3D Systems Reports First Quarter 2025 Financial Results

Core Viewpoint - 3D Systems Corporation reported a decline in revenue and increased net loss for Q1 2025, primarily due to delayed capital investments from customers amid macroeconomic uncertainties and tariff concerns [3][4][6]. Financial Performance - Revenue for Q1 2025 was $94.5 million, down 8% from $102.9 million in Q1 2024 [2][6]. - Gross profit decreased to $32.7 million, with a gross profit margin of 34.6%, compared to $40.9 million and 39.8% in the prior year [2][7]. - Operating loss was $36.8 million, slightly improved from a loss of $39.9 million in Q1 2024 [2][6]. - Net loss attributable to 3D Systems increased to $37.0 million from $16.0 million year-over-year [2][7]. - Diluted loss per share was $0.28, compared to $0.12 in the same period last year [2][31]. Segment Performance - Healthcare Solutions revenue decreased by 9% to $41.3 million, while Industrial Solutions revenue fell by 7% to $53.2 million [6][19]. Cost Management Initiatives - The company is on track with a previously announced $50 million cost savings initiative, with an additional $20 million in savings expected in 2025 [4][5]. - Operating expenses were reduced to $69.5 million from $80.8 million year-over-year, reflecting the company's focus on cost efficiency [2][4]. Market Conditions and Outlook - The company withdrew its full-year guidance for 2025 due to anticipated prolonged weakness in customer capital expenditure spending [4][9]. - Despite current challenges, the company believes its strong product portfolio positions it well for future growth when capital spending rebounds [10][4]. Financial Liquidity - As of March 31, 2025, cash and cash equivalents totaled $135.0 million, down from $171.3 million at the end of 2024 [11][15]. - The company strengthened its balance sheet with over $100 million from the sale of the Geomagic portfolio, increasing cash reserves to approximately $250 million [4][5].