Stratasys (SSYS) Q3 2025 Earnings: Revenue Slips, Cash Flow Strengthens as 3D Printing Leader Reaffirms 2025 Outlook

Stratasys Ltd. (NASDAQ: SSYS), a leading player in polymer 3D printing and additive manufacturing, reported third-quarter 2025 results this morning that paint a mixed picture: modestly lower revenue, a sharply wider GAAP loss driven by a non‑cash impairment, but improved cash generation and reaffirmed full‑year guidance. ^[1]

The market is taking the news in stride. After closing at $9.54 per share on November 12, SSYS traded higher in pre‑market and early Thursday action, with at least one report citing a gain of around 7% intraday as investors focused on positive cash flow and a solid balance sheet. ^[2]

Quick takeaways on Stratasys Q3 2025

Revenue: $137.0 million, down about 2.2% year over year from $140.0 million. ^[3]
GAAP net loss:$55.6 million, or $0.65 per share, more than double last year’s $26.6 million loss, mainly due to a large non‑cash impairment. ^[4]
Non‑GAAP earnings:$1.5 million in net income, or $0.02 per share, up from $0.4 million ($0.01 per share) a year ago. ^[5]
Impairment charge: Includes a $33.9 million non‑cash impairment (about $0.40 per share) related to Stratasys’ investment in Ultimaker. ^[6]
Margins:
- GAAP gross margin fell to 41.0% from 44.8%.
- Non‑GAAP gross margin slid to 45.3% from 49.6%. ^[7]
Cash & balance sheet:
- $6.9 million of cash generated from operations vs. $4.5 million used in the prior‑year quarter.
- $255 million in cash, equivalents and short‑term deposits and no debt as of Sept. 30, 2025. ^[8]
Outlook: Full‑year 2025 revenue guidance of $550–$560 million and non‑GAAP EPS of $0.13–$0.16, reaffirmed despite macro headwinds. ^[9]

Earnings recap: soft top line, better cost discipline

Stratasys’ Q3 2025 revenue came in at $137.0 million, down from $140.0 million a year earlier, with both product and service lines contributing to the decline. Product revenue was essentially flat at about $94 million, while services fell from roughly $45.9 million to $42.9 million. ^[10]

That modest revenue drop translated into a sharper decline in gross profit:

Gross profit fell from $62.7 million to $56.1 million,
GAAP gross margin compressed from 44.8% to 41.0% as costs increased relative to sales. ^[11]

The good news: operating expenses moved the right way. Stratasys continued to tighten spending without halting innovation:

R&D fell from about $24.7 million to $20.6 million (roughly a 17% reduction).
Selling, general & administrative (SG&A) declined from about $63.5 million to $58.2 million (around 8% lower).
Total operating expenses dropped about 11% year over year, reducing the GAAP operating loss from $25.5 million to $22.7 million. ^[12]

On an adjusted (non‑GAAP) basis, the picture looks more stable: Stratasys reported non‑GAAP operating income of $0.1 million, versus a small non‑GAAP operating loss in Q3 2024. ^[13]

The Ultimaker hit: why GAAP loss more than doubled

The headline GAAP loss of $55.6 million looks alarming at first glance, but it’s heavily influenced by a non‑cash impairment related to Stratasys’ investment in Ultimaker, booked within “share in losses of associated companies.” ^[14]

According to the company’s Q3 press release, this $33.9 million impairment (around $0.40 per share) is the main reason the GAAP net loss more than doubled year‑over‑year, even as operating losses actually narrowed and adjusted profitability improved. ^[15]

Stripping out non‑recurring items and stock‑based compensation, Stratasys posted:

Non‑GAAP net income of $1.5 million vs. $0.4 million last year.
Non‑GAAP EPS of $0.02 vs. $0.01. ^[16]

That aligns with coverage from outlets like the Associated Press, which highlight the contrast between the GAAP loss and the modest adjusted profit. ^[17]

Guidance: 2025 outlook reaffirmed despite macro pressure

Management opted to reiterate its non‑GAAP full‑year outlook, while tweaking GAAP guidance to reflect the Ultimaker impairment. For 2025, Stratasys now expects: ^[18]

Revenue:$550–$560 million (midpoint $555 million)
Non‑GAAP gross margin:46.7–47.0%
Non‑GAAP operating margin:1.5–2.0%
Non‑GAAP EPS:$0.13–$0.16
Adjusted EBITDA:$30–$32 million
GAAP net loss:$110–$99 million (GAAP EPS of –$1.34 to –$1.21)
Positive operating cash flow and $20–$25 million in capex

Several data providers note that this guidance is roughly aligned with Wall Street expectations: consensus revenue sits near the midpoint around $553.3 million, and consensus non‑GAAP EPS is about $0.14, right in the guided range. ^[19]

“Resilient” business model and a fortress‑like balance sheet

CEO Dr. Yoav Zeif framed Q3 as proof that the company’s recurring revenue and cost discipline are cushioning macro headwinds.

“Our third quarter results demonstrate the resilience of our business model,” Zeif said, pointing to solid operating cash flow and positive adjusted EPS driven by recurring revenue and tighter costs. ^[20]

Key balance‑sheet points:

$255 million in cash, cash equivalents and short‑term deposits
Zero debt
Total assets just over $1.08 billion as of Sept. 30, 2025 ^[21]

This gives Stratasys room to keep investing in growth areas even while GAAP profitability is under pressure.

Zeif highlighted targeted investments in aerospace and defense, automotive tooling, dental applications, precision machine components and medical anatomic modeling, areas where polymer 3D printing has strong, high‑value use cases. ^[22]

Beat, miss or “in line”? Why coverage disagrees

If you scan financial headlines today, you’ll see three different narratives:

“In line with expectations.” Some outlets note that Q3 revenue of $137 million essentially matched their compiled estimate (~$136.6 million). ^[23]
“Beat on profitability, mixed quarter overall.” Others focus on non‑GAAP EPS of $0.02 beating a breakeven consensus, but acknowledge revenue slightly lagged estimates of around $139.3 million. ^[24]
“Missed by $0.07, revenue fell short.” Investing.com, using a higher EPS consensus of $0.09 and revenue consensus of $143.9 million, characterizes the quarter as a miss on both top and bottom lines. ^[25]

All three can be true, depending on which data vendor’s estimates you use (and whether you compare GAAP or non‑GAAP metrics). That’s why you’ll see terms like “in line,” “beat,” and “miss” all applied to the same set of results today.

What’s less debatable is the underlying trend: revenue is slightly down, gross margins are under pressure, but cash generation and non‑GAAP earnings have improved, and the company still expects to grow modestly in 2025.

SSYS stock reaction: cautious optimism

Heading into earnings, Stratasys shares had drifted lower over the past month but were roughly flat over the last quarter. The stock closed November 12 at $9.54, giving the company a market cap of roughly mid‑$600 million. ^[26]

Today’s release and guidance sparked a relief rally:

Pre‑market data showed SSYS ticking higher from that $9.54 close. ^[27]
A separate earnings reaction piece reported the stock up about 7% despite mixed commentary on the “beat vs. miss” debate, with traders apparently rewarding the cash‑flow improvement and reaffirmed outlook. ^[28]

Longer term, Stratasys shares are still down slightly over the last 12 months, highlighting investor skepticism around the entire industrial 3D printing space. ^[29]

Product & technology news: new materials, faster printing, smarter software

Today’s earnings story doesn’t exist in a vacuum. It comes just days after Stratasys rolled out a wave of product and software enhancements aimed at cementing its position in high‑value industrial workflows.

On November 11, Stratasys announced new materials and features across its FDM, SAF and P3™ DLP platforms, plus software upgrades designed to cut lead times and improve part quality. ^[30]

Highlights include:

FDM updates
- CoatReady™ print mode for ULTEM™ 9085 on the F900, designed to deliver smoother surfaces that require less sanding and priming, reducing manual finishing time. ^[31]
- A new Nylon 12CF T40 tip for the Fortus 450mc that nearly doubles build speed for large, high‑strength parts. ^[32]
- ABS Fortus® PLUS TrueRefill™, a refill solution that can cut ABS material costs by over 35% while reducing packaging waste. ^[33]
SAF improvements
- An Enhanced Accuracy Mode for SAF™ PP on the H350™, aiming to improve dimensional accuracy and reduce warping in larger builds—important for automotive and industrial parts. ^[34]
P3 DLP & SLA advances
- A new ceramic‑filled material (Ultracur3D® RG 3280) for Origin printers, targeting mold tools and high‑temperature applications.
- LayerControl+™ software for SLA systems, which automatically manages thermal variations to cut build failures and surface defects. ^[35]

These launches will be showcased at Formnext 2025 in Frankfurt (Nov. 18–21), where Stratasys plans to demonstrate how customers can “get serious about additive” across prototyping, tooling and full‑scale production. ^[36]

For investors, the key question is whether these innovations translate into sustained revenue growth, especially in aerospace, automotive and medical applications where certification, repeatability and total cost of ownership matter more than flashy demos.

Conference call: what investors will listen for

Stratasys is hosting its Q3 2025 earnings conference call today at 8:30 a.m. ET, with a live webcast available via its investor relations site. ^[37]

Key topics likely to dominate the Q&A:

Margin trajectory
- How much of the gross margin pressure is structural (mix, pricing, competition) vs. temporary (volume, input costs)?
- Can new materials and software features support premium pricing or cost savings over time?
Demand trends by vertical
- Are aerospace and defense programs ramping as expected?
- How is demand evolving in dental and medical modeling, where regulatory and workflow integration can be barriers?
Ultimaker impairment and future investments
- What drove the Ultimaker write‑down, and does it signal a broader rethink of Stratasys’ partnership and investment strategy?
- How will the company balance M&A, joint ventures and organic R&D?
Cash allocation and profitability path
- With $255 million in cash and no debt, what’s the timeline for sustainably positive GAAP earnings?
- Will management prioritize further cost reductions, aggressive growth investments, or shareholder‑friendly moves like buybacks if conditions improve?

Bottom line

On November 13, 2025, the story around Stratasys (SSYS) is one of measured progress rather than dramatic turnaround:

Revenue is slightly lower and margins are under pressure,
GAAP earnings are weighed down by a sizable impairment,
But non‑GAAP profitability, operating cash flow and a strong balance sheet all moved in a positive direction,
And management still believes it can deliver on its 2025 guidance despite macro and industry headwinds. ^[38]

For investors and industry watchers, the next few quarters will show whether the new materials, software and high‑value verticals that Stratasys is betting on can finally turn incremental progress into durable growth.

Note: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.

Did You Miss The 3D Printing Stocks Explosion?!? | Stratasys (SSYS) Analysis