3D Printing Financials: Velo3D Looks to Bounce Back with Defense Deals

Velo3D (OTCQX: VLDX) is working hard to get back on track. The metal 3D printing company brought in $9.3 million in revenue during the first quarter of 2025, slightly below last year’s first-quarter total of $9.8 million, but made progress in reducing costs and improving its business model.

The gross margin improved to 7.5%, much better compared to a negative 28.8% a year ago. Although the company still reported a net loss of $25.4 million, that figure is slightly better than last year’s $28.3 million loss, and its adjusted numbers suggest things are starting to stabilize. The non-GAAP net loss was $8.9 million for the quarter.

CEO Arun Jeldi says, “Momentum is building across our business as we implement a number of strategic initiatives that we believe position Velo3D for sustainable, long-term growth and a return to profitability. We are seeing early results from our new go-to-market strategy, which is gaining significant traction with new and existing customers, particularly in the defense and aerospace industries where domestic supply chain resiliency is a priority.”

Velo3D is changing its focus to something called Rapid Production Services, or RPS. This service helps customers move faster from designing a part to actually producing it, with fewer delays or risks along the way. And according to management, the shift is already showing results. Half of the company’s first-quarter demand came from the defense sector, and the backlog for RPS orders has tripled since the end of last year.

The company also signed two major deals recently. One is a $15 million, five-year agreement with Momentus, and the other is a five-year exclusive supply deal with Amaero. This shows that more companies are interested in using RPS for important projects in the defense, aerospace, and high-tech industries.

Leadership changes have also played a role in this new phase. The company recently hired former US Army Green Beret Brice Cooper as Vice President of Defense and Government Relations. In addition, it added Rear Admiral Jason Lloyd and Executive Kenneth Thieneman to the Board of Directors. These moves suggest Velo3D is serious about doubling down on government and defense work, a market where the company is already seeing results.

Velo3D hasn’t been trading on the New York Stock Exchange since March 2024, when it was delisted and transitioned to the over-the-counter (OTC) QX Best Market, the highest tier in the OTC stock system. Since then, the stock has dropped over the past year, but jumped more than 70% after the company shared its latest earnings.

The company says it is focused on growing revenue by more than 30% this year and expects to become EBITDA positive in the first half of 2026.

While printer sales remain the core of Velo3D’s revenue, the company is clear that RPS will play a bigger role starting later this year. System sales fell slightly in Q1, which the company attributes to a more selective sales strategy focused on high-value customers. Velo3D also confirmed that it received a fourth order for its high-end Sapphire XC printer from Mears Machine Corporation, pointing to continued demand in aerospace and industrial sectors.

Meanwhile, cutting costs is also a key focus. Operating expenses were down to $12.6 million in the quarter from $18.6 million the year before. On an adjusted basis, expenses dropped to $8.8 million from $14.1 million. The company also ended the quarter with $3.9 million in cash, up from $1.2 million at the end of 2024, giving it a bit more breathing room.

Looking ahead, Velo3D expects full-year revenue to be between $50 million and $60 million. It also hopes to earn more from each product it sells, aiming for a gross margin above 30% by the end of the year. It says this will come from running operations more efficiently and growing its RPS business. Capital expenses will be in the $15 million to $20 million range, and adjusted operating expenses will stay between $40 million and $50 million for the year.

Although Velo3D is still in recovery mode, its new strategy is beginning to show early signs of success. The company hopes that focusing more on services, government deals, and manufacturing in the US will help it become profitable.

Images courtesy of Velo3D