
Stratasys Reports Revenue Decline for FY 2024, Sees Margin Growth and Eyes Recovery in 2025
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3D printer OEM Stratasys (NASDAQ: SYSS) has announced its financial results for the fourth quarter of 2024 (Q4 2024) and full year 2024 (FY 2024).The results reflect a challenging year marked by revenue declines but offset by improving gross margins and a growing emphasis on high-value applications.For FY 2024, Stratasys reported revenue of $572.5 million, an 8.8% drop from $627.6 million in FY 2023. Q4 2024 revenue came in at $150.4 million, down 3.8% from the same period in 2023 but up 7.4% sequentially from Q3.While overall sales softened due to macroeconomic headwinds and constrained capital spending, the company maintained strong customer engagement and saw an increase in manufacturing applications, which accounted for 36% of total revenue, up from 34% in 2023.Despite revenue pressures, Stratasys improved profitability through cost efficiencies. Gross margins expanded to 44.9% for FY 2024, up from 42.5% in the previous year, while Q4 gross margins rose to 46.3%, compared to 44.7% in Q4 2023.The company attributed this improvement to operational streamlining, pricing strategies, and an increasing focus on higher-margin products and services. Adjusted EBITDA for Q4 surged to $14.5 million, an 88.8% Y/Y increase, as cost-cutting measures took full effect.Dr. Yoav Zeif, Stratasys Chief Executive Officer, stated, In 2024 and early 2025, we took several key steps to enhance our leadership and strengthen our position at the forefront of additive manufacturing. We took decisive actions to optimize our business while maintaining our ability to scale rapidly as conditions improve. We are pleased to have right-sized the Company and demonstrated the resilience of our operating model and effectiveness of our team.Flexible automotive component produced with SAF PP on the Stratasys H350, ideal for tight and chemical resistance applications. Photo via Stratasys.Revenue breakdown and business conditionsStratasys products segment, which includes 3D printing systems and consumables, saw revenue decline by 9.6% Y/Y, falling to $391.9 million in FY24 from $433.7 million in FY23.Systems revenue took the largest hit, dropping 25.3% to $140.3 million from $187.7 million in the prior year, as weakened capital investment cycles slowed new system purchases. Consumables revenue, however, rose 2.3% to $251.7 million, up from $246 million in FY23.The services segment, which includes customer support, maintenance, and software solutions, posted revenue of $180.5 million in FY24, down 6.9% from $193.9 million in FY23. However, after adjusting for the divestment of Stratasys Direct Manufacturing, service revenue remained stable.Revenue $ thousandsFY 2024FY 2023Variance $ thousands%Products391,917433,741-41,824-9.6%Services180,541193,857-13,316-6.9%Total revenue572,458627,598-55,140-8.8%In Q4, the products segment recorded revenue of $105.0 million, down 4.9% from $110.4 million in Q4 2023, though it improved 11.6% from Q3 2024. Consumables revenue for the quarter was $58.4 million, a 7.3% year-over-year decline, while systems revenue saw a more modest drop of 1.5% to $46.7 million.On another note, services revenue came in at $45.3 million, down 1.4% from $46.0 million in Q423. Software innovation, including the GrabCAD IoT platform, continued to enhance machine uptime and predictive maintenance capabilities, helping retain customers despite industry-wide spending slowdowns.Revenue $ thousandsQ4 2024Q4 2023Variance $ thousands%Products105,035110,388-5,353-4.9%Services45,32445,949-625-1.4%Total revenue150,359156,337-5,978-3.8%Stratasys focus on applications, particularly in industrial and healthcare markets, provided some resilience.A key highlight was its expanded role in manufacturing, where it continued to gain traction with major industrial players. ArcelorMittal, one of the worlds largest steel manufacturers, adopted Stratasys FDM technology and GrabCAD software at its European Research Center, enabling faster tooling production.In motorsports, Stratasys became the official 3D printing partner of NASCAR through a multi-year agreement, for the design and production of parts and tools across its operations, fully replacing previous systems used alongside Stratasys solutions.Moreover, Stratasys introduced SAF ReLife, a software-based solution that enables the reuse of waste PA12 powder from powder bed fusion 3D printing processes, including selective laser sintering (SLS) and high-speed sintering, for new prints on the H350 3D printer.Stratasys H350 3D printer provides the design flexibility and production quality needed to produce a completely customized cycling saddle at scale. Photo via Stratasys.Guidance for FY 2025Looking ahead, Stratasys expects 2025 to be a transition year, with sequential revenue growth anticipated in each quarter.The company has projected annual revenue between $570 million and $585 million, reflecting modest recovery amid ongoing economic uncertainties. While capital spending remains a challenge, Stratasys expects an improved business environment to gradually support higher investments in additive manufacturing.Profitability remains a central focus, with non-GAAP gross margins forecasted between 48.8% and 49.2%, indicating further operational improvements. Adjusted EBITDA is expected to rise to a range of $44 million to $50 million, while non-GAAP net income is projected between $20 million and $26 million. Operating expenses are expected to fall between $254 million and $257 million, as cost discipline continues to yield benefits.To bolster its financial position, Stratasys is set to close a $120 million investment from Fortissimo Capital in Q2 2025, which will provide additional flexibility for growth initiatives. The company also anticipates higher operating and free cash flow levels compared to 2024, driven by an improved cost structure and continued momentum in high-value applications.While economic uncertainties persist, Stratasys remains optimistic about the long-term potential of AM.What3D printing trendsshould you watch out for in 2025?How is thefuture of 3D printingshaping up?To stay up to date with the latest 3D printing news, dont forget to subscribe to the 3D Printing Industry newsletter or follow us on Twitter, or like our page on Facebook.While youre here, why not subscribe to our Youtube channel? Featuring discussion, debriefs, video shorts, and webinar replays.Featured image shows flexible automotive component produced with SAF PP on the Stratasys H350, ideal for tight and chemical resistance applications. Photo via Stratasys.Ada ShaikhnagWith a background in journalism, Ada has a keen interest in frontier technology and its application in the wider world. Ada reports on aspects of 3D printing ranging from aerospace and automotive to medical and dental.
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