Velo3D — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue reached $20.5 million, a 50% increase year-over-year from $13.6 million in Q3 2025.
• GAAP gross margin improved to 26.5% from 3.2% in the prior year period.
• GAAP net loss was $16.7 million ($0.52 per share), compared to $11.2 million ($0.65 per share) in Q3 2025.
• Non-GAAP net loss was $10.8 million, compared to $9.3 million in Q3 2025.
• Adjusted EBITDA was ($9.8) million, compared to ($7.3) million in Q3 2025.
• Operating expenses increased to $22.7 million from $10.4 million in Q3 2025; Non-GAAP adjusted operating expenses were $17.0 million.
• Cash and cash equivalents totaled $75.7 million as of September 30, 2026, up from $39.0 million as of December 31, 2025.
• Total outstanding debt decreased approximately 76% to $7.4 million from $31.0 million at the end of 2025.
• New bookings were $28.9 million, with a backlog of $40.1 million as of September 30, 2026.
• Net cash used in operating activities for the nine months ended September 30, 2026, was approximately $52.2 million.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 revenue guidance of $65 million to $75 million.
• Reaffirmed full-year 2026 Non-GAAP adjusted operating expense guidance of $45 million to $55 million.
• Revised 2026 gross margin guidance to expect sequential improvement in Q4 2026, removing the prior expectation of greater than 30% gross margin in the second half of 2026.
• Reduced 2026 capital expenditures guidance to $10 million to $20 million, down from the prior range of $40 million to $50 million, due to a shift of substantial planned expenditures into 2027.
• Updated timeline to expect positive net cash from operations and positive EBITDA in 2028, revised from the prior expectation of positive EBITDA in the second half of 2026.
• Management concluded there is no longer substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance of these financial statements.

Business Segments and Product Lines:

• 3D Printer and parts revenue was $18.8 million, a 57.0% increase year-over-year, driven by higher system sales, higher average selling prices, favorable product mix, and increased production volume in Rapid Production Solutions (RPS).
• Support services revenue was $1.4 million.
• Opened the Livermore Production Campus, Forge 1, in July 2026, which is currently operating in phases and is not yet at full scale.
• Expanded partnership with Mears Machine Corporation, which ordered its sixth Sapphire® XC system dedicated to copper-nickel (CuNi) additive manufacturing for shipbuilding and offshore applications.
• Appointed Vic Fryzel as Executive Vice President, Technology, and Robert Purnell as Senior Director, Operations, to advance platform reliability and manufacturing readiness at Forge 1.
• Joined the Government-Industry Data Exchange Program (GIDEP) to strengthen quality and supply-chain risk management for defense manufacturing.

Market and Competitive Landscape:

• The Company focuses on aerospace, defense, space, and energy markets, with specific growth opportunities in shipbuilding and offshore applications via CuNi additive manufacturing.
• Forge 1 is expected to serve as the primary production and manufacturing center to support demand from aerospace and defense customers.
• Management cited continued customer demand for metal additive manufacturing technology as a driver for growth.

Risks and Challenges:

• Significant operating expenses increased due to investments in people, technology, and operational capabilities required to bring Forge 1 online.
• The Company faces risks related to the ability to equip, commission, qualify, and ramp Forge 1 on the expected timeline and budget.
• Potential risks include operating Forge 1 below capacity given fixed lease and operating costs.
• The Company remains dependent on a limited number of customers for a significant portion of its revenue.
• Risks include the potential for gross margin variation due to inventory-related adjustments and the impact of tariffs or supplier pricing.
• Material weaknesses in internal control over financial reporting remain a risk, though management is working on remediation.

Management Commentary and Tone:

• CEO Arun Jeldi described the results as "solid," highlighting revenue growth and new bookings exceeding revenue.
• Management expressed confidence that investments in infrastructure and talent are essential to scaling operations and building a foundation for sustainable, profitable growth.
• The tone indicates a strategic shift toward scaling production capacity via Forge 1 to capture larger production programs.
• Management noted that the increase in operating expenses reflects the necessary investment to prepare for expanded production.

Other Key Points:

• Completed a registered direct offering in April 2026 raising approximately $50 million gross proceeds.
• Raised approximately $59.4 million in gross proceeds during the second quarter under its at-the-market (ATM) offering program.
• Converted convertible secured notes into common stock in March 2026, contributing to the reduction in total debt.
• Revised previously issued unaudited financial statements for Q1 and Q2 2026 to correct errors related to excess and obsolete inventory reserves, reducing the six-month net loss by approximately $1.6 million.
• The Company hosts a conference call on November 10, 2026, to discuss results.
• Financial results for the quarter are preliminary estimates and subject to revision upon filing of the Form 10-Q.