3D Systems Corp (DDD, Financial) released its 8-K filing on March 26, 2025, detailing its financial results for the fourth quarter and full year ended December 31, 2024. The company, a leader in 3D printing and digital manufacturing solutions, reported a full-year revenue of $440 million, slightly above the lower end of its guidance range. However, this figure was impacted by a $9 million revenue reduction in Q4 due to changes in accounting estimates related to its Regenerative Medicine program.
Company Overview
3D Systems Corp provides comprehensive 3D printing and digital manufacturing solutions, including 3D printers for plastics and metals, materials, software, on-demand manufacturing services, and digital design tools. The company's segments include Healthcare Solutions and Industrial Solutions, with the majority of revenue generated from the Industrial segment. The company operates globally, with a significant portion of its revenue coming from the Americas.
Performance and Challenges
The company's performance in 2024 was marked by a challenging sales environment, primarily due to weak customer capital expenditure on new manufacturing plant capacity. Despite these challenges, there was a notable increase in the sale of new industrial printer systems and global services in the fourth quarter. However, the positive changes in core business units were overshadowed by the impact of an accounting estimate change in the Regenerative Medicine program.
Financial Achievements and Industry Impact
3D Systems Corp's financial achievements in 2024 included a focus on cost savings and efficiency improvements, resulting in a reduction in operating expenses in Q4. The company announced a new cost reduction initiative expected to deliver over $50 million in incremental annualized savings through actions taken in 2025 and the first half of 2026. These efforts are crucial for maintaining competitiveness in the hardware industry, where cost efficiency and innovation are key drivers of success.
Key Financial Metrics
For the fourth quarter of 2024, revenue decreased by 3% to $111 million compared to the same period last year, including an $8.7 million reduction due to the accounting estimate change. The Healthcare Solutions segment saw a 21% decrease in revenue to $40.4 million, while the Industrial Solutions segment experienced an 11% increase to $70.7 million. The gross profit margin for Q4 was 31.0%, down from 38.3% in the previous year, primarily due to the accounting changes.
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Revenue | $111 million | - |
| Healthcare Solutions Revenue | $40.4 million | - |
| Industrial Solutions Revenue | $70.7 million | - |
| Gross Profit Margin | 31.0% | 38.3% |
Analysis and Outlook
The company's net loss for Q4 improved by $259 million to a loss of $33.7 million, reflecting changes in impairment of goodwill and other intangible assets. Adjusted EBITDA decreased by $5.1 million to a loss of $19.1 million, driven by lower revenue and margins. For the full year 2024, revenue decreased by 10% to $440.1 million, with the Healthcare Solutions and Industrial Solutions segments experiencing declines of 11% and 9%, respectively.
“While 2024 was a challenging year for sales, reflecting weak customer capex spending on new manufacturing plant capacity through the first three quarters, we were pleased to see a healthy uptick in the sale of new industrial printer systems and global services in the fourth quarter,” said Dr. Jeffrey Graves, president & CEO of 3D Systems.
Looking ahead, 3D Systems Corp anticipates a return to flat to modest top-line organic growth in 2025, with progressive cost reductions expected to strengthen EBITDA performance. The company aims to exit 2025 at positive adjusted-EBITDA levels, with continued momentum into 2026. The sale of the Geomagic software platform for $123 million is expected to further strengthen the balance sheet in Q2 2025.
Explore the complete 8-K earnings release (here) from 3D Systems Corp for further details.
