3D Methods (NYSE: DDD) has reported its monetary outcomes for the second quarter of 2025, exhibiting a drop in income however a pointy enchancment in profitability, pushed by value reductions, effectivity positive aspects, and robust efficiency in key markets.
Income Down, However Margins Enhance
The corporate posted income of $94.8 million for the quarter ending June 30, 2025, a 16% drop in comparison with the $113.3 million recorded in the identical interval final 12 months. Healthcare Options — which incorporates medical and dental 3D printing merchandise, supplies, and companies — fell 8% to $45 million. The decline was primarily on account of weaker demand within the dental phase, particularly from prospects within the aligner market.
In the meantime, its Industrial Options phase — masking 3D printing methods, supplies, and companies for aerospace, protection, automotive, and different manufacturing sectors — dropped 23% to $49.8 million, pointing to diminished capital spending in markets that promote on to shoppers.
Along with the gross sales decline, gross revenue margin was 38.1%, down barely from 41.6% a 12 months earlier. On an adjusted foundation, it was 39.2%. The corporate mentioned the decline was partly on account of a much less favorable product combine following the sale of its Geomagic software program enterprise earlier within the quarter.
Reducing Prices Pays Off
3D Methods reported internet revenue of $104.4 million, a significant turnaround from a $27.3 million loss in Q2 2024. This variation was the results of stronger operations, a $125.7 million pre‑tax achieve from promoting the Geomagic enterprise, and an $8.2 million achieve from repurchasing debt at a reduction.
Late within the quarter, the corporate made main modifications to its funds. It paid off $88 million in debt, pushed most of its remaining debt funds out to 2030, and acquired again 8 million shares to provide current shareholders a bigger stake within the firm. CEO Jeffrey Graves referred to as this a “steadiness sheet transformation” that can assist help future progress.
Working bills fell to $51.5 million from $73.5 million final 12 months, due to restructuring strikes introduced in March. These included consolidating operations, slicing workforce prices, and different effectivity applications. The corporate mentioned it saved over $20 million in working bills through the quarter and expects the cost-cutting plan to proceed into mid-2026.
Graves mentioned, “We’re benefiting from our prior efforts to totally in-source manufacturing and provide chain operations, an initiative which is now just about full and serving to to offset headwinds from tariffs. Within the second quarter, tariffs elevated our prices by roughly $1 million, however had been largely countered by improved working efficiencies in manufacturing operations, which supported our gross margin efficiency.”
Jeffrey Graves speaks at AMS 2025. Picture courtesy of 3DPrint.com.
Combined Market Efficiency
So, whereas general income was down, some areas confirmed robust progress. Medical Expertise gross sales, particularly in orthopedic procedures and trauma-related surgical procedures, rose 13% year-over-year and 16% from the earlier quarter. Aerospace and Protection gross sales jumped 84% in comparison with Q2 2024 and 53% from Q1 2025, now producing over $30 million yearly.
“For our industrial prospects, whereas consumer-facing markets had been weak, we skilled robust demand in Aerospace & Protection, with revenues rising 84% from the prior 12 months, and 53% sequentially from the primary quarter,” defined Graves. “Central to our progress in A&D is our distinctive capability to fulfill prospects’ wants from the inception of course of improvement, by preliminary half manufacturing, and finally to full-scale printer provide when demand rises. We’re the one US supplier of 3D printing applied sciences that may supply this full spectrum of functionality, and accomplish that over the complete breadth of polymer and steel printing applied sciences. Furthermore, we are able to do that regionally throughout the US and inside EMEA for industrial prospects needing high-reliability elements. Because of this, we’re enthusiastic about our future progress in these markets that demand the best element reliability, reminiscent of Aerospace & Protection, AI infrastructure, and Oil & Fuel, to call just a few.”
In the meantime, the dental enterprise was down 3% for the quarter, with aligner market demand falling 19% sequentially. That is in keeping with a broader slowdown within the aligner market, as Align Expertise (the maker of Invisalign) additionally lately reported a softening in demand in its Q2 earnings. Client-related industrial gross sales additionally suffered from weaker buyer capital spending, which 3D Methods attributed to uncertainty round tariffs.
Strategic Strikes
The corporate highlighted a milestone in its long-term partnership with United Therapeutics, which goals to develop 3D printed human lungs for transplant. The challenge, a part of United Therapeutics’ broader regenerative drugs program, reached a brand new printing benchmark for human lung scaffolds within the quarter, leading to a $2 million award for 3D Methods.
In current months, 3D Methods has seen a number of modifications in its bioprinting segments. The corporate closed its Systemic Bio subsidiary, which had centered on production-scale bioprinted tissue fashions. Taci Pereira, who led Systemic Bio, has since left the corporate and is now CEO of BALSA, a nonprofit group devoted to empowering the neighborhood of Brazilians in life sciences within the U.S. Regardless of the closure, 3D Methods stays energetic in bioprinting by its Allevi subsidiary and its ongoing work with United Therapeutics.
3D Methods creates implantable medical units. Picture courtesy of 3D Methods.
On the finish of June, the corporate had $116.4 million in money and money equivalents, down from $171.3 million on the finish of 2024. The drop was primarily on account of $59.6 million utilized in operations and $97.3 million utilized in financing actions, partially offset by $112.9 million from investing actions.
3D Methods expects its value financial savings program, debt restructuring, and deal with high-growth markets like medical know-how and aerospace to assist return the corporate to optimistic money stream in 2026. Nevertheless, administration warned that tariffs will seemingly proceed to affect prices within the second half of the 12 months. As well as, the corporate mentioned it is not going to present detailed forecasts for sure measures, citing the “unpredictability of things reminiscent of litigation prices, acquisitions, restructuring fees, and different gadgets that might materially have an effect on outcomes.”
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