Stratasys (NASDAQ:SSYS) reported second-quarter 2026 revenue of $137.6 million, up 3.7% sequentially but roughly flat from $138.1 million a year earlier, as record consumables sales and growth in its Stratasys Direct production-parts business offset lower system revenue.
Chief Executive Officer Yoav Zeif said the quarter reflected the company’s strategy to shift more of its business from prototyping toward manufacturing applications. He highlighted demand from aerospace and defense customers, increasing use of manufacturing materials, and multi-system customer commitments as evidence of what he described as more durable, structural demand for additive manufacturing.
Consumables Reach Record as System Revenue Declines
Service revenue increased to $44.9 million from $43.3 million a year earlier. Customer support revenue was approximately flat at $29.9 million, while Stratasys Direct, the company’s parts-production business, grew 12.1% year over year.
System revenue, however, declined to $26.4 million from $30.6 million in the second quarter of 2025. During the question-and-answer session, Zeif said the company is pursuing larger manufacturing-oriented transactions that can create quarter-to-quarter variability. He said Stratasys expects a “notable uptick” in system sales in the second half of 2026 and continues to expect sequential revenue growth across all four quarters of the year.
Zeif also said Stratasys Direct had its highest-ever backlog and produces more than 12,000 parts for aerospace and defense customers, primarily for drone applications.
Aerospace, Defense and Automotive Programs Expand
Aerospace and defense, Stratasys’ largest business, grew 17% from the second quarter of 2025, according to Zeif. The company attributed part of that expansion to adoption by the U.S. Air Force for depot-level sustainment and spare-parts production using its F900 systems, which are certified by the Air Force for flight-worthy production parts.
During the quarter, Stratasys was awarded a two-year, $7.8 million program through the 2026 America Makes DIB Modernization Challenge. The program is intended to advance in-situ monitoring hardware and software capabilities for the F900 and a future technology refresh involving the F3300 platform.
The company also expanded its relationship with Seattle-based on-demand manufacturer Quickparts, which purchased 12 Neo800+ systems in addition to six units it already operates. Zeif described the multi-year, multimillion-dollar agreement as including materials, software and service. The systems will be used to manufacture production parts for aerospace, defense, advanced mobility and energy applications, including three units that will be deployed at Quickparts facilities in Europe.
In automotive, Zeif said FANUC adopted Stratasys industrial solutions in its supply chain following a request from a major automotive original equipment manufacturer. He said the arrangement reflects an industry trend toward standardizing additive manufacturing platforms across OEMs and suppliers.
FAW Group also agreed to purchase 12 F900 systems by year-end, with two shipped during the second quarter. The Chinese automotive manufacturer already operates five F900 systems and eight other Stratasys systems, according to Zeif. The additional systems are intended primarily to produce interior end-use parts, including armrests and panels.
Markforged Acquisition Expected to Close Later This Year
Stratasys expects to complete its pending $42.5 million cash acquisition of Markforged later in 2026, subject to customary regulatory steps. Zeif said Markforged generated approximately $70 million in revenue in 2025.
The acquisition is intended to add continuous carbon-fiber technology, materials and software capabilities to Stratasys’ portfolio. Zeif said the technology can support stronger and lighter parts that may replace metal in certain uses while requiring less post-processing. He also pointed to Markforged’s simulation and distributed print-management software, partner network and engineering talent as areas of strategic value.
Stratasys expects the transaction to create new revenue streams and generate synergies that improve margins, with a positive contribution to adjusted EBITDA within the first year after closing, according to management.
Zeif also discussed the company’s dental opportunity, saying Stratasys has received European approvals for an initial version of its removable dental solution and is working with dental labs including Glidewell and Affordable Dentures. He did not provide financial projections for the business.
Margins, Earnings and Cash Flow
GAAP gross margin was 42.3%, compared with 43.1% a year earlier, while non-GAAP gross margin was 47.2%, compared with 47.7%. Zamir said the stronger Israeli shekel, in which the company incurs many expenses, adversely affected margins, though higher-margin consumables revenue partially offset the impact.
GAAP operating expenses declined to $71.7 million from $76.1 million in the prior-year period. The company reported a GAAP operating loss of $13.5 million, an improvement from a $16.6 million loss a year earlier. Non-GAAP operating income was $0.1 million, compared with $1.1 million in the prior-year quarter.
Stratasys recorded a GAAP net loss of $16.9 million, or $0.19 per diluted share, compared with a loss of $16.7 million, or $0.20 per diluted share, a year earlier. Non-GAAP net income was $2.3 million, or $0.03 per diluted share, compared with $2.2 million, or $0.03 per diluted share, in the comparable period.
Adjusted EBITDA was $5.3 million, improving from $2 million in the first quarter but below $6.1 million a year earlier. Zamir said adjusted results would have been higher year over year excluding a $2.9 million adverse currency impact.
The company used $18.7 million in operating cash flow during the quarter, citing non-routine items including legal expenses to protect intellectual property. Stratasys ended the period with $212.5 million in cash equivalents and short-term deposits, down from $237.8 million at the end of the first quarter.
Management reaffirmed its 2026 guidance except for operating cash flow. The company no longer expects positive operating cash flow for the full year, though it expects operating cash flow to be positive in the second half.
About Stratasys (NASDAQ:SSYS)
Stratasys, Inc is a global leader in additive manufacturing and 3D printing solutions, offering a comprehensive portfolio of technologies and materials for rapid prototyping and production. Founded in 1989 by Scott and Lisa Crump, the company pioneered fused deposition modeling (FDM) and has since expanded its capabilities to include PolyJet, stereolithography and metal deposition systems. Stratasys serves a broad array of customers, from small design studios to major industrial manufacturers, enabling accelerated product development and on-demand part production.
The company’s product line encompasses both desktop and industrial-grade 3D printers, dedicated support materials and proprietary software designed to streamline the digital manufacturing workflow.
