Stratasys reported flat sales year over year in Q2, with revenue coming in slightly above Wall Street’s expectations but the market reacting negatively given cautious management commentary and persistent delays in customer capital spending. CEO Yoav Zeif pointed to disciplined customer behavior and longer sales cycles, particularly for large production deals, as central challenges. Zeif described the environment as one where “customers maintain disciplined capital spending approaches as they await signs of normalcy to emerge,” highlighting that while engagement remains high, many significant deals have yet to close.
Is now the time to buy SSYS? Find out in our full research report (it’s free).
Stratasys (SSYS) Q2 CY2025 Highlights:
- Revenue: $138.1 million vs analyst estimates of $137.2 million (flat year on year, 0.7% beat)
- Adjusted EPS: $0.03 vs analyst estimates of $0.03 (in line)
- Adjusted EBITDA: $6.13 million vs analyst estimates of $6.74 million (4.4% margin, 9.1% miss)
- The company dropped its revenue guidance for the full year to $555 million at the midpoint from $577.5 million, a 3.9% decrease
- Management lowered its full-year Adjusted EPS guidance to $0.15 at the midpoint, a 56.7% decrease
- EBITDA guidance for the full year is $31 million at the midpoint, below analyst estimates of $44.58 million
- Operating Margin: -12%, up from -18.9% in the same quarter last year
- Market Capitalization: $901.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Stratasys’s Q2 Earnings Call
- Tyler Hutin (William Blair) asked about which regions and verticals experienced the most pronounced delays. CEO Yoav Zeif responded that delays were broad-based across large production deals in multiple verticals, not isolated to any single sector or region.
- Tyler Hutin (William Blair) followed up on what is driving the fourth quarter margin improvement. CFO Eitan Zamir clarified that margin growth is expected to come from ongoing cost controls, not from the closure of large deals.
- Gregory William Palm (Craig-Hallum) probed the drivers behind lower gross margin and the magnitude of cost reduction efforts. Zamir cited product mix, reduced inventory absorption, and tariffs as primary factors, with mitigation plans focused on variable and discretionary costs.
- James Andrew Ricchiuti (Needham & Company) questioned the sequential decline in gross margin despite higher consumables revenue. Zamir explained that the decrease was mainly due to absorption and tariff impacts, rather than a drop in core business activity.
- Alek Valero (Loop Capital Markets) inquired whether success with General Motors and Toyota could lead to similar partnerships. Zeif noted that proven use cases with major automakers are expected to drive both upsell opportunities and further market penetration as adoption spreads to other OEMs.
Catalysts in Upcoming Quarters
In coming quarters, our team will focus on (1) the pace at which delayed large production contracts in automotive, aerospace, and dental move to closure; (2) the realization of planned cost savings and their impact on margins, especially in the fourth quarter; and (3) the adoption and performance of new product and software launches, including the F3300 and new material platforms. Progress on upsell opportunities with existing enterprise customers will also be a key indicator.
Stratasys currently trades at $10.97, down from $11.38 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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