Stratasys (Nasdaq: SSYS) reported a pretty steady second quarter in 2025, showing that its business model can resist slowdowns in customer spending. The 3D printing company’s sales stayed about the same as last year, but it still made an adjusted profit, lowered costs, and improved cash flow. It also finished the quarter with more cash and no debt, giving it more flexibility to invest in growth. However, management lowered its full-year sales forecast, saying that while large customer deals are progressing, many are taking longer than expected to close.

Big Deals Are Delayed, Not Lost

Yoav Zeif gives a keynote speech at AMS 2025. Image courtesy of 3DPrint.com

During the earnings call on August 13, 2025, CEO Yoav Zeif explained to investors that the slowdown was about timing, not demand.

“There is no slowdown. There is only a delay,” he noted. “Those deals may be delayed this year, but definitely not canceled.”

He described a shift in the industry toward larger, production-scale applications of 3D printing. These projects take longer to finalize, but Zeif said they represent a breakthrough.

“We are becoming the backbone of some operations of the largest companies on Earth. This is a breakthrough for additive manufacturing.”

In fact, the executive highlighted work with major customers, including General Motors, Toyota, and aerospace firm Blue Origin. These partnerships involve 3D printing for tooling, automotive components, aerospace parts, and even life-saving medical models. Zeif said these examples show the technology’s ability to cut costs, speed up production, and strengthen supply chains.

A 3D printed transmission test tool, designed in the Toyota ADD Lab and printed on the Stratasys H350 using PA12 material.

Profitability Improves Despite Flat Sales

Revenue for Q2 2025 was $138.1 million, almost the same as the $138 million reported a year earlier. While sales were flat, the company improved its profitability, with net losses at $16.7 million, better than last year’s $25.7 million. And adjusted net income came in at $2.2 million, compared to a loss of $3 million in Q2 2024. Meanwhile, adjusted EBITDA rose to $6.1 million, up from $2.3 million last year.

While the overall sales figure was flat, the details show where the company gained ground and which parts of the business are holding steady. Within the business, some areas did better than others. For example, sales of 3D printing systems grew to $30.6 million from $29 million last year, helped by demand in automotive, aerospace, and medical. Consumables revenue was close to last year’s level but went up 2.6% from the first quarter, showing that customers are actively using their machines. And customer support revenue, which is the money from ongoing service contracts, maintenance, and support agreements, was $30.1 million, also steady. The company pointed to strong customer activity in automotive tooling, space hardware, and life-saving medical models as examples of how these sectors are driving demand.

“In the medical sector, utilizing Stratasys 3D printing capabilities proved critical in preparing for complex life-saving procedures, showcasing how 3D printing technology is revolutionizing life-saving medical applications and unprecedented preoperative planning capabilities,” pointed out Zeif. “The anatomical model opportunity for Stratasys, such as training and presurgical planning, is $1.8 billion annually.”

The executives also said the better results were due to cost controls launched in 2024, which reduced operating expenses by about $10 million year-over-year. Plus, the company used just $1.1 million in cash for operating activities, down from $2.4 million last year, and ended the quarter with $254.6 million in cash and no debt.

CFO Eitan Zamir told investors that the company “delivered positive adjusted operating income despite only a slight rise in sales and lower gross margins. These results were thanks in part to full run rate contributions from the cost control initiatives we began in the middle of last year.”

Zamir also noted that Stratasys expects positive operating cash flow for the whole year. The company plans further cost reductions in the fourth quarter.

The company is also making sure it expands its capabilities. In the quarter, Stratasys opened the North American Stratasys Tooling Center in Flint, Michigan, in partnership with Automation Intelligence. The center is set up to help manufacturers test and scale 3D printing applications for production. It uses Stratasys F3300 and F900 printers to show real-world tooling solutions, such as jigs, fixtures, and automotive components. By combining 3D printing with traditional manufacturing, the center aims to help customers cut costs, speed up production, and meet the growing need for local, on-demand manufacturing.

Robotic arm that is being used in the new North American Stratasys Tooling Center.

Stratasys now expects full-year revenue of $550 million to $560 million, down from an earlier guidance of $570 million to $585 million. Management said Q3 sales will be similar to or slightly below Q2, with a stronger Q4.

Also, adjusted gross margins for 2025 are projected at 46.7% to 47%, with an adjusted operating margin of 1.5% to 2%. Meanwhile, adjusted EBITDA is expected to be $30 million to $32 million, with Q4 reaching at least 8% of revenue.

Zeif said the “long-term outlook for our company and industry remains intact,” and pointed to the company’s work in aerospace, automotive, medical, and other industries.

“Our comprehensive technology portfolio and the inherent advantages of additive manufacturing position us well to capture opportunities and deliver sustainable value for all stakeholders once these challenges inevitably subside,” he said.

Management suggested there are plenty of growth opportunities in “localized manufacturing, supply chain resilience, and production-ready 3D printing solutions.” Large-scale deals in these areas could lead to important revenue once customers go back to normal capital spending.

Images courtesy of Stratasys unless otherwise noted.