Q1 2025 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 8, 2025 Make additive work for you Conference Call and Webcast Link US Toll-Free Dial-In 1-877-407-0619 International Dial-In Live Webcast and Replay +1-412-902-1012 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 performance, including the financia ...

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].

Stratasys Ltd. (NASDAQ:SSYS) Q4 2024 Earnings Conference Call March 5, 2025 8:30 AM ET Company Participants Yonah Lloyd - Chief Communications Officer and Vice President, Investor Relations Yoav Zeif - Chief Executive Officer Eitan Zamir - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Troy Jensen - Cantor Fitzgerald Jim Ricchiuti - Needham & Company Ananda Baruah - Loop Capital Markets Operator Greetings, and welcome to the Stratasys Q4 2024 Earnings Conference Call and Webca ...

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 ...

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) Stratasys Ltd. announced its Q4 and full-year 2024 financial results, highlighting strategic advancements, improved profitability, and a strong balance sheet [Company Announcement](index=1&type=section&id=Company%20Announcement) Stratasys Ltd. announced its fourth quarter and full-year 2024 financial results, focusing on polymer 3D printing solutions - Stratasys Ltd. (NASDAQ: SSYS) announced its **fourth quarter and full-year 2024 financial results** on March 5, 2025[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Dr. Yoav Zeif highlighted key actions in 2024 and early 2025 to enhance leadership in additive manufacturing, expanding adjusted gross margin, achieving adjusted net profitability, and positive operating cash flow with a healthy balance sheet - In 2024 and early 2025, the company took key measures to strengthen its leadership in additive manufacturing[3](index=3&type=chunk) - Successfully expanded adjusted gross margin by **100 basis points**, achieved adjusted net profitability, and generated positive operating cash flow in 2024, with further cash flow increases expected in 2025[3](index=3&type=chunk) - The company holds **$150.7 million** in cash, cash equivalents, and short-term deposits with **no debt**, providing stability and growth options[3](index=3&type=chunk) - Anticipates a **$120 million investment** from Fortissimo Capital, further solidifying future growth[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Stratasys reported a decline in revenue for Q4 and full-year 2024, but achieved positive non-GAAP net income and adjusted EBITDA, with healthy year-end cash balances and positive full-year operating cash flow Key Financial Highlights (USD Million) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $150.4 | $156.3 | $572.5 | $627.6 | | GAAP Net Loss | $(41.9) | - | $(120.3) | - | | GAAP Diluted Loss Per Share | $(0.59) | - | $(1.70) | - | | Non-GAAP Net Income | $8.5 | - | $4.2 | - | | Non-GAAP Diluted Earnings Per Share | $0.12 | - | $0.06 | - | | Cash Flow from Operations | $7.4 (Positive) | - | $7.8 (Positive) | - | | Adjusted EBITDA | $14.5 | - | - | - | | Adjusted EBITDA as % of Revenue | 9.6% | - | - | - | | Year-End Cash & Cash Equivalents | $150.7 | - | $150.7 | - | | Debt | None | - | None | - | | Fortissimo Capital Investment | $120 (Pending) | - | - | - | [Summary of Financial Results](index=2&type=section&id=Summary%20of%20Financial%20Results) Stratasys reported a decline in revenue for Q4 and full-year 2024, yet demonstrated improved profitability metrics and a positive shift in operating cash flow [Fourth Quarter 2024 vs. 2023](index=2&type=section&id=Fourth%20Quarter%202024%20vs.%202023) In Q4 2024, Stratasys's revenue decreased year-over-year, but both GAAP and non-GAAP gross margins improved, with significant growth in non-GAAP operating income and net income, nearly doubling adjusted EBITDA, and a positive shift in operating cash flow Q4 2024 vs. Q4 2023 Financial Performance (USD Million) | Metric | Q4 2024 | Q4 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $150.4 | $156.3 | -3.8% | | GAAP Gross Margin | 46.3% | 44.7% | +1.6 pp | | Non-GAAP Gross Margin | 49.6% | 48.8% | +0.8 pp | | GAAP Operating Income (Loss) | $(9.7) | $5.7 | Shift from income to loss | | Non-GAAP Operating Income | $9.4 | $2.0 | +370% | | GAAP Net Loss | $(41.9) | $(15.0) | Loss widened | | GAAP Diluted Loss Per Share | $(0.59) | $(0.22) | Loss widened | | Non-GAAP Net Income | $8.5 | $1.6 | +431.3% | | Non-GAAP Diluted Earnings Per Share | $0.12 | $0.02 | +500% | | Adjusted EBITDA | $14.5 | $7.7 | +88.3% | | Cash Flow from Operations | $7.4 (Inflow) | $(7.7) (Outflow) | Shift from outflow to inflow | [Full Year 2024 vs. 2023](index=2&type=section&id=Full%20Year%202024%20vs.%202023) For the full year 2024, Stratasys's revenue decreased year-over-year, but GAAP and non-GAAP gross margins improved, GAAP operating loss slightly narrowed, non-GAAP operating income and net income declined, and operating cash flow shifted from negative to positive Full Year 2024 vs. 2023 Financial Performance (USD Million) | Metric | Full Year 2024 | Full Year 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $572.5 | $627.6 | -8.8% | | GAAP Gross Margin | 44.9% | 42.5% | +2.4 pp | | Non-GAAP Gross Margin | 49.2% | 48.2% | +1.0 pp | | GAAP Operating Loss | $(85.7) | $(87.6) | Loss narrowed | | Non-GAAP Operating Income | $4.9 | $12.6 | -61.1% | | GAAP Net Loss | $(120.3) | $(123.1) | Loss narrowed | | GAAP Diluted Loss Per Share | $(1.70) | $(1.79) | Loss narrowed | | Non-GAAP Net Income | $4.2 | $7.7 | -45.4% | | Non-GAAP Diluted Earnings Per Share | $0.06 | $0.11 | -45.5% | | Adjusted EBITDA | $26.0 | $35.0 | -25.8% | | Cash Flow from Operations | $7.8 (Inflow) | $(61.6) (Outflow) | Shift from outflow to inflow | [Financial Outlook 2025](index=3&type=section&id=Financial%20Outlook%202025) Stratasys anticipates improved revenue, enhanced non-GAAP margins, and significant growth in non-GAAP net income and adjusted EBITDA for 2025 [2025 Outlook Details](index=3&type=section&id=2025%20Outlook%20Details) Stratasys projects year-over-year revenue improvement in 2025, with enhanced non-GAAP gross and operating margins, significant growth in non-GAAP net income and adjusted EBITDA, and higher operating and free cash flow 2025 Financial Outlook (USD Million) | Metric | 2025 Outlook (Low) | 2025 Outlook (High) | | :--- | :--- | :--- | | Full Year Revenue | $570 | $585 | | Full Year Non-GAAP Gross Margin | 48.8% | 49.2% | | Full Year Operating Expenses | $254 | $257 | | Full Year Non-GAAP Operating Margin | 4.0% | 5.0% | | GAAP Net Loss | $(68) | $(53) | | GAAP Diluted Loss Per Share | $(0.93) | $(0.72) | | Non-GAAP Net Income | $20 | $26 | | Non-GAAP Diluted Earnings Per Share | $0.28 | $0.35 | | Adjusted EBITDA | $44.0 | $50.0 | | Adjusted EBITDA Margin | 7.8% | 8.5% | | Capital Expenditures | $25 | $30 | - Higher operating and free cash flow are expected in 2025 compared to 2024[10](index=10&type=chunk) - The investment from Fortissimo Capital is anticipated to close in the **second quarter of 2025**[10](index=10&type=chunk) [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section provides details on the earnings call, Stratasys's business, cautionary statements regarding future projections, and the use of non-GAAP financial measures [Webcast and Conference Call Details](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Details) Stratasys plans a webcast conference call on March 5, 2025, at 8:30 AM ET to discuss its Q4 and full-year 2024 financial results, with investor participation available via the company website or a dedicated link - The company plans a webcast conference call on **March 5, 2025, at 8:30 AM ET** to discuss its fourth quarter and full-year 2024 financial results[9](index=9&type=chunk) - Investors can participate via the Stratasys website at investors.stratasys.com or directly through https://event.choruscall.com/mediaframe/webcast.html?webcastid=NYpcz3qp[9](index=9&type=chunk) [About Stratasys](index=3&type=section&id=About%20Stratasys) Stratasys is a leader in polymer 3D printing solutions, providing additive manufacturing solutions across various industries through smart, connected 3D printers, materials, software ecosystems, and on-demand parts, helping clients transform product design and enhance manufacturing and supply chain agility - Stratasys is a leader in polymer 3D printing solutions, dedicated to driving the global transformation of additive manufacturing[10](index=10&type=chunk) - The company provides solutions through smart, connected 3D printers, polymer materials, software ecosystems, and on-demand parts for industries including aerospace, automotive, consumer products, healthcare, fashion, and education[10](index=10&type=chunk) - Stratasys's solutions aim to help leading global organizations transform product design, enhance manufacturing and supply chain agility, and improve patient care[11](index=11&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Forward-looking statements in this press release reflect management's current expectations and beliefs, but actual results may differ materially due to business risks and uncertainties; the company undertakes no obligation to publicly update or revise any forward-looking statements unless required by law - Forward-looking statements in this press release reflect management's current expectations and beliefs, but actual results may differ materially due to business risks and uncertainties[14](index=14&type=chunk) - Risks and uncertainties include new product success, 3D printing industry growth, macroeconomic environment, strategic changes, competition, completion of Fortissimo Capital investment, asset impairment, acquisition integration, supply chain disruptions, geopolitical conflicts, litigation and regulatory procedures, intellectual property risks, liquidity and financing, and tax regulations[14](index=14&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements unless required by law[15](index=15&type=chunk) [Use of Non-GAAP Financial Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures to help investors and shareholders better assess operating performance by excluding certain non-cash items, restructuring charges, M&A-related expenses, and foreign exchange impacts, providing a more comparable view of performance as a supplement to, not a substitute for, GAAP measures - Non-GAAP financial measures are used to help investors and shareholders evaluate the company's operating performance, excluding non-cash or non-recurring items such as M&A, restructuring, legal provisions, share-based compensation, intangible asset amortization, asset impairment, and investment revaluation[16](index=16&type=chunk) - These non-GAAP metrics aim to provide a view of performance used by management for internal planning and forecasting, but their limitations include not encompassing all items and potentially not being fully comparable to other companies[16](index=16&type=chunk) - Investors should consider non-GAAP measures as a supplement to, not a substitute for or superior to, GAAP financial results[16](index=16&type=chunk) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) The investor relations contact is Yonah Lloyd, CCO and VP of Investor Relations - Investor Relations Contact: **Yonah Lloyd**, CCO and VP of Investor Relations[17](index=17&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) Stratasys's consolidated financial statements show a decrease in total assets and liabilities, alongside a mixed performance in revenue and profitability for 2024 [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Stratasys's total assets and liabilities both decreased, with reductions in cash and cash equivalents and accounts receivable, alongside declines in long-term investments and goodwill; total equity decreased year-over-year Consolidated Balance Sheets (USD Thousands) | Metric | December 31, 2024 | December 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and Cash Equivalents | $70,200 | $82,585 | -15.0% | | Short-Term Bank Deposits | $80,500 | $80,000 | +0.6% | | Accounts Receivable, Net | $152,979 | $172,009 | -11.1% | | Inventories | $179,809 | $192,976 | -6.9% | | Total Current Assets | $512,961 | $560,095 | -8.4% | | Long-Term Investments | $80,205 | $115,083 | -30.3% | | Goodwill | $99,082 | $100,051 | -1.0% | | Other Intangible Assets, Net | $106,253 | $127,781 | -16.9% | | Total Non-Current Assets | $516,785 | $573,810 | -9.9% | | **Total Assets** | **$1,029,746** | **$1,133,905** | **-9.2%** | | **Liabilities** | | | | | Accounts Payable | $44,977 | $46,785 | -3.9% | | Deferred Revenue - Short-Term | $46,347 | $52,610 | -11.9% | | Total Current Liabilities | $167,214 | $176,426 | -5.2% | | Deferred Revenue - Long-Term | $19,057 | $23,655 | -19.4% | | Total Non-Current Liabilities | $69,541 | $72,640 | -4.3% | | **Total Liabilities** | **$236,755** | **$249,066** | **-4.9%** | | **Equity** | | | | | Total Equity | $792,991 | $884,839 | -10.4% | | **Total Liabilities and Equity** | **$1,029,746** | **$1,133,905** | **-9.2%** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For Q4 and full-year 2024, Stratasys's total revenue decreased year-over-year, with reductions in both product and service revenue; GAAP gross profit remained relatively stable, but GAAP operating and net losses widened in Q4 and slightly narrowed for the full year, with diluted loss per share widening in Q4 and slightly improving for the full year Consolidated Statements of Operations (USD Thousands) | Metric | Q4 2024 | Q4 2023 | Change (YoY) | Full Year 2024 | Full Year 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | | | | | | | | Products | $105,035 | $110,388 | -4.9% | $391,917 | $433,741 | -9.6% | | Services | $45,324 | $45,949 | -1.4% | $180,541 | $193,857 | -6.9% | | **Total Revenue** | **$150,359** | **$156,337** | **-3.8%** | **$572,458** | **$627,598** | **-8.8%** | | **Gross Profit** | **$69,689** | **$69,758** | **-0.1%** | **$256,816** | **$267,024** | **-3.8%** | | Research and Development Expenses, Net | $24,785 | $25,078 | -1.2% | $99,142 | $94,425 | +5.0% | | Selling, General and Administrative Expenses | $54,604 | $39,006 | +40.0% | $243,335 | $260,179 | -6.5% | | **Operating Income (Loss)** | **$(9,700)** | **$5,674** | **Shift from income to loss** | **$(85,661)** | **$(87,580)** | **-2.2%** | | Financial Income, Net | $176 | $846 | -79.2% | $1,676 | $2,993 | -44.0% | | Share of Loss from Affiliates | $31,766 | $20,839 | +52.4% | $33,325 | $32,705 | +1.9% | | **Net Loss** | **$(41,943)** | **$(14,956)** | **+180.4%** | **$(120,283)** | **$(123,074)** | **-2.3%** | | Diluted Loss Per Share | $(0.59) | $(0.22) | +168.2% | $(1.70) | $(1.79) | -5.0% | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP financial measures for both quarterly and annual periods, including forward-looking guidance adjustments [Non-GAAP Reconciliations - Three Months Ended December 31](index=10&type=section&id=Non-GAAP%20Reconciliations%20-%20Three%20Months%20Ended%20December%2031) In Q4 2024, Stratasys's non-GAAP gross profit, operating income, and net income were significantly higher than GAAP reported figures, with non-GAAP net income shifting from a GAAP loss to a profit, by excluding adjustments such as intangible asset amortization, share-based compensation, restructuring costs, investment revaluation, and equity method related amortization Non-GAAP Reconciliations - Three Months Ended December 31 (USD Thousands) | Metric | GAAP 2024 | Non-GAAP Adjustments 2024 | Non-GAAP 2024 | GAAP 2023 | Non-GAAP Adjustments 2023 | Non-GAAP 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $69,689 | $4,866 | $74,555 | $69,758 | $6,565 | $76,323 | | Operating Income (Loss) | $(9,700) | $19,144 | $9,444 | $5,674 | $(3,659) | $2,015 | | Net Income (Loss) | $(41,943) | $50,462 | $8,519 | $(14,956) | $16,604 | $1,648 | | Diluted Net Income (Loss) Per Share | $(0.59) | $0.71 | $0.12 | $(0.22) | $0.24 | $0.02 | | **Key Adjustments (2024)** | | | | | | | | Intangible Asset Amortization Expense | | $4,496 (Gross Profit) | | | $1,153 (Operating) | | | Share-Based Compensation Expense | | $198 (Gross Profit) | | | $2,856 (Operating) | | | Restructuring and Related Costs | | $172 (Gross Profit) | | | $5,275 (Operating) | | | Investment Revaluation | | | | | $4,697 (Operating) | | | Equity Method Related Amortization, Divestitures and Impairment | | $30,910 (Net Income) | | | | | [Non-GAAP Reconciliations - Twelve Months Ended December 31](index=11&type=section&id=Non-GAAP%20Reconciliations%20-%20Twelve%20Months%20Ended%20December%2031) For the full year 2024, Stratasys's non-GAAP gross profit, operating income, and net income were significantly higher than GAAP reported figures, with non-GAAP net income shifting from a GAAP loss to a profit, after excluding adjustments such as intangible asset amortization, share-based compensation, restructuring costs, investment revaluation, and equity method related amortization Non-GAAP Reconciliations - Twelve Months Ended December 31 (USD Thousands) | Metric | GAAP 2024 | Non-GAAP Adjustments 2024 | Non-GAAP 2024 | GAAP 2023 | Non-GAAP Adjustments 2023 | Non-GAAP 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $256,816 | $24,948 | $281,764 | $267,024 | $35,764 | $302,788 | | Operating Income (Loss) | $(85,661) | $90,594 | $4,933 | $(87,580) | $100,207 | $12,627 | | Net Income (Loss) | $(120,283) | $124,520 | $4,237 | $(123,074) | $130,783 | $7,709 | | Diluted Net Income (Loss) Per Share | $(1.70) | $1.76 | $0.06 | $(1.79) | $1.90 | $0.11 | | **Key Adjustments (2024)** | | | | | | | | Intangible Asset Amortization Expense | | $18,576 (Gross Profit) | | | $5,847 (Operating) | | | Share-Based Compensation Expense | | $3,072 (Gross Profit) | | | $22,546 (Operating) | | | Restructuring and Related Costs | | $3,300 (Gross Profit) | | | $17,419 (Operating) | | | Investment Revaluation | | | | | $6,597 (Operating) | | | Equity Method Related Amortization, Divestitures and Impairment | | $31,262 (Net Income) | | | | | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) For Q4 and full-year 2024, Stratasys adjusted its GAAP net loss to positive adjusted EBITDA by adding back financial income, income tax expense, share of loss from affiliates, depreciation, amortization, share-based compensation, investment revaluation, net loss on sale of investments, contingent consideration, legal and other expenses, and restructuring costs Reconciliation of GAAP Net Loss to Adjusted EBITDA (USD Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :--- | :--- | :--- | :--- | :--- | | GAAP Net Loss | $(41,943) | $(14,956) | $(120,283) | $(123,074) | | Financial Income, Net | $(176) | $(846) | $(1,676) | $(2,993) | | Income Tax Expense | $653 | $637 | $2,973 | $5,782 | | Share of Loss from Affiliates | $31,766 | $20,839 | $33,325 | $32,705 | | Depreciation Expense | $5,033 | $5,653 | $21,030 | $22,417 | | Amortization Expense | $5,649 | $7,134 | $24,423 | $28,770 | | Share-Based Compensation Expense | $3,054 | $7,876 | $25,618 | $31,614 | | Investment Revaluation | $4,697 | — | $6,597 | $4,880 | | Net Loss on Sale of Investments | $4,760 | — | $4,760 | — | | Contingent Consideration | $(9,148) | $(23,206) | $(7,595) | $(22,331) | | Legal and Other Expenses | $4,685 | $3,836 | $16,072 | $37,723 | | Restructuring and Related Costs | $5,447 | $701 | $20,719 | $12,460 | | Impairment of Long-Lived Assets | — | — | — | $7,087 | | **Adjusted EBITDA** | **$14,477** | **$7,668** | **$25,963** | **$35,040** | [Forward-Looking Guidance Reconciliations](index=13&type=section&id=Forward-Looking%20Guidance%20Reconciliations) Stratasys provides forward-looking guidance for fiscal year 2025, adjusting GAAP net loss and operating loss to derive non-GAAP net income, adjusted EBITDA, and non-GAAP operating income, by including share-based compensation, intangible asset amortization, restructuring and other expenses, and tax impacts [GAAP Net Loss to Non-GAAP Net Income Guidance](index=13&type=section&id=GAAP%20Net%20Loss%20to%20Non-GAAP%20Net%20Income%20Guidance) For fiscal year 2025, Stratasys expects to adjust GAAP net loss to non-GAAP net income by accounting for share-based compensation, intangible asset amortization, restructuring and other expenses, and related tax impacts GAAP Net Loss to Non-GAAP Net Income Guidance (USD Million) | Metric | Low | High | | :--- | :--- | :--- | | GAAP Net Loss | $(68) | $(53) | | Share-Based Compensation Expense | $25 | $27 | | Intangible Asset Amortization Expense | $22 | $24 | | Restructuring and Other | $30 | $34 | | Tax Impact of Non-GAAP Adjustments | $2 | $3 | | **Non-GAAP Net Income** | **$20** | **$26** | | GAAP Loss Per Share | $(0.93) | $(0.72) | | Non-GAAP Diluted Earnings Per Share | $0.28 | $0.35 | [GAAP Net Loss to Adjusted EBITDA Guidance](index=13&type=section&id=GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA%20Guidance) For fiscal year 2025, Stratasys expects to adjust GAAP net loss to adjusted EBITDA by accounting for share-based compensation, intangible asset amortization, restructuring and other expenses, tax impacts, other non-operating expenses, and depreciation GAAP Net Loss to Adjusted EBITDA Guidance (USD Million) | Metric | Low | High | | :--- | :--- | :--- | | GAAP Net Loss | $(68) | $(53) | | Share-Based Compensation Expense | $25 | $27 | | Intangible Asset Amortization Expense | $22 | $24 | | Restructuring and Other | $30 | $34 | | Tax Impact of Non-GAAP Adjustments | $2 | $3 | | Other Non-Operating Expenses | $4 | $4 | | Depreciation | $20 | $20 | | **Adjusted EBITDA** | **$44** | **$50** | [GAAP Operating Loss to Adjusted Non-GAAP Operating Income Guidance](index=14&type=section&id=GAAP%20Operating%20Loss%20to%20Adjusted%20Non-GAAP%20Operating%20Income%20Guidance) For fiscal year 2025, Stratasys expects to adjust GAAP operating loss to non-GAAP operating income by accounting for share-based compensation, intangible asset amortization, and restructuring and other expenses GAAP Operating Loss to Adjusted Non-GAAP Operating Income Guidance (USD Million) | Metric | Low | High | | :--- | :--- | :--- | | GAAP Operating Loss | $(57) | $(43) | | GAAP Operating Margin | (10)% | (7)% | | Share-Based Compensation Expense | $25 | $27 | | Intangible Asset Amortization Expense | $22 | $24 | | Restructuring and Other | $26 | $30 | | **Non-GAAP Operating Income** | **$24** | **$30** | | Non-GAAP Operating Margin | 4% | 5% |