Materialise Q3 2026 Earnings Results & Report

Materialise EPS Results

• Actual EPS: $0.03
• Consensus EPS: $0.0227
• Beat/Miss: Beat by +$0.0073
• One Year Ago EPS: N/A
• EPS Beat Rate: 5 of last 7 quarters

Materialise Revenue Results

• Actual Revenue: $76.65 million
• Expected Revenue: $78.13 million
• Beat/Miss: Missed by -$1.48 million
• YoY Revenue Growth: N/A

Materialise (NASDAQ:MTLS) is a Belgium-based company that develops software and provides services for additive manufacturing, commonly known as 3D printing. Its technologies are used by manufacturers, medical professionals and researchers to design, prepare, manage and produce three-dimensional parts and devices.

The company’s software portfolio includes solutions such as Magics for preparing and managing 3D-printing jobs, the Mimics Innovation Suite for processing medical imaging data and creating patient-specific models, and 3-matic for advanced design and engineering applications. Materialise also offers the CO-AM platform, which is designed to help industrial customers manage additive-manufacturing workflows, along with related consulting, integration and production services.

In its medical activities, Materialise provides software, anatomical models, surgical planning tools and patient-specific solutions that support applications including orthopedic, cranial and maxillofacial surgery. Through its manufacturing services, the company produces prototypes, tooling, components and finished parts for customers in industries such as aerospace, automotive, consumer products and healthcare.

Founded in 1990 by Wilfried Vancraen, Materialise is headquartered in Leuven, Belgium, and serves customers internationally through operations and offices in Europe, North America and the Asia-Pacific region. Brigitte de Vet-Veithen serves as chief executive officer, while Vancraen remains associated with the company as its founder and executive chairman.

Materialise Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Full-year 2026 guidance was reaffirmed, with revenue expected at €273 million–€283 million and adjusted EBIT at €12 million–€14 million despite the impact of recent divestitures.
• Positive Sentiment: Medical remained the primary growth driver, with revenue up nearly 10% year over year, supported by demand for personalized surgical planning, CMF solutions, cardiac workflows, and soft-tissue applications.
• Positive Sentiment: Core manufacturing series-production revenue rose more than 30%, led by aerospace, semiconductor, and defense demand; excluding divestitures, manufacturing revenue grew 1.5% in the quarter and its adjusted EBITDA loss narrowed.
• Positive Sentiment: Cash generation and the balance sheet strengthened, with year-to-date free cash flow more than doubling to €22.8 million and net cash reaching €82.5 million. The company also repurchased €7.5 million of shares through the first nine months.
• Negative Sentiment: Software revenue declined just over 4% as cautious industrial spending and extended sales cycles weighed on demand, while increased R&D and one-time costs reduced third-quarter adjusted EBIT to €2.5 million, or a 3.7% margin.

Presentation

[Operator]

Thank you for standing by, and welcome to the third quarter 2026 Materialise NV financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, you will need to press star one one on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. Now it's my pleasure to turn the call to Jody Burfening, Managing Director at Alliance Investor Relations. Please proceed.

[Jody Burfening, Managing Director at Alliance Investor Relations]

Thank you, Carmen, and thank you for joining us today for Materialise's quarterly conference call. With us on the call are Brigitte de Vet, Chief Executive Officer, and Koen Berges, Chief Financial Officer. Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic, financial, and operational performance for the third quarter of 2026. To access the slides, if you have not already done so, please go to the investor relations section of the company's website at www.materialise.com. The earnings press release that was issued earlier today can be found on that page. Before we get started, I would like to remind you that management may make forward-looking statements regarding the company's plans, expectations, and growth prospects, among other things.

[Jody Burfening, Managing Director at Alliance Investor Relations]

These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future changes or events in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings release and at the end of the slide presentation.

[Jody Burfening, Managing Director at Alliance Investor Relations]

With that, I would now like to turn the call over to Brigitte de Vet. Brigitte?

[Brigitte de Vet, CEO at Materialise]

Good morning and good afternoon, and thank you all for joining us today. You can find the agenda for our call on slide three. First, I will summarize the business highlights for the third quarter of 2026. Then I will pass the floor to Koen, who will take you through the third quarter financials. Finally, I will come back and explain what we expect the remaining months of 2026 to bring. When we have completed our prepared remarks, we will be happy to respond to questions. Moving to slide four for the highlights of the third quarter 2026. In the third quarter, we continued to execute on our strategic priorities across all business segments. In medical, we see real momentum in the demand for personalized solutions in various clinical fields, and we have accelerated our investments to scale the adoption of personalization.

[Brigitte de Vet, CEO at Materialise]

In the third quarter in particular, we have made progress in our current focus segments. First, in our medical CMF business, we signed an agreement with the Superhumans Center in Ukraine to support the growing need for craniomaxillofacial reconstructive surgery resulting from the ongoing war. The agreement will enable us to support the treatment of hundreds of patients and war victims with patient-specific solutions and standard plates. Beyond providing surgical solutions, we will support the development of local medical expertise by providing access to our software ecosystem and by providing specialist training at medical universities in Kyiv and Lviv, focusing on 3D visualization and patient-specific surgical planning. For Materialise, this partnership demonstrates how we can combine our technology and clinical expertise to address complex reconstructive needs while helping build local capabilities for more personalized care.

[Brigitte de Vet, CEO at Materialise]

In the third quarter, we also launched several new products in our CMF segment, demonstrating our continued focus on making personalized surgical solutions more accessible and easier to integrate into routine clinical practice. As an example, we introduced ready-to-use sterile packaging. These solutions help hospitals reducing operating room preparation steps and enhance compliance with regulatory requirements. We also introduced the next version of Mimics Enlight CMF, which gives clinical teams greater autonomy in 3D surgical planning. Surgeons can now prepare and review their own 3D plans or rely on our clinical engineers to plan their cases when needed. All of this in an integrated workflow. These innovations reflect our strategy to improve efficiency for healthcare providers and support the broader scaling of our CMF solutions.

[Brigitte de Vet, CEO at Materialise]

Second, in our medical cardiac business, we expanded our AI-powered Mimics planning solutions for cardiac interventions with a new workflow for transcatheter aortic valve-in-valve replacement procedures. These procedures involve replacing a previously implanted aortic valve that is no longer functioning properly. This is a more complex intervention than an initial valve replacement, and the procedure requires careful navigation and planning. The 3D modeling and simulation functionalities of Mimics Cardiac are a powerful tool to reduce the risk of such procedures. The new AI-powered workflow automates several critical planning steps, helping clinicians assess potential risks and reduce manual effort while maintaining full control over clinical decisions. The introduction of this functionality reflects our continued focus on making complex interventions more predictable and efficient through advanced 3D planning and AI-powered automation.

[Brigitte de Vet, CEO at Materialise]

Third, in our Medical Soft Tissue business, we expanded Materialise Mimics for thoracic surgery and now offer a dedicated workflow for liver resection planning and intraoperative support. Liver resections, primarily performed to remove tumors, present significant clinical challenges. Surgeons must meticulously balance adequate tumor margins while preserving enough healthy tissue to prevent postoperative liver failure. Our new workflow assists surgeons in critical clinical decision-making, allowing them to identify anatomical risks and confidently plan the procedure. This strategic expansion directly addresses the growing demand for advanced 3D planning and intraoperative support in minimally invasive surgeries, and it is a next step to build out our comprehensive portfolio of 3D planning solutions for soft tissue cancer resections. Turning to our software segment now. In the third quarter, we continued to see encouraging commercial momentum for our CO-AM platform.

[Brigitte de Vet, CEO at Materialise]

First, we closed strategic deals for CO-AM NPI with leading customers in our focus segments and in particular, the aerospace industry. CO-AM NPI is one of our three CO-AM offerings designed to accelerate new product introductions and qualification processes for series additive manufacturing. By streamlining critical steps, we help customers move more efficiently from product development to qualified series production. Second, we further strengthened our CO-AM platform by integrating CO-AM Brix with Identify3D, our technology for securing and tracing digital part files throughout the manufacturing process. While security controls previously applied to an entire 3D printing build, we can now manage protection traceability and users' rights at the level of each individual part, even when multiple parts from different owners are produced in the same build.

[Brigitte de Vet, CEO at Materialise]

For customers in industries with complex supply chains and strict compliance requirements, including defense, this enables secure on-demand production across multiple locations with full control over intellectual property and production rights. Third, we are gearing up for Formnext, the world's leading additive manufacturing trade show, where we will showcase the power of an open ecosystem approach and will demonstrate how the Materialise CO-AM ecosystem helps manufacturers build connected, scalable AM operations. The day before Formnext, we will also play a leading role at the AM Innovation and Standards Summit, advocating for common frameworks to scale additive manufacturing as a strategic capability. In addition, at the Formnext European Defense event, we will demonstrate how we can play a distinctive role providing manufacturing capacity and the digital infrastructure needed to connect and manage production across secure distributed production environments. Moving on to manufacturing.

[Brigitte de Vet, CEO at Materialise]

In the third quarter, we continued to see strong momentum in core manufacturing, with revenues for series production growing by more than 30% year-over-year in the quarter, driven by demand from the aerospace, semiconductor, and defense industries. In the third quarter, we also invested in additional metal additive manufacturing capabilities in order to enable faster production of larger metal components, particularly for demanding defense applications. The investment will also support our research into software-based quality assurance by providing valuable production data to develop and validate more reliable methods for assessing the quality of aerospace parts. This will be a critical contribution to the European SOMUSA project. As you might recall, we are a leading partner in this European research initiative, focusing on improving and standardizing quality assurance for metal 3D-printed aerospace components.

[Brigitte de Vet, CEO at Materialise]

Our Materialise Motion business also showed strong momentum for our new insoles, called Phits Dynaprint, our affordable orthotic solution that we recently launched in the U.S. to a limited set of centers. Phits Dynaprint gives clinicians greater choice and flexibility with faster delivery times of the insoles and without the need to invest in their own 3D printer. Since its introduction, we have seen a significant increase in adoption, supported by very positive feedback from customers, including podiatrists. In the U.K. and Ireland, where Phits Dynaprint was first launched, we have seen volumes double. With the expansion into North America in the third quarter, total volumes have now tripled versus the second quarter, reflecting strong market adoption and growing demand for the solution. Turning over to Koen now, who will present the financial results.

[Koen Berges, CFO at Materialise]

Thank you, Brigitte. Good morning or good afternoon to everyone joining us today. I will begin with the key financial highlights for the third quarter of this year on slide six. In this quarter, consolidated revenue grew by more than 2% year-on-year to EUR 67.7 million. Excluding the impact of recent divestitures, however, revenue increased by almost 5%. Gross profit increased to EUR 39 million, resulting in a gross margin of 57.7%. Adjusted EBIT amounted to EUR 2.5 million, representing an adjusted EBIT margin of 3.7%. Net profit for the quarter was EUR 1.4 million or 0.02 per share. Our balance sheet and cash generation remain key strategic strengths, giving us the flexibility to invest for future growth. Supported by strong operating cash flow, our net cash position increased to EUR 82.5 million, up by almost 12 million from the start of the year.

[Koen Berges, CFO at Materialise]

We also continued our share buyback program, investing EUR 7.5 million during the first three quarters of 2026. I will now walk you through these results in more detail. As a reminder, unless stated otherwise, all comparisons are versus the third quarter of 2025. Turning now to slide seven, which provides an overview of our consolidated revenue. As said, in this quarter, consolidated revenue reached EUR 67.7 million, up by more than 2% year-on-year, and when excluding the impact of the recent divestitures, almost 5% year-over-year. Our medical segment continued to lead consolidated revenue growth, with revenue again increasing by nearly 10%, maintaining its growth trajectory. Revenue in our manufacturing segment declined by 6% year-on-year. But when excluding the impact of the divestitures, however, revenue grew 1.5% as our repositioning towards high-value, series production continued to gain traction.

[Koen Berges, CFO at Materialise]

Software revenues, on the other hand, declined by just over 4%, mainly reflecting continued cautious customer spending and extended sales cycles. At the same time, our large base of recurring revenue provides stability, although it did not fully offset the pressure on sales. As shown on the right-hand side of the slide, medical represented 54% of total revenues in the quarter, with manufacturing at 31% and software at 15%. Our deferred revenue balance for software maintenance and license fees across both medical and software segments decreased to EUR 45 million in Q3, in line with normal seasonal renewal patterns. Total deferred revenue carried on our balance sheet was at EUR 59 million at quarter end. Slide eight shows our consolidated Adjusted EBIT and EBITDA. In the third quarter, Adjusted EBITDA was EUR 8 million, representing an Adjusted EBITDA margin of 11.9%. Adjusted EBIT was EUR 2.5 million, resulting in a 3.7% adjusted EBIT margin.

[Koen Berges, CFO at Materialise]

Higher gross profit was more than offset by intensified R&D investments and by some one-time costs in the quarter that we considered operational and therefore did not adjust for. At the same time, we continued to maintain discipline over our recurring spending. While operational performance ended lower in Q3, year-to-date Adjusted EBITDA stands now at EUR 25.7 million, which is 12% higher compared to prior year. Adjusted EBIT this year is year-to-date at EUR 8.8 million, up by 33% compared to prior year. Turning now to our segments. Slide nine shows Materialise Medical. As said, medical revenue increased nearly 10% year-on-year. That growth was broad-based with medical devices and medical software sales each increasing around 10%. In the third quarter, we further intensified targeted R&D investments in order to capture future growth opportunities.

[Koen Berges, CFO at Materialise]

Despite this increased spend, we landed our Adjusted EBITDA at EUR 10 million, in line with prior year and representing a 27.4% margin. For the first nine months, medical revenue was at EUR 106.6 million, up nearly 10% year-on-year, with Adjusted EBITDA at EUR 30.8 million, representing a margin of 29%. Slide 10 summarizes the results of our Materialise Software segments. Software continued to face a challenging industrial spending environment. In Q3 of this year, software revenue decreased by 4% to EUR 9.9 million, reflecting, as I said, continuous cautious customer spending and extended sales cycles. Recurring revenue represented 84% of software revenue in the quarter. The share has now stabilized compared with recent quarters, indicating that we have reached the end of the transitioning from perpetual licenses to recurring license model.

[Koen Berges, CFO at Materialise]

Adjusted EBITDA declined to EUR 1.5 million, representing a 15% Adjusted EBITDA margin, reflecting low revenue and ongoing investments in the new CO-AM platform. For the first nine months, software revenue was at EUR 29 million, down 3% year-on-year, with an adjusted EBITDA of EUR 3.6 million, representing a margin of more than 12%. Slide 11 shows an overview of the performance of our Manufacturing segments. As indicated, the revenue decreased 6% to EUR 21.3 million, but excluding the impact of recent divestitures, revenue grew 1.5%, supported by continued traction in our strategic focus areas, particularly aerospace and defense. The growth in series manufacturing continued to be largely offset by softer prototyping demand compared on a year-on-year basis. Adjusted EBITDA improved to a loss of EUR 0.3 million from a loss of 0.8 million in the prior year, supported by continued cost discipline and portfolio optimization.

[Koen Berges, CFO at Materialise]

For the first nine months, manufacturing revenue is now at EUR 68.3 million, down nearly 3% year-on-year. But also here, excluding the impact of recent divestitures, revenue grew year to date by 4%. Adjusted EBITDA was close to breakeven at a small loss of EUR 0.3 million. Turning to slide 12, our consolidated income statement shows that higher gross profit and increased operating expenses shaped the quarterly results. The gross profit increased to EUR 39 million, with a gross margin increasing to 57.7%, up 90 bps year-on-year. On the other hand, operating expenses increased as well by 7.8%, but reflecting targeted growth investments and one-time costs in this quarter. We continue to step up investments in innovation, particularly in our Medical segments, with total R&D spending at EUR 12.8 million for the quarter, representing an increase of 12% year-on-year.

[Koen Berges, CFO at Materialise]

Total S&M and G&A costs, excluding one-time impacts, increased by less than 2% year-on-year and remain as such, well under control. Other operating income increased to EUR 1.1 million compared to 0.9 million last year. The Q3 2026 figure includes non-recurring charges of EUR 0.2 million from an inventory impairment related to the earlier transfer of the Eyewear assets. The resulting operating profit landed at EUR 1.3 million for the quarter. Net financial income was positive at EUR 0.2 million, reflecting interest income on cash balances, partly offset by interest expenses on debt. Currency fluctuations had a limited negative impact in the quarter. Income tax expense amounted to positive EUR 0.1 million. Overall, this resulted in a net profit of EUR 1.4 million or 0.02 per share. Finally, slide 13 highlights our balance sheet strength and cash generation.

[Koen Berges, CFO at Materialise]

We ended the quarter with cash of EUR 153.5 million, while our gross debt increased to 71 million, both reflecting the final EUR 15 million drawdown under an existing committed credit facility. Net cash was EUR 82.5 million, an increase of almost 12 million from the beginning of the year, driven by continued strong operating cash flow generation. During the first nine months, we invested EUR 7.5 million in our share buyback program, acquiring close to 1.5 million ADSs on Nasdaq. This represented 2.4% of our total share base as of September 30, 2026. Compared with year-end 2025, key net working capital components decreased by EUR 4.4 million, driven by lower receivables and partly offset by higher finished goods and work-in-progress inventories, while payables remained stable. Deferred income carried on the balance sheet was at EUR 59 million, including EUR 45 million related to software licenses and maintenance.

[Koen Berges, CFO at Materialise]

Operating cash flow in the third quarter was nearly EUR 10 million. Cash capital expenditures totaled EUR 2.1 million, almost all of which were recurring. While we also received EUR 4 million in government grants related to prior capital investments. The resulting cash flow after investing activities was EUR 11.4 million, including the benefits of these received grants. For the first nine months, the operating cash flow was EUR 24.7 million, with a year-to-date free cash flow of EUR 22.8 million, more than double the prior year level. Year-to-date cash expenditures on CapEx totaled EUR 5.6 million, of which 1.2 million or around 20% was non-recurring. In summary, medical continued to drive growth. Manufacturing trends further improved while software remained under pressure from cautious customer spending. We once more delivered a positive quarterly net result and robust cash generation while significantly strengthened our net cash position.

[Koen Berges, CFO at Materialise]

With that, I'd like to hand the call back to Brigitte.

[Brigitte de Vet, CEO at Materialise]

I'll conclude my remarks with a discussion of our full year 2026 guidance. With nine months behind us, we remain confident in delivering on our financial targets for the year. In the final quarter of 2026, we will stay focused on executing our strategy, maintaining tight cost control and strong cash generation while also continuing to increase investments in our focus areas, positioning Materialise for further profitable growth.

[Brigitte de Vet, CEO at Materialise]

Accordingly, we are reconfirming our full year 2026 revenue guidance of EUR 273 million to 283 million, fully absorbing the unfavorable revenue impact of the recent RapidFit and Eyewear divestitures. We are also reaffirming our full year Adjusted EBIT guidance of EUR 12 million to 14 million, the range we raised in August. This reflects the strength of our execution and our continued discipline in managing costs and capital, even as we step up our R&D investments to capture accelerating market opportunities.

[Brigitte de Vet, CEO at Materialise]

This concludes our prepared remarks. Operator, we are now ready to open the call to questions.

[Operator]

Thank you. As a reminder, to ask a question, press star one one on your telephone and wait for your name to be announced. To remove yourself, press star one one again. One moment for our first question. It comes from Troy Jensen with Cantor Fitzgerald. Please proceed.

[Troy Jensen, Analyst at Cantor Fitzgerald]

Hey, good morning. Congrats on the great results here. I guess, for either one of you guys, I guess to me, the comment about the series production up 30% was great. Is there any way you guys can quantify how much of the manufacturing business is series production now?

[Brigitte de Vet, CEO at Materialise]

Morning, Troy. I am glad to have you on the call. We are not disclosing the exact split of our series manufacturing and prototyping activities, but we are getting into a relatively balanced situation between both segments. That gives you an indication of where more or less it lies.

[Troy Jensen, Analyst at Cantor Fitzgerald]

That is a great data point. Thank you. Is it mainly aerospace and defense kind of driving the strength? I guess given the size, it seems like there has got to be more than just that, but uh..

[Brigitte de Vet, CEO at Materialise]

In core manufacturing, which is our 3D printing part, we see aerospace and defense, in addition to semiconductor, and general industries driving this growth. But aerospace and defense is certainly a highlight in that segment. When it comes to our ACTech business, aerospace and defense is certainly a segment, but there are many more other segments also driving this growth. Building on the foundations that we had built traditionally in the automotive sector, we are still seeing a large part of our revenue coming from what we call the broader transportation sector.

[Brigitte de Vet, CEO at Materialise]

As you might recall, the investments we have done in the additional capacity were to bring the traditional capabilities into larger machineries and equipment. Think boats, think any large equipment to transport. So that is the transportation sector, and there is still a lot of growth coming from that side as well in our huge and heavy parts that we produce.

[Troy Jensen, Analyst at Cantor Fitzgerald]

All right. Makes sense. Just one other maybe follow-up here on the software side. I always thought that your software would benefit as production applications start to increase. You need fewer software packages, right, with prototyping, and it seems like production is increasing, but you're still kind of talking about some tough spending environments here. So thoughts on, is it competitive? More competition in the space? Or other thoughts on the stagnant software business?

[Brigitte de Vet, CEO at Materialise]

Great question. As Koen mentioned earlier, it is market pressures, but also extended sales cycles that we are now resolve. To give a bit more context on that, supporting our customers on the prototyping side with our traditional pre-print solutions, sales cycles are relatively well known and short. Whereas when it comes to supporting series manufacturing in the market with our CO-AM product, it is a sales process where there is a lot more involvement of teams from both sides, the customer and our sides. So the extended sales cycles that we are now feeling as we focus more and more on series production, that is one of the elements that weigh from the software revenues as well. I hope this gives a bit more color.

[Troy Jensen, Analyst at Cantor Fitzgerald]

That was perfect, thank you. Congrats again, and good luck for the remainder of the year.

[Brigitte de Vet, CEO at Materialise]

Thank you, Troy. See you soon.

[Operator]

Thank you again. As a reminder, if you do have a question, press star one one to get in the queue. As I see no further questions in the queue, I will turn the call back to Brigitte de Vet for final comments.

[Brigitte de Vet, CEO at Materialise]

Thanks again for joining us today. We look forward to continuing our dialogue with you through investor conferences or in one-on-one virtual meetings or calls. We are also looking forward to meeting some of you in person at the upcoming Formnext event in November and the Euronext Tech Leaders Forum in Paris in December. In the meantime, please reach out if you have any questions. Thank you, and goodbye for now.

[Operator]

Thank you so much for participating in today's conference. This concludes the conference, and you may now disconnect.

Participants

Executives

• Brigitte de Vet, CEO
• Koen Berges, CFO

Analysts

• Jody Burfening, Managing Director at Alliance Investor Relations
• Troy Jensen, Analyst at Cantor Fitzgerald