3D Systems (NYSE: DDD) stock fell off a cliff today, down 25.3% through 12:10 p.m. ET after missing earnings and retracting its 2025 guidance last night.
Heading into the report, analysts already weren’t optimistic, expecting the 3D printing company to report a $0.14 loss on $99.5 million in Q1 sales — but the news was even worse. 3D Systems actually lost $0.21 per share, adjusted for one-time items, and its sales were only $95 million.
And in fact, this was the good news. The bad news is that sales declined 8% year over year, and the loss 3D reported — already worse than expected — was even bigger when calculated according to generally accepted accounting principles (GAAP). 3D’s GAAP loss for the quarter was $0.28 per share, more than twice its losses of one year ago.
Management blamed “a decline in materials sales driven primarily by inventory management in the dental aligner market” for the shortfall, but reminded investors it is working hard to cut $50 million in annual costs to right the financial ship. 3D says these cost cuts should be fully in place by mid-2026, and announced further cuts that will save another $20 million as early as this year.
Will these costs be enough? It’s hard to say — and 3D isn’t saying. Management withdrew full-year guidance and warned of potential “protracted weakness in customer capex spending.” 3D is still hoping to reach “profitability and the positive cash performance” eventually. For the time being, though, the company is losing money at the rate of more than $275 million a year, and burning nearly $69 million in cash annually.
I really can’t recommend buying 3D stock until this changes.
Before you buy stock in 3D Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and 3D Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $598,613!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $753,878!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
