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Velo3D's Third Quarter 2025 Financial Report

In an exciting announcement, Velo3D, Inc. (Nasdaq: VELO), a leader in additive manufacturing technology, released its third quarter financial results for 2025. The quarter ending September 30, 2025, marked a significant period of growth and development for the company, which has been actively transforming the aerospace and defense supply chains with its cutting-edge metal AM techniques.

Financial Overview

During this quarter, Velo3D reported a revenue of $13.6 million, compared to $8.2 million in the same period last year. This increase signals a positive market reception for the company’s innovative products, especially in the high-demand sectors of aerospace and defense.

The company's backlog as of September 30 stood at $21.1 million, reflecting strong demand and operational momentum. Velo3D has reaffirmed its forecast for total revenue to be between $50 million and $60 million for the entire fiscal year of 2025, highlighting newfound confidence in its broadened operational capabilities.

Cost Management and Profitability Goals

Velo3D’s management indicated that they expect to achieve positive EBITDA in the first half of 2026, a significant strategic goal as they work towards enhanced financial stability. CEO Arun Jeldi expressed optimism regarding the company's Rapid Production Services (RPS), which recorded a backlog increase of 22% quarter-over-quarter, and noted that new customer acquisitions demonstrated the growing appeal of Velo3D’s technology offerings.

Key Developments during Q3 2025

The third quarter also ushered in various strategic partnerships and technological advancements:

• - Uplisting to Nasdaq: The completion of the uplisting to the Nasdaq Capital Market has provided Velo3D better visibility and accessibility in attracting potential investors.
• - Public Offering Success: The successful public offering of 5,833,333 shares at $3.00 per share generated approximately $17.5 million in gross proceeds, enabling the Company to accelerate its growth strategies.
• - Defense Sector Engagements: Velo3D secured several agreements, including a $6 million contract to develop copper-nickel alloy applications in support of the U.S. Navy, ensuring commitment to enhancing technological capabilities for defense services.
• - Innovative Partnerships: The expansion of partnerships with organizations like Innovative Rocket Technologies Inc. and Linde AMT aims for further utilization of Velo3D's printers in reusable launch vehicle production and supply of advanced material powders, respectively.

Margin Improvements and Operating Expenses

Despite reported losses, operational efficiency has been a focus for Velo3D, with gross margins reflecting improvement from previous quarters. The gross margin for Q3 was 3.2%, significantly recovering from a prior loss margin in Q2 and striving towards more sustainable profit structures moving forward.

Operating expenses were reduced to $11.1 million, a substantial decrease from $22.9 million year-on-year, showcasing the company’s efforts in disciplined cost management. Jeldi remarked that such improvements in expenditure are essential for enhancing overall profitability.

Looking Ahead: Strategic Vision

The strategic outlook of Velo3D remains positive, driven by collaboration in aerospace and defense sectors. With its innovative manufacturing solutions and commitment to operational excellence, the company is poised to sustain its growth trajectory. Investors are encouraged to keep an eye on Velo3D as it hosts its upcoming conference call on November 10, 2025, to discuss these results in more detail and provide insights into future endeavors.

Conclusion

Overall, Velo3D's third-quarter results point to robust growth and a focused strategy aimed at tackling industry challenges while seizing market opportunities. With upcoming advancements and expected improvements in profitability, Velo3D is set to enhance its stature in the metal 3D printing landscape.