Stratasys 2025 Q2 Earnings Narrowed Losses Amid Revenue Flatline

Stratasys reported mixed results for Q2 2025, with flat revenue and improved net losses, though the company revised full-year guidance lower due to delayed customer spending. The earnings reflect resilience in recurring revenue and ongoing cost management, but market response has been muted.

Stratasys reported its fiscal 2025 Q2 earnings on Aug 13th, 2025. The results, while in line with expectations, revealed a 0.0% year-over-year revenue increase to $138.09 million, with no beat or miss recorded. The company, however, reduced its net loss by 35.0% to $-16.75 million and narrowed the EPS loss to $0.20 from $0.36. Full-year revenue guidance was lowered to a range of $550 million to $560 million, reflecting caution around large production deals.

Revenue
Q2 revenue of $138.09 million was driven by $94.79 million in product sales, complemented by $43.30 million in services. While the product segment accounted for the majority of the revenue, the services segment underscored the company’s recurring revenue strength.

Earnings/Net Income
Stratasys narrowed its net loss to $-16.75 million in Q2 2025, representing a 35.0% reduction compared to the $-25.74 million loss in the same period in 2024. On a per-share basis, the loss decreased from $0.36 to $0.20, signaling an improvement in earnings performance despite the continued negative net income.

Price Action
The stock of Stratasys rose 5.49% during the latest trading day but has underperformed over the past week and month, dropping 7.83% and 10.38%, respectively.

Post-Earnings Price Action Review
A strategy of buying Stratasys shares after positive quarterly revenue reports and holding for 30 days has underperformed significantly over the past three years. This approach delivered a -50.52% return, far below the benchmark's 46.32%. The resulting -96.84% excess return and -21.56% CAGR highlight the poor efficacy of this investment strategy.

CEO Commentary
Dr. Yoav Zeif, CEO, noted that Q2 results aligned with expectations, emphasizing the strength of recurring revenue and progress in key partnerships, including those with General Motors and Toyota. He expressed cautious optimism, highlighting innovation and supply chain localization as strategic priorities.

Guidance
Eitan Zamir, CFO, revised full-year 2025 revenue guidance to $550 million to $560 million, reflecting delayed capital spending by customers. Non-GAAP gross margins are projected at 46.7% to 47%, with non-GAAP operating margins between 1.5% and 2%. Adjusted EBITDA is expected to range from $30 million to $32 million, and Q4 EBITDA margins may reach 8% or higher. The company also plans cost reductions in Q4 without compromising innovation.

Additional News
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