Stratasys reports decline in sales and job cuts despite higher margins

3D printing provider Stratasys has presented its results for the fourth quarter and full year 2024. Despite a decline in sales compared to the previous year, the company was able to improve its profit margins. Full-year revenue for 2024 amounted to USD 572.5 million, around USD 55 million less than in 2023. In the fourth quarter alone, the company generated revenue of USD 150.4 million compared to USD 156.3 million in the same period last year.

The increase in gross margins is particularly noteworthy.While the GAAP gross margin was 44.7% in the same quarter of the previous year, it rose to 46.3% at the end of 2024.The non-GAAP gross margin even amounted to 49.6%.
Stratasys attributed this development to efficiency improvements and the targeted expansion of the more profitable segments. The operating result on a non-GAAP basis amounted to around 9.4 million US dollars in the last quarter.

Nevertheless, Stratasys reported a GAAP loss of 41.3 million US dollars for the fourth quarter. This was due in part to impairment charges and one-time restructuring costs. These measures are part of a strategic reorganization to better align future investments. Among other things, Stratasys plans to increase its focus on artificial intelligence and platform-based solutions.

In addition, the company announced a strategic investment of 120 million US dollars by Fortissimo Capital. This capital injection, which has yet to be finalized, is intended to help Stratasys achieve sustainable growth again in the long term.

According to CEO Andrew Anagnost, customers have currently held back their investments, but he expects demand to pick up again in the course of 2025. Stratasys expects a slight increase in sales to around USD 590 million in 2025 and a further improvement in gross margins. Operating cash flow is also expected to increase in the future.