3D Systems unveils its 2024 financial results, confirming earlier expectations
The Atomic Layers: S8E27 (00233)
Atomic Layer of the Day:
A lot of major events took place this week. The long-awaited launch of Bambu Lab H2D, the big (and a bit sensational) resolution of the dispute between Desktop Metal and Nano Dimension, and the creditors' meeting regarding Forward AM’s future, which took place yesterday, though its results remain officially unknown.
Meanwhile, in the background, 3D Systems published its official financial results for the fourth quarter of 2024 as well as for the entire past year.
As previously expected, the numbers are not great, but on the other hand, they provide a sense of stability for the future. And in today’s world, stability is probably worth much more than promises of growth (we’ve already seen how that played out with many companies).
Let’s start with the fourth quarter:
Revenue amounted to $111.0 million, representing a -3% decline compared to the same period a year earlier. This result was affected by an accounting adjustment of $8.7 million related to a change in the method of recognizing milestones in the Regenerative Medicine program.
The Healthcare Solutions segment recorded a significant revenue drop of -21% to $40.4 million, directly linked to this adjustment. On the other hand, the Industrial Solutions segment grew by +11% to $70.7 million, indicating an improvement in the sales of industrial 3D printers and services.
Gross profit margin stood at 31.0%, a significant deterioration compared to 38.3% a year earlier. On a non-GAAP basis, the margin was 31.3% versus 39.8% in Q4 2023. However, after excluding the impact of the accounting adjustment, the non-GAAP margin was at a much better level of 36.3%, suggesting that the company’s core business remained relatively healthy.
Net loss significantly decreased to $33.7 million from $292.7 million a year earlier, mainly due to the absence of large goodwill impairment charges. Adjusted EBITDA worsened to -$19.1 million from -$14.0 million in Q4 2023.
Now the full year 2024:
Revenue declined by -10% to $440.1 million. Both main segments were affected: Healthcare Solutions dropped by -11% to $189.7 million, while Industrial Solutions fell by -9% to $250.4 million. Gross margin decreased to 37.3% from 40.2% in 2023, while the non-GAAP margin was 37.4% versus 40.6% the previous year.
As with the quarterly results, margin deterioration was influenced by the Regenerative Medicine program adjustment and higher production costs. Net loss improved to -$255.6 million from -$362.7 million in 2023, while Adjusted EBITDA significantly worsened to -$66.4 million from -$26.3 million the previous year.
Compared to 2023, we observe a clear improvement in reducing net losses and signs of recovery in the industrial segment. On the other hand, persistent revenue declines and worsening profitability indicators may raise concerns. Particularly worrying is the significant drop in Adjusted EBITDA, which indicates difficulties in generating operational cash flow.
However, the announcement of additional cost savings of $50 million annually starting in 2026 and the plan to achieve positive Adjusted EBITDA by Q4 2025 could be seen as positive signals.
But the most important factor is the mentioned stability.
The company has strong financial liquidity, holding $171 million in cash and expecting an additional $123 million from the planned sale of Geomagic to Hexagon. This significantly reduce financial risk.
Currently, 3D Systems is in a transition period, and its future results will largely depend on the effectiveness of the cost-saving initiatives being implemented.
Atomic Layer from the Past:
03-27-2017: Michał Sołowow – the richest man in Poland, took over 100% of the shares in 3DGence.
‘2013 in AM’ - brand new history book! GET IT NOW!
News & Gossip:
AMIS has been honored as a finalist in the prestigious TCT Awards 2025 for its AMIS Pro software. The software's intelligent automation reduces manual errors while accelerating production timelines, delivering measurable ROI for print service providers and industrial manufacturers. Key differentiators include proprietary algorithms for support generation, AI-driven error detection, and cloud-based collaboration tools that streamline the entire digital workflow. Winners will be announced September 18 at the TCT Awards ceremony in Birmingham, UK.
Nanoe unveiled Zetamix TiO₂ – the highest-permittivity (ε≈75) printable ceramic. Co-developed with Thales/LEAT, the rutile-based filament for FFF 3D printers enables compact dielectric resonators and antennas via bound filament fabrication. Compared to zirconia, it reduces part size/weight while maintaining RF performance, benefiting aerospace/defense applications.
Stratasys introduced AIS Antero 800NA and 840CN03, NCAMP-qualified materials for its F900 printer, developed with industry leaders like Boeing and Northrop Grumman. These high-performance thermoplastics withstand extreme temperatures/chemicals, reducing qualification costs for aerospace/defense applications.