#United States #Fremont #Aerospace Defense #Additive Manufacturing #Velo3D

Velo3D Reports Impressive Q2 2025 Financial Results

On August 6, 2025, Velo3D, Inc. (OTCQX: VLDX), a frontrunner in the field of additive manufacturing (AM), unveiled its financial results for the second quarter ending June 30, 2025. The report showcases notable advancements in revenue, partnerships, and future aspirations that highlight the company's robust journey in the aerospace and defense sectors.

Quarterly Financial Performance

The company's revenue for the second quarter reached $13.6 million, a significant rise from $10.3 million in Q2 2024, showcasing an upward trajectory in their financial performance. Velo3D's backlog also reflected growth, amounting to $15.9 million as of June 30, rising to $17.8 million by July 25. Despite a net loss of $13.8 million for this quarter compared to $0.2 million in the previous year, CEO Arun Jeldi remains optimistic about a turnaround, emphasizing an expected growth of over 30% in annual revenue for 2025.

Investors can also anticipate that Velo3D will achieve an EBITDA positive status in the first half of 2026. The second quarter saw a gross margin improvement, which stood at (11.7%), up from (28.0%) in the same quarter last year, signaling operational improvements.

Key Business Developments

The quarter marked significant strategic advancements for Velo3D, particularly in its Rapid Production Services (RPS) sector. Bookings for RPS surged by 79% compared to the previous quarter, with over 78% of the bookings coming from new customers. Notably, 54% of bookings were derived from the Space sector, while 33% were from Defense.

Velo3D's commitment to innovation is underscored by several pivotal agreements, including a Cooperative Research and Development Agreement (CRADA) with two Naval Air Systems Command (NAVAIR) labs aimed at boosting additive manufacturing capabilities. Furthermore, the firm signed a $4 million two-year Master Services Agreement with Vaya Space, indicating a strong intent to further enhance its production and innovation initiatives.

Additionally, the company progressed with a $22 million strategic partnership with Amaero, succeeding a powder qualification milestone, and signed a five-year, $15 million master services agreement with Momentus, Inc. These collaborations are expected to greatly enhance Velo3D’s offerings in high-performance additive manufacturing.

Leadership Changes and Future Outlook

Velo3D recently appointed retired U.S. Army Green Beret and defense expert Brice Cooper as the Vice President of Defense and Government Relations, alongside bringing retired Navy Rear Admiral Jason Lloyd onto its Board of Directors. These leadership changes reflect the company's strategic foresight in aligning itself with proven veterans in the field.

“We are proud to have signed a CRADA with NAVAIR, which places us at the forefront of innovation in the aerospace and defense sector,” stated CEO Arun Jeldi during the earnings call. He highlighted a notable shift towards RPS in their backlog, fueled by an increasing demand from critical sectors.

As the company looks to the future, it aims to sustain operational discipline while continuing to broaden its market presence in additive manufacturing. With an optimistic forecast for the remainder of 2025, Velo3D plans to deliver greater than 30% gross margin in the fourth quarter, alongside maintaining its operational tempo which has seen continual improvement.

In conclusion, while Velo3D experienced losses this quarter, its strategic advancements and partnering initiatives are poised to position the company well for future success, with heightened expectations in both revenue and operational performance.

Conclusion

Velo3D remains a significant player in the additive manufacturing sector, focusing on innovation and strategic partnerships which will underpin its growth trajectory moving forward. Investors and stakeholders are encouraged to join the company's upcoming conference call for a more detailed discussion on these results and future plans.