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Velo3D's Financial Results for 2025: A Leap Towards Expansion

Velo3D, Inc. recently disclosed its financial outcomes for the fourth quarter and the complete fiscal year of 2025. The company, specializing in additive manufacturing (AM) technology, continues to mark its presence in the aerospace and defense sectors with notable advancements and a strategic expansion plan.

Financial Performance Overview

In 2025, Velo3D's revenue reached an impressive $46 million, demonstrating a significant growth compared to the previous year. However, a growing backlog of $31 million by the end of the year underlines the company’s ongoing commitment to meeting customer demands despite production challenges. The organization is projecting revenue growth to fall between $60 million and $70 million for 2026, further indicating its robust expectations amid a shifting market landscape.

Velo3D’s CEO, Arun Jeldi, attributed the positive trajectory to a burgeoning demand for their Rapid Production Solutions (RPS). The revenue figures from the fourth quarter also reflect this ascent, recording $9.4 million, even though there was a slight decrease compared to $12.6 million in Q4 2024.

Key Highlights from 2025

Velo3D's noteworthy achievements within the year include:

• - Defense Contracts: The company secured important contracts, including a $32.6 million agreement with the Department of War aimed at addressing manufacturing challenges within the defense sector. Additionally, it entered a Cooperative Research and Development Agreement with the U.S. Army to enhance AM solutions.
• - Expansion Initiatives: Aiming for a capacity increase, Velo3D introduced a strategic plan to develop approximately 400 production systems over the next decade. This growth is poised to be fueled by potential asset-backed financing and an expanded portfolio in defense and aerospace programs.
• - Financial Optimizations: The company managed to raise $30 million through private stock placements while successfully converting about $15 million of debt into equity, substantially decreasing its outstanding debt by nearly 60%.

Challenges and Operational Insights

Despite the positive growth, Velo3D faced challenges in maintaining its margins, with the full-year gross margin settling at -16.1%, primarily due to significant inventory write-downs and production delays. However, management is optimistic, aiming for margin improvements as production ramps up and operational efficiencies are achieved.

The adjusted operating expenses were significantly reduced from $76.8 million in 2024 to $47.5 million in 2025, which reflects serious steps taken to streamline operations amid market fluctuations.

Looking Ahead: Strategic Plans for 2026 and Beyond

For 2026, Velo3D is poised for more ambitious growth, foreseeing a ramp in production capacity catering to the demand in the defense industry. The CEO emphasized the focus on building local supply chains that are adaptive and robust as they endeavor to grow their operational capabilities. Velo3D plans to explore debt financing options and potentially government-backed loans to support the expansion of its production systems. The company is also considering select mergers and acquisitions in the upcoming year to bolster its growth trajectory further, particularly in specialized areas like feedstock and metal powder.

The company is preparing to convene an investor call to discuss these financial results in detail, scheduled for March 24, 2026. It aims to elaborate on its strategies and future trajectory amidst a challenging yet lucrative market.

Conclusion

Velo3D stands at a pivotal crossroads characterized by significant growth potential and strategic expansion within the AM landscape. As the company establishes itself further in the defense and aerospace industries, the upcoming years appear promising. With a solid operational strategy and financial backing, Velo3D is gearing up to harness the potential of additive manufacturing, cementing its status as a leader in transformative technology.