SSYS · Stratasys Ltd.

Stratasys reported Q1 2026 results showing revenue of $132.7 million, down from $136.0 million year-over-year, with products at $88.8 million (-5.3%) due to softer systems (-7.7%) and consumables (-4.2%), partially offset by services growth of 4.0% to $43.9 million. GAAP gross margin contracted to 41.7% from 44.3%, and non-GAAP to 46.3% from 48.3%, reflecting FX and tariff headwinds estimated at $5.3 million YoY impact on EBITDA. Operating expenses rose sharply to $81.9 million GAAP from $72.6 million, driven by $10.1 million in legal and other expenses, leading to GAAP operating loss of $26.5 million versus $12.4 million prior year, and non-GAAP operating loss of $3.2 million versus $3.0 million income. CEO Dr. Yoav Zeif highlighted resilience with positive Adjusted EBITDA of $2.0 million and operating cash flow of $2.4 million, stability from recurring consumables and customer support, and 23% organic growth in Stratasys Direct led by drone customers. Strategic progress includes TrueDent CE Class IIA certification for European dental expansion, ULTEM on F3300, and defense wins like US Department of War JAMA IV and Artemis II. Balance sheet remains strong with $237.8 million in cash equivalents and deposits, no debt. The company reaffirmed full-year 2026 outlook for revenue growth to $565-575 million, non-GAAP gross margins 46.7-47.1% (after $7 million FX/tariff hit), opex $260-262 million, non-GAAP operating margins 0.7-1.5%, non-GAAP net income $8-13 million, and Adjusted EBITDA $25-30 million, expecting positive operating cash flow subject to FX and tariff risks. Management emphasized pipeline build in defense and high-requirement applications amid measured capital spending.