Skip to content
    VELO
    Earnings call· Jun 2026(Q2 FY26)

    Velo3D Q2 FY26 earnings call VELO

    Aug 11, 2026 Source

    Executive summary

    Velo3D Q2 FY26 — Strong Revenue Growth and Manufacturing Expansion

    Velo3D delivered strong Q2 FY26 results, marked by significant revenue growth and gross margin expansion, driven by increasing demand in aerospace, defense, and energy markets. The company strengthened its balance sheet and is expanding manufacturing capacity with the new Livermore campus, positioning itself for continued growth and aiming for EBITDA positivity in H2 FY26. This strategic expansion and focus on data-driven manufacturing are key to its long-term vision.

    Highlights

    5

    • Revenue increased 52.3% year-over-year to $20.7 million.

    • Gross margin expanded to 21.5%, an increase of 33.2% compared to the prior-year period.

    • Ended the quarter with $91.1 million in cash and cash equivalents, up from $39 million at the end of 2025.

    • Backlog grew to $31 million as of June 30, 2026, up from $16 million in Q2 2025.

    • Reduced outstanding debt by over 70% to $8.2 million as of quarter end.

    Concerns

    4

    • GAAP net loss for the second quarter was $11.5 million.

    • Non-GAAP net loss for the second quarter was $9.0 million.

    • Adjusted EBITDA for the second quarter of 2026 was negative $8.1 million.

    • Operating expenses for the second quarter were $15.5 million, up from $10.0 million a year ago.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $65 million to $75 million
    high materiality
    High
    Gross Margin
    exceed 30%
    high materiality
    High
    Non-GAAP Adjusted Operating Expenses
    $45 million to $55 million
    medium materiality
    High
    Capital Expenditures
    $40 million to $50 million
    medium materiality
    Medium
    Adjusted EBITDA
    positive
    high materiality
    High

    Operational metrics

    16
    Revenue growth
    52.3%YoY
    Q2 FY26

    Driven by continued strength across aerospace and defense end markets.

    Revenue growth
    50%QoQ
    Q2 FY26

    Sequential growth from Q1 FY26.

    Gross Margin
    21.5%up 33.2% YoY
    Q2 FY26

    Improvement reflects higher manufacturing utilization, improved production efficiencies, stronger operational discipline, and continued benefits from strategic initiatives.

    Operating Expenses (GAAP)
    $15.5 millionup from $10.0 million YoY
    Q2 FY26

    Increase reflects a return to hiring and refinement of certain labor and overhead costs.

    Operating Expenses (Non-GAAP)
    $13.1 millionup from $8.8 million YoY
    Q2 FY26

    Excluding stock-based compensation.

    Net Loss (GAAP)
    $11.5 millionimprovement of $1.8 million YoY
    Q2 FY26

    Compared to a net loss of $13.3 million in the year-ago quarter.

    Net Loss (Non-GAAP)
    $9.0 millionimprovement compared to $11.4 million loss YoY
    Q2 FY26

    Excluding stock-based compensation and certain other items.

    Adjusted EBITDA
    -$8.1 millionimproved compared to -$8.9 million YoY
    Q2 FY26

    Improved from the second quarter of 2025.

    Cash and Cash Equivalents
    $91.1 millionup from $39 million at end of 2025
    Q2 FY26

    Strengthened balance sheet during the quarter.

    Gross Proceeds from Underwritten Registered Direct Offering
    approximately $50 million
    Q2 FY26

    Completed in April, strengthening liquidity.

    Gross Proceeds from At-the-Market Offering Program
    $59.4 million
    Q2 FY26

    Raised during the second quarter, strengthening liquidity.

    Debt-to-Equity Conversions
    $18.5 million
    Q2 FY26

    Contributed to reduction of outstanding debt.

    Outstanding Debt
    $8.2 millionreduced by more than 70%
    Q2 FY26

    Reduced as a result of debt-to-equity conversions.

    RPS Revenue Growth
    double digitsYoY
    Q2 FY26

    RPS revenue has grown double digits from last year.

    RPS as % of Revenue
    25-30%
    FY26

    Expected percentage of revenue exiting this year.

    New Hires
    16
    YTD FY26

    Hired in the first 7 months of the year, focusing on experienced and technician levels.

    Industry KPIs

    2
    MetricValueDetails
    Capacity expansiontriple
    Data center prime power demandbooming

    Orderbook & backlog

    1
    Total Backlog$31 millionJune 30, 2026

    up from $16 million YoY

    Reflects strong demand across customer end markets and year-over-year growth in RPS fueled by strong demand from the customer base.

    Deals & partnerships

    2
    Mears Machine CorporationOrder for additional Sapphire XC metal additive manufacturing systems5 systems with options for 2 additional systems

    Expansion of strategic partnership with Mears Machine Corporation, which ordered its fifth Velo3D Sapphire XC system with options for two additional systems.

    Aurelia TechnologiesStrategic partnership focused on advancing metal additive manufacturing within next-generation gas turbine systems

    Collaboration to advance the use of metal additive manufacturing within next-generation gas turbine systems, reinforcing Velo3D's ability to deliver differentiated manufacturing solutions across a broader range of industrial markets.

    Capital programs

    1
    Livermore Production Campusunderway
    Start: Q2 FY26

    Benefit: triple the company's manufacturing capacity; 40-machine capacity by year-end; 75-80 machines total manufactured/built by end of '27; half of 100-machine capacity by mid-'28

    This investment represents a transformational expansion of the manufacturing footprint and is expected to triple the company's manufacturing capacity once fully operational. The campus is expected to become operational later this year and will serve as Velo3D's primary production and manufacturing center. The company is pushing to get it operational by Q4 to produce parts and build machines.

    Risks & headwinds

    4
    Financial struggles in the pastlast year

    Financial struggles in the last year didn't help us to really do what we want.

    Mitigation: This year we have the stability to create that ecosystem we always envisioned for.

    Lagging production capacity compared to demandcurrent

    We absolutely need 100 machines as of today to actually run all the programs on the demand we have. But we're lagging behind on the production of more machines.

    Mitigation: Trying to keep up and pushing the limits to get as soon as possible. By next year, we'll have half of that capacity, and by mid-2028, we're focusing to get all the 100 machines up.

    Adversaries' existing manufacturing footprintcurrent

    If our adversaries have a 10 million square foot already existent, and you don't even have a 250,000 square foot of additive in the country.

    Mitigation: We absolutely need the capacity to bring back all the programs and all the production.

    Skill level growth and single point failures in laborongoing

    Getting the people at the skill level growth and then getting alignment with single point failures.

    Mitigation: Creating the double layers of things. That work we have been doing from last 1.5 years.

    What to watch in Q3 FY26

    5

    Livermore Production Campus Operational Status

    Q4 FY26
    CurrentLaunched, pushing for Q4 operational status
    TargetOperational, producing parts and building machines

    Why it matters

    Critical for tripling manufacturing capacity and meeting accelerating demand.

    So we're pushing to get that done by fourth quarter because it's absolutely necessary. Fremont is fully occupied. And we thought of first quarter, but it's inevitable that we have to get by fourth quarter. So we're pushing those boundaries to get that operational and put those machines running to produce parts and also build machines there.

    Q&A highlights

    6

    How much RPS revenue was in Q2, and what is the expected RPS percentage of revenue exiting this year? Also, what is the target for overall printer fleet size by year-end with the new facility?

    RPS revenue grew double digits year-over-year in Q2, and is expected to be 25-30% of total revenue exiting the year. The company plans for a total capacity of 40 machines by year-end, combining existing Fremont capacity with new builds and buybacks, with 10-15 machines deployed to Livermore.

    “So we're building about 20 to 25 machines. I mean, 20 are brand-new machines and 5 or 6 we're buying back from the field. So about 25 machine capacity. We already have 15 machine capacity built in Fremont. So with the new improvements, there is a 9 to 10 bay, which we're going to keep it here, and the next 10 will be deploying to, I mean, Livermore. So that will give you a 40-machine capacity by end of the year.”

    asked by Jaeson Schmidt · answered by Arun Jeldi

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Manufacturing Expansion

    Velo3D launched its new Livermore Production Campus, an investment expected to triple the company's manufacturing capacity once fully operational later this year. This campus will centralize operations, generate valuable manufacturing data, and accelerate the development of next-generation digital design and manufacturing software, leveraging AI and machine learning. The company is pushing to get the campus operational by Q4 FY26 to produce parts and build machines.

    02

    Distributed Manufacturing and Partnerships

    The company continued to expand its distributed manufacturing strategy, notably with Mears Machine Corporation ordering its fifth Velo3D Sapphire XC system and options for two more. A new strategic partnership with Aurelia Technologies focuses on advancing metal additive manufacturing for next-generation gas turbine systems, broadening applicability beyond traditional aerospace and reinforcing Velo3D's ability to deliver differentiated solutions.

    03

    Market Demand and Capacity Needs

    Management highlighted booming demand in aerospace, defense, and energy markets, driven by new visions, international conflicts, and the AI boom, leading to prototype programs transitioning to production at scale. The company estimates needing 100 machines today to meet demand and aims to build half of that capacity by next year, with the full 100 machines by mid-2028, noting that these will be sold before they are built due to overwhelming demand.

    04

    Financial Strengthening and Liquidity

    Velo3D significantly strengthened its balance sheet, raising approximately $50 million in gross proceeds from an underwritten registered direct offering and $59.4 million from an at-the-market program. These actions, combined with $18.5 million in debt-to-equity conversions, reduced outstanding debt by over 70% to $8.2 million, enhancing liquidity for ongoing investments in people, operations, and growth initiatives.

    05

    Operational Efficiency and Data-Driven Approach

    The company's gross margin improvement reflects higher manufacturing utilization, improved production efficiencies, and strategic cost allocation. The Livermore campus is central to transforming Velo3D into a software and data-powered manufacturing company, using real-world data to optimize print parameters, improve predictability, accelerate customer qualification, and develop intelligent software powered by AI and machine learning.

    06

    Public Market Visibility and Governance

    Velo3D was added to both the Russell 3000 and Russell Microcap Indexes, increasing institutional investor visibility and broadening market awareness. The appointment of Lily Mei as an independent director to the Board further strengthened corporate governance, bringing extensive leadership experience across public and private sectors, including economic development and manufacturing ecosystems.

    AI-generated summary of the company’s earnings call. Not investment advice.