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The call presented a balanced picture: strong strategic and market progress (notably in defense, aerospace, Stratasys Direct production growth, product/material innovations, and a key dental regulatory win) and solid liquidity (debt-free balance sheet and positive operating cash flow). Offsetting these positives were near-term financial headwinds including a modest revenue decline (-2.4% YoY), margin compression (~200–260 bps), widened GAAP losses, FX/tariff impacts (~$5.3M), and softness in system sales due to customer capital discipline. Management reiterated full-year guidance and emphasized H2 defense-driven recovery, leaving the near-term outlook mixed but with clear potential catalysts for improvement.
Stratasys reiterated full‑year 2026 guidance of $565 million to $575 million in revenue, with management forecasting sequential growth each quarter through the year and 2026 consumables revenue to increase versus 2025; they also said Q2 should be similar to Q2 2025 levels. The company emphasized it will maintain adjusted EBITDA profitability and positive operating cash flow as revenue scales (Q1 adjusted EBITDA was $2.0 million and Q1 operating cash flow was $2.4 million, building on $15.1 million of operating cash flow for full‑year 2025). Financial flexibility was highlighted as a strength, with $237.8 million in cash, cash equivalents and short‑term deposits at quarter end and a debt‑free balance sheet to support ongoing investments and inorganic opportunities.
Stratasys Direct delivered >10% sequential growth and 23% organic year-over-year growth (after divestments) versus Q1 2025, shipping over 100,000 production parts annually and showing strong production-part demand across industries (top 3 parts customers were U.S. drone-related firms).
Selected for the U.S. Department of War JAMA IV pilot parts program (multimillion-dollar initiative), cited as program of record for USAF and NAVAIR, deployed thousands of systems across aerospace/defense, parts (e.g., C-17 microvanes) estimated to save $14M annually in fuel, and hundreds of components with Stratasys materials flew on Artemis II; U.S. defense additive budget cited as having surged 83% for FY2026.
TrueDent Resin received CE Class IIa certification (first polychromatic monolithic 3D printed denture solution), expanding indications to long-term intraoral removables and crowns/bridges in Europe—addressing a segment projected at $2.45B in Europe by 2028 (U.S. removables opportunity cited ~ $5B).
New materials and platform updates: ULTEM 1010 filament available for F3300 (aerospace-grade, low CTE), TUF1 material expanded to J3/J5 series, and measurement-based warped adaptive modeling integrated into GrabCAD Print Pro (reducing iteration and improving production accuracy on DLP platforms).
Maintained adjusted EBITDA profitability ($2.0M) and generated positive operating cash flow ($2.4M) in Q1; ended quarter with $237.8M in cash, cash equivalents and short-term deposits and a debt-free balance sheet, providing flexibility for organic and inorganic investments.
Recurring streams (consumables and customer support/services) provided stability: service revenue (including Stratasys Direct) was $43.9M (up vs $42.2M prior year) and consumables remained a meaningful base ($60.0M), with consumables and services both growing slightly on a sequential basis.
Company reiterated 2026 revenue guidance of $565M–$575M and expects consumables revenue to increase versus 2025, with management expecting sequential revenue growth through the year and H2 momentum (defense-driven) supporting the plan.
Good day, and welcome to today's conference call to discuss Stratasys' First Quarter 2026 Financial Results. My name is Darryl, and I'll be your operator for today's call. And now I'd like to hand the call over to Yonah Lloyd, Chief Communications Officer and Vice President of Investor Relations for Stratasys. Mr. Lloyd, please go ahead.
Good morning, everyone, and thank you for joining us to discuss our 2026 first quarter financial results. On the call with us today are our CEO, Dr. Yoav Zeif; and our CFO, Eitan Zamir. I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the Investor Relations section of our website. Please note that some of the information provided during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes and other future financial performance and our expectations for our business outlook. All statements that speak to future performance, events, expectations or results are forward-looking statements. Actual results or trends could differ materially from our forecast.
For risks that could cause actual results to be materially different from those set forth in forward-looking statements, please refer to the risk factors discussed or referenced in Stratasys' annual report on Form ...