Why Velo3D Stock Soared Today
Key Points
Velo3D's sales are surging.
Management expects continued margin expansion in the second half of 2026.
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Shares of Velo3D (NASDAQ: VELO) soared on Wednesday after the 3D printing technology provider reported financial results that exceeded investors' expectations.
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Demand for 3D printing is growing
Velo3D's revenue surged 48% year over year to $13.8 million in the first quarter.
With their powerful lasers, the additive manufacturing leader's Sapphire printers enable fast, high-volume production. Velo3D's Flow print preparation software and Assure quality control system help to ensure reliable printing at scale.
"Demand remains particularly strong in defense and aerospace, where customers are prioritizing scalable, high-performance additive manufacturing solutions," CEO Arun Jeldi said in a press release.
Moreover, Velo3D's own profitability is improving as it scales its business. Its gross margin increased to 17.2% from 7.5% in the prior-year quarter.
"Importantly, we believe we are still in early innings of this margin expansion story," Jeldi said during a conference call with analysts. "We expect meaningful continued progress throughout 2026."
All told, Velo3D's adjusted net loss narrowed to $5.1 million, or $0.20 per share, from $9 million, or $0.67 per share, in the year-ago period.
Working toward profitability
Velo3D continues to expect full-year revenue of $60 million to $70 million, with its gross margin rising to over 30% in the second half of 2026. In turn, management projects that the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) will turn positive later this year.
Velo3D completed a share sale in April to raise cash to fund its expansion initiatives. Debt-to-equity conversions also enabled the company to reduce its debt load by roughly 70%, further strengthening its balance sheet.
"With a robust pipeline of opportunities, we believe we have a solid foundation for continued growth," Jeldi said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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