8-K: Velo3D Reports Q2 2025 Results, Boosts Backlog

Velo3D, a leader in metal additive manufacturing, announced second quarter 2025 financial results, reporting $13.6 million in revenue and a significant shift towards Rapid Production Services in its backlog.

Summary

• Revenue for the second quarter ended June 30, 2025, was $13.6 million, an increase from $10.3 million in Q2 2024.
• Backlog stood at $15.9 million as of June 30, 2025, and increased to $17.8 million as of July 25, 2025.
• GAAP gross margin improved to (11.7)% in Q2 2025 from (28.0)% in Q2 2024, though it remained negative.
• GAAP net loss for Q2 2025 was ($13.8) million, compared to ($0.2) million in Q2 2024.
• Non-GAAP net loss was ($11.3) million in Q2 2025, an improvement from ($21.7) million in Q2 2024.
• Adjusted EBITDA for the quarter was ($8.9) million.
• Cash and cash equivalents were $854,000 as of June 30, 2025, down from $1.2 million as of December 31, 2024.
• Management reaffirms its full-year 2025 revenue guidance in the range of $50 million to $60 million, representing more than 30% annual growth.
• The company reaffirms its expectation to achieve EBITDA positive in the first half of 2026.

Sentiment

Score: 6

Explanation: The company shows strong strategic momentum with increased RPS bookings, new customer acquisition, and significant partnerships in critical sectors. Financial performance shows improvement in revenue growth and gross margin compared to the prior year, and management reaffirms its positive outlook for future profitability. However, the company continues to report substantial net losses and has a very low cash balance, with explicit risks related to its ability to continue as a going concern and raise additional capital.

Positives

• Revenue increased to $13.6 million in Q2 2025 from $10.3 million in Q2 2024, indicating topline growth.
• Gross margin significantly improved to (11.7)% in Q2 2025 from (28.0)% in Q2 2024, showing progress towards profitability.
• Non-GAAP net loss improved to ($11.3) million in Q2 2025 from ($21.7) million in Q2 2024.
• Operating expenses decreased to $10.5 million in Q2 2025 from $17.6 million in Q2 2024, reflecting operational discipline.
• Rapid Production Services (RPS) bookings increased 79% quarter over quarter, demonstrating strong momentum in the new go-to-market strategy.
• New customers represented over 78% of Q2 2025 RPS bookings, indicating successful market penetration.
• Strong demand for RPS is evident from the Space (54% of bookings) and Defense (33% of bookings) sectors.
• Signed a Cooperative Research and Development Agreement (CRADA) with two Naval Air Systems Command (NAVAIR) federal laboratories to advance additive manufacturing capabilities for aerospace and defense.
• Signed a $4 million, two-year Master Services Agreement (MSA) with Vaya Space for high-performance additive manufacturing.
• Advanced a $22.0 million strategic partnership with Amaero following a key powder qualification milestone by Auburn University's National Center for Additive Manufacturing Excellence.
• Signed a five-year, $15 million master services agreement (MSA) with Momentus, Inc. to leverage the RPS Offering.
• Received an order for a fourth Sapphire XC printer from Mears Machine Corporation to support aerospace and industrial programs.
• Announced an agreement with Ohio Ordinance Works, Inc. to provide RPS as part of its 3D Printed Military Weapons Development initiative.
• Management reaffirms full-year 2025 revenue guidance of $50 million to $60 million, representing over 30% annual growth.
• Management expects sequential improvement in gross margin, targeting greater than 30% in the fourth quarter of 2025.
• Management reaffirms expectation to achieve EBITDA positive in the first half of 2026.

Negatives

• The company reported a continued GAAP net loss of ($13.8) million in Q2 2025.
• Gross margin remains negative at (11.7)%, primarily due to systems sold being manufactured in 2024 when the company had significantly higher fixed costs and overhead.
• Cash and cash equivalents decreased to $854,000 as of June 30, 2025, from $1.2 million at December 31, 2024, indicating a low liquidity position.
• The company's ability to continue as a going concern is identified as a significant risk factor.

Risks

• Inability to execute the business plan, which may be affected by competition, liquidity position/lack of available cash, ability to grow and manage growth profitably, maintain relationships with customers and suppliers, and retain key employees.
• Ability to continue as a going concern.
• Ability to service and comply with indebtedness.
• Ability to raise additional capital in the near-term.
• Possibility of being adversely affected by other economic, business, and/or competitive factors.
• Changes in applicable laws and regulations.

Future Outlook

Management reaffirms its full-year 2025 guidance, expecting revenue between $50 million and $60 million, representing over 30% annual growth. Gross margin is anticipated to improve sequentially, reaching over 30% by the fourth quarter of 2025. Non-GAAP operating expenses are projected to be in the range of $40 million to $50 million, with CapEx between $15 million and $20 million. The company expects to achieve EBITDA positive status in the first half of 2026.

Management Comments

• "Our second quarter results reflect solid topline performance. More importantly, the composition of our backlog made a significant shift toward RPS driven by strong demand from the Space and Defense sectors." Arun Jeldi, CEO
• "This quarter marked a pivotal period of strategic advancement for our business. We are proud to have signed a Cooperative Research and Development Agreement with two NAVAIR federal laboratories, which positions us at the forefront of innovation in additive manufacturing for aerospace and defense. Additionally, our new $4 million Master Services Agreement with Vaya Space underscores the growing demand for our high-performance production capabilities. We also deepened our collaboration with Amaero, bolstered by a key powder qualification milestone achieved by Auburn Universitys National Center for Additive Manufacturing Excellence. These milestones reflect our continued momentum and commitment to advancing next-generation manufacturing solutions across critical sectors." Arun Jeldi, CEO
• "Momentum is building as several of our strategic initiatives begin to take hold. We remain focused on operational discipline and initial indications point to improved performance across the business. Looking ahead, we expect to build on this progress quarter by quarter as we continue advancing our position in the additive manufacturing industry." Arun Jeldi, CEO

Industry Context

The announcement highlights Velo3D's strategic focus on the high-growth metal 3D printing market, particularly within the aerospace, defense, space, energy, and semiconductor sectors. The company is leveraging the increasing demand for complex, high-performance metal parts and the global trend of reshoring manufacturing to strengthen domestic supply chains, driven by national security and economic resilience concerns. Velo3D positions itself as a key player in this shift, offering a differentiated technology that overcomes limitations of legacy metal additive manufacturing and supports critical U.S. defense readiness.

Comparison to Industry Standards

• The metal 3D printing market was valued at $1.19 billion in 2025 and is expected to reach $3.62 billion by 2030, growing at an annual rate of 25%. Velo3D's projected 2025 revenue of $50 million to $60 million indicates its current share within this expanding market.
• Velo3D's proprietary laser powder bed fusion (L-PBF) technology is differentiated by enabling affordable scalability of complex geometries of large metal parts, unlike some 'commodity incumbents' or 'metal AM peers' that may have limitations on complexity or size.
• The Rapid Production Solutions (RPS) model offers significantly reduced lead times (1-4 weeks direct from CAD) and eliminates tooling costs, providing a competitive advantage in speed and cost efficiency for low-to-medium volume production compared to traditional manufacturing (8-20 weeks lead time, high tooling costs).
• Velo3D is positioned as the 'only US Home Grown Large-Format Metal Additive Manufacturing Company,' aligning with the significant Pentagon emphasis on US defense-related manufacturing and the broader reshoring trend, where 90% of North American manufacturing companies have relocated part of their production/supply chain to the US in the past five years.
• Strategic partnerships with entities like NAVAIR, Vaya Space, Amaero, Momentus, Mears Machine Corporation, and Ohio Ordinance Works demonstrate traction with leading customers in critical sectors, including those serving SpaceX, Honeywell, Honda, Chromalloy, and Lam Research.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for future growth and profitability based on strategic initiatives and reaffirmed guidance, but also risk of dilution from potential capital raises and ongoing losses.
• Employees: New appointments in key strategic areas and a focus on operational efficiencies may impact workforce structure.
• Customers: Enhanced Rapid Production Services (RPS) capabilities and new strategic partnerships offer expanded access to advanced metal additive manufacturing solutions and a more resilient domestic supply chain.
• Creditors: The company's ability to service and comply with its indebtedness is a stated risk, and recent capital raises indicate ongoing financial management.
• Suppliers: Focus on domestic supply chain and material qualification (e.g., Amaero powder) could impact supplier relationships and opportunities.

Next Steps

• Host a conference call for investors on August 6, 2025, at 2:00 p.m. Pacific Time to discuss financial results.
• File the Quarterly Report on Form 10-Q with the SEC.
• Continue to build on progress quarter by quarter in advancing its position in the additive manufacturing industry.
• Achieve greater than 30% gross margin in the fourth quarter of 2025.
• Achieve EBITDA positive in the first half of 2026.
• Receive over 1,000 kg of Amaero powder at the Velo3D production floor in Q3 2025.
• Explore multiple state/county sites for capacity ramp and partnership with major developers for future expansion.

Key Dates

Recommendation

While Velo3D demonstrates strong strategic momentum with significant growth in its Rapid Production Services (RPS) bookings, new customer acquisitions, and key partnerships in critical aerospace and defense sectors, the company continues to operate at a net loss and has a very low cash balance. The reaffirmed guidance for full-year 2025 revenue growth and the expectation to achieve EBITDA positive in the first half of 2026 are positive indicators of future improvement. However, the explicit risks related to the company's ability to continue as a going concern and raise additional capital warrant caution. A 'hold' recommendation is appropriate for a seasoned investor, suggesting a wait-and-see approach to monitor the company's execution on its strategic initiatives and its progress towards sustainable profitability and improved liquidity before making further investment decisions.

Keywords

Additive Manufacturing, Metal 3D Printing, Aerospace, Defense, Space Exploration, Financial Results, Q2 2025, Velo3D, Industrial 3D Printing, Supply Chain, Manufacturing