On August 13, Stratasys (NASDAQ:SSYS) held its second-quarter earnings call, and the headline number was consumables revenue hitting a record $66.3 million. For a company trying to prove it has moved beyond selling prototyping machines into recurring, production-grade manufacturing, that record matters more than the top line itself. But underneath the record sat a cash flow warning that investors will want to weigh carefully.
Aerospace and defense is Stratasys's largest business, and it grew 17% year over year in the second quarter. Management pointed to expanding adoption across the U.S. Air Force, where the company's F900 system is certified for flightworthy production parts, describing the orders as increasing in volume across the Air Force's sustainment enterprise rather than one-time purchases. Once a part is qualified on a Stratasys platform, switching suppliers becomes costly, which is the basis for calling this demand structural. Stratasys Direct, the company's parts manufacturing arm, grew 12.1% year over year, fueled by defense technology customers building drones and munitions.
The quarter also delivered two large multiyear systems deals. Quickparts expanded its relationship with Stratasys by purchasing 12 Neo 800-plus systems on top of six units it already owned, with three of the new systems placed in Europe. FAW Group, one of China's largest auto manufacturers, signed for 12 F900 systems by year-end, with two shipped in the second quarter, adding to five F900s and eight other Stratasys machines it already runs to make interior parts like armrests and panels. Stratasys was also awarded a two-year, $7.8 million program through the 2026 America Makes OIB Modernization Challenge to develop monitoring technology for its F900 and F3300 platforms. Layered on top is the pending $42.5 million cash acquisition of MarkForged, whose continuous carbon fiber technology generated about $70 million in revenue in 2025 and which management expects to add positively to EBITDA within a year of closing.
System revenue fell to $26.4 million from $30.6 million a year earlier, meaning machine sales are shrinking even as the recurring materials business grows. Gross margin slipped too, with non-GAAP gross margin at 47.2% versus 47.7% a year ago, which the company attributed largely to a stronger Israeli shekel raising costs incurred in that currency. GAAP net loss widened slightly to $16.9 million, compared to $16.7 million a year ago, though GAAP loss per diluted share improved slightly to $0.19 from $0.20.
#stratasys #gaap
Aerospace and defense is Stratasys's largest business, and it grew 17% year over year in the second quarter. Management pointed to expanding adoption across the U.S. Air Force, where the company's F900 system is certified for flightworthy production parts, describing the orders as increasing in volume across the Air Force's sustainment enterprise rather than one-time purchases. Once a part is qualified on a Stratasys platform, switching suppliers becomes costly, which is the basis for calling this demand structural. Stratasys Direct, the company's parts manufacturing arm, grew 12.1% year over year, fueled by defense technology customers building drones and munitions.
The quarter also delivered two large multiyear systems deals. Quickparts expanded its relationship with Stratasys by purchasing 12 Neo 800-plus systems on top of six units it already owned, with three of the new systems placed in Europe. FAW Group, one of China's largest auto manufacturers, signed for 12 F900 systems by year-end, with two shipped in the second quarter, adding to five F900s and eight other Stratasys machines it already runs to make interior parts like armrests and panels. Stratasys was also awarded a two-year, $7.8 million program through the 2026 America Makes OIB Modernization Challenge to develop monitoring technology for its F900 and F3300 platforms. Layered on top is the pending $42.5 million cash acquisition of MarkForged, whose continuous carbon fiber technology generated about $70 million in revenue in 2025 and which management expects to add positively to EBITDA within a year of closing.
System revenue fell to $26.4 million from $30.6 million a year earlier, meaning machine sales are shrinking even as the recurring materials business grows. Gross margin slipped too, with non-GAAP gross margin at 47.2% versus 47.7% a year ago, which the company attributed largely to a stronger Israeli shekel raising costs incurred in that currency. GAAP net loss widened slightly to $16.9 million, compared to $16.7 million a year ago, though GAAP loss per diluted share improved slightly to $0.19 from $0.20.
#stratasys #gaap
2 months ago
