Stratasys Q4 Earnings Beat Estimates, Revenues Slip Y/Y, Shares Fall

Stratasys SSYS reported fourth-quarter 2025 non-GAAP earnings of 7 cents per share, which beat the Zacks Consensus Estimate by 40%. However, the figure plunged 41.7% year over year.

Revenues fell 7% year over year to $140 million. However, the figure beat the consensus mark by 0.61%.

SSYS shares fell more than 4.8% at the time of writing this article. The stock has declined 7.4% in the trailing 12 months compared with the Zacks Industrial Products sector’s return of 23.9%.

Stratasys’ Q4 Release in Detail

Segment-wise, product revenues dropped 7.1% year over year at $97.6 million. System revenues fell 7.1% year over year to $3.6 million. Consumables revenues decreased 0.6% year over year to $64.2 million. 

Services revenues declined 6.5% year over year to $42.9 million.

Stratasys’ non-GAAP gross margin contracted 330 basis points (bps) on a year-over-year basis to 46%.

Stratasys’ non-GAAP operating expenses in the fourth quarter of 2025 were $60.8 million, representing 43.4% of revenues. This was a decrease from $65.2 million (43.4% of revenues) in the year-ago quarter.

The adjusted EBITDA margin contracted 310 bps on a year-over-year basis to 6.6%. The non-GAAP operating profit was $4.1 million, down 56.4% year over year.

Stratasys’ Balance Sheet & Cash Flow Details

As of Dec. 31, 2025, Stratasys had cash and short-term deposits of $244.5 million compared with $255 million as of Sept. 30.

In the fourth quarter of 2025, the company reported an operating cash flow of $15.1 million.

Stratasys’ Offers Positive 2026 Outlook

For 2026, Stratasys expects revenues between $565 million and $575 million, suggesting sequential growth throughout the year. Non-GAAP earnings are expected to be 9-14 cents per share.

The company anticipates the gross margin between 46.7% and 47.1%. The non-GAAP operating margin is expected to be 0.7-1.5%.

Zacks Rank & Stocks to Consider

Currently, SSYS has a Zacks Rank #3 (Hold).

Alarm.com ALRM, Trimble TRMB and Flowserve FLS are some better-ranked stocks in the broader Zacks Industrial Products sector. 

Alarm.com sports a Zacks Rank #1 (Strong Buy), and Trimble and Flowserve have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Alarm.com, Trimble and Flowserve are currently pegged at 12.75%, 10% and 10.98%, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

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