10-Q · May 11, 2026
3D Systems reported a revenue decrease of 19.2% year-over-year, generating $95.5 million in Q1 2026. The gross margin improved to 35.9%, up from 34.6% a year prior, but the operating margin remains negative. In the…
Earnings analysis · 10-Q
DDD earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Q2 revenue was essentially flat year over year at $94.579 million, down $0.259 million (0.3%), and declined from $95.538 million in Q1 2026. Gross margin fell to 36.4% from 38.1% a year earlier and operating margin was…
Read full summary
Q2 revenue was essentially flat year over year at $94.579 million, down $0.259 million (0.3%), and declined from $95.538 million in Q1 2026. Gross margin fell to 36.4% from 38.1% a year earlier and operating margin was negative 11.3%, although the operating loss improved to $10.645 million from $15.350 million through substantial R&D and restructuring-related savings. GAAP diluted EPS was a $0.09 loss, versus a $0.03 loss in Q1 and $0.57 profit in Q2 2025, with the prior-year result benefiting from a $125.681 million disposition gain. Liquidity improved after a $53.8 million equity raise, but cash generation remains negative and the company retains meaningful covenant, debt, and internal-control risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.09
What stood out
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Healthcare growth offset industrial weakness
Healthcare Solutions revenue rose $3.076 million, or 6.8%, to $48.096 million, led by higher medical-technology printer volume, personalized healthcare services, and favorable price/mix.
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Cost actions materially narrowed operating loss
Operating loss narrowed $4.705 million year over year to $10.645 million. R&D expense fell $7.389 million (42.6%) to $9.972 million, reflecting restructuring, divestitures, and cost actions.
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Operating cash burn improved sharply
Six-month operating cash outflow improved $45.524 million year over year to $14.106 million, driven primarily by improved business performance from the 2025 Restructuring Plan and other savings actions.
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Equity raise strengthened cash balance
Cash and equivalents increased $32.316 million, or 33.8%, from year-end to $127.951 million, primarily from a $53.8 million equity raise.
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Receivables and inventory declined
Working-capital assets improved modestly: receivables declined $3.632 million to $80.174 million and inventories declined $5.649 million to $121.847 million versus December 31, 2025.
What to watch
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Gross margin contracted despite tariff recovery
Quarterly gross margin fell 170 basis points year over year to 36.4% as cost of sales increased $1.429 million to $60.117 million; management cited unfavorable mix and divestitures, partly offset by a $2.6 million tariff recovery.
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Industrial segment remained under pressure
Industrial Solutions revenue declined $3.335 million, or 6.7%, to $46.483 million, primarily due to divestitures and unfavorable price/mix. Its gross profit declined $0.510 million to $15.258 million.
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Debt covenant and liquidity risk remain
The company had $92.0 million of 2030 Notes outstanding and must maintain at least $20.0 million in qualified cash. Management states insufficient future cash generation could trigger non-compliance and make the $92.0 million balance immediately due.
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Material weaknesses remain unremediated
Management concluded disclosure controls and procedures were not effective as of June 30, 2026 because of material weaknesses previously identified in the 2025 Form 10-K; remediation remains in progress.
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Near-term 2026 note maturity
The filing reports no material changes to risk factors from the 2025 Form 10-K, but the 2026 Notes' $3.9 million principal balance matures November 15, 2026 and total debt principal was $96.0 million at June 30, 2026.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. MD&A states management expects cash flow from operations, cash and equivalents, and other liquidity sources to be sufficient for anticipated requirements over the next 12 months.
Earlier filings 4
10-K · March 9, 2026
3D Systems reported a fourth-quarter revenue beat of $106,275,000 (8.22% above the $98,199,750 estimate) and notes a solutions-oriented strategy focused on Healthcare and Industrial verticals. Despite the revenue beat…
10-Q · November 4, 2025
3D Systems reported Q3 2025 revenue of $91.249 million, a decline of 19.4% year-over-year from $112.940 million. The net loss for the quarter was $18.053 million, leading to a diluted EPS of -$0.14. Operating margins…
10-Q · August 11, 2025
3D Systems reported Q2 revenue of $94.838M, down from $113.252M a year ago, while GAAP net income swung to $104.436M (diluted EPS $0.57) driven primarily by a pre-tax gain on the April 1, 2025 sale of Geomagic of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.