3D Systems (NYSE: DDD) has reported its financial results for the second quarter of 2025, showing a drop in revenue but a sharp improvement in profitability, driven by cost reductions, efficiency gains, and strong performance in key markets.
Revenue Down, But Margins Improve
The company posted revenue of $94.8 million for the quarter ending June 30, 2025, a 16% drop compared to the $113.3 million recorded in the same period last year. Healthcare Solutions — which includes medical and dental 3D printing products, materials, and services — fell 8% to $45 million. The decline was mainly due to weaker demand in the dental segment, especially from customers in the aligner market.
Meanwhile, its Industrial Solutions segment — covering 3D printing systems, materials, and services for aerospace, defense, automotive, and other manufacturing sectors — dropped 23% to $49.8 million, pointing to reduced capital spending in markets that sell directly to consumers.
In addition to the sales decline, gross profit margin was 38.1%, down slightly from 41.6% a year earlier. On an adjusted basis, it was 39.2%. The company said the decline was partly due to a less favorable product mix following the sale of its Geomagic software business earlier in the quarter.
Cutting Costs Pays Off
3D Systems reported net income of $104.4 million, a major turnaround from a $27.3 million loss in Q2 2024. This change was the result of stronger operations, a $125.7 million pre‑tax gain from selling the Geomagic business, and an $8.2 million gain from repurchasing debt at a discount.
Late in the quarter, the company made major changes to its finances. It paid off $88 million in debt, pushed most of its remaining debt payments out to 2030, and bought back 8 million shares to give existing shareholders a larger stake in the company. CEO Jeffrey Graves called this a “balance sheet transformation” that will help support future growth.
Operating expenses fell to $51.5 million from $73.5 million last year, thanks to restructuring moves announced in March. These included consolidating operations, cutting workforce costs, and other efficiency programs. The company said it saved over $20 million in operating expenses during the quarter and expects the cost-cutting plan to continue into mid-2026.
Graves said, “We are benefiting from our prior efforts to fully in-source manufacturing and supply chain operations, an initiative which is now virtually complete and helping to offset headwinds from tariffs. In the second quarter, tariffs increased our costs by roughly $1 million, but were largely countered through improved operating efficiencies in manufacturing operations, which supported our gross margin performance.”
Jeffrey Graves speaks at AMS 2025. Image courtesy of 3DPrint.com.
Mixed Market Performance
So, while overall revenue was down, some areas showed strong growth. Medical Technology sales, especially in orthopedic procedures and trauma-related surgeries, rose 13% year-over-year and 16% from the previous quarter. Aerospace and Defense sales jumped 84% compared to Q2 2024 and 53% from Q1 2025, now generating over $30 million annually.
“For our industrial customers, while consumer-facing markets were weak, we experienced strong demand in Aerospace & Defense, with revenues growing 84% from the prior year, and 53% sequentially from the first quarter,” explained Graves. “Central to our growth in A&D is our unique ability to meet customers’ needs from the inception of process development, through initial part production, and ultimately to full-scale printer supply when demand rises. We are the only US provider of 3D printing technologies that can offer this full spectrum of capability, and do so over the entire breadth of polymer and metal printing technologies. Moreover, we can do this regionally within the US and within EMEA for industrial customers needing high-reliability components. For this reason, we are excited about our future growth in these markets that demand the highest component reliability, such as Aerospace & Defense, AI infrastructure, and Oil & Gas, to name a few.”
Meanwhile, the dental business was down 3% for the quarter, with aligner market demand falling 19% sequentially. This is in line with a broader slowdown in the aligner market, as Align Technology (the maker of Invisalign) also recently reported a softening in demand in its Q2 earnings. Consumer-related industrial sales also suffered from weaker customer capital spending, which 3D Systems attributed to uncertainty around tariffs.
Strategic Moves
The company highlighted a milestone in its long-term partnership with United Therapeutics, which aims to develop 3D printed human lungs for transplant. The project, part of United Therapeutics’ broader regenerative medicine program, reached a new printing benchmark for human lung scaffolds in the quarter, resulting in a $2 million award for 3D Systems.
In recent months, 3D Systems has seen several changes in its bioprinting segments. The company closed its Systemic Bio subsidiary, which had focused on production-scale bioprinted tissue models. Taci Pereira, who led Systemic Bio, has since left the company and is now CEO of BALSA, a nonprofit organization dedicated to empowering the community of Brazilians in life sciences in the U.S. Despite the closure, 3D Systems remains active in bioprinting through its Allevi subsidiary and its ongoing work with United Therapeutics.
3D Systems creates implantable medical devices. Image courtesy of 3D Systems.
At the end of June, the company had $116.4 million in cash and cash equivalents, down from $171.3 million at the end of 2024. The drop was mainly due to $59.6 million used in operations and $97.3 million used in financing activities, partially offset by $112.9 million from investing activities.
3D Systems expects its cost savings program, debt restructuring, and focus on high-growth markets like medical technology and aerospace to help return the company to positive cash flow in 2026. However, management warned that tariffs will likely continue to impact costs in the second half of the year. In addition, the company said it will not provide detailed forecasts for certain measures, citing the “unpredictability of factors such as litigation costs, acquisitions, restructuring charges, and other items that could materially affect results.”