3D printer OEM Stratasys (NASDAQ: SSYS) announced its financial results for the third quarter (Q3) of 2025.
Revenue for the quarter was $137.0 million, down 2.1% Y/Y from $140.0 million and down 0.8% Q/Q from $138.1 million in the previous quarter, underscoring the lingering caution in capital equipment spending that has weighed on much of the manufacturing technology sector this year.
Gross profit fell to $56.1 million, down 10.5% Y/Y and 5.7% Q/Q, while gross margin slid to 41.0% from 44.8% a year ago, continuing a trend of margin compression tied to softer system demand and broader macroeconomic pressure.
Management acknowledged that customers remain hesitant to commit to larger capital outlays, a dynamic that has reshaped quarterly performance across several industrial markets. Still, the company pointed to reduced operating costs and more disciplined internal spending as evidence that it is managing what it can control while waiting for demand conditions to stabilize.
“Our success with leaders of industry and major technology companies validates our solutions’ critical role in production environments. The fundamental trends driving manufacturing transformation – supply chain localization, sustainability goals, personalization, and efficiency demands – continue to intensify,” said Dr. Yoav Zeif, CEO of Stratasys.
Stable products amid softer services
Product revenue held steady at $94.1 million, essentially flat Y/Y and down 0.6% Q/Q. Of which, system revenue rose to $32.1 million, up 1.3% Y/Y and 4.9% Q/Q, driven by interest in industrial and manufacturing applications where 3D printing continues to carve out a clearer role.
Whereas, consumables revenue came in at $62.0 million, down 0.6% Y/Y and 3.4% Q/Q, reflecting steady material usage but also the company’s gradual retreat from lower-margin entry-level systems.
Service revenue totaled $42.9 million, down 6.5% Y/Y and 0.9% Q/Q, as customers scaled back service-related spending. Customer support revenue declined to $29.3 million, down 5.5% Y/Y, consistent with reduced hardware maintenance activity in the current environment.
| Revenue $ thousands | Q3 2025 (rounded) | Q3 2024 (rounded) | Variance $ thousands | % |
| Products | 94.1M | 94.1M | Flat Y/Y | – |
| Services | 42.9M | 45.9M | -3.0M | -6.5% |
| Total revenue | 137.0M | 140.0M | -3.0M | -2.1% |
In August, Japanese automotive giant Toyota’s production engineering group expanded its long-standing partnership with Stratasys by deploying industrial 3D printers and high-performance polymers across its North American factories, enabling the production of custom tools, fixtures, jigs, and prototypes in as little as one day.
Using systems such as the F3300, F900, Origin One, F770, Neo800, H350, F370, J850, and Fortus 450mc, Toyota’s Add Lab is accelerating factory-floor innovation by reducing reliance on external suppliers, shortening lead times, and improving worker safety through lighter, more ergonomic, and rapidly iterated parts.
Motorsports company Andretti Global extended its collaboration with the 3D printer OEM, reaffirming the OEM as the Official 3D Printing Partner of Andretti INDYCAR. The team now relies on Stratasys’ industrial 3D printing systems, including the F370 and Fortus 450mc, together with advanced materials to speed up the production of high-performance racing parts.
This workflow enables Andretti engineers to turn out mission-critical components such as an RVB cooling shroud for the pneumatic shifting valve block, a steering wheel setup beam, helmet cooling adapters, and a damper spring perch tool, along with other bespoke pieces designed for competitive racing environments.
On the materials front, Stratasys launched P3 Silicone 25A, a pure silicone elastomer co-developed with Shin-Etsu for the Origin One DLP platform, offering molded-silicone-level mechanical and thermal performance with a 25 Shore A hardness.
ASTM testing shows a tensile strength of 5.4 MPa, tear strength of 16 kN/m, 672% elongation at break, UL-94 V0 flame retardancy, and stability after 1,000 hours at 150°C, while supporting fine-detail features down to 0.5 mm.
Outlook steady despite headwinds
Looking ahead, Stratasys reaffirmed its full-year guidance expecting “profitability to benefit from our ongoing efforts to drive cost reductions, along with our additional plan to mitigate the impact from higher tariffs with select price increases,” as CFO Eitan Zamir puts it.
The manufacturer expects FY’25 revenue of $550 million to $560 million, a 3.9% to 2.2% Y/Y decline. Non-GAAP gross margin is projected at 46.7% to 47% and non-GAAP operating margin at 1.5% to 2%. Adjusted EPS is forecast at $0.13 to $0.16, and adjusted EBITDA at $30 million to $32 million, up 15.4% to 23.1% Y/Y from $26.0 million in FY’24.
“As we look to the future, we are seeing encouraging signs in the specific verticals and applications where we are focusing, and the stability of our recurring revenue streams continues to provide an important foundation to build growth,” said the CEO during the earnings call.
Stratasys also expects Y/Y growth in operating cash flow through improved efficiency, lower operating expenses, and better working-capital management. GAAP net income and GAAP EPS guidance were reduced due to a $33.9 million non-cash impairment charge recorded in the quarter, which the company said does not affect its operational outlook for the remainder of the year.
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Featured image shows a 3D printed transmission test tool, designed in the Toyota ADD Lab and printed on the Stratasys H350 using PA12 material. Photo via Stratasys.
