3D printing company Stratasys (NASDAQ: SSYS) exceeded the market’s revenue expectations in Q1 CY2025, with sales falling 5.6% year on year to $136 million. Its non-GAAP profit of $0.04 per share was 2.5 cents above analysts’ consensus estimates.
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Stratasys (SSYS) Q1 CY2025 Highlights:
- Revenue: $136 million (5.6% year-on-year decline)
- Adjusted EPS: $0.04 vs analyst estimates of $0.02 ($0.03 beat)
- Management raised its full-year Adjusted EPS guidance to $0.33 at the midpoint, a 6.3% increase
- EBITDA guidance for the full year is $47 million at the midpoint, above analyst estimates of $44.64 million
- Adjusted EBITDA Margin: 6%
- Market Capitalization: $871.5 million
StockStory’s Take
Stratasys’ first quarter results reflected continued resilience in its recurring revenue model and steady utilization rates across its installed base. CEO Yoav Zeif attributed the quarter’s outcomes to robust demand for consumables—up 7% sequentially—and a full quarter of cost-saving initiatives that began last year. Management highlighted the successful launch of new hardware and materials, such as the Neo800 Plus stereolithography printer and advanced Antero materials for aerospace and defense, as factors supporting ongoing customer engagement. CFO Eitan Zamir cited disciplined operating expense reductions and a focus on profitable applications as key to delivering positive non-GAAP earnings despite ongoing softness in capital equipment spending.
Looking forward, Stratasys’ raised full-year profit guidance is underpinned by continued cost management, increased consumables sales, and the strategic deployment of new capital from Fortissimo Capital’s $120 million investment. Management expects sequential revenue improvement through the year, driven by growing manufacturing adoption and new product introductions. Zeif noted, “We are refining our focus to the most promising applications and leveraging our strong balance sheet to pursue both organic growth and accretive acquisitions.” Zamir also emphasized the company’s ability to offset market uncertainty by prioritizing profitability and maintaining a flexible cost structure, while monitoring macroeconomic developments and potential tariff impacts.
Key Insights from Management’s Remarks
Management emphasized the combination of cost discipline, ongoing product innovation, and a resilient consumables business as primary drivers of first-quarter performance.
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Consumables demand rebounded: Sequential growth in consumables was attributed to higher utilization rates in manufacturing applications, signaling deeper integration of Stratasys’ systems with customer production workflows. Management expects full-year consumables revenue to exceed last year’s levels, underlining the importance of recurring sales.
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Cost controls drove margin improvement: Cost-saving initiatives, including reduced employee-related expenses and elimination of one-time strategic review costs, contributed to a meaningful reduction in operating expenses. Zamir noted that these measures allowed the company to achieve positive non-GAAP operating income despite revenue pressures.
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New product launches expanded reach: The introduction of the Neo800 Plus and Gen 3 Fortus 450mc printers, along with new advanced materials like PolyJet ToughONE and validated Antero grades, broadened Stratasys’ solution set for industries such as aerospace, automotive, and defense. These launches are intended to address more demanding manufacturing use cases and support future growth.
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Capital infusion strengthens balance sheet: The $120 million investment from Fortissimo Capital, closed in early April, increased the company’s cash position and brought Yuval Cohen to the board. Management stated this capital will primarily support inorganic growth opportunities, such as targeted acquisitions aligned with the company’s recurring revenue strategy.
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Tariff exposure limited, but monitored: Management reiterated that most production takes place in the U.S. and Israel, limiting direct exposure to new tariffs. However, Zeif stated Stratasys is monitoring potential cost impacts closely and stands ready to implement mitigation strategies if needed. He also positioned additive manufacturing as a solution for localized production in a high-tariff environment.
Drivers of Future Performance
Stratasys’ outlook for the rest of the year centers on growing recurring revenue from consumables, ongoing cost discipline, and capitalizing on industry consolidation opportunities.
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Manufacturing adoption and recurring sales: Management believes increased manufacturing adoption of 3D printing will drive higher utilization rates and consumables demand. Zeif indicated the company is “penetrating manufacturing full solutions” and expects this shift to support sequential revenue growth throughout the year.
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Inorganic growth and industry consolidation: With new capital from Fortissimo, Stratasys is prioritizing strategic acquisitions that fit its focus on recurring material and software revenues. Zeif explained that industry consolidation presents opportunities to expand market share and deliver value without compromising profitability.
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Macro uncertainty and cost flexibility: Management acknowledged ongoing macroeconomic uncertainty and slower capital investment cycles, particularly in North America and Europe. Zamir emphasized that the company is “securing profitability through disciplined cost management” and will continue to adjust its expense base as needed to protect margins.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be tracking (1) sequential growth in consumables revenue as a sign of deeper manufacturing integration, (2) progress on deploying Fortissimo Capital’s investment into targeted acquisitions, and (3) the ramp of new product platforms such as the Neo800 Plus and Gen 3 Fortus 450mc. Additionally, we will watch for any shifts in macroeconomic conditions or trade policy that could affect equipment demand and supply chain costs.
Stratasys currently trades at a forward P/E ratio of 32.9×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it’s free).
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