Stratasys Q4 Earnings Beat Estimates, Revenues Slip Y/Y, Shares Fall

Core Insights - Stratasys (SSYS) reported fourth-quarter 2025 non-GAAP earnings of 7 cents per share, exceeding the Zacks Consensus Estimate by 40%, but down 41.7% year over year [1][7] - Revenues for the quarter fell 7% year over year to $140 million, although this figure surpassed the consensus mark by 0.61% [1][7] - SSYS shares declined over 4.8% at the time of the report, with a 12-month decline of 7.4%, contrasting with a 23.9% return in the Zacks Industrial Products sector [1] Revenue Breakdown - Product revenues decreased by 7.1% year over year to $97.6 million [2] - System revenues fell 7.1% year over year to $3.6 million [2] - Consumables revenues saw a slight decline of 0.6% year over year to $64.2 million [2] - Services revenues dropped 6.5% year over year to $42.9 million [2] Profitability Metrics - Non-GAAP gross margin contracted by 330 basis points year over year to 46% [2] - Non-GAAP operating expenses were $60.8 million, representing 43.4% of revenues, a decrease from $65.2 million in the previous year [3] - Adjusted EBITDA margin contracted by 310 basis points year over year to 6.6% [3] - Non-GAAP operating profit was $4.1 million, down 56.4% year over year [3] Balance Sheet and Cash Flow - As of December 31, 2025, Stratasys had cash and short-term deposits of $244.5 million, down from $255 million as of September 30 [4] - The company reported an operating cash flow of $15.1 million for the fourth quarter of 2025 [4] 2026 Outlook - For 2026, Stratasys expects revenues between $565 million and $575 million, indicating sequential growth throughout the year [5] - Non-GAAP earnings are projected to be between 9-14 cents per share [5] - The company anticipates a gross margin between 46.7% and 47.1% and a non-GAAP operating margin of 0.7-1.5% [5] Zacks Rank - Currently, SSYS holds a Zacks Rank 3 (Hold) [6]