Pomerantz Law Firm Announces the Filing of a Class Action Against 3D Systems Corporation and Certain Officers – DDD

Core Viewpoint - A class action lawsuit has been filed against 3D Systems Corporation and certain officers for alleged violations of federal securities laws during the Class Period from August 13, 2024, to May 12, 2025, seeking damages for misleading statements regarding the company's business and operations [1][8]. Company Overview - 3D Systems provides 3D printing and digital manufacturing solutions across various regions, earning revenue from two segments: Healthcare Solutions and Industrial Solutions [4]. - The Healthcare Solutions segment includes dental, medical devices, personalized health services, and regenerative medicine [4]. Regenerative Medicine Program - The Regenerative Medicine Program focuses on additive manufacturing for human organ transplantation, with a partnership with United Therapeutics Corporation aimed at developing 3D-printed lungs [5]. - Milestone criteria in the United Partnership are crucial for revenue recognition, and updates to these criteria affect the timing and probability of receiving milestone payments [6]. Financial Performance - The 3D printing industry has faced reduced customer spending, impacting sales; however, 3D Systems remains optimistic about future growth and has focused on gross margin expansion and operating expense improvements [7]. - For full-year 2025, the company projected revenue between $420 million and $435 million, indicating flat to modest growth, with a non-GAAP gross profit margin of 37% to 39% [7]. - In Q4 2024, 3D Systems reported a non-GAAP earnings-per-share of -$0.19 and sales revenue of $111 million, a 3.4% year-over-year decline [9]. - The company reported a full-year 2024 sales decrease of 10% to $440.1 million, attributed to lower hardware systems sales due to macroeconomic factors [9]. - In Q1 2025, revenue was $94.5 million, down 8% year-over-year, with a net loss of $37 million, more than doubling the loss from Q1 2024 [10]. Market Reaction - Following the announcement of disappointing financial results, 3D Systems' stock price fell significantly, closing at $2.15 per share on March 27, 2025, and further dropping to $1.87 per share on May 13, 2025 [9][11]. - Analysts expressed skepticism about the company's ability to achieve profitability in the near term, citing shrinking revenues and low investor interest in the sector [12].