3D Systems — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $99.3 million, an 8.8% increase year-over-year (YoY) from $91.2 million; excluding software divestitures, revenue grew 10.9% to $99.3 million versus $89.5 million.
• Nine months ended September 30, 2026, revenue was $289.4 million, up 3.1% YoY from $280.6 million; excluding software divestitures, revenue grew 7.7% to $289.4 million versus $268.8 million.
• Net loss attributable to 3D Systems Corporation for Q3 2026 was $33.5 million, compared to a net loss of $18.1 million in the prior year period.
• Nine-month net loss was $50.8 million, compared to net income of $49.4 million in the prior year period.
• Diluted loss per share for Q3 2026 was $0.21, compared to $0.14 in the prior year; nine-month diluted loss per share was $0.33, compared to $0.29 in the prior year.
• Gross profit margin for Q3 2026 was 35.0%, up from 32.3% in the prior year; nine-month gross profit margin was 35.8%, up from 35.0%.
• Non-GAAP gross profit margin for Q3 2026 was 35.5%, up from 32.5% in the prior year; nine-month non-GAAP gross profit margin was 36.1%, up from 33.3%.
• Adjusted EBITDA for Q3 2026 was $3.1 million, an improvement of $13.9 million from a loss of $10.0 million in the prior year; nine-month Adjusted EBITDA was $4.4 million, compared to a loss of $40.8 million excluding software divestitures.
• Operating expenses for Q3 2026 were $59.3 million, compared to $50.7 million in the prior year; nine-month operating expenses were $145.4 million, down from $171.7 million.
• Non-GAAP operating expenses for Q3 2026 were $36.1 million, compared to $42.3 million excluding software divestitures in the prior year; nine-month non-GAAP operating expenses were $112.2 million, compared to $143.5 million excluding software divestitures.
• Cash and investments totaled $120.5 million at September 30, 2026, including $91.8 million in cash, cash equivalents, and restricted cash.
• Total debt principal was $95.9 million, with $3.9 million maturing in Q4 2026 and $92.0 million maturing in 2030.
• Deferred revenue and customer deposits increased to $19.5 million at September 30, 2026, from $17.4 million at December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 revenue guidance is $100 million to $103 million.
• Q4 2026 Adjusted EBITDA guidance is a loss of $2 million to break-even ($0 million).
• At the midpoint of the Q4 outlook, the Company expects full-year 2026 revenue growth to approach mid-single digits.
• Management anticipates continued positive momentum across the four strategic markets, though normal variability in customer program cycles and purchasing patterns is expected.

Business Segments and Product Lines:

• Healthcare Solutions revenue increased 14.4% YoY to $49.0 million in Q3 2026, driven by higher dental material sales and increased parts manufacturing volumes.
• Industrial Solutions revenue increased 3.9% YoY to $50.3 million in Q3 2026, or 7.7% excluding software divestitures, driven by higher printer and parts manufacturing sales.
• Healthcare parts manufacturing and dental materials sales both grew more than 20% in Q3 2026.
• Aerospace & Defense revenue grew more than 50% in Q3 2026.
• Data Center Infrastructure showed strong growth in Q3 2026.
• Consumer-facing markets experienced declines in Q3 2026.
• The four strategic markets (Med Tech, Dental, Aerospace & Defense, and Data Center Infrastructure) delivered strong double-digit growth through the first three quarters of 2026.

Market and Competitive Landscape:

• The additive manufacturing industry is emerging from a multi-year downturn.
• Customers in strategic markets are increasingly adopting 3D printing as a core manufacturing technology.
• Capital investment in priority markets is strengthening despite a volatile broader economic and geopolitical environment.
• The Company is expanding its metal parts manufacturing capability and refreshing its product portfolio.

Risks and Challenges:

• Net loss increased due to litigation expense, an asset impairment charge, unfavorable foreign exchange impact, and unfavorable year-over-year changes in income taxes.
• Forward-looking Adjusted EBITDA cannot be reconciled to GAAP measures without unreasonable effort due to the unpredictability of litigation costs, acquisition expenses, stock-based compensation, intangible amortization, restructuring expenses, and goodwill impairment.
• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections.

Management Commentary and Tone:

• Dr. Jeffrey Graves, President and CEO, expressed pleasure with Q3 and year-to-date performance, citing revenue growth acceleration and positive Adjusted EBITDA.
• Management highlighted progress in executing a focused strategy concentrating on high-value production applications and expanding metal parts manufacturing.
• Phyllis Nordstrom, CFO, noted that positive Q3 results demonstrate continued progress against priorities, with strong revenue growth and effective cost management.
• Management expressed confidence in the foundation built and the Company's ability to deliver profitable growth in the years ahead.

Other Key Points:

• The Company divested software assets (Geomagic, 3DXpert, and Oqton) in 2025, which are excluded from non-GAAP comparisons for prior periods.
• A $53.8 million proceeds from an equity offering were recorded in financing activities for the nine months ended September 30, 2026.
• Stock-based compensation expense was $5.6 million for the nine months ended September 30, 2026, compared to $1.8 million in the prior year period.
• Asset impairment charges of $2.9 million were recorded in Q3 2026.
• CEO transition costs of $2.3 million were recorded for the nine months ended September 30, 2026.
• The Company reported a gain on disposition of $125.7 million in the nine months ended September 30, 2025, which is excluded from non-GAAP measures.
• A conference call and webcast regarding these results were scheduled for November 5, 2026.