Back to top

Image: Bigstock

Why Is 3D Systems (DDD) Down 5.1% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is 3D Systems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

3D Systems Q1 Earnings Beat Estimates, Revenues Increase Y/Y

3D Systems posted a first-quarter 2026 non-GAAP loss of 1 cent per share, narrower than the reported loss of 21 cents per share in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 88.89%.

Revenues were $95.5 million, up 1% year over year or 11% excluding the impact of divestitures, and surpassed the Zacks Consensus Estimate by 3.65%. Strength in Healthcare demand stood out, supported by double-digit growth across Dental, Med Tech and Aerospace and Defense.

Product revenues increased 5.5% year over year to $57.8 million in the first quarter, contributing 60.5% to total revenues. Services revenues, which accounted for 39.5% of total revenues, decreased 5.1% year over year to $37.8 million.

DDD’s Q1 Segmental Details

The company operates through two key segments — Healthcare Solutions and Industrial Solutions — tailored to the diverse industries it serves. Healthcare Solutions focuses on dental, medical devices, personalized health services, and regenerative medicine, whereas Industrial Solutions caters to aerospace, defense, transportation, and general manufacturing.

Healthcare Solutions remained the clear driver of the quarter. Segment revenue increased about 21% year over year to $50.1 million, reflecting broad-based momentum across key medical and dental applications. Dental and MedTech increased approximately 20% year over year.

Industrial Solutions, however, continued to face pressure. Segment revenue decreased roughly 15% year over year to $45.4 million, though the company noted that adjusting for 2025 divestitures, Industrial Solutions revenue increased 2% from the prior-year period.

DDD Q1 Operating Details

In the first quarter of 2026, DDD’s non-GAAP gross profit increased 3.9% year over year to $34.4 million. The non-GAAP gross profit margin expanded 100 basis points to 36%, aided by higher volumes and a more favorable revenue mix.

Adjusted EBITDA was $2.1 million compared with an adjusted EBITDA loss of $23.9 million a year ago, underscoring the benefits of improved sales levels and continued execution against expense initiatives.

Operating expenses also came down sharply. Total operating expense on a non-GAAP basis declined 40.6% year over year to $36.6 million, reflecting the impact of earlier cost reduction actions.

DDD’s Liquidity Declined as Cash Flow Stayed Negative

As of March 31, 2026, total cash was $86.5 million, including $85.1 million of cash and cash equivalents and $1.4 million of restricted cash.

As of March 31, 2026, DDD had a total debt of $90.7 million. The balance sheet also reflects $3.9 million of debt scheduled to mature in the fourth quarter of 2026, with $92.0 million maturing in 2030.

3D Systems’ Q2 View Implies Stable Revenue, EBITDA Pullback

Management expects second-quarter 2026 revenues in the range of $93 million to $95 million. The outlook implies roughly steady demand levels as the company works to build on the quarter’s top-line momentum in priority markets.

On profitability, adjusted EBITDA is expected to be between a loss of $4 million and $2 million in the second quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

The consensus estimate has shifted 11.11% due to these changes.

VGM Scores

At this time, 3D Systems has a great Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

3D Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

3D Systems is part of the Zacks Commercial Printing industry. Over the past month, Stratasys (SSYS - Free Report) , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.

Stratasys reported revenues of $132.7 million in the last reported quarter, representing a year-over-year change of -2.5%. EPS of -$0.01 for the same period compares with $0.04 a year ago.

For the current quarter, Stratasys is expected to post earnings of $0.02 per share, indicating a change of -33.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Stratasys. Also, the stock has a VGM Score of C.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in