3D Systems Q2 CY2025: Revenue Down 16.3%, Cost Actions Offset Decline as Tariffs Disrupt Demand

3D Systems (DDD) Q2 CY2025 revenue fell 16.3% YoY to $94.84 million, missing analyst estimates. Non-GAAP loss per share of $0.07 was 54.8% above consensus. Management attributed the decline to customers delaying investments amid tariffs and global uncertainty, but highlighted stabilization and cost control improvements. CEO Jeffrey Graves emphasized the company's focus on cost alignment, new product launches, and sector-specific growth opportunities in medical and aerospace markets.

3D Systems (NYSE:DDD), a leading 3D printing company, reported mixed results for the second quarter of 2025. The company's revenue fell 16.3% year-over-year (YoY) to $94.84 million, missing analyst estimates of $95.78 million. Despite the revenue decline, 3D Systems reported a non-GAAP loss per share of $0.07, which was 54.8% above consensus estimates of -$0.16 [1].

Management attributed the revenue decline to customers delaying investments amid tariffs and global uncertainty. However, the company highlighted stabilization and cost control improvements. CEO Jeffrey Graves emphasized the company's focus on cost alignment, new product launches, and sector-specific growth opportunities in medical and aerospace markets [2].

Revenue declined in both the Industrial and Healthcare segments. Industrial Solutions revenue fell 23% to $49.8 million, while Healthcare Solutions revenue dropped 8% to $45 million. The decline in Healthcare Solutions was primarily due to weaker demand in the dental segment, especially from customers in the aligner market [2].

3D Systems reported a net income of $104.4 million, a significant turnaround from a $27.3 million loss in Q2 2024. This change was driven by stronger operations, a $125.7 million pre-tax gain from selling the Geomagic business, and an $8.2 million gain from repurchasing debt at a discount. The company also made major changes to its finances by paying off $88 million in debt, pushing most of its remaining debt payments out to 2030, and buying back 8 million shares to give existing shareholders a larger stake in the company [2].

Operating expenses fell to $51.5 million from $73.5 million last year, thanks to restructuring moves announced in March. These included consolidating operations, cutting workforce costs, and other efficiency programs. The company saved over $20 million in operating expenses during the quarter and expects the cost-cutting plan to continue into mid-2026 [2].

Despite the overall revenue decline, some areas showed strong growth. Medical Technology sales, especially in orthopedic procedures and trauma-related surgeries, rose 13% YoY and 16% from the previous quarter. Aerospace and Defense sales jumped 84% compared to Q2 2024 and 53% from Q1 2025, now generating over $30 million annually [2].

Looking ahead, 3D Systems expects the impact of tariffs to continue impacting its operating costs as it moves through the second half of the year. The company also expects revenue to decline by 1.3% over the next 12 months, but this projection is better than its two-year trend [1].

References:
[1] https://finance.yahoo.com/news/3d-systems-nyse-ddd-misses-203636443.html
[2] https://3dprint.com/319928/3d-printing-financials-3d-systems-turns-profit-amid-revenue-decline/