Press Release: Velo3D Announces Fourth Quarter and Full-Year 2025 Financial Results; Unveils Long-Term Capacity Plan Envisioning up to Approximately 400 Production Systems

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   -- Full-year 2025 Revenue of $46 million 
 
   -- Backlog of $31 million as of December 31, 2025 
 
   -- Expects 2026 revenue between $60 million and $70 million 
 
   -- Expects to turn EBITDA positive in the second half of 2026 
 
   -- Announces demand-driven capacity plan envisioning up to approximately 400 
      production systems over the next decade, supported by potential 
      asset-backed financing and expanding defense and aerospace program 
      portfolio 

FREMONT, Calif., March 24, 2026 /PRNewswire/ -- Velo3D, Inc. (Nasdaq: VELO) ("Velo3D" or the "Company"), a leader in additive manufacturing ("AM") technology known for transforming aerospace and defense supply chains through world-class metal AM, today announced financial results for its fourth quarter and full year ended December 31, 2025.

Recent Business Developments

   -- Qualified as the first additive manufacturing vendor to support the U.S. 
      Army's Ground Vehicle Systems Center qualification initiative, 
      accelerating AM adoption for ground combat vehicle components. 
 
   -- Entered a Cooperative Research & Development Agreement (CRADA) with U.S. 
      Army DEVCOM Ground Vehicle Systems Center, advancing additive 
      manufacturing solutions to address critical defense supply chain 
      challenges. 
 
   -- Secured a contract from the Department of War valued at $32.6 million to 
      support Project FORGE, prototyping and qualifying AM components to 
      eliminate defense manufacturing bottlenecks. 
 
   -- Secured a multi--year $11.5 million full rate production Rapid Production 
      Solutions ("RPS") contract from a key U.S. defense prime contractor to 
      supply essential components for a national security program. 
 
   -- Enabled Intergalactic, a GE Aerospace company, to manufacture IN718 
      microtube heat exchanger headers for an accelerated aviation program 
      timeline, going from design to printed parts in weeks using Velo3D's 
      Rapid Production Solutions (RPS) offering and Sapphire XC platform. 
 
   -- Raised $30 million through a private placement of common stock, led by 
      institutional investors to support growth, capital expenditures and 
      expanded RPS demand. 
 
   -- Completed an aggregated $15 million debt to equity conversion, thereby 
      reducing debt by 60% and substantially deleveraging the Company's 
      Consolidated Balance Sheet. 

"We achieved double-digit revenue growth in 2025, reflecting strong demand for our Rapid Production Solutions," said Mr. Arun Jeldi, CEO of Velo3D. "Importantly, we set a new record for bookings in the fourth quarter, and with a robust backlog, we entered 2026 with tremendous momentum. Key initiatives, including the Department of War contract, multi-year defense RPS contract and adoption by the U.S. Army's Ground Vehicle Systems Center, are accelerating our impact across defense and aerospace supply chains. Supported by private placement financing, debt-to-equity conversions that reduced outstanding debt by 60% and continued supply chain optimization, we believe we are well positioned to drive growth and deliver long-term value as we scale our operations globally."

"Demand signals across the market are strong and clear, with accelerating interest in our Rapid Production Solutions and large-format additive manufacturing capabilities," said Mr. Jeldi. "The defense sector is evolving rapidly, and as programs move from development into production and customers focus on resilient, localized supply chains, expanding our production capacity and capabilities will be critical to meeting this demand and driving the company's growth. As individual programs scale, in some cases growing from a single production system to multiple systems within months, the compounding effect on capacity requirements is significant."

Mr. Jeldi added, "Based on current demand trajectories and our expanding program portfolio, we have developed a long-term capacity plan envisioning up to approximately 400 production systems, ramping over the next decade, subject to securing additional financing and continued program growth. This is a practical, demand-driven buildout: as contracts grow and new programs come online, each drives incremental capacity requirements, creating a compounding growth profile. To support this expansion, we expect to raise additional capital in the near term. As an asset-rich operation, our production systems are well-suited to asset-backed debt financing, enabling us to scale our fleet with minimal dilution to shareholders. We are also exploring potential government-backed lending programs and other non-dilutive funding sources to further support capacity buildout. In addition, we are considering selective M&A opportunities in 2026 that could complement our organic growth strategy, accelerate our expansion into key defense and aerospace programs and strengthen our supply chain, particularly in feedstock and metal powder. Any equity capital raised would be targeted toward workforce expansion and operational infrastructure rather than equipment, keeping dilution low relative to the significant long-term value this growth is expected to generate. We believe this approach will allow us to scale operations, invest in manufacturing capacity and continue delivering the speed, quality and reliability our customers require for mission-critical applications."

 
($ in Millions, except 
percentages and 
per-share data)         4th Quarter 2025  4th Quarter 2024  FY 2025   FY 2024 
----------------------  ----------------  ----------------  --------  -------- 
GAAP revenue                  $9.4             $12.6         $46.0     $41.0 
----------------------  ----------------  ----------------  --------  -------- 
GAAP gross margin           (73.6) %          (3.5) %       (16.1) %  (5.1) % 
----------------------  ----------------  ----------------  --------  -------- 
GAAP net loss(1)            ($21.9)           ($21.3)       ($71.4)   ($69.9) 
----------------------  ----------------  ----------------  --------  -------- 
GAAP net loss per 
 share - basic and 
 diluted                    ($1.03)           ($12.37)      ($4.33)   ($82.46) 
----------------------  ----------------  ----------------  --------  -------- 
 
Non-GAAP net loss(2)        ($11.6)           ($15.0)       ($41.3)   ($79.4) 
----------------------  ----------------  ----------------  --------  -------- 
Non-GAAP net loss per 
 share - basic and 
 diluted(2)                 ($0.54)           ($8.71)       ($2.51)   ($93.70) 
----------------------  ----------------  ----------------  --------  -------- 
 
   1. Information about Velo3D's use of non-GAAP information, including a 
      reconciliation to accounting principles generally accepted in the United 
      States of America ("GAAP"), is provided at the end of this release under 
      "Non-GAAP Financial Information". The non-GAAP financial measures 
      presented in this release should not be considered as the sole measure of 
      the Company's performance and should not be considered in isolation from, 
      or as a substitute for, comparable financial measures calculated in 
      accordance with GAAP. 
 
   2. Non-GAAP net loss and non-GAAP net loss per diluted share exclude 
      stock-based compensation expense, loss on warrant cancellation, fair 
      value adjustments for the Company's warrants and earnout liabilities, 
      impairment of equipment subject to operating lease, gain/loss on 
      extinguishment of debt and non routine inventory adjustments for excess 
      and obsolete inventory. 

Summary of Fourth Quarter 2025 Results

Total Revenue was $9.4 million. 3D Printer and parts revenue decreased 5% compared to the fourth quarter of 2024, driven by product mix and the number of systems sold. While system sales are expected to remain the primary driver of revenue in 2026, the Company anticipates that, under its new go-to-market strategy, its RPS parts production business will contribute an increasing share of revenue.

Gross margin for the fourth quarter was (73.6)% compared to (3.5)% in the fourth quarter of 2024. This change was primarily driven by the write-down of approximately $7.0 million of obsolete inventory recorded during the quarter and production volume delays related to the government shutdown during the fourth quarter of 2025.

Operating expenses for the fourth quarter were $14.9 million compared to $20.6 million in the fourth quarter of 2024. Non-GAAP adjusted operating expenses, excluding stock-based compensation expense of $1.5 million, were $13.3 million, down from $18.9 million in the fourth quarter of 2024.

GAAP net loss for the fourth quarter was ($21.9) million compared to ($21.3) million in the fourth quarter of 2024. Non-GAAP net loss for the fourth quarter was ($11.6) million compared to ($14.8) million in the three months ended December 31, 2024. Adjusted EBITDA for the fourth quarter was ($10.0) million compared to ($11.0) million in the fourth quarter of 2024. For more information regarding the Company's non-GAAP financial measures, see "Non-GAAP Financial Information" below.

Summary of Full Year 2025 Results

Revenue was $46.0 million. 3D Printer and parts revenue increased 54% compared to 2024, driven by product mix and the number of systems sold.

Gross margin for 2025 was (16.1)% compared to (5.1)% in 2024. This change was primarily driven by the write-down of approximately $7.0 million of obsolete inventory recorded during the fourth quarter. The Company expects gross margin to continue to improve going forward as historical factors become a less significant driver of margin and as a result of operational efficiencies and an anticipated ramp-up of its RPS business.

Operating expenses for 2025 were $47.5 million compared to $76.8 million in 2024. Non-GAAP adjusted operating expenses, excluding stock-based compensation expense of $7.5 million, were $40.1 million, down from $66.5 million in 2024.

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March 24, 2026 16:05 ET (20:05 GMT)

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