 840CN03 as validated materials for its Stratasys F900 platform, marking a significant advancement in qualified additive manufacturing for highly regulated industries. These materials underwent rigorous qualification in collaboration with leading organizations to meet the stringent requirements for high-temperature, chemical-resistant parts in mission- critical applications. The qualification program confirms that these Stratasys AIS materials meet the ...

Stratasys (SSYS) reported fourth-quarter 2024 non-GAAP earnings of 12 cents per share, which beat the Zacks Consensus Estimate by 9.09%. The company had posted non-GAAP earnings of 2 cents per share in the year-ago quarter.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 52.27%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Quarterly revenues fell 3.8% year over year to $150.4 million. ...

Financial Support and Taxation - The company has received approximately $9 million in grants from the Israeli Innovation Authority for R&D activities since 2007, with an additional $1.9 million from European authorities[152]. - The average effective tax rate for profits from Israeli operations under government benefit programs is estimated to be between 7.5% and 15%, with the standard corporate tax rate set at 23% from 2018 onwards[150]. - The company is subject to royalty payments of 3% to 5% on revenues generated from products developed with IIA funding, which are linked to the U.S. dollar[155]. - Payment of dividends may be restricted under the Companies Law, requiring profits and surplus funds criteria to be met[171]. Capital and Investment Activities - The company is currently engaged in a PIPE transaction with Fortissimo Capital, which involves an investment of $120 million for 11,650,485 newly-issued ordinary shares at a price of $10.30 per share, reflecting a 10.6% premium over the market price[165]. - The company may need to raise additional capital, which could dilute existing shareholders if conducted at a lower price than their acquisition cost[165]. - Future capital requirements will depend on various factors, including the success of capturing additive manufacturing demand and costs associated with establishing sales and marketing capabilities[166]. - The company has approved a new share repurchase program in September 2024, allowing for the repurchase of up to $50 million of outstanding ordinary shares[168]. - The share repurchase program may reduce the public float of shares and cause volatility in the share price, with no assurance of a positive impact on share price or profitability[169]. Market Performance and Volatility - The market price of the company's ordinary shares has fluctuated between $6.16 and $54.37 from early 2020 to early 2025, indicating significant volatility[161]. - The market price of the company's ordinary shares has significantly declined, reaching all-time lows in 2024 before a slow recovery towards the end of the year[167]. Compliance and Regulatory Risks - The company may face increased liabilities if it fails to comply with the requirements of the Innovation Law, which could include penalties and mandatory repayment of grants[157]. - The company must comply with specific conditions to manufacture products and transfer technologies outside of Israel, which may increase its liabilities[152]. - The company is classified as a foreign private issuer, which allows for reduced disclosure requirements compared to domestic U.S. companies[173]. - If the company loses its foreign private issuer status, it will face increased compliance and reporting costs starting December 31, 2025[176]. - The company may be classified as a passive foreign investment company (PFIC), which could lead to adverse tax consequences for U.S. shareholders[177]. - The company does not believe it was a PFIC in 2024, but cannot assure that it will not become one in the future[178]. Dividend Policy - The company does not anticipate paying any cash dividends in the foreseeable future, meaning capital appreciation will be the sole source of return for shareholders[170].

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $150.4 million, down 3.8% year-over-year. For the full year, consolidated revenue declined 8.8% to $572.5 million compared to $627.6 million in 2023 [31][33]. - Adjusted gross margin for Q4 was 49.6%, up from 48.8% in the same period last year. For the full year, non-GAAP gross margin improved by 100 basis points to 49.2% [35][36]. - GAAP net loss for Q4 was $41.9 million, or $0.59 per diluted share, compared to a net loss of $15 million, or $0.22 per diluted share, in the same period last year [39]. Business Line Data and Key Metrics Changes - Product revenue in Q4 fell by 4.8% to $105.1 million, with systems revenue down 1.5% to $46.7 million. Consumable revenue decreased by 7.3% to $58.4 million [31][32]. - For the full year, product revenue was $392 million, down from $433.7 million in 2023. Consumables revenue increased by 2.3% to $251.7 million [33][34]. Market Data and Key Metrics Changes - The company generated 36% of its revenues from manufacturing in 2024, up from 34% in 2023, indicating a shift towards end-part manufacturing [10]. - The dental market opportunity is projected to reach nearly $2.5 billion by 2028, with significant interest in the TrueDent resin [23][79]. Company Strategy and Development Direction - The company is focused on enhancing its leadership in additive manufacturing and is committed to right-sizing the business while maintaining R&D resources [9][51]. - The strategy includes a focus on high-value applications, particularly in manufacturing and the dental sector, with plans to expand its product offerings and customer base [10][80]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite current macroeconomic challenges, emphasizing the long-term value proposition of additive manufacturing [56][108]. - The outlook for 2025 anticipates revenue in the range of $570 million to $585 million, with expectations for sequential growth throughout the year [45]. Other Important Information - The company ended Q4 with $150.7 million in cash and equivalents, with no debt, providing a stable financial position to support growth initiatives [12][44]. - A $120 million investment from Fortissimo Capital is expected to close in Q2 2025, which will further strengthen the company's financial position [13][44]. Q&A Session Summary Question: Market conditions and revenue cadence for 2025 - Management acknowledged current downturns but highlighted strong customer engagement and a focus on reliability and effectiveness of equipment as key areas of customer interest [56][58]. Question: Gross margin guidance for 2025 - Management indicated that gross margins are expected to remain stable, with improvements anticipated as cost-saving measures take effect [62][64]. Question: Organic revenue growth and FX impacts - Management noted minimal impact from divestitures and hedging strategies in place to mitigate FX risks [75][76]. Question: Consumables revenue decline - Management described Q4 as an outlier and expressed confidence in a rebound in consumables revenue for 2025 [88]. Question: Acquisition targets and strategy - Management emphasized a clear strategy focused on shareholder value and indicated interest in opportunities that align with their long-term goals [97][102]. Question: Market verticals with confidence - Management identified dental, aerospace, and tooling as key verticals with growth potential, while remaining cautious about overall market conditions [112][113].

Company Performance - Stratasys reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and significantly up from $0.02 per share a year ago, representing an earnings surprise of 9.09% [1] - The company posted revenues of $150.36 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.70%, although this is a decline from year-ago revenues of $156.34 million [2] - Over the last four quarters, Stratasys has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Movement and Outlook - Stratasys shares have increased approximately 19.4% since the beginning of the year, contrasting with a decline of -1.8% in the S&P 500 [3] - The future performance of Stratasys stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $135.54 million, and for the current fiscal year, it is $0.35 on revenues of $573.11 million [7] Industry Context - The Commercial Printing industry, to which Stratasys belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Stratasys may also be influenced by the outlook for the industry as a whole, with empirical research showing that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

March 5, 2025 Make additive work for you Conference Call and Webcast Link Q4 and FY 2024 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR US Toll-Free Dial-In 1-877-407-0619 International Dial-In +1-412-902-1012 Live Webcast and Replay Make additive work for you Forward -Looking Statements Cautionary Statement Regarding Forward - Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial ...

Industry Overview - 3D Printing, also known as additive manufacturing, has transformed from a sci-fi concept to a practical technology since its inception in the 1980s, allowing for the creation of three-dimensional objects from digital designs [1] - The technology offers advantages over traditional manufacturing, including cost-effectiveness, customization, precision, and sustainability [1] Market Adoption - Businesses are increasingly adopting 3D Printing for rapid prototyping and on-demand production, significantly reducing lead times and costs [2] - Major companies in the 3D Printing space include Xometry, Proto Labs Inc., and Stratasys, with tech giants like Microsoft and HP also entering the market [2] Advantages of 3D Printing - The use of lighter and more durable components, reduced material waste, and faster production cycles make 3D Printing a game-changer [3] - It enables localized production, cutting down supply chains and lowering transportation costs, which is particularly beneficial for industries with fluctuating demand [3] Industry Applications - 3D Printing is being adopted across various industries, including healthcare, aerospace, automotive, and consumer goods [4] - In aerospace, it is used for lightweight components, while in automotive, it aids in producing prototypes and customized parts [4] - The medical field is leveraging 3D Printing for personalized medical tools and prosthetics, with advancements in tissue and organ printing expected to revolutionize healthcare [4] Market Size and Growth - The global 3D Printing market was valued at $19.33 billion in 2024 and is projected to grow at a CAGR of 23.4% by 2032, with North America holding a 41.39% market share [5] Investment Opportunities - 3D Printing presents significant growth opportunities for investors, with companies like GE Aerospace, Carpenter Technology, and Proto Labs identified as high-potential stocks [6] Company Profiles - **GE Aerospace**: A leader in additive manufacturing, GE has made significant investments in 3D Printing, including a $54 million investment for additional machines and tooling in Alabama and $107 million for facilities in Cincinnati [10][11] - **Carpenter Technology**: Built its additive capabilities through acquisitions and opened an Emerging Technology Center in Alabama, focusing on producing specialty alloys for 3D Printing [12][13] - **Proto Labs**: Known for rapid prototyping, Proto Labs has over 250,000 parts printed monthly and generated approximately $84 million in revenues from its 3D Printing service in 2024 [17]

Group 1 - Stratasys' stock has rebounded significantly in recent months following the announcement of preliminary earnings for Q4 2024, despite the results being described as mediocre [1] - Revenue for Stratasys is stabilizing, and the company is now experiencing positive cash flows [1] Group 2 - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to a poor understanding of long-term business prospects [2] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [2] - Narweena's investment strategy is driven by the belief that an aging population and low population growth will create new investment opportunities, contrasting with past trends [2] - The firm emphasizes that many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [2] - There is a noted trend of economies being increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments [2] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [2]

Industry Overview - The 3D printing industry has been a disaster for shareholders, destroying billions in value [1] - Competition in the 3D printing industry is intense, with some businesses likely to go bankrupt [1] - Stratasys (NASDAQ: SSYS) remains a key player in the 3D printing market [1] Investment Focus - The investment focus is on growth companies with a bias towards the mid-cap segment [1] - Key sectors under study include biotechnologies, computer chips, cloud technology, energy, and commodities [1] - Special attention is given to risks surrounding business cases, with a top-down approach complementing bottom-up analysis [1] Analytical Approach - A systematic balance sheet analysis is performed to assess the financial health of growing businesses [1] - Stress tests are employed to challenge investment theses and evaluate the degree of safety in each model [1] - Long-term capital appreciation is preferred over short-term speculation [1] Analyst Background - The analyst holds a master's in communication and an MBA, with experience in journalism [1] - The analyst has been a contributor to Seeking Alpha since 2023, focusing on technology and geopolitically relevant companies [1]