3D Systems Reports 8.1% Revenue Decline and Increased Net Loss in Q1 2025

3D Systems Corporation reported a decline in financial performance for the first quarter of 2025, with total revenue of $94.5 million, down 8.1% from $102.9 million in the same period last year. The decrease was primarily driven by a $9.3 million drop in product revenue, attributed to lower materials volume in the dental, service bureaus, and jewelry markets. Service revenue, however, saw a slight increase of $1.0 million, reflecting growth in personalized healthcare solutions. The company recorded a net loss of $37.0 million, compared to a loss of $16.0 million in the prior year, resulting in a basic and diluted loss per share of $0.28.

In terms of operational metrics, 3D Systems experienced a slight increase in accounts receivable, which rose to $104.7 million from $101.5 million, while inventories increased to $120.0 million from $118.5 million. The company’s cash and cash equivalents decreased significantly to $135.0 million from $171.3 million at the end of 2024, reflecting cash used in operations and capital expenditures. The total stockholders' equity also fell to $145.6 million from $176.2 million, primarily due to the net loss incurred during the quarter.

Strategically, 3D Systems completed the sale of its Geomagic software business to Hexagon AB on April 1, 2025, for $119.4 million, which is expected to result in a pre-tax gain of approximately $125 million in the second quarter of 2025. The company is also implementing a 2025 Restructuring Plan aimed at achieving sustainable growth and profitability through cost savings and operational efficiencies. This plan is expected to incur pre-tax costs of $12 million to $20 million by the end of the second fiscal quarter of 2026.

The company continues to focus on its two reportable segments: Healthcare Solutions and Industrial Solutions. For the first quarter of 2025, Healthcare Solutions revenue decreased to $41.3 million from $45.4 million, while Industrial Solutions revenue fell to $53.2 million from $57.5 million. The gross profit for the total company also declined to $32.7 million from $40.9 million, reflecting the challenges faced in both segments.

Looking ahead, 3D Systems anticipates that the ongoing restructuring efforts and the recent divestiture will position the company for improved performance in the future. However, the company remains cautious about macroeconomic conditions, including inflation and supply chain disruptions, which could impact its operations and financial results. The management has indicated that they will continue to monitor these factors closely as they navigate the current business environment.