Stratasys (Nasdaq: SSYS) has wrapped up 2024 with stronger margins but a full-year net loss.The polymer 3D printing leader navigated a year of economic headwinds, restructuring efforts, and shifting market dynamics.While revenue declined compared to 2023, the company managed to maintain profitability on an adjusted basis, improve gross margins, and secure a major investment from Fortissimo Capital, setting the stage for a potentially stronger 2025.
Stratasys is focusing on large-scale 3D printing, targeting industrial customers, and balancing cost controls and investments to fuel future growth.The company reported fourth-quarter revenue of $150.4 million, a decline from the prior year’s $156.3 million.Despite this dip, Stratasys improved its gross margin to 46.3%.
Also, the brand brought in $7.4 million in cash during the quarter, a big improvement from last year when it lost cash.Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also saw a significant boost, reaching $14.5 million compared to $7.7 million in the previous year’s quarter.However, the company recorded a net loss of $41.9 million, mainly because of a $30.1 million drop in the value of an investment.
During an earnings call with investors, Stratasys CEO Yoav Zeif said: “The strength of our offering is our ability to deliver measurable value through best-in-class solutions that enable our customers to scale their additive manufacturing operations effectively.These solutions are the growth engine that will drive our revenue and profit over time.And our customer trust is reflected in the continued strong levels of engagement, despite prolonged capital spending constraints.” Stratasys CEO Yoav Zeif giving the AMS 2024 Keynote Speech.
Image courtesy of Sarah Saunders/3DPrint.com.For the full year, revenue came in at $572.5 million, down from $627.6 million in 2023.While net loss for 2024 stood at $120.3 million, Stratasys posted an adjusted net income of $4.2 million, reflecting the impact of cost-cutting measures and other strategic changes.
The company also maintained a strong cash position, ending the year with $150.7 million in cash and equivalents, with no debt on its balance sheet.“In 2024 and early 2025, we took several key steps to enhance our leadership and strengthen our position at the forefront of additive manufacturing.Despite the industry-wide challenges due to macro headwinds, our recent commitment to right-size the company and deliver profits and cashflow was executed successfully, further demonstrating the resilience of our operating model and the effectiveness of our team,” explained Zeif.
“We also shared with you our strategy to be laser-focused on the most compelling applications, particularly ones that center around full-scale production.” Looking ahead, Stratasys has outlined a cautious but optimistic outlook for 2025.The company expects full-year revenue in the range of $570 million to $585 million, with sales improving each quarter.Adjusted gross margins are projected between 48.8% and 49.2%, with adjusted EBITDA expected to grow between $44 million and $50 million, reflecting a margin of 7.8% to 8.5%.
Stratasys is also anticipating stronger cash flow generation in 2025 compared to 2024.CEO Yoav Zeif highlighted the company’s focus on industrial applications and full-scale production, noting that 36% of revenue in 2024 came from manufacturing (a steady increase from 25% in 2020).Stratasys CEO Yoav Zeif at AMS 2024.
Image courtesy of 3DPrint.com.Stratasys is counting on strong customer interest and a rebound in spending to drive growth.The company highlighted new product launches.
The Fortus FDC filament dryer helps prevent moisture-related printing issues, boosting printer efficiency.The new polycarbonate electrostatic discharge (ESD) materials offer electrostatic discharge protection for electronic manufacturing.Meanwhile, Stratasys expanded its Origin P3 DLP platform with new materials designed for injection molding tooling.
Strategic partnerships, such as ArcelorMittal’s multi-year agreement with NASCAR, show Stratasys’ focus on industrial 3D printing.“We are in a time period of downturn in our industry, and everything looks dark and gray, but this is not the case with our customers.Just three weeks ago, we had a customer advisory board in Florida, the top corporation in the world, and the leaders of additive manufacturing in 14 of those companies.
And we forget as an industry and capital market the basics and the value proposition of additive because in manufacturing there are requirements only additive can deliver,” Zeif told investors.“For example, low volume, high mix, special geometries and assembly of parts, consolidation of parts, ensure the supply chain resiliency, personalization, improve sustainability.Only additive can do it, and especially in a world of uncertainty and geopolitical tension and trade wars.” The Stratasys Parts Provider Network (PPN) provides access to volume discounts on Stratasys systems, materials, service contracts, and software, as well as wholesale pricing for on-demand parts printed through Stratasys Direct Manufacturing Following the earnings release, a major development is the pending $120 million investment from Fortissimo Capital, which will give the Israeli private equity firm a 14% stake in Stratasys and a seat on its board.
With this additional cash, Stratasys has more flexibility for future moves, including potential acquisitions.Analyst Troy Jensen of Cantor Fitzgerald speculates that Stratasys may use this capital to acquire Desktop Metal or even Nano Dimension.In 2023, Desktop Metal first attempted to merge with Stratasys in a $1.8 billion deal, which Stratasys rejected.
In 2023, Desktop Metal’s market capitalization was roughly $700 million, but as of March 5, 2025, it was trading at around $70 million.Meanwhile, Nano Dimension’s planned acquisition of Desktop Metal is facing legal challenges, and a court ruling on March 11-12, 2025, will determine whether the deal moves forward.According to Jensen, if Nano Dimension’s new board successfully cancels the acquisition, Stratasys may try to acquire parts of Desktop Metal’s business, particularly its metals, sand, and materials divisions.
“I believe Stratasys is looking to acquire Desktop Metal and/or Nano Dimension, and this all depends on the outcome of Nano Dimension’s announced acquisition of Desktop Metal.If Nano Dimension’s new activist-loaded Board of Directors can get out of the Desktop Metal merger, we believe Stratasys will step in and try to acquire all or parts (metals, sand, materials) of Desktop Metal,” explains Jensen.Stratasys’ 2025 guidance suggests a steady, albeit slow, growth trajectory, with revenue expected to rise in the low-single digits.
Jensen projects a 2.5% increase for the year and a continued push for higher profitability.Stratasys aims to maintain at least an 8% EBITDA margin, with the potential to reach 10% if moderate revenue growth materializes.With most of its restructuring done and cost-saving measures in place, Stratasys is better positioned to handle industry challenges and plan for the future.
The company is focusing on large-scale 3D printing, key partnerships, and financial stability, plus the upcoming Fortissimo investment and potential acquisitions could determine its next moves.We have reached out to Stratasys for comment regarding Jensen’s statements and will update the article accordingly when we receive one.
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