Velo3D(VLD) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for the three months ended September 30, 2025, was $14 million, compared to $8 million for the same period in 2024, representing a 75% increase [201]. - Total revenue for the three months ended September 30, 2025, was $13.6 million, an increase of $5.4 million or 65.4% compared to $8.2 million in 2024 [233]. - Total revenue for the three months ended September 30, 2025, was $13.2 million, an increase of $9.0 million, or 216.3%, compared to $4.2 million in 2024 [241]. - Total revenue for the nine months ended September 30, 2025, was $36.5 million, an increase of $8.2 million, or 28.7%, compared to $28.4 million in 2024 [267]. Sales and Bookings - Bookings for the three months ended September 30, 2025, were $18 million, up from $6 million in the same period in 2024, indicating a 200% growth [201]. - Revenue from 3D Printer and parts sales reached $12.0 million, up from $1.0 million in the same period last year, reflecting an increase of $10.9 million or 1043.3% [236]. - 3D Printer and parts sales for the nine months ended September 30, 2025, were $31.6 million, up from $17.4 million in 2024, an increase of $14.2 million, primarily due to product mix and sales volume [267]. Customer Diversification - Sales to the top three customers accounted for 50.9% of revenue for the three months ended September 30, 2025, down from 82.0% in the same period in 2024, indicating improved customer diversification [203]. Financial Position and Concerns - The company has identified substantial doubt regarding its ability to continue as a going concern without additional financing to meet operational needs over the next 12 months [198]. - As of September 30, 2025, the company had approximately $11.8 million in cash and short-term investments, with substantial doubt about its ability to continue as a going concern for the next twelve months [296][298]. Cost and Expenses - Cost of revenue for 3D Printer and parts was $11.9 million, an increase of $9.6 million or 433.0% from $2.2 million in 2024 [233]. - Total operating expenses decreased to $11.1 million from $22.9 million, a reduction of $11.9 million or 51.8% [233]. - Research and development expenses decreased to $3.0 million for the three months ended September 30, 2025, from $4.4 million in 2024, a reduction of $1.4 million [249]. - Selling and marketing expenses were $2.0 million for the three months ended September 30, 2025, down from $3.1 million in 2024, a decrease of $1.1 million [251]. - General and administrative expenses decreased significantly to $6.0 million for the three months ended September 30, 2025, from $15.4 million in 2024, a reduction of $9.4 million [253]. Profitability - Gross profit for the three months ended September 30, 2025, was $433,000, down from $4.1 million, a decline of $3.6 million or 89.4% [233]. - Net loss for the three months ended September 30, 2025, was $(11.8) million, an improvement of $11.3 million or 48.9% from $(23.1) million in 2024 [233]. - Gross loss improved to $0.5 million for the nine months ended September 30, 2025, compared to a gross loss of $1.6 million in 2024, with gross margin improving from (5.8)% to (1.3)% [278]. Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2025 was $19.6 million, with a net loss of $51.0 million and a non-cash loss of $27.8 million [305]. - Net cash provided by financing activities for the nine months ended September 30, 2025 was $32.3 million, including $17.8 million from the August 2025 Offering [310]. - The company expects cash provided by financing activities to increase through new equity issuance or incurring new debt [312]. Market Conditions - Macroeconomic conditions, including inflation and geopolitical events, have introduced uncertainties affecting customer orders and supply chain constraints [206]. Future Outlook - The company plans to continue investing in research and development to enhance its additive manufacturing solutions based on customer demand [205]. - The company expects research and development costs to remain stable for the remainder of 2025, with potential increases in the long term as investments in product enhancements continue [250]. - The company anticipates an increase in capital expenditures in 2025 compared to 2024 for investments in printer capacity and related facilities [309].