Stratasys Secures $120M Investment from Fortissimo Capital Amid Pressure from Bambu Lab

Stratasys Ltd. (NASDAQ: SSYS) has announced a $120 million investment from Fortissimo Capital, an Israeli private equity firm. The deal involves the direct purchase of 11.65 million newly issued shares at $10.30 per share, reflecting a 10.6% premium over the company’s January 31, 2025, closing price. With this transaction, Fortissimo increases its stake from 1.5% to 15.5%, securing a seat on the Stratasys Board of Directors and an option to add a second board member if its ownership reaches 20%.

Fortissimo is an obvious choice of investor for the Israeli-American firm. The company has previously funded Tritone, the startup that has developed a unique, high throughput sintered metal 3D printing technology, and Kornit Digital, which has its own inkjet technology for 3D printing digital embroidery onto textiles. However, it does suggest a further transformation of the firm into more of an Israeli company than an American one. The transaction, expected to close in Q2 2025, remains subject to review by the Committee on Foreign Investment in the United States (CFIUS).

Stratasys CEO Dr. Yoav Zeif characterized the investment as a vote of confidence in the company’s leadership and long-term growth potential. The capital infusion is framed as an opportunity to enhance shareholder value and support both organic and inorganic growth strategies. However, the move sparked skepticism from Troy Jensen, Managing Director and Senior Research Analyst at Cantor Fitzgerald.

Jensen said, “To me, this is strange timing given Stratasys doesn’t really need the money and the stock is at historical low valuations. We would point out that this marks the LOWEST valuation Stratasys has raised capital at in the past 20 years and comes across as a desperation move. I would understand if Stratasys had a debt payment coming due or was burning money, but to raise $120M at these valuations when the company has $264M of cash on the balance sheet, no debt and is bragging about being operating cashflows positive with 8% or greater EBITDA margins in 2025 makes no sense to me.”

The broader competitive landscape may provide some explanation for Stratasys’ decision. Jensen suggested that Stratasys may be positioning itself for acquisitions to counteract declining revenue trends, particularly as competition from companies like Bambu Lab intensifies.

“Something must have changed for SSYS to raise capital at these valuations, and we believe the only real change is competition from Bambu Labs,” he remarked. Stratasys’ preliminary Q4 2024 financial results, released alongside the investment announcement, showed sequential hardware sales growth but a decline in consumables revenue, marking the first year-over-year drop in consumables sales in over two years. This suggests reduced utilization of installed machines, possibly reflecting market share erosion.

As different as Bambu and Stratasys are in terms of corporate organization, they do share important similarities. Despite Stratasys’s vast polymer portfolio, its extrusion systems are the avenue for its material bread and butter, and this is the only segment that Bambu operates in. There, its easy-to-use, high quality machines have proliferated at an unprecedented rate. One other overlap is Stratasys CEO Yoav Zeif’s history at McKinsey & Co., the world-shaping consulting firm that was revealed to work with Bambu’s corporate predecessor, DJI. Engineers from the dominating drone maker went on to establish Bambu Lab.

Jensen also pointed to Stratasys’ failed merger attempt with Desktop Metal in 2023, which valued the latter at nearly $700 million—far above its current market capitalization of approximately $75 million. Stratasys also explored acquiring HP’s additive manufacturing (AM) business but reportedly failed to reach an agreement on valuation. “After the strategic review, Stratasys announced that the best use of their cash was to invest in SSYS. Now, just a couple of quarters later, they’re raising $120M? Seriously?” Jensen questioned.

The Fortissimo investment provides Stratasys with additional capital, but the long-term implications depend on how the company deploys the funds. If the capital is used for targeted acquisitions that drive revenue and market share expansion, the deal may ultimately enhance shareholder value. However, if the funds are used to offset declining revenue without a clear path to growth, investors may view this move as a reactionary measure rather than a proactive strategy.

The move comes amid some of the most fundamental shifts in AM since the consumer 3D printing bubble burst in 2014. Numerous firms have approached or arrived at bankruptcy, with some, like Shapeways and Velo3D, rescued at the last minute. The proposed mergers of Nano Dimension with Desktop Metal and Markforged seem to hang in the balance as Nano Dimension’s leadership has been shuffled. Meanwhile, the military-industrial complex has seemingly begun taking a more direct role in guiding the sector’s development.

All of this occurs as a renewed Trump Administration causes confusion and uncertainty regarding international trade, domestic spending, and the overall social landscape of the U.S. Because Stratasys is such an anchor to the 3D printing industry, its next moves will shape the period to come. Artificial intelligence and insecure energy supply chains are likely to be essential in whatever happens next. We may learn more as Yoav Zeif gives the keynote talk at Additive Manufacturing Strategies in New York tomorrow, February 4.