DDD Q2 Earnings Beat Estimates, Strong Printer Sales Aid Top Line

Adjusted for software divestitures completed in 2025, total revenues increased 1.4% year over year. The improvement reflected accelerating sales of newly launched printers as customers expanded their use of additive manufacturing across production applications.

DDD’s Printer Sales Support Core Growth

Product revenues rose 1.9% year over year to $54.8 million, while services revenues declined 3.2% to $39.7 million. 3D Systems highlighted double-digit growth in both metal and polymer hardware printer systems, underscoring improving demand for the company’s refreshed equipment portfolio.

Healthcare Solutions revenues increased 6.8% year over year to $48.1 million, making the segment the company’s largest business during the reported quarter. Growth was driven primarily by higher sales of new printer systems in Med Tech and continued expansion in Personalized Healthcare Services.

Med Tech revenues grew more than 20%, while Dental revenues increased 3%. Management said customers in these markets continued adopting 3D printing as a core manufacturing technology and broadening the range of applications deployed.

However, Industrial Solutions revenues declined 6.7% year over year to $46.5 million. Excluding the impact of software divestitures, the segment’s revenues decreased 3.7% year over year, reflecting the exit of a non-core product offering and lower hardware services revenues. Sequentially, Industrial revenues increased 2.4% on higher product sales. 

Aerospace & Defense and Data Center Infrastructure each delivered growth of more than 20%, helping offset weakness elsewhere in the portfolio. Aerospace & Defense remained the company’s largest industrial market.

3D Systems’ Margin Pressure Offsets Cost Cuts

Gross profit fell to $34.5 million from $36.2 million reported in the year-ago quarter. Gross margin contracted 170 basis points (bps) to 36.4%, while non-GAAP gross margin excluding software divestitures declined 150 bps to 36.7%.

The margin decline reflected a greater mix of printer sales and certain pricing pressures. These headwinds were partly offset by approximately $2.6 million in tariff refunds recovered during the quarter.

Operating expenses decreased 12.4% year over year to $45.1 million. Research and development expenses dropped to $10 million from $17.4 million, while selling, general and administrative expenses increased to $35.1 million from $34.1 million.

Adjusted EBITDA improved to a loss of $0.8 million from a loss of $4.7 million on a comparable basis. Prior cost-reduction measures and tariff refunds supported the improvement.

3D Systems Strengthens Its Liquidity Position

Total cash stood at $129 million at June 30, including $128 million in cash and cash equivalents.

The company has $3.9 million of debt principal maturing in the fourth quarter of 2026, with the remaining $92 million due in 2030.

DDD Issues Third-Quarter Outlook

For the third quarter of 2026, 3D Systems expects revenues between $96 million and $99 million. The range is above the second-quarter revenue level and points to continued momentum from new printer introductions and priority end markets.

Adjusted EBITDA is projected between a loss of $3 million and a loss of $1 million. Management remains focused on Med Tech, Dental, Aerospace & Defense and Data Center Infrastructure, all of which recorded growth exceeding 20% during the first half of 2026.

Zacks Rank & Stocks to Consider

Currently, 3D Systems has a Zacks Rank #3 (Hold). 

LegalZoom.com LZ, Alarm.com ALRM and Applied Industrial Technologies AIT are some better-ranked stocks in the broader Zacks Industrial Products sector. LegalZoom.com, Alarm.com, and Applied Industrial Technologies carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LegalZoom.com, Alarm.com, and Applied Industrial Technologies are expected to report their quarterly results on Aug. 5, 6, and 13, respectively. Shares of Applied Industrial Technologies and Alarm.com have jumped 37.8% and 8.9%, respectively, while shares of LegalZoom.com have dropped 16.6%, year to date.

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