Velo3D reports fourth quarter and fiscal year 2024 financial results
April 1, 2025
Velo3D, headquartered in Fremont, California, USA, has announced its financial results from the fourth quarter and fiscal year ended December 31, 2024.
“The fourth quarter of 2024 was a transformational quarter as we completed the debt for equity exchange where Arrayed Notes Acquisition Corp., a wholly owned subsidiary of Arrayed Additive Inc, became our majority shareholder in addition to successfully implementing a number of strategic initiatives that we believe position the company for future growth,” said Arun Jeldi, CEO of Velo3D.
“These initiatives focused on a number of critical areas including expanding our revenue streams to maximise growth, increasing gross margin, improving our manufacturing efficiency and reducing operating expenses, all while laying the foundation for our new business model – one we believe will accelerate our path to long-term profitability. As a result of our progress, we believe we are now in a much stronger financial and operational position to execute our strategic priorities and reclaim our leadership in Additive Manufacturing. We are already seeing material benefits from our new programs and expect sequential quarterly improvement in our operational performance in 2025. With our disciplined strategic execution, improved financial health and strengthened market position, we have renewed confidence in achieving our future goals.”
“Our new go-to-market strategy is gaining significant traction with both new and existing customers, especially in the US defence and aerospace industries as customers look to expand their domestic supply chains. Our new total solutions approach builds upon our legacy of successful systems sales to OEMs by integrating internal parts production capabilities for our customers while maintaining our industry-leading customer service. We believe this model fully leverages our extensive product and materials expertise and will result in more diversified revenue streams while driving margin expansion,” Jeldi added.
“Specifically, our recently launched Rapid Production Solutions (RPS) business is designed to meet the growing demand for scalable, high-quality production parts, providing customers with a clear, reliable path from concept to production. This solution streamlines the production process by shortening design cycles, accelerating production qualification, and ensuring consistent, high-quality parts. Additionally, RPS utilises a US-based supply chain to offer flexible production options tailored to each customer’s needs. Current partners include leading companies in the defence, aerospace, and technology industries where RPS is making Additive Manufacturing more accessible, cost-effective and scalable. We are encouraged by the increasing customer demand we are seeing for this solution and expect it to account for up to 40 percent of our revenue in 2026,” Jeldi concluded.
Summary of fourth quarter 2024 results
Revenue for the fourth quarter was $12.6 million. System revenue increased compared to the fourth quarter of 2023, driven by an increase in the number of Sapphire XC system sales. The company expects system sales to continue to be the main driver of 2025 revenue though, under its new go-to-market strategy, the company expects its RPS parts production business to account for an increasing percentage of revenue starting in the second half of 2025. Support services and recurring payment revenue declined compared to the fourth quarter of 2023 due to a slight reduction in customers with active field service contracts.
The gross margin for the fourth quarter was negative 3.5%, reflecting the impact of lower fixed cost absorption due to a reduced number of systems shipped. The company expects gross margin to improve through 2025 because of implemented operational efficiencies and the ramp-up of its Rapid Production Solutions business.
GAAP operating expenses for the fourth quarter were $21.1 million compared to $25.9 million in the fourth quarter of 2023. Non-GAAP operating expenses, excluding stock-based compensation expense of $2.3 million, was $18.7 million, down from $20.5 million in the fourth quarter of 2023.
Net loss for the quarter was $21.7 million. Non-GAAP net loss was $22.2 million in the three months ended December 31, 2024. Adjusted EBITDA for the quarter was negative $14.6 million.
Full year 2024 results
Revenue for the full year was $41 million, down from $77.4 million in 2023. Gross profit was negative 5.1%
GAAP operating expenses for the full year 2024 were $80.2 million compared to $107 million in 2023. Non-GAAP operating expenses, excluding stock-based compensation expense of $15.6 million, was $64.9 million, down from $82.6 million in fy 2023.
Net loss for the year was $73.3 million. Non-GAAP net loss was $86.6 million in the twelve months ended December 31, 2024. Adjusted EBITDA for the year was negative $61.6 million.
Guidance
Velo3D reported that its management expects the following for fiscal year 2025:
- Revenue in the range of $50 million to $60 million.
- Sequential improvement in gross margin
- >30% gross margin in fourth quarter of 2025
- Non-GAAP operating expenses in the range of $40 million to $50 million
- Capex in the range of $15 million to $20 million
- EBITDA positive in the first half of 2026
