3D Systems Q1 Earnings and Revenues Miss Estimates, Stock Down

Core Viewpoint - 3D Systems reported a wider-than-expected non-GAAP loss in Q1 2025, indicating ongoing challenges in revenue generation and market conditions [1][2][11] Financial Performance - The company incurred a non-GAAP loss of 21 cents per share, compared to a loss of 17 cents per share in the same quarter last year [1] - Revenues for the quarter were $94.5 million, down 8.1% year over year, and missed the Zacks Consensus Estimate by 3.91% [2] - Product revenues decreased by 14.6% year over year to $54.7 million, while services revenues increased by 2.5% to $39.8 million [3][4] - Non-GAAP gross profit fell 19.7% year over year to $33.1 million, with a gross profit margin decline of 500 basis points to 35% [6] Segment Performance - Healthcare Solutions revenues decreased by 9% year over year to $41.3 million, while Industrial Solutions revenues declined by 7.5% to $53.2 million [5][6] - The Personalized Healthcare business grew by 17%, and manufacturing operations for FDA-approved parts increased by 18%, indicating strong demand in critical markets [6] Operational Metrics - Adjusted EBITDA showed a loss of $23.9 million, down $3.8 million year over year, primarily due to lower volumes and unfavorable pricing [7] - As of March 31, 2025, cash and cash equivalents were $135 million, down from $171.3 million at the end of 2024, with total debt slightly increasing to $212.3 million [8] Strategic Developments - The sale of the Geomagic portfolio in April improved liquidity, adding over $100 million to cash reserves, totaling approximately $250 million as of April 30, 2025 [9] - The company has withdrawn its full-year 2025 guidance due to uncertainties in capital expenditures but remains focused on achieving profitability [10][11] Market Outlook - The Zacks Consensus Estimate for 2025 revenues is $427.61 million, suggesting a year-over-year decline of 2.84%, with an expected loss of 39 cents per share [12]