3D Systems’ Q2 2025 results show improved profitability but declining revenues

3D Systems Corporation (NYSE:DDD) has released its financial results for the second quarter ended June 30, 2025, showing significant progress in profitability despite revenue pressures and a challenging global environment.

The company posted revenue of $94.8 million, a 16% decline compared to the same quarter last year. However, strong performance in Medical Technology and Aerospace & Defense helped offset weakness in consumer-related and dental markets. Notably, Aerospace & Defense revenues grew by 84% year-over-year and 53% sequentially, exceeding $30 million on an annualized basis. In the medical sector, personal health services and orthopedic applications drove double-digit growth, while dental demand declined due to softness in the aligner market.

Net income rose sharply, reaching $104.4 million compared to a loss in the prior year period. This improvement was fueled by cost savings, the divestiture of the Geomagic software platform, and gains from extinguishing debt at a discount. Adjusted EBITDA improved by $7.6 million year-over-year, reducing losses to $5.3 million. Gross profit margins came in at 38.1%, down from 41.6% last year, reflecting changes in business mix after the Geomagic sale.

“We delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry,” said Dr. Jeffrey Graves, president and CEO of 3D Systems. “Our cost savings initiatives, which we first announced in March, favorably impacted both gross margins and operating expenses on a sequential basis for the second quarter. Key elements of our cost and efficiency initiative include consolidation of our operational footprint, restructuring of our workforce, and various efficiency initiatives across the business. As announced, these savings initiatives will extend through mid-2026, paced in part by the rate at which real-estate leases for exited facilities are curtailed.”

Efficiency programs also delivered meaningful results. The company achieved over $20 million in cost savings during the quarter, with initiatives including workforce restructuring, operational footprint consolidation, and manufacturing efficiencies. These measures are expected to continue through 2026 and support a return to positive cash flow by that year.

3D Systems also reached a new milestone in its regenerative medicine partnership with United Therapeutics, advancing its work on 3D-printed human lungs. This achievement resulted in a $2 million award during the quarter, further highlighting the company’s long-term potential in life sciences.

“We are benefiting from our prior efforts to fully in-source manufacturing and supply chain operations, an initiative which is now virtually complete and helping to offset headwinds from tariffs,” Mr. Graves continued. “In the second quarter, tariffs increased our costs by roughly $1 million, but were largely countered through improved operating efficiencies in manufacturing operations, which supported our gross margin performance. Looking ahead we expect the impact of tariffs to continue impacting our operating costs as we move through the second half of the year.”