Stratasys Q3 2025 slides: Revenue dips as cost cuts drive positive cash flow

Introduction & Market Context

Stratasys Ltd (NASDAQ:SSYS) presented its Q3 2025 results on November 13, 2025, revealing a mixed performance characterized by revenue challenges offset by disciplined cost management. The 3D printing solutions provider reported a 2.1% year-over-year revenue decline to $137 million, falling short of analyst expectations of $143.85 million. The company's shares dropped 0.73% in pre-market trading to $9.47, reflecting investor disappointment with the results.

CEO Dr. Yoav Zeif emphasized the company's focus on operational excellence and strategic partnerships while navigating a challenging market environment. Despite revenue headwinds, Stratasys highlighted its strong cash position of $255 million with no debt and improved operating cash flow.

Quarterly Performance Highlights

Stratasys reported Q3 2025 revenue of $137 million, down 2.1% from $140 million in the same period last year. The revenue breakdown shows $42.9 million from consumables, $32.1 million from systems, and $62 million from services.

As shown in the following chart of quarterly revenue trends:

Gross margins faced pressure during the quarter, with GAAP gross margin declining to 41.0% from 44.8% in Q3 2024. This downward trend is clearly visible in the company's margin analysis:

Despite these challenges, Stratasys made significant progress in cost management. Operating expenses decreased substantially, with non-GAAP operating expenses reduced to 45.3% of revenue in Q3 2025, down from 49.7% in Q3 2024. This 440 basis point reduction helped the company achieve positive operating cash flow of $6.9 million, compared to negative $4.5 million in the prior year.

The following chart illustrates the company's operating expense improvements:

Detailed Financial Analysis

Stratasys reported a GAAP net loss of $55.6 million ($0.65 per share) for Q3 2025, significantly wider than the $26.6 million loss in Q3 2024. However, on a non-GAAP basis, the company achieved a net income of $1.5 million ($0.02 per share), up from $0.4 million ($0.01 per share) in the prior year. This non-GAAP EPS of $0.02 fell significantly short of analyst expectations of $0.09.

The following chart details the company's operating, net income, and EBITDA performance:

CFO Eitan Zamir highlighted that the 440 basis point reduction in adjusted operating expenses helped generate solid operating cash flow and EPS, effectively offsetting continued top-line and gross margin pressure. The company maintained a strong balance sheet with $255 million in cash and no debt at the end of the quarter.

Strategic Initiatives

Stratasys continues to focus on key vertical markets where additive manufacturing provides compelling advantages. The aerospace and defense sector remains a particular bright spot, with the company securing wins with industry leaders like Boeing, Honeywell, L3Harris, and Embraer.

The company highlighted its participation in Trident Warrior 25 with the U.S. Navy, demonstrating the critical role of distributed advanced manufacturing in military readiness. This represents the largest Department of Defense manufacturing demonstration connecting assets across 8,000 miles.

The following image illustrates Stratasys' success in the aerospace and defense sector:

In other strategic markets, Stratasys reported that a leading social media/AI/VR company purchased four F3300 systems for large-scale prototyping and production of VR/AR parts. The company also extended its partnership with Andretti Global as the official 3D printing partner, designing an optimized lab within Andretti's headquarters.

The following slide showcases these customer successes:

In the dental sector, Stratasys made strategic investments in TrueDent and welcomed Chris Kabot as VP & Global Head of Dental. The company launched its SOFT RELAX post-processing solution, which reduces manual labor, and was among the first dental additive companies to proactively remove TPO from dental resins, reinforcing its commitment to patient safety.

Forward-Looking Statements

For the full year 2025, Stratasys provided guidance including:

• Revenue between $550 million and $560 million
• Non-GAAP gross margins between 46.7% and 47.0%
• Non-GAAP operating margins between 1.5% and 2.0%
• Adjusted net income between $11 million and $13 million ($0.13 to $0.16 EPS)
• Adjusted EBITDA between $30 million and $32 million (5.4%-5.7% of revenue)
• Capital expenditures between $20 million and $25 million
• Positive operating cash flow for 2025

The detailed outlook is presented in the following slide:

Dr. Zeif summarized the company's position, noting encouraging signs in specific verticals, recurring revenue stability, and the company's readiness to seize opportunities. He emphasized Stratasys' margin discipline, cost actions, technology leadership, and continuing expansion into key growth industries.

Conclusion

Stratasys' Q3 2025 results reflect a company navigating challenging market conditions through disciplined cost management while maintaining strategic investments in key growth areas. The significant improvement in operating cash flow and reduced operating expenses demonstrate effective execution of cost control initiatives, even as revenue and gross margins faced pressure.

However, the substantial GAAP net loss and the earnings miss relative to analyst expectations raise concerns about the company's near-term growth trajectory. With a strong balance sheet and no debt, Stratasys appears well-positioned to weather current challenges while pursuing opportunities in manufacturing applications across its target verticals.

As the company moves forward, its ability to balance cost discipline with strategic investments in growth areas will be crucial for long-term success in the competitive 3D printing market.

Full presentation:

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