Velo3D's Strategic Position in Additive Manufacturing: A Pre-Earnings Investment Opportunity

The global additive manufacturing (AM) market is undergoing a transformative phase, driven by reindustrialization, technological innovation, and the urgent need for lightweight, high-performance components in aerospace and defense. At the forefront of this evolution is Velo3D, a company that has repositioned itself as a critical player in the AM value chain. With its Q2 2025 earnings report underscoring robust revenue growth and strategic partnerships, the firm is now poised to capitalize on a market projected to expand at a 23.3% CAGR through 2030, according to a Grand View Research report. As investors prepare for Q3 2025 earnings, Velo3D's trajectory merits closer scrutiny.

A Resurgence in Aerospace and Defense

Velo3D's Q2 2025 results revealed a 31% year-over-year revenue increase to $13.6 million, with Rapid Production Services (RPS) bookings surging 79% quarter-over-quarter, according to Velo3D's press release. This growth is not merely a function of market tailwinds but a reflection of the company's targeted focus on aerospace and defense, which accounted for 87% of RPS demand. Specifically, the space sector drove 54% of RPS bookings, while defense contributed 33%. These figures align with broader industry trends: the aerospace and defense AM market is forecasted to grow at a 19.51% CAGR, reaching $18.56 billion by 2030, according to a Virtue Market Research forecast.

Strategic partnerships have further solidified Velo3D's position. The $4 million Master Services Agreement with Vaya Space and the $22 million collaboration with Amaero-catalyzed by a critical powder qualification milestone-highlight the company's ability to secure high-margin contracts. Meanwhile, its collaboration with iRocket, a developer of reusable launch vehicles, underscores the growing adoption of AM in next-generation aerospace systems; iRocket's use of Velo3D's Sapphire AM machines for flight-critical components, as detailed in a Metal AM article, exemplifies how additive manufacturing enables the production of complex geometries unachievable through traditional methods.

Market Adoption and Competitive Positioning

Velo3D's competitive edge lies in its ability to bridge the gap between prototyping and full-scale production. The U.S. Department of Defense's roadmap for additive manufacturing and the FAA's modernization of certification pathways for 3D-printed hardware are creating a regulatory environment conducive to adoption, according to a Mordor Intelligence report. This is evident in Velo3D's recent $6 million contract with the U.S. Navy, secured after a challenging 2024, which signals renewed confidence in its technology, as noted in an All3DP report.

The company's uplisting to NASDAQ in Q3 2025 also reflects improved financial stability, with a reaffirmed full-year 2025 revenue guidance of $50–$60 million and a path to EBITDA profitability by mid-2026. While gross margins are still below the 30% target, the scalability of AM-where incremental production costs are lower than traditional methods-positions Velo3D to improve profitability as demand scales.

Risks and Opportunities Ahead

Despite its momentum, Velo3D faces challenges. The AM market is highly competitive, with players like GE Additive and 3D Systems vying for market share. Additionally, the company's reliance on aerospace and defense exposes it to geopolitical and budgetary risks. However, the long-term secular trends-such as the shift toward reusable space systems and the need for lightweight, fuel-efficient aircraft-mitigate these concerns.

For investors, the key question is whether Velo3D can maintain its growth trajectory as it transitions from a niche player to a mainstream AM provider. The Q3 2025 earnings report will be critical in this regard, offering insights into order backlog, customer diversification, and progress toward EBITDA profitability.

Conclusion

Velo3D's strategic alignment with the aerospace and defense sectors, coupled with its technological differentiation and regulatory tailwinds, positions it as a compelling investment opportunity. While risks remain, the company's ability to secure high-value contracts and navigate a rapidly expanding market suggests that its growth potential is far from exhausted. As the AM industry enters a new phase of industrial adoption, Velo3D's Q3 2025 earnings could serve as a pivotal inflection point for both the company and the sector at large.