Earnings call transcript: Nano Dimension Q3 2025 revenue surges, stock reacts

Nano Dimension Ltd (NASDAQ:NNDM) reported its third-quarter 2025 financial results, showcasing significant year-over-year revenue growth despite posting a loss per share. The company's stock experienced a slight decline in aftermarket trading following the earnings announcement. Nano Dimension's revenue for the quarter reached $26.9 million, marking an 81% increase from the previous year, driven by contributions from Markforged. However, the company reported an earnings per share (EPS) loss of $0.13, missing analyst expectations. In response, the stock price in aftermarket trading decreased by 1.3%, settling at $1.52.

Key Takeaways

• Nano Dimension's Q3 2025 revenue grew by 81% year-over-year.
• The company reported an EPS loss of $0.13, missing forecasts.
• Stock reacted with a 1.3% decline in aftermarket trading.
• Operating expenses are set to decrease by 10-15% due to cost reduction initiatives.
• Strategic alternatives review continues with financial advisors.

Company Performance

Nano Dimension demonstrated robust revenue growth in Q3 2025, primarily attributed to its acquisition of Markforged, which contributed $17.5 million. However, the standalone revenue saw a 37% decline, emphasizing challenges in the company's core operations. The company's focus on additive manufacturing platforms, particularly in defense, aerospace, and automotive sectors, underscores its strategic direction.

Financial Highlights

• Revenue: $26.9 million, up 81% year-over-year.
• Earnings per share: Loss of $0.13.
• Gross Profit: $12.7 million with an adjusted gross margin of 47.4%.
• Operating Expenses: $29.2 million.
• Adjusted EBITDA Loss: $16.6 million.
• Cash Position: $515.5 million.

Earnings vs. Forecast

Nano Dimension's EPS loss of $0.13 missed analyst expectations, which anticipated a narrower loss. The revenue of $26.9 million, however, aligns with the company's growth trajectory, reflecting an 81% increase from the previous year. The miss on EPS highlights ongoing operational challenges despite revenue growth.

Market Reaction

Following the earnings announcement, Nano Dimension's stock experienced a 1.3% decline in aftermarket trading, closing at $1.52. This movement reflects investor concerns over the EPS miss and the company's ongoing losses, despite strong revenue growth. The stock remains within its 52-week range of $1.31 to $2.74.

Outlook & Guidance

Looking ahead, Nano Dimension projects Q4 2025 revenue between $31.5 million and $33.5 million, with expected gross margins of 47-48.5%. Operating expenses are anticipated to decrease to $28-$29 million. The company continues to explore strategic alternatives with Guggenheim Securities and Houlihan Lokey.

Executive Commentary

CEO David Stehlin emphasized, "We're strengthening how we manage the organization, operating with discipline as we drive toward profitability." He also noted that customers are increasingly prioritizing solutions offering strong ROI and secure workflows. Stehlin reiterated the company's focus on execution and disciplined capital allocation.

Risks and Challenges

• Declining standalone revenue poses a challenge to core operations.
• Ongoing losses and missed EPS forecasts may affect investor confidence.
• Macroeconomic conditions remain uneven, impacting demand.
• Integration of acquired entities and cost management require careful execution.
• The strategic review process may introduce uncertainty.

Q&A

There were no questions asked during the earnings call, leaving some analyst queries about future strategies and operational adjustments unaddressed.

Full transcript - Nano Dimension Ltd (NNDM) Q3 2025:

Conference Operator: Good evening and welcome to the Nano Dimension Q3 2025 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Purva Sanaria, Director of Investor Relations. Please go ahead.

Purva Sanaria, Director of Investor Relations, Nano Dimension: Thank you, and good afternoon, everyone. Welcome to Nano Dimension's Q3 2025 Earnings Conference Call. Joining me today is CEO David Stehlin, and our new CFO, John Brenton. Before we begin, I will remind you that certain information provided on this call may contain forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. The safe harbor statement outlined in today's earnings press release also pertains to statements made on this call. In addition, I would like to point out that we will be discussing non-GAAP results, which exclude certain items.

I encourage you to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP measures, which can be found in the press release available on the company's website. If you have not received a copy of the press release, please view it in the investor relations section of the company's website. A replay of today's call will also be available on the investor relations section of the company's website. With that, I will turn the call over to Dave.

David Stehlin, CEO, Nano Dimension: Thank you, Purva, and good afternoon, everyone. We appreciate you joining us today. I want to begin by formally welcoming John Brenton as Nano Dimension's new Chief Financial Officer. John previously served as our VP of Finance and Controller, and he earned this promotion to CFO. He's been with Nano Dimension and Markforged for the past five years and brings more than 30 years of experience leading finance and accounting, M&A, and corporate control functions. I've had the opportunity to work closely with him over the past six months, and his disciplined approach and operational depth will be critical as we advance the next phase for the company. I became CEO on September 8th, approximately three weeks before the end of Q3, and have been extremely focused on improving and growing the business over these past weeks. Even in this short period, we've taken meaningful steps forward.

We're strengthening how we manage the organization, operating with discipline as we drive toward profitability, pressing aggressively to grow revenue with critical customers, and maximizing the value of our assets. As we align our reporting processes with US GAAP standards, we're establishing a more consistent and timely cadence. Today's earnings release reflects meaningful progress toward those standards, and we remain committed to providing visibility into our performance, driven by our focus on transparency and operational discipline. During the third quarter, following the open trading window after our Q2 earnings call, we repurchased approximately $5.6 million, or $3.5 million, of our shares under our existing authorization, which allows for up to $150 million in repurchases. Subsequent to the quarter end, we repurchased an additional $11.5 million worth, or $6.6 million, of our shares. We repurchased shares because we believe they remain significantly undervalued.

You'll also hear shortly in John's remarks that we're providing guidance for the first time this year. Sharing our expectations for the fourth quarter represents an important step forward and reflects the operational improvements underway across the business. Turning to the strategic alternatives review process announced in September, our board, with support from Guggenheim Securities and Houlihan Lokey, is conducting a structured, data-driven evaluation of all alternatives. The process is active, rigorous, and aligned with our objectives to maximize shareholder value and unlock the potential of our technology assets and our operations. Although no timeline has been set for completing this review, the board remains engaged in the process, and we're committed to sharing updates when there's something definitive to report. We have engaged top-tier advisors to ensure we receive the best possible expertise as we explore and evaluate all options.

Now, turning back to Q3, and while the macro environment presented challenges from tariff uncertainties and cautious capital spending, we achieved strong improvements in the operating expenses, especially when compared to including a full quarter of Markforged expenses. As we moved into the fourth quarter, we're beginning to see signs of stronger performance through a more focused approach on key segments. Our teams are concentrating on the markets and products that best position us for sustained growth. We're being deliberate in identifying areas where our platforms provide meaningful differentiation and acting on that differentiation to win new opportunities and strengthen relationships with key partners. At the same time, we're accelerating cost reduction initiatives, which are already having an impact. We believe Q3 represents a high point in operating expenses, with ongoing efforts expected to drive further improvement in future quarters. Now, turning to the markets we serve.

As I said earlier, the demand environment remains mixed, with pockets of strength and areas where customers remain cautious in their spending. We're prioritizing segments where additive manufacturing can scale, and where customers are ready to adopt new approaches that deliver speed, flexibility, and creativity. Our target segments include defense, aerospace, automotive, food and beverage, and next-generation networking. We're seeing wins across each of these areas, not only in legacy R&D or prototyping applications, but also in manufacturing opportunities. In these segments, our ability to deliver tangible, operational, and financial benefits, including reduced cycle time, cost savings, improved quality, and IP-secure wide network production, sets us apart. Our solutions enable customers to make an impact today while also supporting forward-leaning applications for tomorrow. We believe these differentiators will support our growth in the years to come.

Our defense business continues to expand as we deepen relationships with existing customers and extend into new ones. We're seeing strong growth driven by momentum across these programs, expansion with existing accounts, and increased adoption of our FX10 and our FX20 platforms. Applications include producing critical components for new systems and supporting maintenance, repair, and operations for forward-deployed forces. We're also collaborating with leading contractors and technology manufacturers to build the defense systems of the future. In aerospace and other high-reliability applications, adoption continues to expand as customers aim to accelerate innovation, shorten prototype-to-production cycles, and maintain rigorous quality and certification standards. Our platforms enable faster iteration, IP protection, and production of complex geometries that would otherwise be difficult or cost-prohibitive to manufacture traditionally. Markforged continues to gain traction across advanced manufacturing.

Customers such as Aloft Aero Architects and Spectrum Networks LLC are using Markforged Composite 3D Printing System to produce certified and flight-ready components for high-profile government and special VIP aircraft. Using our FX10 platform and continuous fiber reinforcement technology, parts can be produced in weeks instead of months, improving operational readiness, accelerating certification cycles, and reducing dependency on outsourced machining. Our flexibility and our fast surface mount technology systems have had great success in new product introduction and high-mix, low-volume applications, which are critical in aerospace and in next-gen networking and in other forward-leaning market segments. In automotive, demand continues to rise for advanced, lightweight, and high-strength components that enhance efficiency and performance on factory floors. Markforged's integrated composite and metal printing systems empower manufacturers to design and produce critical parts when and where they're needed, with greater precision and reliability.

This expanding adoption across multiple customer sites highlights the versatility of our enterprise-level platform and the scalability of our technology across adjacent industrial markets. Our SMTech business, which delivers adaptive SMT pick-and-place, jet dispensing, and smart material management systems, is winning new business to support programs that underscore growing demand for advanced electronics assembly, including applications in data center networking and high-speed connectivity. SMTech was also recently recognized with a Mexico Technology Award for our PUMA Ultra platform, further validating our leadership in adaptive SMT solutions that scale from prototype to high-mix production. Across the broader additive manufacturing industry, we continue to see a shift toward integrated ecosystems that combine hardware, software, and materials into connected, data-driven platforms. Customers are prioritizing solutions that deliver strong ROI, end-to-end traceability, and secure, compliant workflows, areas where our portfolio is extremely well-positioned.

Markforged's footprint continues to expand across automotive and consumer packaging goods manufacturers, including companies like Volkswagen, Dana Incorporated, Nestlé, and Danone, who are using our Digital Forge platform to localize production, reduce tooling lead times, and achieve measurable efficiency gains. This industrial adoption underscores the maturity of our technology to scale with blue-chip companies' additive manufacturing across multiple locations as they adopt more spare parts in our secure ecosystem. Taken together, while macro conditions remain uneven, our technology value proposition continues to resonate where precision, security, agility, and total cost of ownership matter most. By maintaining customer focus, advancing platform integration, and executing our roadmap, we remain confident in the company's ability to expand adoption and drive durable growth.

We remain focused on execution, integration, and disciplined capital allocation while positioning the company to capitalize on growing demand for these advanced digital manufacturing solutions that merge additive manufacturing with adaptive electronic assembly. With that, I will now turn the call over to John, who will both review our third quarter financial results and provide guidance for our fourth quarter. John?

John Brenton, CFO, Nano Dimension: Thanks, Dave. It is a pleasure to be here with you all today. While I only recently transitioned into the CFO role, I have already been working closely with our teams to align operations, identify cost synergies, and strengthen financial discipline. Together with Dave and the global leadership team, we're focused on executing on key priorities to improve the company and enhance shareholder value. Unless stated otherwise, all numbers I will be discussing today are on a non-GAAP basis and reflect continuing operations. The third quarter marks the first full quarter of Markforged being included in our consolidated financial results. Desktop Metal is excluded from our non-GAAP results as it is classified as discontinued operations. The deconsolidation of its assets occurred during the third quarter on July 28, following its filing for bankruptcy under Chapter 11.

Revenue for the third quarter was $26.9 million, representing a year-over-year growth of approximately 81% compared to $14.9 million in the third quarter of 2024. This increase was driven primarily by the inclusion of Markforged, which contributed $17.5 million, partially offset by lower revenues from our European business due to tariffs. Excluding Markforged, Nano Dimension's standalone revenue was approximately $9.4 million, down approximately 37% year-over-year, driven by strategic divestitures and softer demand amid macroeconomic uncertainties, including tariffs. Gross profit for the quarter was $12.7 million, with an adjusted gross margin of approximately 47.4% compared to 50% in the prior year. The decline primarily reflects lower revenue, as just discussed, and product mix. Operating expenses for the quarter were $29.2 million, representing a year-over-year increase of approximately 29% from $22.7 million in the third quarter of 2024, mainly due to the inclusion of Markforged.

However, on a standalone basis, Nano Dimension's operating expenses decreased approximately 42% year-over-year, reflecting the benefits of divestments and disciplined cost management. Adjusted EBITDA for the quarter was a loss of $16.6 million compared to a loss of $15.3 million in the third quarter of 2024, primarily due to the inclusion of Markforged. Turning to the balance sheet, our financial position remains exceptionally strong. As of September 30th, 2025, total cash, cash equivalents, and investment securities were approximately $515.5 million, down from about $551 million at the end of the prior quarter. This change of roughly $35.5 million includes approximately $16.2 million attributable to the deconsolidation of Desktop Metal and $5.1 million of cash used for share repurchases during the quarter. Looking ahead, I'd like to take a moment to outline our guidance, which, as Dave mentioned, we are providing for the first time this year.

Our business generates revenue from recurring book and ship activity and larger strategic orders, which can create some variability in quarterly results. Importantly, this variability reflects timing differences rather than lost revenue. With that in mind, we are taking a disciplined approach to providing guidance and will continue to evaluate providing additional metrics over time. For the fourth quarter, we expect revenue in the range of $31.5 million-$33.5 million, representing nearly 21% sequential growth at the midpoint. This outlook reflects moderate recovery across most markets as macroeconomic uncertainties ease, along with positive momentum in key industries such as defense, aerospace, and automotive. We expect, on a non-GAAP basis, gross margin between 47%-48.5%, reflecting improved operating leverage and efficiency across our cost structure.

Operating expenses, on a non-GAAP basis, are expected to be between approximately $28 million and $29 million, reflecting continued progress in aligning operations following the Markforged acquisition. Our teams have been focused on identifying synergies since the acquisition, and while these initiatives have been ongoing, we are now providing formal OPEX guidance for the first time. We expect savings of approximately 10%-15%, calculated based on the second quarter's reported results, adjusted to reflect what a full quarter of Markforged would have contributed using a baseline of roughly $32.5 million. For the third quarter, operating expenses were already about 10% lower than this baseline, and we expect the full run rate savings to be realized in 2026. Adjusted EBITDA loss is expected to be between approximately $12 million and $14 million, which at the midpoint represents approximately a 22% improvement compared to the third quarter.

We remain focused on our core markets, disciplined execution, and cost management. I will now hand it back to Dave.

Conference Operator: Thank you, John. Nano has taken significant steps forward in a very short period of time. We've strengthened our operations by focusing on products and market segments that position us for scalable growth. We have significantly reduced operating expenses and will continue these efforts to drive toward profitability while preserving our strong cash position. We're increasing transparency by being more aligned with US GAAP reporting requirements and, for the first time, providing guidance. We believe in the value of our company and have repurchased a significant amount of shares. We will continue to pursue opportunities to unlock additional value for our shareholders, and we look forward to keeping you updated on our progress. Now we're ready for questions.

We will now begin the question and answer session. To ask a question, you may press Star, then 1 on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press Star and then 2. We will pause momentarily to assemble our roster. At this time, we are showing no questions. I would like to turn the call back over to David Stehlin for closing remarks.

David Stehlin, CEO, Nano Dimension: Great. Thank you very much. Listen, before we wrap up, I do want to thank everyone for joining us today. Our team's available to discuss any questions or follow-ups you may have, and we appreciate your continued interest in Nano Dimension. I think we've come a long way in a short period of time, and yes, there's a lot of work to do, but I like the trend that we're on. Have a good evening. Thank you very much.

Conference Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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