Velo3D Reports $9.3 Million Revenue in Q1 2025, Faces Liquidity Concerns

Velo3D, Inc. reported a total revenue of $9.3 million for the first quarter of 2025, a decrease of 4.8% compared to $9.8 million in the same period of 2024. The decline was primarily driven by a reduction in sales of 3D printers, which amounted to $7.5 million, down from $7.7 million year-over-year. The company did not generate any revenue from its recurring payment model, which had contributed $470,000 in the prior year. However, support services revenue increased by 8.1% to $1.8 million, reflecting a growing installed customer base.

The company's cost of revenue also decreased significantly, totaling $8.6 million for the quarter, down from $12.6 million in the previous year, resulting in a gross profit of $697,000 compared to a loss of $2.8 million in Q1 2024. This improvement in gross profit was attributed to lower costs associated with system sales and operational efficiencies. Operating expenses were reduced by 32.3% to $12.6 million, driven by substantial cuts in research and development and selling and marketing expenses, which fell by 76% and 52.7%, respectively.

Velo3D's net loss for the quarter was $25.4 million, a slight improvement from a net loss of $28.3 million in the same period last year. The company reported a basic and diluted net loss per share of $0.13, compared to a loss of $3.81 per share in Q1 2024. The reduction in losses was influenced by lower interest expenses and a decrease in losses related to the fair value of warrants. The company’s accumulated deficit increased to $455.7 million as of March 31, 2025.

In terms of operational metrics, Velo3D's cash and cash equivalents rose to $3.9 million from $1.2 million at the end of 2024, while accounts receivable increased to $4.6 million. The company’s total liabilities also grew to $58.5 million, up from $49.5 million at the end of the previous fiscal year, largely due to an increase in current debt obligations. The company’s employee headcount has been reduced as part of cost-cutting measures, which are expected to continue as Velo3D navigates its financial challenges.

Looking ahead, Velo3D faces significant liquidity concerns, with management expressing substantial doubt about the company's ability to continue as a going concern for the next 12 months. The company is actively seeking additional financing to meet its operational needs and has engaged in discussions with multiple financing sources. Recent strategic developments include a Master Service Agreement with Momentus, Inc. and changes to the Board of Directors, which may influence future operational directions.