Nano Dimension's Q1-Q2 2025: Contradictions Emerge on Desktop Metal Strategy and Bankruptcy Filing

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 17, 2025

Financials Results

• Revenue: $25.8M, up ~72% YOY (vs. $15.0M in Q2 2024)
• Gross Margin: Non-GAAP gross margin 44.7%, down from 46.1% in the prior year; GAAP gross margin 27.3% vs 44.7% prior year due to acquired inventory step-up amortization

Business Commentary:

* Strategic Alternatives and Financial Position: - Nano Dimension has initiated a formal process to explore strategic alternatives, including mergers and acquisitions, to maximize shareholder value. - The company remains one of the best capitalized in its ecosystem, with over $520 million in cash and equivalents at the end of Q2. - This strategic review and strong financial position are aimed at unlocking the full potential of the business.

• Markforged Acquisition and Revenue Growth:
• Markforged acquisition contributed $16.1 million in revenue, resulting in a year-over-year growth of approximately 72% to $25.8 million.
• The integration of Markforged is progressing as planned, and the company is focused on identifying synergies and aligning operations.

• The acquisition of Markforged is expected to bring exceptional products and teams that serve critical applications for many leading companies.

• Operational Efficiency and Cost Management:

• Standalone Nano Dimension's operating expenses decreased by over 24% year-over-year, reflecting the benefits of efficiency initiatives and disciplined cost management.
• Gross margin decreased to 44.7% due to lower revenue volumes and product mix, with GAAP gross margin dropping to 27.3% due to Markforged inventory step-up amortization.

• The company is committed to capital discipline and margin expansion, which are expected to drive strategic clarity and value creation.

• Defense and Industrial Automation Momentum:

• The company completed a critical defense order valued at approximately $3 million and is expecting additional opportunities in the defense industry.
• Global brands like Nestlé are expanding their use of Markforged systems, indicating the scalability of the platform and tangible ROI for customers.
• These developments demonstrate positive momentum in regulated industries like defense and industrial automation, despite macroeconomic headwinds.

Sentiment Analysis:

• Revenue rose ~72% YOY to $25.8M, primarily from Markforged; excluding Markforged, revenue fell 35% YOY. Non-GAAP gross margin declined to 44.7% (46.1% prior year); adjusted EBITDA loss widened to $16.7M (from $14.6M). Management highlighted a strong cash position ($551M) and new wins (a ~$3M defense order; Nestlé expanding Markforged use).