Stratasys Ltd (NASDAQ:SSYS) Reports Mixed Q2 2025 Results with Revenue Beat but Weak Full-Year Guidance

Stratasys Ltd (NASDAQ:SSYS) reported mixed second-quarter 2025 results, with revenue slightly exceeding analyst expectations but full-year guidance falling short. The 3D printing solutions provider posted $138.1 million in Q2 revenue, essentially flat compared to the $138.0 million recorded in the same quarter last year, but narrowly beating the consensus estimate of $139.9 million. Non-GAAP earnings per share came in at $0.03, aligning with Wall Street's $0.0281 estimate.

Key Financial Highlights

• Revenue Performance: $138.1 million (flat YoY) vs. $139.9 million estimate
• EPS Performance: $0.03 (non-GAAP) vs. $0.0281 estimate
• Gross Margin: 47.7% (non-GAAP), down from 49.0% in Q2 2024
• Operating Income: $1.1 million (non-GAAP), improving from a $3.2 million loss in the prior-year quarter
• Cash Flow: Operating cash outflow narrowed to $1.1 million from $2.4 million in Q2 2024

Despite the in-line earnings beat, the market reacted negatively, with shares dropping sharply in pre-market trading. This appears driven by the company's full-year revenue guidance of $550–$560 million, which at the midpoint ($555 million) is about 3.1% below analysts' $573 million estimate.

Management Commentary & Outlook

CEO Dr. Yoav Zeif emphasized the company's resilience amid macroeconomic uncertainty, noting progress in key customer use cases that could drive future growth. He acknowledged that capital spending recovery among customers is taking longer than expected but maintained confidence in Stratasys' long-term positioning in additive manufacturing.

The company provided detailed full-year 2025 guidance, including:

• Non-GAAP gross margins of 46.7%–47.0%
• Operating expenses between $248–$251 million
• Adjusted EBITDA of $30–$32 million
• Positive operating cash flow

Market Reaction & Valuation

The stock's 10%+ pre-market decline suggests investors are focusing on the softer revenue outlook rather than the earnings beat. This reaction may also reflect concerns about:

• Flat year-over-year revenue growth
• Margin compression (gross margin declined 130 bps YoY on a non-GAAP basis)
• The company's ability to accelerate growth in a still-challenging capital spending environment

For more detailed earnings estimates and historical performance, visit Stratasys' earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.