Second Quarter 2026
Filed Aug 11, 2026Velo3D Announces Second Quarter 2026 Financial Results
Revenue increased 52.3% year-over-year, gross margin improved to 21.5%, and management increased full-year revenue guidance. The company remained loss-making, used approximately $39.5 million of cash in operating activities during the first half, and expects substantial capital expenditures subject to sufficient financing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $20.7 million | – | 52.3% |
| 3D Printer and parts revenueGAAP | $19.0 million | – | 57.0% |
| Gross marginGAAP | 21.5% | – | – |
| Operating expensesGAAP | $15.5 million | – | – |
| Adjusted operating expensesnon-GAAP | $13.1 million | – | – |
| Net lossGAAP | ($11.5) million | – | – |
| Net loss per share – basic and dilutedGAAP | ($0.39) | – | – |
| Net lossnon-GAAP | ($9.0) million | – | – |
| Net loss per share – basic and dilutednon-GAAP | ($0.30) | – | – |
| Adjusted EBITDAnon-GAAP | ($8.1) million | – | – |
| Cash and cash equivalentsother | $91.1 million | – | – |
| Total outstanding debtother | $8.2 million | – | more than 70% |
| New bookingsother | $29 million | – | – |
| Ending backlogother | $31 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| 3D Printer and partsThe increase was driven by an increase in the average selling price, product mix, and an increase in RPS revenues related to an increase in production volume. | $19.0 million | – | 57.0% |
Full year 2026 outlook
- Revenue$65 million to $75 million
- Gross marginSequential improvement in gross margin; Greater than 30% gross margin in second half of 2026.
- Operating expensesNon-GAAP adjusted operating expenses in the range of $45 million to $55 million.
- NoteCapital expenditures in the range of $40 million to $50 million, primarily for RPS expansion, subject to the availability of sufficient financing.
- NotePositive EBITDA in the second half of 2026.
What drove it
- Higher average selling prices, more favorable product mix, increased RPS revenue, and manufacturing efficiencies supported gross-margin improvement.
- The refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses contributed to gross-margin improvement.
- System sales are expected to remain the primary driver of revenue in 2026.
- Management expects the RPS parts production business to contribute an increasing share of revenue under its new go-to-market strategy.
- The Livermore Production Campus is expected to triple manufacturing production capacity and support accelerating demand from aerospace and defense customers.
- Mears Machine Corporation ordered its fifth Velo3D Sapphire® XC metal additive manufacturing system, with options for two additional systems.
- Management cited current backlog and pipeline in raising revenue guidance.
Concerns
- GAAP net loss was ($11.5) million and non-GAAP net loss was ($9.0) million.
- Adjusted EBITDA was ($8.1) million.
- Operating expenses were $15.5 million, compared to $10.0 million in the second quarter of 2025.
- Capital expenditures of $40 million to $50 million are subject to the availability of sufficient financing.
- The second-quarter results are preliminary estimates and may be revised upon filing of the Quarterly Report on Form 10-Q.
- The Livermore Production Campus is expected to become operational later this year.
What to watch
- Execution toward greater than 30% gross margin in the second half of 2026.
- Achievement of positive EBITDA in the second half of 2026.
- Progress of the Livermore Production Campus toward becoming the primary production and manufacturing center.
- Conversion of the $31 million ending backlog and the stated pipeline into revenue.
- RPS expansion and the availability of sufficient financing for planned capital expenditures.
Balance sheet and cash flow
- Cash and cash equivalents were $91.1 million as of June 30, 2026, compared to $39.0 million as of December 31, 2025.
- Net cash provided by financing activities was approximately $99.5 million during the first half of 2026.
- Cash used in operating activities was approximately $39.5 million during the first half of 2026.
- The April 27, 2026 registered direct offering resulted in gross proceeds of approximately $50 million and approximately $46.6 million net of issuance costs.
- The at-the-market offering raised gross proceeds of approximately $59.4 million during the second quarter and approximately $57.4 million net of issuance costs.
- The company closed a firm commitment underwritten registered direct offering of 3,571,428 shares of common stock.
- Debt-to-equity conversions and the financing actions reduced total outstanding debt by more than 70% to $8.2 million as of June 30, 2026.
- Issuance costs for the registered direct offering and at-the-market offering were approximately $2.0 million.
Analysis
Velo3D reported $20.7 million of GAAP revenue, up 52.3% year-over-year from $13.6 million. 3D Printer and parts revenue was $19.0 million, up 57.0% from $12.1 million. Management attributed this growth to higher average selling prices, product mix, and increased RPS revenue from greater production volume. The company also reported $29 million of new bookings in the second quarter and $31 million of ending backlog.
Profitability improved materially on a gross-margin basis. GAAP gross margin reached 21.5%, compared with (11.7)% in the second quarter of 2025. The company cited the allocation refinement for certain labor and overhead costs, higher average selling prices, favorable product mix, increased RPS revenue, and manufacturing efficiencies. However, GAAP operating expenses increased to $15.5 million from $10.0 million, while non-GAAP adjusted operating expenses increased to $13.1 million from $8.8 million.
Losses narrowed year-over-year but remained substantial. GAAP net loss was ($11.5) million, compared with ($13.3) million, and non-GAAP net loss was ($9.0) million, compared with ($11.4) million. Adjusted EBITDA was ($8.1) million compared with ($8.9) million. Management's profitability objectives are sequential gross-margin improvement, greater than 30% gross margin in the second half of 2026, and positive EBITDA in the second half of 2026.
The balance sheet was strengthened through equity financing and debt-to-equity conversions. Cash and cash equivalents were $91.1 million as of June 30, 2026, compared with $39.0 million as of December 31, 2025, while total outstanding debt declined by more than 70% to $8.2 million. The company reported approximately $39.5 million of cash used in operating activities during the first half of 2026, partly offset by approximately $99.5 million of net cash provided by financing activities.
Management increased full-year 2026 revenue guidance to $65 million to $75 million from $60 million to $70 million, citing first-half performance and current backlog and pipeline. The planned Livermore Production Campus is expected to triple manufacturing production capacity and become the primary production and manufacturing center, but it is expected to become operational later this year. The company also guides to $40 million to $50 million of capital expenditures, primarily for RPS expansion and subject to sufficient financing, making capacity deployment and cash requirements central points of execution.
Management, verbatim
We delivered a strong quarter, with 52.3% year-over-year revenue growth, expanding margins and disciplined execution across our business.
Arun Jeldi, Chief Executive Officer of Velo3D
With approximately $91 million in cash and cash equivalents at quarter end, Velo3D has greater financial flexibility to execute our growth strategy and support capacity expansion, technology development and customer programs while maintaining a disciplined approach to capital allocation.
Jim Suva, Chief Financial Officer of Velo3D
Not in the filing
stated, not guessed- Previous-quarter revenue, gross margin, operating expenses, net loss, EPS, adjusted EBITDA, segment revenue, bookings, and backlog comparisons were not reported.
- GAAP operating income, non-GAAP operating income, operating margin, tax expense, tax rate, and tax-rate guidance were not reported.
- Operating cash flow and financing cash flow for the second quarter alone were not reported; only first-half amounts were reported.
- Free cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Cash balances and outstanding debt comparisons on a prior-year or prior-quarter basis were not reported on the respective balance-sheet line items.
- Revenue components other than 3D Printer and parts revenue were not reported.
- Prior-quarter outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.