Velo3D, Inc.

What they do

Velo3D designs and manufactures metal 3D printing systems (Sapphire family) and associated software (Flow, Assure), and offers production and engineering services through its Rapid Production Solutions (RPS) unit. Its proprietary laser powder bed fusion technology reduces the need for support structures, enabling complex, mission-critical parts. Customers are OEMs and contract manufacturers in space, aviation, defense, automotive, energy, and industrial markets.

Revenue drivers

• Equipment sales — Sales of Sapphire family metal additive manufacturing systems, including the large-format Sapphire XC, plus associated software and upgrades. This is the primary revenue stream, with recent orders from Mears Machine (fifth Sapphire XC) and others.
• Production and engineering services (RPS) — Rapid Production Solutions uses a fleet of Sapphire XC printers to produce parts for customers, generating service revenue. This offering is a key part of the 'land and expand' strategy, allowing customers to start with services before buying machines.
• Expert Services — Engineering and consulting services that help customers qualify parts and processes, often leading to recurring equipment or production contracts. Revenue is smaller than equipment but supports adoption.

Recent performance

For Q2 2026, revenue was $20.7 million, up 52.3% year-over-year, with a gross margin of 21.5% versus a negative margin in Q2 2025. Net loss was $11.5 million. Quarterly revenue trended upward: $9.4M (Q4 2025), $13.8M (Q1 2026), and $20.7M (Q2 2026). Full-year 2025 revenue was $46.0 million with a net loss of $71.4 million. Cash and equivalents were $91.1 million as of June 30, 2026.

Strategy

Management is driving a 'land and expand' approach, starting with single-machine validation then scaling with key customers. The company is expanding capacity with the new Livermore Production Campus, expected to triple manufacturing capacity and become the primary production center. It is building strategic partnerships, such as with Mears Machine and Aurelia Technologies, to accelerate distributed manufacturing and enter new applications like gas turbine systems. Recent equity raises (registered direct offering and ATM program) were used to strengthen the balance sheet. Management emphasizes production repeatability through 'Golden Print Files' and a consistent platform to win production contracts.

Risks

• Going concern risk — Management has disclosed substantial doubt about the company's ability to continue as a going concern due to insufficient liquidity to meet needs and obligations for at least 12 months from the latest 10-K issuance.
• Operating losses and negative cash flow — The company has a history of losses (net loss of $71.4M in 2025) and negative operating cash flow, and expects continued losses as it invests in sales and marketing.
• Delayed shipments and order delays — The 10-K notes that 2025 revenue growth was less than expected due to delayed shipments and customer order delays, which highlights execution risk in converting pipeline to revenue.
• Dependence on capital markets — The company has relied on high-interest debt and repeated equity offerings; e.g., a January 2025 note had a 60% interest rate, and recent equity raises risk dilution.

Outlook

Management increased 2026 revenue guidance to $65 million to $75 million, up from $60 million to $70 million, citing strong demand and growing pipeline. The Livermore campus is expected to be operational later this year and will support larger production programs. Management expects to capitalize on the shift toward production-scale AM in defense, aerospace, and energy, with continued growth in the second half of 2026.