3D Systems Reports 16.3% Revenue Decline, Achieves Net Income Turnaround in Q2 2025

3D Systems Corporation reported a significant financial performance shift in its latest quarterly filing, revealing a total revenue of $94.8 million for the three months ended June 30, 2025, down from $113.3 million in the same period last year. This represents a decrease of 16.3%. For the first half of 2025, revenue totaled $189.4 million, a decline of 12.4% compared to $216.2 million in the first half of 2024. The decrease in revenue was primarily attributed to a drop in product sales, particularly in the dental and jewelry markets, as well as the impact of the divestiture of the Geomagic software business, which was completed in April 2025.

The company reported a net income of $104.4 million for the second quarter of 2025, a substantial turnaround from a net loss of $27.3 million in the same quarter of 2024. This improvement was largely driven by a pre-tax gain of $125.7 million from the sale of Geomagic. The gross profit for the second quarter was $36.2 million, down from $47.1 million a year earlier, reflecting the challenges in product sales and unfavorable pricing dynamics. Operating expenses also decreased significantly, with selling, general, and administrative expenses dropping to $34.1 million from $51.5 million in the prior year.

In terms of strategic developments, 3D Systems executed a restructuring plan aimed at optimizing operations and reducing costs, which included workforce reductions. The company anticipates incurring between $11 million and $20 million in pre-tax restructuring costs, primarily related to employee severance. Additionally, the company has been focusing on enhancing its Healthcare Solutions and Industrial Solutions segments, which are critical to its long-term growth strategy.

Operationally, 3D Systems reported a decrease in customer engagement, with product revenue declining by 25% year-over-year. The company’s inventory levels increased to $132.9 million, up 12.1% from the end of 2024, indicating a potential buildup of unsold products. The company’s cash and cash equivalents stood at $116.4 million, down from $171.3 million at the end of 2024, reflecting cash used in operations and financing activities, despite the influx from the Geomagic sale.

Looking ahead, 3D Systems remains cautious about the macroeconomic environment and its impact on business performance. The company is focused on executing its restructuring initiatives and improving operational efficiencies to drive profitability. Management has indicated that while the current market conditions present challenges, they are committed to leveraging their technological capabilities and market position to navigate these uncertainties and enhance shareholder value.