Stratasys Q3 revenue hits $142.6 million as outlook is cut

By Grace Kim

Stratasys generated $142.6 million in third-quarter 2026 revenue, up 4.1% from $137.0 million a year earlier and 3.6% from the second quarter.

Stratasys is a Minnesota- and Israel-based maker of polymer 3D printers. Its largest business is aerospace and defense, where revenue grew more than 35%.

What drove third-quarter growth?

Aerospace and defense revenue rose about 25% from the second quarter, helped by two significant defense orders and follow-on orders for flight-grade production parts. Demand spread across drones, space, munitions and electric air taxis, according to the company's quarterly presentation.

Systems revenue from printer sales rose about 12% to $35.9 million. Consumables revenue slipped 1.3% to $61.2 million. The divergence left systems growth offset by a consumables decline.

Stratasys reported the following quarterly revenue from products plus services:

• Q3 2025: $137 million
• Q4 2025: $140 million
• Q1 2026: $133 million
• Q2 2026: $138 million
• Q3 2026: $143 million

How did margins and cash flow change?

GAAP gross margin improved to 43.7% from 41.0%. Better margins on systems and a tariff credit helped, partly offset by lower consumables revenue.

The GAAP operating loss narrowed to $11.0 million from $22.7 million, while the net loss fell to $10.2 million, or 12 cents per share, from $55.6 million a year earlier.

The prior-year net loss included a $33.9 million impairment on Stratasys's Ultimaker investment.

Non-GAAP net income was $3.5 million, or 4 cents per share. Adjusted EBITDA reached $8.0 million, and operating cash flow was $3.5 million.

Stratasys ended September with $210.7 million of cash, equivalents and short-term deposits. The company reported no debt.

GAAP results remained loss-making, while non-GAAP net income was positive. That difference reflects the adjustments used in the company's operating presentation.

Why did Stratasys cut its 2026 outlook?

Stratasys cut 2026 revenue guidance to $556 million to $561 million from $565 million to $575 million as large, production-focused orders take longer and arrive less predictably.

CEO Yoav Zeif said: “We continue to experience robust customer engagement across our pipeline as we navigate longer and more variable timelines for large, production-focused awards, which we have factored into our updated outlook.”

The company also lowered adjusted EBITDA guidance to $24 million to $26 million from $25 million to $30 million. Non-GAAP operating margin guidance fell to 0.6% to 0.9% from 0.7% to 1.5%.

Stratasys now expects a GAAP net loss of $64 million to $77 million. It also forecasts non-GAAP net income of $9 million to $11 million.

Revenue reached $412.9 million through September. The revised full-year range implies fourth-quarter revenue of about $143 million to $148 million, compared with $140.0 million a year earlier.

The lower targets reduce both revenue and margin expectations despite stronger aerospace and defense demand. Order timing, rather than reported customer engagement, now determines when that demand reaches revenue.

Why was the Markforged deal abandoned?

Stratasys and Nano Dimension mutually terminated Stratasys's $42.5 million cash purchase of Markforged on Nov. 11. Markforged makes industrial 3D printers.

Nano Dimension said in a filing that the regulatory approvals required to close the transaction “would take materially longer, and be more expensive, than initially anticipated.”

Stratasys announced the acquisition on May 27 and expected it to close in the second half of 2026. The termination came one day before the quarterly results. Stratasys did not mention the abandoned transaction in its earnings release.

For 2026, Stratasys must convert delayed production-focused awards on schedule, while aerospace and defense remains its clearest source of growth.