Return to Revenue Growth
Consolidated revenue of $95.5M in Q1, up 11% year-over-year, marking a solid return to top-line growth driven by key markets (Med Tech, Dental, Aerospace & Defense).
3D Systems
· DDD
May 11th, 2026
Summary
- Earnings Call Date:
- 2026-05-11
- Change Since:
- +19.92%
- Next Earnings Date:
- 2026-08-10
Earnings Call Sentiment
PositiveThe call conveyed meaningful operational and financial improvement: revenue grew 11% year-over-year, Healthcare grew 21%, Aerospace & Defense grew over 20%, gross margin expanded ~6 points, OpEx fell 35% and adjusted EBITDA turned positive in Q1. Management highlighted successful new product launches (NextDent 300), regulatory approvals, an expanding order backlog and an 80,000 sq ft capacity expansion. Cautions included regional supply-chain/logistics disruptions tied to the Middle East conflict, a temporary key-customer disruption (now resolved), modest FX/tariff headwinds and a conservative Q2 outlook ($93M–$95M revenue; adjusted EBITDA loss $2M–$4M). Overall, the positives — broad-based revenue growth, margin and expense improvements, strong product momentum and clear cost reductions — outweigh the short-term operational headwinds and cautious near-term guidance.
Company Guidance
Management guided Q2 revenue of $93–95 million with an adjusted EBITDA loss of $2–4 million and reiterated a full‑year objective of breakeven adjusted EBITDA or better. That outlook follows Q1 results of $95.5M revenue (+11% YoY), non‑GAAP gross margin of 36.1% (up ~600 bps YoY), adjusted EBITDA of $2.1M (improvement of $26M YoY, $28.2M adjusted), non‑GAAP operating expense of $36.6M (down 35% YoY), and more than $55M of annualized cost savings delivered; the company finished Q1 with $86.5M total cash ($85.1M cash & equivalents, $1.4M restricted), $3.9M of debt due in Q4 2026 and $92M maturing in 2030. Management said OpEx should remain largely stable for the year, cost‑reduction programs will be complete by end‑Q2, R&D will normalize to a more balanced level, Aerospace & Defense is expected to grow >20% in 2026 (≈$35M), and denture market expansion targets an addressable population of >60 million edentulous patients.
Healthcare Segment Outperformance
Healthcare Solutions revenue grew 21% year-over-year to $50.1M and was the larger segment in the quarter, led by printer, material sales and medical parts (notably titanium spinal and joint implants).
Aerospace & Defense Momentum
Aerospace & Defense delivered over 20% year-over-year growth within Industrial Solutions, supporting expectation of >20% growth in the Aero & Defense market for 2026 (~$35M).
Product and Materials Growth
Printers, materials and parts manufacturing each posted double-digit year-over-year growth; Dental material sales grew strongly (aligners and Vertex prosthetic materials) and metal printer sales increased, including DMP 350 traction.
Very Successful New Product Launch (NextDent 300)
NextDent 300 jetted denture solution has strong commercial reception (e.g., ROE Dental Labs tripled capacity), U.S. regulatory approval in 2025 and EU Phase IIa approval 2 months ahead of plan; addressable market expanded to >60M edentulous patients.
Gross Margin and Cost Savings
Non-GAAP gross margin improved to 36.1%, up ~6 percentage points year-over-year (adjusted), driven by better manufacturing absorption, favorable consumables mix and improved printer margins. Delivered >$55M in annualized cost savings to date.
Operating Expense Reduction and R&D Transition
First quarter non-GAAP operating expenses were $36.6M, down 35% ($20.1M) year-over-year (adjusted for divestitures); R&D-heavy product refreshes largely complete and company expects a transition to a more balanced R&D spend.
Adjusted EBITDA and EPS Improvement
Adjusted EBITDA was positive $2.1M in Q1, an improvement of $26M year-over-year (or $28.2M adjusted for divestitures). First quarter non-GAAP loss per share improved to a $0.01 loss versus a $0.21 loss a year ago.
Strong Cash Position and Balance Sheet Awareness
Ended Q1 with $86.5M in total cash. Near-term debt of $3.9M due in Q4 2026 and remaining $92M maturing in 2030, providing runway while management focuses on disciplined capital allocation.
Manufacturing Capacity Expansion and Technology Investment
Announced 80,000 sq ft expansion at Littleton facility (grand opening late summer) to scale metal part production for aerospace customers. Continued product investments include a $28M government-supported development program for next-gen large-format metal printers.
Backlog and Raised Production Targets
Built a solid order backlog for the denture platform entering Q2 and raised internal production targets for the second half of the year based on early commercial success.
Operator
Greetings, and welcome to the 3D Systems First Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Vice President, Investor Relations, Monica Gould.
Monica Gould
Hello, and welcome to 3D Systems first quarter 2026 earnings conference call. With me on today's call are Dr. Jeffrey Graves, President and CEO; and Phyllis Nordstrom, Chief Financial Officer. The webcast portion of this call contains a slide presentation that we will refer to during the call. Those following along on the phone who wish to access the slide portion of this presentation may do so on the Investor Relations section of our website. The following discussion and responses to your questions reflect management's views as of today only and will include forward-looking statements as described on this slide. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in our latest press release and our filings with the SEC, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q.
During this call, we will discuss certain non-GAAP financial measures. In our press release and slides accompanying this webcast, you will find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures. And with that, I'd like to turn the call over to our President and CEO, Dr. Jeffrey Graves, for opening remarks.
Jeffrey Graves
Thank you, Monica, and good morning, everyone. Buildin...
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