3D Systems (NYSE:DDD) executives told investors the company ended 2025 with a “stronger finish” in the fourth quarter, pointing to sequential revenue growth, traction in several priority markets, and continued progress on cost reductions. Management also emphasized caution on the macro backdrop as it introduced limited guidance for the first quarter of 2026.
Fourth-quarter revenue rose sequentially as printers and materials strengthened
Interim CFO Phyllis Nordstrom said fourth-quarter consolidated revenue was $106.3 million. On a year-over-year basis, revenue increased 3% when adjusting for the April 1, 2025 divestiture of the Geomagic software business. Nordstrom added that if investors also adjust the prior-year quarter for a one-time regenerative medicine accounting adjustment that reduced revenue by $8.7 million, fourth-quarter revenue would have declined 5% year over year.
Segment results showed gains in both major businesses:
- Industrial Solutions revenue was $55.8 million, up 15% sequentially, driven by aerospace and defense strength and higher printer sales in consumer end markets, including demand for new jewelry-focused printers.
- Healthcare Solutions revenue was $50.5 million, up 18% sequentially, led by stronger dental materials sales and continued positive performance in personalized health services.
Graves said fourth-quarter results reflected strengthening in both printer and materials sales tied to new product launches across industrial and healthcare. In industrial, he cited sequential double-digit growth in “traditional consumer-oriented end markets” including automotive and jewelry manufacturing, pointing to adoption of the company’s dual-laser SLA 750 platform and the MJP 300W+ wax printer. In healthcare, he said dental materials sales improved as aligner demand stabilized, and the company began seeing sales from the commercial release of its NextDent jetted denture platform.
Priority markets: aerospace and defense, personalized health services, and dental
Management repeatedly framed the business around three key growth initiatives: aerospace and defense, personalized health services (PHS), and dental. Graves said these markets benefit from additive manufacturing because performance can be enhanced through mass customization, and that cost has declined enough to support wider adoption.
In aerospace and defense—now described as the largest and one of the fastest-growing segments within Industrial Solutions—Graves said the company’s full-year revenue in the segment grew 16% in 2025 and that management continues to expect over 20% growth in 2026. He emphasized the company’s focus on metal parts, produced either through casting workflows supported by photopolymer printing or through direct metal printing systems.
Graves also described a “three-phase” customer model: developing manufacturing processes for key components, offering low-to-intermediate volume production, and ultimately selling complete printing systems as customers scale. He said the company is pursuing this approach through operations in Littleton, Colorado; Leuven, Belgium; and a Saudi Arabian joint venture in NAMI.
In support of anticipated demand, Graves said the company recently announced an expansion of its Littleton facility, adding up to 80,000 square feet for application development, process qualification, validation, and production-scale manufacturing. He also pointed to potential tailwinds from provisions in the National Defense Authorization Act restricting foreign-source 3D printing systems for Department of Defense programs.
Within PHS, Graves said the segment delivered double-digit growth again in 2025 and became the company’s largest healthcare segment. He cited more than 18,000 personalized planning cases in 2025, taking the total to over 400,000 patients, and more than 260,000 customized implants. He said the company increased its total FDA and CE-marked device count to over 100. Graves attributed growth to innovation in craniomaxillofacial procedures through a partnership with Stryker and highlighted applications using FDA-cleared titanium implants and medical-grade PEEK materials. He also noted FDA clearance for VSP solutions for skeletally mature adolescents, which he said could accelerate adoption beyond prior compassionate-use protocols.
In dental, Graves said the company began U.S. shipments of the NextDent Jetted Denture Solution in the fourth quarter and described early market reception as strong. He also cited the February announcement of a broader range of gum shades. Regulatory clearances were reported for New Zealand, Colombia, and Chile, with management expecting full European clearance “this summer,” additional South American markets in the second half of the year, and most target markets in Asia next year.
Graves provided market sizing commentary, stating that about 32 million people in the U.S. wear dentures and that globally more than 180 million people wear dentures, with approximately 13.7 million denture sets produced each year. He said the company believes materials alone could represent an annual recurring revenue opportunity of over $400 million globally over time, adding that adoption rate will be the key variable.
Margins and cost reductions remained a central theme
Nordstrom reported fourth-quarter non-GAAP gross margin of 31%. For the full year, non-GAAP gross margin was 34.3%, with Nordstrom attributing pressure primarily to lower sales volume and less favorable product mix.
Executives also emphasized expense reductions. Nordstrom said fourth-quarter non-GAAP operating expenses were $43 million, down 23% year over year when adjusting for Geomagic. For the full year, non-GAAP operating expenses were $196 million, down 19% year over year on the same basis. She said the company delivered approximately $55 million in annualized savings completed in 2025, exceeding a $50 million target, and expects additional initiatives—organizational capacity optimization, facility footprint streamlining, and expense reductions—to be completed by the first half of 2026.
Adjusted EBITDA was still negative but improved. Nordstrom said adjusted EBITDA for the fourth quarter was a loss of $5.3 million, improving by $17 million compared with the prior year when adjusting for Geomagic. Full-year adjusted EBITDA was a loss of $45.4 million, improving by $31 million on the same basis. Full-year 2025 non-GAAP loss per share was $0.37, compared with a loss of $0.62 in the prior year.
Balance sheet update and limited Q1 2026 outlook
Nordstrom said the company ended the quarter with $97.1 million in total cash, including $95.6 million in cash and cash equivalents and $1.5 million in restricted cash. She also said the company executed an equitization transaction during the quarter to retire the majority of debt scheduled to mature in the fourth quarter of 2026, leaving $3.9 million of that maturity outstanding and $92 million scheduled to mature in 2030.
Given geopolitical conditions and potential macroeconomic impacts, Nordstrom said the company would limit guidance to the first quarter of 2026. Management expects:
- Revenue of $91 million to $94 million
- Adjusted EBITDA of a loss of $5 million to $3 million
On the Q&A, Nordstrom said operating expenses would likely see “slight increases” in Q1 and Q2 before a “pretty steep drop off” into Q3 and Q4. She and Graves also addressed variability in the company’s more consumer-oriented industrial end markets, with Graves describing aerospace and defense as an area of higher confidence while noting consumer-driven demand can be more volatile depending on broader conditions.
About 3D Systems (NYSE:DDD)
3D Systems, founded in 1986 by stereolithography pioneer Chuck Hull, is a leading provider of additive manufacturing solutions. Headquartered in Rock Hill, South Carolina, the company develops and sells a broad range of 3D printers, materials, software, and on-demand manufacturing services. Its core technologies include stereolithography (SLA), selective laser sintering (SLS), direct metal printing (DMP), and multi-jet printing (MJP), enabling customers to build prototypes, production parts, and complex geometries across a variety of industries.
The company’s hardware portfolio spans desktop to production-scale systems designed for applications in aerospace, automotive, healthcare, consumer products, and education.
