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3D printing company 3D Systems (NYSE:DDD) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 8.1% year on year to $94.54 million. Its non-GAAP EPS of $0.21 per share was 44.8% below analysts’ consensus estimates.
Is now the time to buy DDD? Find out in our full research report (it’s free).
3D Systems’ first quarter results reflected a challenging demand environment, with management attributing the sales decline primarily to customer capital spending freezes across most industrial markets. CEO Jeffrey Graves pointed to the ongoing uncertainty around global tariffs as a key factor delaying customer investments, noting that with the exception of healthcare and defense, customers are hesitant to deploy new manufacturing capacity. Graves emphasized that the company’s recent completion of a multi-year refresh of its polymer and metal product lines required sustained R&D spending, which set 3D Systems apart from its peers. However, he acknowledged that this investment came at a cost, as the company must now shift focus toward expense reduction given the current market backdrop.
Looking ahead, 3D Systems’ outlook remains cautious, with management withdrawing full-year guidance due to continued volatility in customer spending and unresolved tariff issues. Graves stated, “Given the continuation of economic and geopolitical instabilities and the rapidly shifting tariff landscape, we decided to approach our outlook for the remainder of 2025 with a conservative view.” The company plans to accelerate cost-cutting initiatives, targeting $70 million in annualized savings, and aims to reach profitability at current revenue levels. While core growth opportunities in personalized healthcare, dental solutions, and high-reliability industrial sectors were highlighted, management indicated that further R&D investments will be selectively prioritized as the company adapts to an uncertain demand environment.
Management cited weak customer capital spending and delayed orders, particularly in dental materials and end-of-quarter shipments, as the main drivers behind the revenue shortfall.
Management expects recovery to depend on stabilization in global tariffs, successful execution of cost reductions, and targeted expansion in resilient markets like healthcare and high-reliability industrial sectors.
In the next few quarters, the StockStory team will monitor (1) the impact of cost reduction initiatives on operating margins and cash flow, (2) the commercial launch and market reception of the NextDent 300 jetting system for dental applications, and (3) continued growth in metal printing and personalized healthcare segments. We will also track customer capital spending trends as tariff developments unfold.
3D Systems currently trades at a forward price-to-sales ratio of 0.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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