Velo3D Announces Q4 and Full-Year 2025 Results and Unveils Long-Term Capacity Expansion Plan

Key Highlights

• FY2025 Revenue: \$46 million (up from \$41 million in FY2024)
• Q4 2025 Revenue: \$9.4 million (down from \$12.6 million in Q4 2024)
• Backlog as of Dec 31, 2025: \$31 million
• 2026 Revenue Guidance: \$60 million to \$70 million
• EBITDA Positive Target: Expected in the second half of 2026 (previously expected in first half)
• Major Contracts: \$32.6 million Department of War contract; multi-year \$11.5 million RPS contract with U.S. defense prime contractor
• Strategic Expansion: Long-term plan to scale up to ~400 production systems over the next decade
• Balance Sheet: \$39 million in cash and equivalents at year-end 2025 (up from \$1.2 million at year-end 2024)
• Debt Reduction: \$15 million debt-to-equity conversion, reducing debt by 60%
• Private Placement: Raised \$30 million in new equity (capital to support growth and CapEx)

Detailed Business & Financial Review

Major Business Developments

• Velo3D was qualified as the first additive manufacturing vendor to support the U.S. Army’s Ground Vehicle Systems Center qualification initiative, marking a significant milestone in accelerating additive manufacturing (AM) adoption for ground combat vehicle components.
• The company entered a Cooperative Research & Development Agreement (CRADA) with the U.S. Army, focusing on advancing AM solutions to address critical defense supply chain challenges.
• Secured a \$32.6 million Department of War contract for Project FORGE, to prototype and qualify AM components and eliminate defense manufacturing bottlenecks.
• Won a multi-year \$11.5 million Rapid Production Solutions (RPS) contract from a key U.S. defense prime contractor for national security programs.
• Enabled GE Aerospace company Intergalactic to manufacture IN718 microtube heat exchanger headers for an accelerated aviation program using Velo3D’s RPS and Sapphire XC platform, drastically reducing time from design to production.

Financial Results – Q4 and Full-Year 2025

• Total FY2025 revenue reached \$46.0 million, up 12% YoY, driven by strong demand for RPS and an improved product mix.
• Q4 2025 revenue was \$9.4 million, down 25% from Q4 2024 due to product mix and lower number of system sales.
• Gross margin for FY2025 was negative at (16.1)% (FY2024: (5.1)%). The sharp drop in Q4 2025 to (73.6)% was mainly due to a \$7.0 million write-down of obsolete inventory and production delays from a government shutdown in the quarter.
• GAAP net loss for FY2025 was (\$71.4) million (FY2024: (\$69.9) million). Non-GAAP net loss improved to (\$41.3) million from (\$79.4) million.
• Adjusted EBITDA loss narrowed to (\$33.3) million in FY2025 from (\$58.5) million in FY2024.
• Operating expenses fell significantly to \$47.5 million (FY2024: \$76.8 million), reflecting improved cost discipline. Non-GAAP adjusted operating expenses were \$40.1 million (FY2024: \$66.5 million).
• Cash and cash equivalents surged to \$39.0 million at year-end, boosted by new equity and debt conversion, versus just \$1.2 million a year earlier.
• Debt deleveraging: \$15 million in debt converted to equity, reducing total debt by 60%.

Outlook and Guidance for 2026

• Revenue guidance: \$60 million to \$70 million, representing notable growth from 2025.
• Gross margin: Management expects sequential improvement, targeting over 30% in 2H 2026 as operational efficiencies and RPS ramp-up take hold.
• Adjusted operating expenses: Expected in the range of \$45 million to \$55 million.
• Capital expenditures (CapEx): Guidance of \$40 million to \$50 million in 2026, reflecting significant investments in scaling production.
• EBITDA positive target pushed back: Now expected in the second half of 2026 (previously first half), due to timing of capacity investments and revenue ramp.

Strategic Growth Plan – Massive Capacity Expansion

• Velo3D announced a long-term, demand-driven capacity plan to scale up to approximately 400 production systems over the next decade, supported by asset-backed financing and a growing portfolio of defense and aerospace programs.
• The company is exploring additional capital raises in the near term, with a focus on asset-backed debt and potential government-backed loans to minimize dilution.
• Any equity capital raised would primarily fund workforce and operational infrastructure, not equipment, further limiting dilution.
• Management is also considering selective M&A in 2026 to complement organic growth, accelerate expansion into key defense/aerospace programs, and strengthen the supply chain (especially for feedstock and metal powder).

CEO Commentary

“We achieved double-digit revenue growth in 2025, reflecting strong demand for our Rapid Production Solutions. Importantly, we set a new record for bookings in the fourth quarter, and with a robust backlog, we entered 2026 with tremendous momentum. Key initiatives, including the Department of War contract, multi-year defense RPS contract and adoption by the U.S. Army’s Ground Vehicle Systems Center, are accelerating our impact across defense and aerospace supply chains. Supported by private placement financing, debt-to-equity conversions that reduced outstanding debt by 60% and continued supply chain optimization, we believe we are well positioned to drive growth and deliver long-term value as we scale our operations globally.”
– Arun Jeldi, CEO, Velo3D

What Investors Should Watch

• Execution of the 400-system expansion plan and the company’s ability to secure non-dilutive financing will be key to future value creation.
• Management’s commitment to limiting shareholder dilution and focusing new equity on value-adding initiatives (not equipment purchases).
• Ramp-up of high-margin RPS business and the successful conversion of a large backlog into revenue and profit.
• Continued defense and aerospace contract wins, particularly with U.S. government and large primes.
• Ability to deliver sequential gross margin improvements and achieve positive EBITDA by late 2026.
• Potential M&A activity in 2026 to bolster supply chain and accelerate program wins.
• Risks remain: Execution risk, supply chain challenges, financing risk, and the need for ongoing capital infusions as flagged in forward-looking statements.

Conclusion

Velo3D is positioning itself as an essential supplier to the U.S. defense and aerospace sectors through a mix of large new contracts, a robust backlog, and a massive, demand-driven capacity expansion plan. The company’s deleveraging, improved liquidity, and focus on non-dilutive growth initiatives are positives for shareholders. However, execution risk is elevated given the scale of the planned expansion and ongoing need for capital. The company’s ability to deliver on its ambitious targets and secure the necessary financing will be critical to future share performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Investors should review the company’s filings and consult with a financial advisor before making investment decisions. The author and publisher take no responsibility for investment actions based on this summary.

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