Velo3D(VLD) - 2025 Q2 - Quarterly Results

Financial and Business Highlights The company reports Q2 2025 financial results, highlights strong growth in its services division, and details key strategic partnerships Key Financial & Operational Highlights Velo3D reported Q2 2025 revenue of $13.6 million, reaffirmed its full-year guidance, and noted a significant backlog shift towards its Rapid Production Services Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Revenue | $13.6 million | | Backlog (as of June 30, 2025) | $15.9 million | | 2025 Annual Revenue Growth | > 30% (Reaffirmed) | | EBITDA Positive Target | H1 2026 (Reaffirmed) | - The company is experiencing strong momentum in its Rapid Production Services (RPS) division, with RPS bookings seeing a 79% increase quarter-over-quarter and new customers accounting for over 78% of Q2 2025 bookings, heavily concentrated in the Space (54%) and Defense (33%) sectors[5] - The CEO highlighted a significant shift in the company's backlog composition towards RPS, driven by strong demand from the Space and Defense sectors[3] Strategic Developments and Partnerships The company advanced its aerospace and defense position through key agreements with NAVAIR, Vaya Space, and Momentus, alongside strategic leadership appointments - Key partnerships and agreements signed to bolster growth include a CRADA with NAVAIR, a $4 million MSA with Vaya Space, a $22.0 million strategic partnership with Amaero, and a $15 million MSA with Momentus, Inc[3][5] - New customer orders and initiatives include an order for a fourth Sapphire XC printer from Mears Machine Corporation and an agreement with Ohio Ordinance Works for its 3D Printed Military Weapons Development initiative[5] - The leadership team was strengthened with the appointments of Brice Cooper as Vice President of Defense and Government Relations and Jason Lloyd and Kenneth Thieneman to the Board of Directors[5] Financial Performance Analysis The company details its Q2 2025 performance, including revenue growth, persistent negative gross margins, reduced operating expenses, and its current liquidity position Summary of Second Quarter 2025 Results In Q2 2025, Velo3D grew revenue to $13.6 million, improved its gross margin, significantly cut operating expenses, and reported a GAAP net loss of $13.8 million Q2 2025 vs Q2 2024 Financial Summary | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Revenue | $13.6 M | $10.3 M | | GAAP Gross Margin | (11.7)% | (28.0)% | | GAAP Net Loss | ($13.8) M | ($0.2) M | | GAAP Net Loss per Share | ($0.98) | ($0.30) | | Non-GAAP Net Loss | ($11.3) M | ($21.7) M | | Non-GAAP Net Loss per Share | ($0.81) | ($38.49) | Revenue Analysis Q2 2025 revenue increased to $13.6 million, with the Rapid Production Services business expected to be a key future growth driver - Q2 2025 revenue was $13.6 million, with the year-over-year increase driven by product mix and the number of systems sold[7] - The company expects its RPS parts production business to contribute an increasing share of revenue beginning in H2 2025[7] Gross Margin Analysis Gross margin improved year-over-year to (11.7%) but remained negative due to the sale of inventory with a higher prior-year cost structure - Gross margin improved year-over-year to (11.7%) but remained negative due to higher fixed costs associated with inventory manufactured in 2024[8] - Management expects gross margin to improve going forward due to operational efficiencies and an anticipated ramp-up of the RPS business[8] Operating Expenses and Net Loss The company significantly reduced GAAP operating expenses to $10.5 million and reported a GAAP net loss of $13.8 million for the quarter Operating Expenses Comparison (Q2 2025 vs Q2 2024) | Expense Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Operating Expenses | $10.5 M | $17.6 M | | Non-GAAP Operating Expenses | $8.1 M | $13.4 M | Profitability Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | GAAP Net Loss | ($13.8) M | | Non-GAAP Net Loss | ($11.3) M | | Adjusted EBITDA | ($8.9) M | Liquidity The company's cash and cash equivalents decreased to $854,000 as of June 30, 2025 - As of June 30, 2025, cash and cash equivalents were $854,000, down from $1.2 million as of December 31, 2024[10] Financial Outlook The company reaffirms its full-year 2025 guidance and its target for achieving positive EBITDA in the first half of 2026 Full Year 2025 Guidance Velo3D reaffirms its full-year 2025 revenue guidance of $50 to $60 million and targets a gross margin exceeding 30% by Q4 2025 Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $50 million to $60 million | | Gross Margin (Q4 2025) | > 30% | | Non-GAAP Operating Expenses | $40 million to $50 million | | CapEx | $15 million to $20 million | - The company reaffirms its expectation to be EBITDA positive in the first half of 2026[12] Consolidated Financial Statements This section presents the company's condensed consolidated statements of operations, balance sheets, and cash flows for the reported periods Condensed Consolidated Statements of Operations For Q2 2025, the company reported revenue of $13.6 million and a net loss of $13.8 million, compared to a net loss of $0.2 million in the prior-year period Statement of Operations Summary (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $13,572 | $10,344 | | Gross Loss | $(1,588) | $(2,897) | | Loss from Operations | $(12,089) | $(20,520) | | Net Loss | $(13,756) | $(172) | | Net Loss per Share (Basic) | $(0.98) | $(0.30) | Condensed Consolidated Balance Sheets As of June 30, 2025, the company reported total assets of $78.6 million and total stockholders' equity of $21.5 million Balance Sheet Summary (As of) | (In thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $854 | $1,212 | | Inventories, net | $38,417 | $49,953 | | Total Assets | $78,558 | $89,180 | | Total Current Liabilities | $42,741 | $38,000 | | Total Liabilities | $57,023 | $49,516 | | Total Stockholders' Equity | $21,535 | $39,664 | Condensed Consolidated Statements of Cash Flows For the first six months of 2025, net cash used in operations was $13.6 million, with financing activities providing $15.0 million in cash Cash Flow Summary (Six Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,565) | $(28,492) | | Net cash (used in) provided by investing activities | $(1,799) | $5,966 | | Net cash provided by financing activities | $15,000 | $490 | | Net change in cash and cash equivalents | $(358) | $(22,032) | Non-GAAP Financial Measures This section provides reconciliations of GAAP results to non-GAAP measures, including net loss, adjusted EBITDA, and adjusted operating expenses Non-GAAP Net Loss Reconciliation The company's Non-GAAP Net Loss improved to $11.3 million in Q2 2025 from $21.7 million in the prior-year quarter Reconciliation to Non-GAAP Net Loss (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(13,756) | $(172) | | Stock-based compensation | $2,409 | $4,247 | | (Gain) loss on fair value of warrants | — | $(25,310) | | Other adjustments | — | $(578) | | Non-GAAP Net Loss | $(11,347) | $(21,746) | Non-GAAP Adjusted EBITDA Reconciliation Adjusted EBITDA improved significantly to a loss of $8.9 million in Q2 2025 compared to a loss of $15.0 million in Q2 2024 Reconciliation to Adjusted EBITDA (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(13,756) | $(172) | | Interest, Taxes, D&A | $2,444 | $6,770 | | EBITDA | $(11,312) | $6,598 | | Stock-based compensation & other adjustments | $2,409 | $(21,574) | | Adjusted EBITDA | $(8,903) | $(14,976) | Non-GAAP Adjusted Operating Expenses Reconciliation Non-GAAP Adjusted Operating Expenses were reduced to $8.1 million in Q2 2025, down from $13.4 million in the same period last year Reconciliation to Adjusted Operating Expenses (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total operating expenses (GAAP) | $10,501 | $17,623 | | Stock-based compensation in operating expenses | $2,409 | $4,247 | | Adjusted operating expenses (Non-GAAP) | $8,092 | $13,376 | Company Information and Disclosures This section provides an overview of Velo3D's business and important disclosures regarding forward-looking statements About Velo3D Velo3D is a metal additive manufacturing technology company providing an integrated solution for producing mission-critical parts - Velo3D is a metal additive manufacturing technology company that enables the production of high-value metal parts previously considered impossible to build[13][14] - The company's integrated solution includes Flow software, Sapphire printers, and Assure quality control, serving industries such as space exploration, aviation, and semiconductor[14] Forward-Looking Statements This section outlines the company's forward-looking statements and cautions investors about the inherent risks and uncertainties - The report includes forward-looking statements concerning fiscal 2025 and 2026 guidance, expectations for achieving profitability, and future demand[18] - Investors are warned that actual results could differ materially due to significant risks, including the company's ability to execute its business plan, its liquidity position, competition, and its ability to manage growth[18]