0001193125-26-223945
SEC filingQ1 2026 revenue grew 48% YoY to $13.8M, gross margin improved to 17.2%, but net loss remained at $7.0M with going concern doubt.
For the three months ended March 31, 2026, total revenue increased 48.2% to $13.8 million from $9.3 million in the prior-year period. The growth was driven by a 59.8% increase in 3D Printer and parts sales, which reached $12.0 million, reflecting higher average selling prices, increased system volume, and higher RPS production volumes. Support services revenue declined 29.1% to $1.3 million due to a smaller installed base requiring preventive maintenance. Other revenue surged to $0.5 million from negligible amounts, primarily from non-routine income.
Gross profit improved sharply to $2.4 million (17.2% margin) from $0.7 million (7.5% margin) a year ago, as cost of revenue grew at a slower pace (32.6%) than revenue. The margin expansion was attributed to pricing improvements, volume leverage, and overhead cost efficiencies.
Operating expenses decreased 23.7% to $9.3 million, driven by a 45.9% reduction in general and administrative expenses ($4.9 million vs. $9.1 million), largely from lower stock-based compensation and professional fees. Research and development spending rose 30.9% to $2.7 million, and selling and marketing expenses increased 58.5% to $1.7 million as the company reinvested in customer-facing activities.
Net loss narrowed 72.0% to $(7.0) million from $(25.0) million, helped by the absence of warrant-related losses ($11.4 million in Q1 2025) and lower interest expense.
The 3D Printer and parts segment remained the primary revenue driver, contributing 87.0% of total revenue in Q1 2026 versus 80.7% in Q1 2025. Support services share declined from 19.2% to 9.2%, while other revenue grew to 3.8%. The company shifted focus from recurring payment leases to system sales and RPS, as evidenced by zero recurring payment revenue. Backlog more than doubled to $30 million, signaling strong future demand, though customer concentration remained high (top three customers accounted for 60.9% of revenue).
Management expects research and development costs to increase for the remainder of 2026 as it refreshes its technology roadmap for RPS. Selling and marketing expenses will also rise to target defense and aerospace markets. General and administrative costs are anticipated to increase with business expansion but will be offset by cost-reduction initiatives. Gross profit and margins are expected to improve further in the second half of 2026 due to production cycle time acceleration and efficiency gains. Capital expenditures are projected between $40 million and $50 million for 2026, primarily for RPS printer capacity and facilities. However, the company continues to face substantial doubt about its ability to continue as a going concern, lacking sufficient liquidity for the next twelve months. The April 2026 offering raised $50 million in gross proceeds to bolster liquidity.
As of March 31, 2026, Velo3D held $16.6 million in cash and cash equivalents, down from $39.0 million at year-end 2025, reflecting significant cash burn. Total assets were $92.4 million, with current assets of $65.2 million, including $28.1 million in net inventories (with $24.1 million in reserves) and $6.7 million in net receivables. Total liabilities stood at $40.9 million, including current liabilities of $26.6 million. Stockholders' equity improved to $51.5 million from $38.2 million, largely due to equity issuances and debt conversions. The company reiterates substantial doubt about its ability to continue as a going concern, with insufficient liquidity for 12 months.
Non-cancellable purchase commitments (purchase orders) of $24.4 million for parts and assemblies are due upon receipt and expected to be delivered through the remainder of 2026. Operating lease obligations total $15.9 million through 2032, with $2.1 million due in the remainder of 2026. There are no other material commitments or contingencies disclosed.
No share buyback or dividend activity. During the quarter, Velo3D converted its January and February 2025 secured convertible notes (aggregate $15 million) into common stock, resulting in issuance of 1,540,347 shares. The company also repaid $3.0 million in Secured Notes plus $0.3 million interest, and $0.5 million on the Equipment Loan. Net debt decreased from $31.0 million to $9.2 million (solely the Equipment Loan). Capital expenditures were $0.9 million.
The company operates as a single operating segment. Revenue for the three months ended March 31, 2026 was $13.8 million, with Americas contributing $13.0 million (94%), Europe $0.6 million, and other $0.2 million. Customer concentration: two customers accounted for 27.6% and 27.5% of revenue respectively.
Operating cash flow of -$18.0M significantly exceeded the net loss of -$7.0M, indicating large working capital outflows. Key adjustments: stock-based compensation ($1.9M), depreciation ($0.8M), and a $5.5M decrease in accounts payable. Inventories provided a modest $0.7M inflow, but contract assets grew $2.1M and prepaids rose $3.9M, straining cash. Capex of $0.9M remained low, suggesting limited growth spending. Financing activities saw $3.5M in debt repayments, contrasting with $15M in proceeds last year. No FCF or capital returns were disclosed. The deteriorating CFO reflects ongoing operational challenges and negative cash conversion.