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

Velo3D Announces First Quarter 2025 Financial Results

Velo3D, Inc. (OTCQX: VLDX), a frontrunner in additive manufacturing technology, has divulged its financial performance for the first quarter of 2025, marking notable advancements in both revenue and strategic initiatives. The company continues to redefine the aerospace and defense supply chains through advancements in metal additive manufacturing (AM).

Financial Overview

Velo3D reported revenue of $9.3 million for Q1 2025, reflecting a minor decrease compared to $9.8 million in the same period last year. However, the company achieved a significant improvement in its gross margin, rising to 7.5% from a staggering negative 28.8% year-over-year. This improvement can be attributed to effective cost reduction measures and enhanced manufacturing processes.

Despite the challenges, Velo3D also reported a reduction in GAAP net losses, narrowing to $25.4 million this quarter from $28.3 million in Q1 2024. Non-GAAP net loss stood at $8.9 million, a positive sign of operational efficiency as it excludes specific one-time expenses.

As of March 31, 2025, the company has a robust backlog of $18 million, primarily driven by its new Rapid Production Services (RPS) offering. This business model reflects Velo3D's commitment to diversify its revenue streams, particularly focusing on the defense sector, which has seen over 50% demand.

Strategic Developments

Among the most crucial developments is the recent $15 million master services agreement signed with Momentus, Inc., targeting the enhancement of the RPS offering. This agreement underscores Velo3D's role in reshoring advanced manufacturing capabilities within the U.S.

The first quarter also saw the company signing an exclusive supply agreement with Amaero Advanced Materials Manufacturing, Inc., which aims to further solidify the company’s position in the additive manufacturing sector. Furthermore, Velo3D has received an order for its fourth Sapphire XC printer from Mears Machine Corporation, specifically to cater to aerospace and industrial applications.

In a move to bolster its defense and government relations, Velo3D appointed Brice Cooper, a retired U.S. Army Green Beret, as Vice President, further emphasizing its focus on military applications. Additionally, former Navy Rear Admiral Jason Lloyd and Kenneth Thieneman have joined the Board of Directors, bringing invaluable industry experience.

Future Outlook

Arun Jeldi, CEO of Velo3D, reflected on the current momentum, stating, “We are seeing early results from our new go-to-market strategy, which is gaining significant traction with both new and existing customers, particularly in the defense and aerospace industries.” The company reiterates its ambition for over 30% annual revenue growth in 2025 and to achieve EBITDA positivity by the first half of 2026.

Jeldi further highlighted the expectations that RPS could contribute up to 40% of their revenue by 2026, signaling a transformative shift in Velo3D's operational focus. The emphasis on developing a resilient U.S.-based supply chain for high-quality parts presents a promising pathway for both current achievements and future growth.

Investors and stakeholders are encouraged to follow the company's updates closely as Velo3D is scheduled to hold a conference call to discuss these results in detail, showcasing their pathway towards enhancing profitability and market position in the dynamic field of additive manufacturing.