Velo3D‘s (OTCQX: VLDX) latest earnings show that the company is continuing to recover momentum after a rocky 2024. In the second quarter of 2025, the metal 3D printing company posted higher revenue and smaller losses compared to the same period last year, marking a second straight quarter of improvement. After a brutal 2024 filled with layoffs, restructuring, and some financial pressure, Velo3D is now leaning heavily into its Rapid Production Services (RPS) business and defense partnerships to get back on track. What’s more, according to the business, it reaffirms its target to “reach EBITDA profitability in the first half of 2026.” This ambitious goal depends on growing orders, stronger margins, and better cost control.

Velo3D Sapphire 3D printer. Image courtesy of Velo3D.

Velo3D reported $13.6 million in revenue for Q2, up from about $10.3 million in the same quarter last year, a 32% year‑over‑year increase. Its internal RPS bookings seem to have skyrocketed, up 79% from the first quarter of the year, with nearly 78% of that business coming from new customers. Around half of the orders came from space companies, and a third came from the defense sector.

That is not too surprising considering Velo3D has worked with SpaceX for a long time, delivering its first Sapphire system in 2018. This only shows how important it is in making high-performance parts for space.

On the partnerships side of the business, Velo3D signed a Cooperative Research and Development Agreement (CRADA) with two federal laboratories under NAVAIR (the U.S. Navy’s Naval Air Systems Command) to advance 3D printing for aerospace and defense applications. The company also secured a $4 million, two-year production deal with Vaya Space, and a separate $15 million, five-year agreement with space infrastructure and transport services provider Momentus.

Other major developments include a $22 million strategic partnership with advanced materials manufacturing company Amaero, a fourth Sapphire XC system purchased by Mears Machine Corporation, and a new agreement with Ohio Ordnance Works to support 3D printed military weapons development.

That momentum also shows up in the company’s backlog, which was $15.9 million at the end of the quarter and grew to $17.8 million by late July, a good sign that demand is steady as Velo3D tries to turn its recovery into long-term growth.

Reaper turbopump showcased by Velo3D at RAPID + TCT 2023. Image courtesy of Velo3D via LinkedIn.

As for the numbers this quarter, gross margin was negative 11.7%, though much better than the –28% in the same period last year. Operating expenses also fell to $10.5 million, down from $17.6 million a year earlier, as Velo3D cut costs aggressively. The company posted a net loss of $13.8 million, or 98 cents per share, compared to a loss of $172,000 in Q2 2024. Cash on hand as of June 30 was only $854,000, down from $1.2 million at year‑end 2024—so liquidity remains tight.

Velo3D stock has been under pressure all year. It’s down 68% over the past six months and around 82% year-over-year. The share price closed recently at about $5.40, after a 16% drop on the day earnings were reported. Its 52‑week range spans from roughly $1.43 to nearly $37, pointing to volatility. Overall, Velo3D’s stock fell in 2024, dropping about 95% over the year. And while 2025 has been a bit more constant, shares are still down roughly 35% year to date.

The Sapphire XC 1MZ 3D printer from Velo3D. Image courtesy of Velo3D.

“This quarter marked a pivotal period of strategic advancement for our business,” said Arun Jeldi, CEO of Velo3D. “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.”

In fact, management confirmed it still expects $50 to $60 million in revenue this year and said it expects to gradually improve margins each quarter. The company aims to reach a gross margin of greater than 30% by the last quarter of 2025. It also plans to keep adjusted operating expenses between $40 million and $50 million for the year, while capital spending is expected to be between $15 million and $20 million. If all goes to plan, Velo3D says it still expects to reach positive EBITDA in the first half of 2026. That doesn’t necessarily mean full profitability yet, but it would be a major step toward breaking even.