Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $136 million, down from $144.1 million in Q1 2024 [13] - Product revenue decreased to $93.8 million from $99.2 million year-over-year, while service revenue fell to $42.2 million from $44.9 million [14] - GAAP operating loss was $12.4 million, an improvement from a loss of $24.5 million in the same period last year [17] - Non-GAAP net income for the quarter was $2.9 million, compared to a net loss of $1.7 million in Q1 2024 [17] - Adjusted EBITDA increased to $8.2 million from $4.1 million year-over-year [17] Business Line Data and Key Metrics Changes - Consumables revenue was $62.6 million, down from $66.3 million year-over-year, but showed a sequential growth of approximately 7% [14][15] - System revenue was $31.2 million, compared to $32.9 million in the same period last year [14] - Customer support revenue within service revenue was $30 million, down from $31.4 million year-over-year [15] Market Data and Key Metrics Changes - The company noted strong utilization rates across its customer base, indicating robust demand for its additive manufacturing systems [3] - The ongoing tariff situation is being monitored, with expectations of no material revenue impact due to most printers and materials being produced in the U.S. or Israel [5][6] Company Strategy and Development Direction - The company is focusing on high-growth end users driven by megatrends such as supply chain improvement, next-generation mobility, and sustainability initiatives [4] - A strategic investment of $120 million from Fortissimo Capital has strengthened the company's cash position to approximately $270 million with no debt [4] - The company is committed to continuous product innovation and enhancing customer engagement through improved go-to-market strategies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties and emphasized a focus on profitability and cost management [30][58] - The outlook for 2025 anticipates revenues to range between $570 million to $585 million, with expectations of sequential growth throughout the year [19] - Management acknowledged the uncertainty in the macroeconomic environment but highlighted strong customer engagement and demand for additive manufacturing solutions [56][58] Other Important Information - The company launched new products, including the NEO 800 plus 3D printer and advanced materials for industrial applications, enhancing its competitive position [7][10] - The company is actively exploring opportunities for inorganic growth through acquisitions, leveraging its strong financial position [36][39] Q&A Session Summary Question: Clarification on tariffs and their impact on costs - Management confirmed that tariffs apply to the cost of goods sold when importing from Israel to the U.S., but the impact is not material [25][26] Question: Economic outlook for the second half of the year - Management reiterated guidance for a slight increase in revenue in the second half, focusing on securing EBITDA amidst market uncertainties [28][30] Question: Insights on consumables and customer activity - Management noted a return to higher utilization rates and expected consumables revenue to be higher in 2025 compared to 2024 [35] Question: Capital allocation and M&A appetite - The company is focused on inorganic growth opportunities and will pursue acquisitions that align with its strategy [36][39] Question: R&D spending and focus - Management clarified that R&D spending was focused rather than cut, maintaining investment in key areas [42][44] Question: Competition from low-end market players - Management emphasized that Stratasys focuses on industrial-grade solutions and reliability, differentiating itself from low-end competitors [46][49] Question: Engagement with the GenAI and automation community - Management confirmed ongoing efforts to integrate with the GenAI and robotics communities, leveraging AI to enhance additive manufacturing processes [63][66]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $136 million, down from $144.1 million in Q1 2024, reflecting a decrease in customer capital spending due to market uncertainties [13][14] - Product revenue decreased to $93.8 million from $99.2 million year-over-year, while service revenue fell to $42.2 million from $44.9 million [14] - GAAP gross margin was 44.3%, slightly down from 44.4% in the same period last year, while non-GAAP gross margin was 48.3%, down from 48.6% [15][16] - GAAP net loss for the quarter was $13.1 million, or $0.18 per diluted share, compared to a net loss of $26 million, or $0.37 per diluted share, in the same period last year [17] Business Line Data and Key Metrics Changes - System revenue was $31.2 million, down from $32.9 million year-over-year, while consumables revenue decreased to $62.6 million from $66.3 million [14] - Consumables revenue showed a sequential growth of approximately 7% compared to the previous quarter, indicating strong utilization rates [15] - Customer support revenue within service revenue was $30 million, down from $31.4 million year-over-year [15] Market Data and Key Metrics Changes - The company noted that most of its printers and materials are produced in the U.S. or Israel, which mitigates the impact of tariffs [5][6] - The ongoing tariff situation is being monitored, with expectations of no material revenue impact [6] Company Strategy and Development Direction - The company is focusing on high-growth end users driven by megatrends such as supply chain improvement, next-generation mobility, and sustainability initiatives [4] - A strategic investment of $120 million from Fortissimo Capital has strengthened the company's cash position to approximately $270 million with no debt, enhancing its ability to pursue growth opportunities [4][18] - The company is refining its strategic focus to target promising applications while enhancing customer engagement through improved go-to-market strategies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties and emphasized a focus on securing profitability and EBITDA [28][29] - The outlook for 2025 anticipates revenues between $570 million to $585 million, with expectations of sequential growth throughout the year [19] Other Important Information - The company launched new products, including the NEO 800 plus 3D printer and advanced materials for industrial applications, enhancing its product portfolio [7][11] - The company is actively engaging with customers to explore additive manufacturing as a solution for mitigating uncertainties in the market [58] Q&A Session Summary Question: Impact of tariffs on imports from Israel - Management clarified that tariffs are paid on the cost of goods sold, with the current tariff at 10% not being material [25][26] Question: Economic situation forecast for the second half of the year - Management reiterated guidance, expecting a slight revenue increase in the second half, while focusing on securing EBITDA amidst market uncertainties [28][29] Question: Insights on consumables and utilization trends - Management noted a return to higher utilization rates and expected full-year consumables revenue to exceed 2024 levels [34] Question: Capital allocation and M&A appetite post-Fortissimo investment - Management indicated a focus on inorganic growth opportunities and strategic acquisitions aligned with their strategy [36][37] Question: R&D spending and focus areas - Management emphasized that R&D spending is focused rather than cut, maintaining investment in key technologies and use cases [42][43] Question: Competition from low-end manufacturers - Management stated that Stratasys focuses on industrial-grade solutions, differentiating itself through reliability and total cost of ownership [47][50] Question: Customer engagement and macroeconomic conditions - Management highlighted strong customer engagement despite macroeconomic uncertainties, emphasizing the advantages of additive manufacturing [58] Question: Involvement in GenAI and automation discussions - Management confirmed ongoing efforts to integrate with the GenAI and robotics communities, leveraging data for improved manufacturing solutions [64][66]