Snapshot
3D Systems Corp reported $96M of revenue in Q1 2026, up 1.1% year over year, with diluted EPS of $-0.03 and an operating margin of -7.0%.
- Revenue
- $96M
- YoY growth
- +1.1%
- Diluted EPS
- $-0.03
- Operating margin
- -7.0%
What management said
- •Hello, and welcome to 3D Systems' first quarter 2026 earnings conference call.
- •I'll then provide an update on our business strategy and key growth initiatives.
- •The additive manufacturing industry is now beginning to emerge from a multi-year trough, driven largely by global economic and geopolitical challenges that led customers to severely curtail capital spending.
- •To derive the highest value from R&D investments, we focused them intensely on our three key growth markets: aerospace and defense, medtech, and dental.
- •Solid growth in printer sales, increased momentum in part sales, strong growth in healthcare material sales.
- •From a product standpoint, we saw double-digit year-over-year growth in printer and material sales as well as parts manufacturing, particularly in metals.
- •We also saw balanced growth across both of our business units, healthcare and industrial.
- •During the first quarter, we saw strong double-digit year-over-year growth in several key areas, including medical parts manufacturing, printer sales, and surgical planning services.
- •Medical parts manufacturing demand was driven specifically by titanium spinal implants and both titanium and cobalt chrome joint implants used in replacement procedures.
- •Printer revenue was led by sales of our DMP 350 metal printer to medical device customers who are now entering a refresh and expansion cycle.
- •This growth was partially offset by lower than expected sales to one key customer due to a temporary disruption in their internal operations, which was resolved by the end of the quarter.
- •We're already seeing a recovery in their demand and expect a solid rebound in the second quarter.
What went well
- •First quarter consolidated revenue of $95.5 million increased 11% year-over-year, demonstrating a solid return to revenue growth, with double-digit growth across all three key growth markets: medtech, dental, and aerospace and defense.
- •Non-GAAP gross margin rose to 36.1%, up 6 percentage points year-over-year (ex-divestitures), reflecting improved manufacturing absorption, favorable consumables mix, improved printer margins, and cost reduction benefits.
- •First quarter adjusted EBITDA turned positive at $2.1 million, a $26 million year-over-year improvement ($28.2 million adjusting for divestitures).
- •Non-GAAP operating expenses fell to $36.6 million, down 35% (-$20.1M) year-over-year ex-divestitures and down 11% sequentially, with over $55 million in annualized cost savings delivered through Q1.
- •The NextDent denture platform gained major commercial traction, with ROE Dental Laboratory becoming the first major U.S. lab to deploy an extensive fleet, tripling its capacity, and EU Phase IIA approval received two months ahead of schedule, expanding the addressable market to more than 60 million edentulous patients.
What went wrong
- •Healthcare medtech growth was partially offset by lower-than-expected sales to one key customer due to a temporary disruption in their internal operations, though it was resolved by the end of the quarter.
- •Jewelry business and certain regional sales were hurt by lower demand due to the conflict in the Middle East, which also caused supply chain and logistics disruptions.
- •Industrial Solutions revenue grew only 1.6% year-over-year to $45.4 million, lagging healthcare, partly due to the regional weakness in the jewelry business.
- •Modest FX and tariff impacts weighed on the bottom line, though headwinds and tailwinds were largely offsetting for adjusted EBITDA.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Q2 revenue | Q2 2026 | — | $93 million-$95 million, reflecting customary seasonality | |
| Q2 adjusted EBITDA | Q2 2026 | Positive $2.1M in Q1 | Loss in the range of -$2 million to -$4 million | |
| Full-year adjusted EBITDA | FY 2026 | — | Breakeven adjusted EBITDA or better for the full year | |
| Operating expense | Remainder of 2026 | $36.6M in Q1 | Largely stable through the remainder of the year with normal seasonal fluctuations | |
| Cost reduction program completion | End of Q2 2026 | — | Defined cost reduction/efficiency programs expected complete by end of Q2, concluding a six-quarter effort | |
| Aerospace and defense growth | 2026 | Over 20% expected (Q4 call) | Delivered over 20% year-over-year growth in Q1 |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Consolidated revenue | +11% to $95.5M | Solid return to growth driven by double-digit growth across medtech, dental, and aerospace and defense; printers, materials, and parts each grew double digits |
| Industrial Solutions revenue | +1.6% to $45.4M | Aerospace and defense up over 20% plus a return to growth in automotive and semiconductor, partially offset by lower jewelry demand from the Middle East conflict |
| Healthcare Solutions revenue | +21% to $50.1M, surpassing Industrial | Strong performance across dental (aligner and Vertex repair materials) and medtech, with strong healthcare parts demand for orthopedic implants |
| Non-GAAP gross margin | 36.1%, up 6 pts ex-divestitures | Improved manufacturing absorption from higher production/sales volume, favorable consumables mix, improved printer margins, and cost reduction benefits |
| Non-GAAP operating expense | $36.6M, down 35% (-$20.1M) ex-divestitures | Incremental savings from 2025 cost reduction initiatives and reduced R&D as the portfolio refresh completes |
| Adjusted EBITDA | Positive $2.1M, up $26M ($28.2M ex-divestitures) | Higher sales volumes, favorable product mix, and the majority of improvement from OpEx reductions |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Industry inflection | Q4 viewed as return to growth | Additive manufacturing industry now beginning to emerge from a multi-year trough; CEO more positive than in two or three years | |
| NextDent denture rollout | Order backlog building, EU approval targeted mid-2026 (Q4) | ROE Dental Lab fleet deployment tripling capacity; EU Phase IIA approval received two months early; addressable market expanded to 60M+ edentulous patients; most successful launch in CEO's five-year tenure | |
| Cost reduction program | ~$55M annualized savings completed in 2025 (Q4) | Over $55M delivered through Q1; defined programs to complete by end of Q2, ending a six-quarter effort | |
| R&D spending normalization | Throttling back, still double-digit (Q4) | Launches substantially complete; transitioning to a more balanced R&D level focused on targeted enhancements | |
| Littleton metal-parts expansion | Capacity expansion underway (Q4) | Adding 80,000 sq ft adjacent building for industrial/aerospace part manufacturing, grand opening anticipated late summer |
Q&A summary
Your tone seems more positive — what strikes you as the most important lever to re-accelerate growth?
The bet to sustain R&D and refresh the portfolio paid off just as 3D printing regains traction; the encouraging part is the breadth across dental, medtech/orthopedics, and aerospace and defense, spanning healthcare and industrial high-reliability markets.
On the Q2 revenue outlook, was anything pulled forward?
No pull-forwards — the Q1 overachievement was a legitimate uptick in demand; Q2 reflects a seasonal dip as healthcare grows because patients defer optional procedures around summer vacations, plus a measured approach given Middle East volatility.
OpEx looks lower than expected — was there anything that positively impacted Q1, and is full-year EBITDA positivity likely?
Product mix and some favorable timing of expenses helped Q1 (noteworthy but not significant); expect stabilized OpEx and product mix quarter-over-quarter, aiming toward the adjusted EBITDA breakeven goal.
Update on healthcare — was year-over-year growth driven by personalized healthcare (medtech) or dental?
Both were strong; medtech (surgical planning, guides, implants) is a consistent double-digit grower aided by faster trauma response and oncology/bone-cancer applications, while dental benefited from new U.S. Vertex repair approval and aligner stabilization.
Where are you expanding in metal additive parts?
Adding 80,000 sq ft adjacent in Littleton for industrial/aerospace part-making, leveraging existing healthcare quality systems, focused on titanium, zirconium, nickel-based and copper-nickel alloys for propulsion, Navy, and flight systems, with a grand opening anticipated late summer.