Velo3D Q2 2026 earnings reveal revenue growth of 52.3% to $20.7M and improved gross margins at 21.5%. Guidance raised for 2026 revenue to $65-75M.
Velo3D, Inc. reported Q2 2026 revenue of $20.7 million, a remarkable 52.3% increase year-over-year and a 50% increase from the previous quarter. This strong performance underscores the company's strategic shift towards production-scale additive manufacturing, particularly in the aerospace and defense sectors, which are increasingly adopting Velo3D's technology for critical applications.
Key Takeaways
- Revenue reached $20.7 million, up 52.3% YoY from $13.6 million and up 50% sequentially from $13.8 million.
- Gross margin improved to 21.5%, a significant increase from negative 11.7% in Q2 2025 and up from 17.2% in Q1 2026.
- Backlog grew to $31 million, doubling from $16 million year-over-year, reflecting strong demand across end markets.
- Cash position strengthened significantly, ending the quarter with $91.1 million in cash and cash equivalents, up from $39 million at the end of 2025.
- Guidance raised for 2026 revenue to between $65 million and $75 million, up from a previous range of $60 million to $70 million.
Revenue Growth Driven by Aerospace and Defense Demand
Velo3D's revenue growth to $20.7 million in Q2 2026 was primarily driven by increased demand from the aerospace and defense sectors. The company's average selling price and recurring production services (RPS) revenue contributed significantly to this growth. Management noted that qualified programs are transitioning into production deployments, indicating a robust pipeline moving forward.
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | $20.7M | +52.3% | +50% |
| Gross Margin | 21.5% | +33.2% | +4.3% |
| Backlog | $31.0M | +93.8% | N/A |
| Cash | $91.1M | +133.2% | N/A |
Significant Manufacturing Expansion
A pivotal milestone for Velo3D was the announcement of the Livermore Production Campus, which is expected to triple the company’s manufacturing capacity once operational. Set to begin production later this year, this facility will centralize operations and enhance data-driven manufacturing capabilities, allowing for better optimization of production processes. Arun Jeldi, CEO, emphasized that the Livermore campus represents a foundational step towards the company’s vision of becoming a digital manufacturing leader, leveraging real-world manufacturing data to enhance software and process efficiencies.
Strategic Partnerships Strengthening Market Position
Velo3D is actively expanding its partnerships to bolster its market presence. The recent agreement with Mears Machine Corporation for additional Sapphire XC systems illustrates growing confidence in Velo3D's technology. Furthermore, a partnership with Aurelia Technologies aims to advance metal additive manufacturing for next-generation gas turbine systems. The company is witnessing increasing interest from various industrial markets, driven by the need for faster production cycles and supply chain resilience.
Improved Financial Position and Guidance
The financial outlook has become more favorable, with management raising the full-year revenue guidance from $60-$70 million to $65-$75 million. This adjustment reflects confidence in the continued adoption of RPS and large-format additive manufacturing. Gross margins are expected to exceed 30% in the second half of 2026 as production scales and operational efficiencies are realized. Operating expenses are projected to remain disciplined between $45 million and $55 million, allowing for selective investments in growth initiatives.
Analyst Q&A Highlights
During the Q&A session, analysts probed into the company's operational capabilities and future demand. Jason Smith from Lake Street inquired about RPS revenue specifics, to which management indicated a double-digit growth from the previous year, projecting RPS to constitute 25-30% of revenue by year-end. Additionally, Greg Palm from Craig Hallam raised concerns about production bottlenecks tied to supply chain issues, to which management acknowledged the current demand exceeds existing capacity but expressed confidence in scaling operations.
Closing Thoughts
Velo3D’s Q2 earnings reflect a strong execution of its growth strategy amid a favorable macro environment. As the aerospace and defense sectors increasingly adopt additive manufacturing, the company appears well-positioned to capitalize on these trends. The upcoming Livermore Production Campus will be crucial in meeting the surging demand, and the raised guidance indicates optimism about future performance. The next quarter will reveal how effectively Velo3D can navigate its operational challenges and fulfill its ambitious growth plans.
This analysis is based on public earnings call materials and is not investment advice.
