Stratasys 2025 Q3 Earnings Wider Losses and Revenue Decline

Stratasys reported Q3 2025 earnings that missed expectations, with a 2.2% revenue decline and a 109% wider net loss. The company maintained full-year revenue guidance but cut adjusted EPS targets, signaling ongoing challenges in capital equipment demand and margin pressures.

Revenue

Stratasys’s Q3 revenue fell to $136.97 million, a 2.2% decline from $140.01 million in the prior-year period, driven by softer product sales and reduced service revenue. Product revenue totaled $94.06 million, while services revenue stood at $42.91 million. The decline reflects broader macroeconomic caution in capital equipment spending, particularly in industrial and manufacturing sectors.

Earnings/Net Income

The company’s losses widened significantly, with a net loss of $55.63 million, or $0.65 per share, compared to a $26.61 million, or $0.37 per share, loss in 2024 Q3. The EPS decline of 75.7% underscores persistent operational challenges, exacerbated by higher tariffs and unfavorable product mix.

Price Action

Stratasys’s stock price continued to underperform, dropping 2.71% on the latest trading day and 14.09% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Stratasys shares on the date of its revenue release and holding for 30 days showed poor performance over the past three years, with a cumulative return of -23.4%. This underperformance highlights the risks of relying on post-earnings strategies in a volatile market.

CEO Commentary

CEO Yoav Zeif emphasized progress in industrial 3D printing adoption, particularly in aerospace and healthcare, while acknowledging slower growth in certain markets. Strategic R&D investments and cost-cutting measures were highlighted as priorities to balance growth with profitability.

Guidance

Stratasys reiterated Q4 2025 revenue guidance of $145–150 million and full-year revenue of $575–580 million. The company expects sequential EPS improvement but remains in a net loss for Q4.

Additional News

Recent non-earnings updates include Stratasys’s participation in the U.S. Navy’s distributed manufacturing exercise, showcasing its 3D printing capabilities for mission-critical parts. The company also announced new materials and software features across its platforms, aiming to strengthen its position in high-value industries. Additionally, Stratasys shares surged 67% following a fair value analysis by InvestingPro, which identified undervaluation in late September 2024.

Executive Summary

Stratasys faces near-term headwinds from macroeconomic pressures and tariff impacts, but management remains focused on long-term opportunities in additive manufacturing. The company’s strategic investments in R&D and operational efficiency aim to drive growth in key verticals like aerospace, defense, and dental. Investors should monitor progress in margin recovery and adoption of high-value industrial applications.