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1. Company Snapshot

1.a. Company Description

Stratasys Ltd.provides connected polymer-based 3D printing solutions.It offers 3D printing systems, such as polyjet printers, FDM printers, stereolithography printing systems, and programmable photo polymerization printers for rapid prototyping, such as design validation, visualization, and communication.


The company also provides 3D printing materials, including approximately FDM spool-based filament materials, polyjet cartridge-based resin materials, non-color digital materials, and color variations for use in 3D printers and production systems.In addition, it offers GrabCAD Additive Manufacturing Platform, an open and enterprise-ready software that enables manufacturers to manage production-scale additive manufacturing operations; GrabCAD Shop, which simplifies the 3D printing shop workflow; GrabCAD software development kit that provides application programming interfaces, documentation, sample code, and professional support network; and GrabCAD Workbench, a cloud-based project data management solution.Further, the company operates Thingiverse.com, an online community for sharing downloadable and digital 3D designs; and GrabCAD Community for mechanical engineers, designers, manufacturers, and students, as well as offers on-site system installation, operator training, maintenance and repair, and remote technical support services.


Its products and services are primarily used in the aerospace, automotive, transportation, healthcare, consumer products, dental, medical, and educational industries.The company sells its products through a network of resellers and independent sales agents worldwide.Stratasys Ltd.


was incorporated in 1989 and is headquartered in Eden Prairie, Minnesota.

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1.b. Last Insights on SSYS

The recent performance of Stratasys Ltd. was negatively impacted by weak sales, despite the company's efforts to streamline operations and reduce costs. The decline in consumable revenue in the fourth quarter, as mentioned in the February 4 news article, suggests that demand for the company's products remains soft. Additionally, the cautious outlook for 2025, as stated in the March 31 news article, may indicate that the company is not yet seeing a clear rebound in its end markets.

1.c. Company Highlights

2. Stratasys Ltd. Posts Mixed Q3 2025 Results Amidst Industry Challenges

Stratasys Ltd. reported its third-quarter 2025 financial results, with consolidated revenue of $137 million, down 2.1% year-over-year. Product revenue was $94.1 million, flat compared to the same period last year, while service revenue was $42.9 million, down from $45.9 million. The company's GAAP gross margin was 41%, and non-GAAP gross margin was 45.3%. The actual EPS came out at $0.02, missing estimates of $0.06333. Despite the revenue decline, Stratasys achieved a solid operating cash flow of $6.9 million and positive adjusted earnings per share.

Publication Date: Nov -17

📋 Highlights
  • Revenue Decline:: Q3 revenue fell 2.1% YoY to $137M, with service revenue dropping 6.5% to $42.9M from $45.9M.
  • Margin Stability:: GAAP gross margin held at 41%, while non-GAAP improved to 45.3%, aligning with full-year guidance of 46.7–47%.
  • Aerospace & Defense Growth:: Secured wins with Boeing, Embraer, and Honeywell; A.M. Craft expanded to 10 F900 machines, addressing $11B supply chain challenges in aviation.
  • Dental Expansion:: Launched SoftRelax post-processing solution and partnered with top U.S. providers, targeting high-consumption use cases.
  • Full-Year Guidance:: Reaffirmed $550–560M revenue and $0.13–$0.16 adjusted EPS, with $30–32M adjusted EBITDA and 46.7–47% non-GAAP gross margin.

Segment Performance and Growth Verticals

The company saw growth in specific verticals, including aerospace and defense, where it secured wins with industry leaders such as Boeing, Embraer, and Honeywell. Stratasys also partnered with a global top-three pharmaceutical company, opening new opportunities in medical device and drug development applications. The company is investing in its dental portfolio, including the launch of its SoftRelax post-processing solution, and has recruited a top digital dental expert to capitalize on the significant dental opportunity.

Guidance and Outlook

For 2025, Stratasys reaffirmed its non-GAAP guidance, expecting full-year revenue between $550 million to $560 million, with a non-GAAP gross margin ranging from 46.7% to 47%. The company anticipates adjusted earnings per share of $0.13 to $0.16 and adjusted EBITDA between $30 million to $32 million. Analysts estimate next year's revenue growth at 2.8%, indicating a slight improvement in the company's prospects.

Valuation and Industry Positioning

With a P/E Ratio of -7.6, P/B Ratio of 0.83, and P/S Ratio of 1.35, Stratasys' valuation reflects the challenges it faces. However, the company's strategic investments, such as in A.M. Craft, a European aviation part manufacturer, position it well to address the aerospace industry's supply chain problems. The company expects stability in consumables, driven by a shift towards high-end manufacturing use cases that consume more material.

Operational Efficiency and Cost Management

In terms of OpEx, the company expects Q4 to trend slightly down relative to Q3, with a balance between cost management and investing in R&D and sales and marketing. Stratasys' focus on specific use cases, including additive manufacturing in aerospace, and its partnership with A.M. Craft to extend the certification of 3D printed aviation parts, demonstrate its efforts to drive growth and efficiency.

Future Prospects and Potential

The company recently sold four F3300s to a major AI social media company, which it sees as a proof point to its capabilities in high-end FDM. Stratasys expects potential future purchases and incremental products and software sales as the customer ramps up production. With its strengthened balance sheet and strategic investments, the company is well-positioned to capitalize on emerging opportunities in the additive manufacturing space.

3. NewsRoom

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Planet Labs ($PL) | Plug Power ($PLUG) | Stratasys ($SSYS) | Spire Global ($SPIR)

Dec -01

Source: youtube.com

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Stratasys Expands Availability of RadioMatrix™ Radiopaque Material to the United States

Dec -01

Source: businesswire.com

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Stratasys Digital Anatomy™ Technology Powers First 3D-Printed Eyelid Surgery Training Models in Europe

Nov -18

Source: businesswire.com

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Stratasys Expands Beyond Polymers, Adding Production Grade Metal Manufacturing Technology to its Offering with Tritone Technologies

Nov -17

Source: businesswire.com

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Stratasys Ltd. (SSYS) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Stratasys Releases Third Quarter 2025 Financial Results

Nov -13

Source: businesswire.com

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Stratasys Announces New Materials, Features, and Software Advancements to Accelerate Additive Manufacturing Productivity

Nov -11

Source: businesswire.com

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Stratasys Highlights Scalable Industrial Additive Manufacturing Solutions at Formnext 2025

Nov -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.38%)

6. Segments

3D Printing Systems

Expected Growth: 5%

Stratasys' 3D printing systems growth is driven by increasing adoption in production environments, rising demand for customized products, and growing use in industries like aerospace, automotive, and healthcare. Additionally, advancements in technology, decreasing costs, and expanding distribution channels contribute to the growth.

Services

Expected Growth: 3%

Stratasys Ltd.'s services segment growth is driven by increasing adoption of 3D printing technology, rising demand for rapid prototyping and production, and growing need for customized products. Additionally, the company's expanding partner network, innovative product offerings, and strategic acquisitions are contributing to its growth.

7. Detailed Products

F123 Series

A line of FDM 3D printers designed for rapid prototyping and production

Fortus Series

A line of FDM 3D printers designed for high-performance prototyping and production

Connex Series

A line of PolyJet 3D printers designed for high-resolution prototyping and model making

J750/J735 Series

A line of PolyJet 3D printers designed for high-resolution prototyping and model making

Objet Series

A line of PolyJet 3D printers designed for high-resolution prototyping and model making

Mojo/uDuo Series

A line of FDM 3D printers designed for entry-level prototyping and model making

GrabCAD Software

A CAD/CAM/CAE software platform designed for product design, simulation, and collaboration

Stratasys Direct Manufacturing

A 3D printing and manufacturing service bureau

8. Stratasys Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Stratasys Ltd. is medium due to the presence of alternative 3D printing technologies such as FDM, SLA, and SLS. However, Stratasys' proprietary FDM technology and strong brand recognition mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to Stratasys' strong brand recognition and the high switching costs associated with changing 3D printing technologies.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of raw materials and components. However, Stratasys' large scale of operations and strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for 3D printing technologies and the relatively low barriers to entry. However, Stratasys' strong brand recognition, proprietary technology, and established distribution channels provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the 3D printing industry, including HP, GE, and 3D Systems. However, Stratasys' strong brand recognition, proprietary technology, and established distribution channels provide a competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.07%
Debt Cost 3.95%
Equity Weight 97.93%
Equity Cost 10.59%
WACC 10.45%
Leverage 2.11%

11. Quality Control: Stratasys Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quantum

A-Score: 4.4/10

Value: 10.0

Growth: 1.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

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Identiv

A-Score: 4.4/10

Value: 8.4

Growth: 3.6

Quality: 6.3

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

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Stratasys

A-Score: 4.3/10

Value: 8.6

Growth: 2.3

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

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Corsair Gaming

A-Score: 4.0/10

Value: 6.5

Growth: 2.7

Quality: 4.5

Yield: 0.0

Momentum: 7.5

Volatility: 3.0

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Fathom Digital

A-Score: 3.9/10

Value: 8.1

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Red Cat Holdings

A-Score: 3.7/10

Value: 6.0

Growth: 2.8

Quality: 3.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.11$

Current Price

9.11$

Potential

-0.00%

Expected Cash-Flows