3D printer OEM Stratasys (NASDAQ: SYSS) has announced its financial results for the first quarter of 2025 (Q1 2025).
The company reported Q1 revenue of $136.0 million, down 5.6% from $144.1 million in Q1 2024 and 9.5% from $150.4 million in the previous quarter. The decline was primarily attributed to delayed capital expenditures and extended sales cycles, as customers remained cautious amid ongoing macroeconomic uncertainty.
Gross profit stood at $60.2 million, compared to $63.9 million a year earlier and $69.7 million in Q4 2024. Gross margin held steady at 44.3%, down just 0.1 percentage points Y/Y. Adjusted EBITDA nearly doubled from the prior year to $8.2 million, though it fell 43.6% sequentially from $14.5 million.
Alongside these results, Stratasys highlighted a strengthened financial position supported by a recent capital injection from Fortissimo Capital, setting the stage for a more aggressive growth strategy in the quarters ahead.
“We believe we are well-positioned to drive increased cash flow and profitability from our streamlined operations and recurring stream of revenue as we move through the balance of the year,” Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, said.
Stratasys’ renewed M&A interest
Flush with cash and a strong balance sheet, Stratasys has signaled its intention to pursue strategic acquisitions, having spent much of 2023 fending off acquisition bids.
Previously, Stratasys was involved in several high-profile industry merger attempts. A proposed combination with Desktop Metal was terminated by Stratasys due to shareholder scrutiny, while also tackling takeover bids from 3D Systems, which were also rejected.
The most sustained pressure came from Israeli peer Nano Dimension, which issued multiple unsolicited acquisition offers throughout 2023. That effort eventually stalled, leading Nano Dimension to acquire Desktop Metal and proceed with a merger involving Markforged.
Having closed the $120 million investment from Fortissimo Capital, Stratasys now holds $270 million in cash and no outstanding debt. Management has stated that this capital is primarily intended to support “inorganic growth,” according to Zeif.
During the Q1 2025 earnings call, leadership noted that any acquisition would be assessed based on alignment with Stratasys’ strategy, which focuses on recurring revenue, manufacturing-centric use cases, and full-solution platforms.
Stratasys sees weaker balance sheets and falling valuations across the industry as a chance to pursue value-driven acquisitions. Unlike in prior years, it is now positioning itself as an active acquirer amid sector consolidation.
Revenue breakdown and business conditions
Stratasys reports revenue through two segments via its products and services segments. Revenue from the products segment totaled $93.8 million in Q1 2025, down 5.4% from $99.2 million in Q1 2024 and 10.7% lower than $105.0 million in Q4 2024.
Within the products segment, systems revenue fell to $31.2 million, down 5.2% Y/Y and 33.2% sequentially. Meanwhile, consumables revenue reached $62.6 million, a 5.6% annual decline but a 7.2% increase from Q4, driven by high system utilization.
Management highlighted that, despite hardware sales softening, recurring consumables revenue provided stability, particularly in regulated industries like aerospace and healthcare.
Service revenue reached $42.3 million, reflecting a 5.8% decline from $44.9 million in Q1 2024 and a 6.8% decrease from $45.3 million in Q4. Within services, customer support services contributed $30.0 million, down 4.5% from $31.4 million in Q1 2024.
While new service contracts were limited due to tighter budgets, existing customers continued to rely on Stratasys’ support infrastructure. The company also noted that internal cost-efficiency efforts helped cushion the impact of lower top-line results in this segment.
| Revenue $ thousands | Q1 2025 | Q1 2024 | Variance $ thousands | % |
| Products | 93,795 | 99,196 | -5,401 | -5.4% |
| Services | 42,251 | 44,854 | -2,603 | -5.8% |
| Total | 136,046 | 144,050 | -8,004 | -5.6% |
During the first quarter, Stratasys announced several developments. In March, Stratasys and Siemens Healthineers developed patient-specific 3D printed CT phantoms that replicate human anatomy with high radiological precision, enabling more consistent imaging research, improved diagnostic accuracy, and enhanced training.
Combining Stratasys’ materials and Digital Anatomy technology with Siemens Healthineers’ imaging algorithms, the models provide a realistic, repeatable environment for AI training and clinical validation without the need for cadavers.
Elsewhere, Stratasys validated AIS Antero 800NA and 840CN03 materials for its F900 3D printer, expanding its capabilities for aerospace and defense applications. Developed with partners like Boeing and the US Air Force (USAF), these high-performance materials meet rigorous standards and streamline qualification through NCAMP equivalency, reducing costs and accelerating AM adoption in regulated environments.
Guidance for FY 2025
Stratasys reaffirmed its full-year revenue guidance of $570 million to $585 million, with sequential improvement anticipated throughout the year.
Non-GAAP gross margin is projected at 48.8% to 49.2%, with operating expenses between $254 million and $257 million, and adjusted EBITDA of $44 million to $50 million. Capital expenditures are expected to range from $25 million to $30 million, and operating and free cash flow are forecast to exceed 2024 levels.
The Fortissimo investment added 11.65 million shares to the company’s count as of April 8, but the resulting interest income is expected to fully offset any dilution.
Stratasys has accordingly raised its 2025 outlook, now projecting a GAAP net loss of $64 million to $49 million with GAAP EPS between $(0.80) and $(0.61), and non-GAAP net income of $24 million to $30 million with EPS between $0.30 and $0.37.
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Featured image shows the Stratasys team at RAPID + TCT 2025. Photo via Stratasys.
