0001641172-25-022448
SEC filingVelo3D reported Q2 2025 revenue of $13.6M (+31% YoY) but net loss widened to $13.8M due to absence of prior year non-cash gains, and management expresses substantial doubt about going concern.
Velo3D's Q2 2025 revenue reached $13.6 million, a 31.2% increase from $10.3 million in Q2 2024. The growth was primarily driven by higher 3D Printer sales, which rose 39.2% to $12.1 million, reflecting improved product mix and system volumes. Recurring payment revenue declined sharply to $70,000 from $292,000 due to fewer operating lease transactions, while support services revenue held steady at $1.4 million.
Gross loss improved to ($1.6 million) from ($2.9 million), yielding a gross margin of -11.7% versus -28.0% in the prior year. The improvement was attributed to product mix and higher average selling prices, partially offset by higher manufacturing costs on systems started in 2024 but sold in 2025.
Operating expenses decreased significantly: research and development fell 37.4% to $2.8 million, selling and marketing dropped 62.1% to $1.6 million, and general and administrative declined 31.4% to $6.0 million. Total operating expenses were $10.5 million, down 40.4% from $17.6 million. The reductions stemmed from lower headcount, stock-based compensation, and professional fees following the 2024 restructuring.
Loss from operations narrowed to ($12.1 million) from ($20.5 million), a 41.1% improvement. However, net loss widened dramatically to ($13.8 million) from ($0.2 million) because the prior-year period included a $25.3 million gain on fair value of warrants and a $1.8 million gain on contingent earnout liabilities, which did not recur. Basic and diluted EPS were ($0.98) versus ($0.30).
As of June 30, 2025, Velo3D had $0.9 million in cash and cash equivalents, down from $1.2 million at December 31, 2024. Accounts receivable increased to $5.4 million from $3.7 million, while inventories decreased to $38.4 million from $49.9 million due to lower work-in-progress and finished goods. Total current assets were $48.9 million versus $57.7 million.
On the liability side, accounts payable stood at $14.9 million, accrued expenses at $4.3 million, and current debt rose to $16.9 million from $5.7 million, reflecting the issuance of $15 million in senior secured convertible notes during the first half of 2025. Total liabilities increased to $57.0 million from $49.5 million. Stockholders' equity dropped to $21.5 million from $39.7 million, primarily due to the net loss.
Management explicitly states that there is substantial doubt about the company's ability to continue as a going concern for at least 12 months from the filing date. Purchase commitments of $4.4 million, combined with existing debt obligations and ongoing cash burn, underscore the urgency for additional financing.
For the six months ended June 30, 2025, net cash used in operating activities was $13.6 million, a substantial improvement from $28.5 million in the prior year, driven by lower net loss (excluding non-cash items) and positive working capital changes. Key non-cash items included stock-based compensation of $6.5 million, loss on warrant cancellation of $11.4 million, and depreciation of $1.7 million. Cash used in investing activities was $1.8 million, all for property and equipment. Financing provided $15.0 million from the issuance of convertible notes. Overall, the company's free cash flow remains deeply negative, and liquidity is critically low.
Management's discussion focuses on the strategic realignment initiated in 2024, supply chain improvements, and cost reduction efforts. The company highlights the new Master Service Agreement with Momentus, which provides consulting and parts production capacity but has not yet generated revenue. No forward guidance is provided, and the outlook is heavily contingent on securing additional financing. Risks cited include customer concentration, tariff impacts, and the need to restore credit terms with suppliers.
Revenue disaggregation: 3D Printer accounted for 89.0% of total revenue, support services 10.0%, recurring payment 0.5%, and other 0.5%. Geographically, the Americas contributed $10.7 million (79.1%), Europe $2.7 million (20.3%), and other regions $0.1 million (0.7%). Customer concentration remained high, with the top three customers representing 65.2% of revenue.
Stock-based compensation totaled $2.4 million in Q2 2025, down from $4.2 million in Q2 2024, due to reduced headcount and lower equity grants. The company recorded a loss on warrant cancellation of $11.4 million during the six-month period but none in Q2 alone. Interest expense decreased to $1.6 million from $5.5 million, reflecting lower debt balances after the December 2024 debt-for-equity exchange.
The company identified material weaknesses in internal controls over financial reporting, including insufficient segregation of duties, IT general controls, and accounting for complex instruments. Remediation efforts are ongoing.