Velo3D Q1 2026 earnings show 48% revenue growth to $13.8M and improved gross margin to 17.2%. Full-year guidance maintained at $60-70M.

Key Takeaways

• Revenue for Q1 2026 increased by 48% year-over-year, reaching $13.8 million, up from $9.3 million in Q1 2025.
• Gross margin improved to 17.2%, a significant rise from 7.5% in the same quarter last year.
• Company backlog stands at approximately $30 million, reflecting steady demand, particularly in defense and aerospace sectors.
• Non-GAAP net loss narrowed to $5.1 million, significantly better than the $9 million loss reported in Q1 2025.
• Full-year revenue guidance is maintained in the range of $60 million to $70 million for 2026.

Financial Performance

Velo3D, Inc. kicked off 2026 with a strong financial performance, highlighting a robust demand for its additive manufacturing solutions. The company reported revenue of $13.8 million for the first quarter of 2026, marking a 48% increase from $9.3 million in the same period last year. This revenue growth was attributed to a combination of higher average selling prices, increased system sales, and rising revenue from the company’s Rapid Production Solutions (RPS).

The gross margin also saw a remarkable uptick, reaching 17.2% compared to just 7.5% a year prior, and an improvement from a negative gross margin of 73.6% in the previous quarter. This positive trend reflects the company's enhanced manufacturing efficiencies and operational discipline, paving the way for a promising trajectory in gross margins as production volumes rise throughout the year.

Operating expenses decreased to $9.3 million, down from $12.2 million in the prior year, demonstrating effective cost management without compromising growth. The net loss for the quarter narrowed significantly to $7 million, improving from a loss of $25 million in Q1 2025. Non-GAAP net loss stood at $5.1 million, indicating substantial progress in improving profitability metrics.

Strategic Initiatives

A key highlight from the earnings call was the ongoing evolution of the company’s Rapid Production Solutions (RPS). This segment now constitutes approximately 25% of total revenue and represents a shift towards more sustainable, long-term customer relationships, moving beyond one-time system sales towards ongoing production contracts.

The company also secured several landmark contracts, including an $11.5 million full-rate production contract with a major U.S. defense contractor and a $9.8 million five-year IDIQ contract with the Defense Logistics Agency. These achievements not only underscore Velo3D's growing importance in the defense sector but also validate its capacity to deliver critical components at scale.

In addition, Velo3D is actively expanding its manufacturing capabilities. Plans for a new facility in California are underway, which will accommodate up to 100 machines and is expected to reduce operational overhead as the company scales its production footprint.

Future Outlook

Looking ahead, Velo3D maintains a positive outlook for 2026. The company has reaffirmed its revenue guidance of $60 to $70 million, bolstered by the increasing adoption of RPS and expansion of its large-format additive manufacturing capabilities. Management anticipates that gross margins will exceed 30% in the second half of the year as production volumes increase and operational efficiencies are realized.

The company is also focused on maintaining disciplined operational expenses within the $45 to $55 million range while continuing to invest strategically in growth initiatives. Capital expenditures, projected between $40 to $50 million, will primarily target production capacity expansion and automation enhancements.

Velo3D's leadership expressed confidence in achieving EBITDA profitability in the latter half of 2026, driven by strong demand across defense and aerospace markets. The company’s strategic investments in technology and operational infrastructure are designed to support this growth trajectory.

Conclusion

In summary, Velo3D, Inc. has demonstrated significant momentum in its first quarter of 2026, characterized by strong revenue growth and improving gross margins. The strategic focus on RPS, successful contract acquisitions, and planned expansions highlight the company's commitment to evolving within the additive manufacturing landscape. With a robust backlog and a clear path to profitability, Velo3D is well-positioned to capitalize on the growing demand in defense and aerospace, ensuring long-term growth and shareholder value.

This analysis is based on public earnings call materials and is not investment advice.