Velo3D Announces Third Quarter 2026 Financial Results

Velo3D posts strong revenue growth but delays profitability to 2028 amid persistent losses.

What the company is saying

Velo3D emphasizes a 50% year-over-year revenue increase to $20.5 million in Q3 2026 and highlights new bookings of $28.9 million, which outpaced revenue and lifted backlog to $40.1 million. The company frames its 26.5% gross margin as a major operational improvement from 3.2% a year earlier, attributing gains to higher system sales, improved product mix, and better manufacturing efficiencies. Management, led by CEO Arun Jeldi, asserts that investments in the new Livermore Production Campus, Forge 1, are critical to scaling production and capturing aerospace and defense demand. The announcement acknowledges higher operating expenses, now $22.7 million for the quarter, as a result of these investments. Velo3D reaffirms its 2026 revenue guidance of $65–$75 million, but withdraws its prior >30% gross margin target for H2 2026 and now expects positive net cash from operations and EBITDA only in 2028, a delay from previous guidance. The company stresses improved liquidity, with $75.7 million in cash and a 76% reduction in debt, and claims there is no longer substantial doubt about its ability to continue as a going concern.

What the data suggests

Q3 2026 revenue of $20.5 million marks a 50% increase from $13.6 million in Q3 2025, driven by 3D Printer and parts revenue of $18.8 million, up 57% year-over-year. Gross margin improved to 26.5%, reflecting higher average selling prices, favorable product mix, and better cost absorption, but the company still posted a GAAP net loss of $16.7 million ($0.52 per share) and a non-GAAP net loss of $10.8 million ($0.34 per share). Adjusted EBITDA remained negative at ($9.8) million, and operating expenses rose sharply to $22.7 million. Cash and equivalents rose to $75.7 million, largely due to $98.6 million in financing inflows, including a $50 million direct offering and $59.4 million from an at-the-market program, offset by $52.2 million in operating cash burn. Debt fell to $7.4 million from $31.0 million. Backlog and bookings suggest continued demand, but profitability is still distant, with positive net cash from operations and EBITDA now expected in 2028. The company revised prior financials to correct inventory reserve errors, reducing previously reported net loss by $1.6 million for H1 2026. The data confirms strong top-line momentum and liquidity, but persistent losses and delayed profitability remain key concerns.

Analysis

The announcement provides a thorough and transparent account of Velo3D's Q3 2026 financials, including realised revenue growth (+50% YoY), gross margin improvement, and a strengthened balance sheet through capital raises and debt reduction. However, despite these operational gains, the company remains unprofitable, with widening net losses and negative adjusted EBITDA. The most material forward-looking claims—such as positive net cash from operations and EBITDA—are now delayed to 2028, indicating that the path to profitability is long-term and uncertain. The narrative highlights operational milestones (Forge 1 campus opening, bookings, backlog), but the benefits from these investments are not expected to be realised for at least two years. The tone is measured, but the emphasis on improved liquidity and operational progress somewhat overstates the near-term investment case given the persistent losses and delayed profitability. Capital intensity remains high, with substantial capex still planned and only long-dated returns.

Risk flags

• ●Persistent operating losses and negative adjusted EBITDA, with GAAP net loss at $16.7 million and non-GAAP net loss at $10.8 million for Q3 2026, indicate that the company remains structurally unprofitable and dependent on external financing.
• ●Profitability and positive cash flow targets have been pushed back to 2028, two years later than previously guided, highlighting execution risk and uncertainty around the timing and magnitude of operational leverage.
• ●Capital intensity remains high, with $10–$20 million in capex planned for 2026 and a substantial portion deferred to 2027, raising the risk of further cash burn and the need for additional financing if operational milestones slip.
• ●Management's assertion that there is no longer substantial doubt about going concern status is not backed by auditor confirmation and relies on current liquidity, which could erode if losses persist or revenue growth stalls.
• ●The success of the Forge 1 campus and expansion into new materials and markets is unproven, and delays or underperformance in ramping production could undermine the growth narrative and financial projections.

Bottom line

Velo3D delivered strong revenue growth and margin improvement in Q3 2026, but remains deeply unprofitable, with losses widening and adjusted EBITDA still negative. The company has improved its liquidity position through substantial capital raises and reduced its debt by 76%, but this comes at the cost of significant dilution and ongoing cash burn. Operational progress at the new Forge 1 campus and strong bookings support the growth story, yet the path to profitability has slipped, with positive net cash from operations and EBITDA now not expected until 2028. Investors face a long wait for returns, with execution risk around scaling production, achieving cost discipline, and sustaining demand. The most important takeaway is that while Velo3D is growing and better capitalized, its investment case hinges on delivering operational leverage and profitability over a multi-year horizon, not in the near term.

Announcement summary

(NASDAQ: VELO) Velo3D, Inc., a metal additive manufacturing technology company focused on aerospace and defense supply chains, reported financial results for its third quarter ended September 30, 2026. The company achieved revenue of $20.5 million for the quarter, representing a 50% year-over-year increase from $13.6 million in Q3 2025. New bookings for the quarter totaled $28.9 million, exceeding revenue, and backlog stood at $40.1 million as of September 30, 2026. Gross margin improved to 26.5% from 3.2% in the prior year period. 3D Printer and parts revenue was $18.8 million, up 57.0% from $12.0 million in Q3 2025, driven by increased system sales, higher average selling prices, a favorable product mix, and higher production volume. Operating expenses for the quarter were $22.7 million, compared to $10.4 million in Q3 2025. Non-GAAP adjusted operating expenses, excluding $5.7 million in stock-based compensation, were $17.0 million, up from $9.1 million in Q3 2025. GAAP net loss for the quarter was ($16.7) million, or ($0.52) per basic and diluted share, compared to ($11.2) million, or ($0.65) per share in Q3 2025. Non-GAAP net loss was ($10.8) million, or ($0.34) per share, compared to ($9.3) million, or ($0.54) per share in Q3 2025. Adjusted EBITDA for the quarter was ($9.8) million, compared to ($7.3) million in Q3 2025. Cash and cash equivalents as of September 30, 2026, were $75.7 million, up from $39.0 million at December 31, 2025, primarily due to $98.6 million in net cash provided by financing activities in the first nine months of 2026, offset by $52.2 million used in operating activities and $6.4 million used in investing activities. In April 2026, Velo3D completed a firm commitment underwritten registered direct offering of 3,571,428 shares of common stock, raising gross proceeds of approximately $50 million ($46.6 million net). The company also raised $59.4 million in gross proceeds ($57.4 million net) in Q2 2026 under its at-the-market offering program. Total outstanding debt decreased by approximately 76% to $7.4 million as of September 30, 2026, from $31.0 million at December 31, 2025, due to conversion of convertible secured notes, repayment of Secured Notes, and scheduled repayments under its equipment loan. Management concluded there is no longer substantial doubt about the company's ability to continue as a going concern for the twelve months following the issuance of its Q3 2026 financial statements. The company opened its new Livermore Production Campus, Forge 1, in July 2026, which has commenced phased operations and is expected to significantly expand manufacturing capacity as it becomes fully operational. Velo3D joined the Government-Industry Data Exchange Program (GIDEP) to strengthen quality and supply-chain risk management for defense manufacturing. The partnership with Mears Machine Corporation expanded as Mears ordered its sixth Sapphire® XC system, dedicated to copper-nickel additive manufacturing. Vic Fryzel was appointed Executive Vice President, Technology, and Robert Purnell as Senior Director, Operations. The company reaffirmed its 2026 revenue guidance of $65 million to $75 million, expects sequential improvement in gross margin in Q4 2026, revised its gross margin guidance (no longer expecting >30% in H2 2026), set non-GAAP adjusted operating expense guidance at $45 million to $55 million, and reduced capital expenditures guidance to $10 million to $20 million (from $40 million to $50 million), with a substantial portion shifting into 2027. Positive net cash from operations and positive EBITDA are now expected in 2028, compared to the prior expectation of positive EBITDA in H2 2026. During Q3 2026, the company revised prior financial statements to correct errors related to excess and obsolete inventory reserve, reducing previously reported net loss for the six months ended June 30, 2026, by approximately $1.6 million.

Disagree with this article?