8-K: Velo3D Reports Q3 2025 Results, Boosted by Strategic Deals

Velo3D announced its third-quarter 2025 financial results, showcasing revenue growth, reduced net losses, and significant strategic partnerships in aerospace and defense.

Summary

• Velo3D reported Q3 2025 revenue of $13.6 million, an increase from $8.2 million in Q3 2024.
• The company's GAAP net loss improved to ($11.8) million in Q3 2025, compared to ($23.1) million in Q3 2024.
• Non-GAAP net loss also improved to ($9.2) million from ($14.5) million year-over-year.
• Adjusted EBITDA for the quarter was ($7.3) million, an improvement from ($9.7) million in the prior year quarter.
• Operating expenses significantly decreased to $11.1 million in Q3 2025 from $22.9 million in Q3 2024.
• Cash and cash equivalents stood at $11.8 million as of September 30, 2025, up from $1.2 million at December 31, 2024.
• Backlog reached $21.1 million as of September 30, 2025, with Rapid Production Services (RPS) backlog increasing 22% quarter-to-quarter.
• The company reaffirmed its full-year 2025 revenue guidance of $50 million to $60 million and expects to be EBITDA positive in the first half of 2026.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While the company remains unprofitable, it shows strong sequential improvements in key financial metrics (net loss, adjusted EBITDA, operating expenses), significant revenue growth, and a substantially improved cash position due to a successful capital raise. Strategic partnerships and backlog growth indicate strong business momentum, and management reaffirmed its guidance for future profitability, including becoming EBITDA positive in H1 2026. The low Q3 gross margin is a concern, but sequential improvement and Q4 targets are positive.

Positives

• Revenue increased to $13.6 million in Q3 2025 from $8.2 million in Q3 2024, demonstrating strong growth.
• GAAP net loss significantly improved to ($11.8) million from ($23.1) million year-over-year.
• Adjusted EBITDA improved to ($7.3) million from ($9.7) million in the comparable prior year quarter.
• Operating expenses were substantially reduced to $11.1 million from $22.9 million, indicating improved cost management.
• Cash and cash equivalents increased significantly to $11.8 million as of September 30, 2025, from $1.2 million at December 31, 2024, bolstered by a recent public offering.
• Backlog grew to $21.1 million, with RPS backlog increasing 22% quarter-to-quarter, reflecting strong demand.
• New customers represented over 9% of Q3 2025 bookings, and 48% of bookings came from the Space and Defense sectors.
• Secured a $6 million sales and service agreement with the U.S. Navy Maritime Industrial Base Program for copper nickel alloy development.
• Announced a $4 million strategic partnership with the U.S. Army DEVCOM AvMC for advancing additive manufacturing processes for Aluminum CP1.
• Achieved AS9100D certification for its Rapid Production Solution (RPS) Quality Management System, a globally recognized aerospace quality standard.
• Successfully uplisted to the Nasdaq Capital Market and completed a public offering, strengthening liquidity and investor confidence.

Negatives

• GAAP gross margin was 3.2% in Q3 2025, a significant decrease from 49.4% in Q3 2024, although it improved sequentially from (11.7%) in Q2 2025.
• The company continues to report a net loss and negative Adjusted EBITDA, indicating ongoing unprofitability.

Risks

• Inability to execute the business plan, which may be affected by competition, liquidity position, ability to grow and manage growth profitably, maintain customer and supplier relationships, 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.
• Adverse effects from other economic, business, and/or competitive factors.
• Changes in applicable laws and regulations.
• Other risks and uncertainties described in the FY 2024 10-K and Quarterly Reports filed with the SEC.

Future Outlook

Management reaffirms its full-year 2025 revenue guidance in the range of $50 million to $60 million. The company anticipates sequential improvement in gross margin, expecting it to be greater than 30% in the fourth quarter of 2025. Non-GAAP adjusted operating expenses are projected to be between $40 million and $50 million, with CapEx in the range of $15 million to $20 million. Velo3D expects to achieve EBITDA positive status in the first half of 2026.

Management Comments

• "Our third-quarter results reflect the progress we are making in strengthening our operational efficiency and positioning the Company for sustained growth and profitability."
• "We are encouraged by the commercial market response to our Rapid Production Services (RPS), which is leading to repeat customer orders, new customer signings and strategic agreements across aerospace and defense."
• "Recent partnerships, including the U.S. Navy Maritime Industrial Base Program, the U.S. Army DEVCOM AvMC initiative and Linde AMT, strengthen our backlog and support the delivery of high-value, cost-effective production capabilities."
• "Through disciplined cost management and targeted investments, we are improving margins and moving toward positive EBITDA in the first half of 2026 while scaling our technology for long-term growth."

Industry Context

Velo3D operates in the rapidly evolving additive manufacturing (AM) sector, specifically focusing on high-value metal parts for aerospace, defense, power generation, energy, and semiconductor industries. The strategic partnerships with the U.S. Navy and U.S. Army DEVCOM AvMC highlight the increasing adoption of AM technologies within the defense industrial base for supply chain resilience and accelerated production of mission-critical components. The AS9100D certification further solidifies Velo3D's position as a trusted supplier in the stringent aerospace and defense supply chains, aligning with broader industry trends towards advanced manufacturing and domestic sourcing.

Comparison to Industry Standards

• Velo3D's AS9100D certification for its Rapid Production Solution (RPS) Quality Management System confirms it meets the highest international quality management standard for aviation, space, and defense supply chains, comparable to leading aerospace primes and defense contractors.
• The partnership with the U.S. Navy to develop and qualify copper nickel alloy (CuNi) for its Sapphire printers positions Velo3D as the first U.S.-based OEM to qualify CuNi for Laser Powder-bed Fusion (LPBF) systems, a significant advancement in maritime industrial base capabilities.
• Collaboration with RTX and Raytheon Technologies Research Center on the U.S. Army DEVCOM AvMC initiative for Aluminum CP1 demonstrates Velo3D's technology is being leveraged by major defense contractors for critical applications, similar to how other advanced manufacturing firms partner on government-funded initiatives.

Stakeholder Impact

• Shareholders: The uplisting to Nasdaq and successful public offering enhance visibility, liquidity, and shareholder value. Improved financial performance and a clear path to profitability could positively impact stock price.
• Employees: Continued operational efficiency and growth could lead to job stability and potential expansion.
• Customers: Expanded partnerships and AS9100D certification reinforce Velo3D's capability to deliver high-quality, mission-critical parts, particularly in aerospace and defense, ensuring reliable supply.
• Suppliers: Agreements like the one with Linde AMT for CuNi powder strengthen the supply chain for key materials.
• Creditors: Improved liquidity and a path to profitability enhance the company's ability to service and comply with its indebtedness.

Next Steps

• Host a conference call on November 10, 2025, at 2:00 p.m. Pacific Time to discuss Q3 2025 financial results.
• Continue to improve gross margin, targeting greater than 30% in Q4 2025.
• Work towards achieving EBITDA positive status in the first half of 2026.
• File the Quarterly Report on Form 10-Q with the SEC, which may include revisions to preliminary estimates.

Key Dates

Recommendation

Velo3D is demonstrating clear progress in its operational efficiency, revenue growth, and strategic positioning within critical industries like aerospace and defense. The significant reduction in net loss and operating expenses, coupled with a strengthened cash position from a successful capital raise, indicates a positive trajectory. While the company is not yet profitable and the Q3 gross margin was low, the sequential improvement and reaffirmed guidance for future EBITDA positivity in H1 2026 provide a credible path forward. For a seasoned investor, the current filing suggests the company is executing its turnaround plan effectively, warranting a 'hold' to observe continued execution towards profitability and sustained margin improvement before a stronger 'buy' recommendation.

Keywords

Velo3D, Additive Manufacturing, 3D Printing, Q3 2025 Earnings, Financial Results, Aerospace, Defense, Rapid Production Services, Nasdaq, Copper Nickel Alloy, Aluminum CP1, AS9100D Certification, EBITDA Positive, SEC Filing