3D Systems NYSE: DDD reported second-quarter revenue growth, a sharp increase in printer sales and improved adjusted EBITDA as demand strengthened across its targeted healthcare and industrial markets. The company also disclosed that President and Chief Executive Officer Jeffrey Graves plans to conclude his service as CEO following a succession process that has recently begun.
Revenue for the second quarter totaled $94.6 million, up 1.4% from a year earlier, according to Chief Financial Officer Phyllis Nordstrom. Hardware printer sales rose more than 40% year over year and more than 20% sequentially, supported by demand for newer polymer and metal platforms. Non-GAAP adjusted EBITDA was a loss of $800,000, improving by $3.9 million from the prior-year period, while non-GAAP earnings per share were negative $0.04, an improvement of $0.02 per share.
Printer Sales Drive Growth in Priority Markets
Graves said customer capital spending has begun to return in key markets, coinciding with the company’s multiyear product portfolio refresh. Printer sales increased by more than 45% during the quarter, led by the DMP 350 metal-printing system, the SLA 825 polymer platform and MultiJet systems used in the company’s denture offering.
Sales of the DMP 350 and SLA 825 platforms grew roughly 90% and 125%, respectively, year over year in the second quarter, Graves said. The SLA 825 is intended for high-quality patterns used in metal casting, while the DMP 350 is a direct-metal printing platform.
The company’s four stated priority markets are medical technology, dental, aerospace and defense, and data center infrastructure. Nordstrom said each of those markets delivered more than 20% year-over-year growth in the first half of 2026.
- Healthcare Solutions revenue was $48.1 million, up 6.8% year over year.
- Industrial Solutions revenue was $46.5 million, down 3.7% year over year but up 2.4% sequentially.
- First-half revenue increased 6% year over year, with healthcare revenue up 14% and industrial revenue down 1%.
Healthcare growth reflected demand for metal printers used in orthopedic implant production, growth in surgical planning and trauma applications within the company’s Personalized Healthcare Solutions business, and increased dental revenue. Industrial revenue was affected by the prior closure of a non-core product offering and lower services revenue from legacy systems, Nordstrom said.
Space, Data Centers and Dental Highlight Demand
In aerospace and defense, Graves said 3D Systems received one of the largest industrial printer orders in its history during the second quarter. The multiquarter order is tied to casting patterns for next-generation reusable rocket engines. Some units shipped in the second quarter, with additional deliveries expected over future quarters.
Graves said the company is benefiting from demand for components supporting advanced rocket engines, where additive manufacturing is used for direct metal parts and high-precision investment castings made from 3D-printed patterns.
Data center infrastructure revenue grew more than 20% year over year in the second quarter, driven primarily by demand for metal parts used in airflow and thermal-management components for semiconductor manufacturing equipment. Graves said the company participates in this market by selling both metal-printed components and printer systems to customers.
The company is also expanding work in energy-related applications. During the quarter, 3D Systems executed a cooperative research and development agreement with Savannah River National Laboratory to collaborate on materials, component design, manufacturing and artificial intelligence-enabled process optimization for nuclear fission and fusion environments.
In dental, Graves highlighted adoption of the NextDent 300 denture printer, which launched in late 2025 after FDA clearance and received full EU MDR approval in the second quarter. The company expects to have printers installed in more than 100 dental labs by year-end. Graves said initial installed printers are expected to generate more than $2 million in annual recurring revenue, though the company’s current penetration represents less than 2% of the U.S. and European denture markets.
Capacity Expansion and Cost Actions
To support demand for finished metal parts, 3D Systems is expanding production capacity in Leuven, Belgium, and Littleton, Colorado. The company is adding about 50,000 square feet of parts-production space in Littleton, raising total metal-printing space to more than 270,000 square feet. The grand opening is targeted for the fall.
Graves said the company currently has 77 metal printers in production and 42 polymer printers used primarily for its med-tech business. The company sold more metal printers in the first half of 2026 than it did in all of 2025, he said.
Second-quarter non-GAAP gross margin was 36.7%. Nordstrom said margin results reflected a higher mix of hardware sales, less favorable materials mix and comparison with a regenerative medicine milestone recognized in the prior-year quarter. Those pressures were partly offset by cost reductions and $2.6 million in tariff refunds.
Non-GAAP operating expenses declined 11% year over year to $39.5 million. The company completed a six-quarter cost-reduction initiative that generated more than $60 million in annualized savings through facility optimization, operating-model changes and lower ongoing costs.
3D Systems ended the quarter with $129 million in cash equivalents and restricted cash. During the quarter, it completed an equity offering that generated net proceeds of just over $53 million. Total debt was $96 million, including $3.9 million due in the fourth quarter of 2026 and $92 million maturing in 2030.
Third-Quarter Outlook and CEO Transition
For the third quarter, the company forecast revenue of $96 million to $99 million and adjusted EBITDA of negative $3 million to negative $1 million. Nordstrom said the back half of the year is expected to have a heavier mix of printer sales, particularly in the fourth quarter, which could affect gross margins. She said operating expenses are expected to remain broadly consistent with first-half levels.
Graves said the board has begun a CEO succession process and that he expects to remain in the role for months while supporting the transition. He said the timing reflects what he views as a stronger operational position following cost reductions, product introductions and a renewed focus on the company’s four growth markets.
“The hard work’s done of leaning out the company, getting the portfolio refreshed, and focusing on the core markets,” Graves said. “We’re ready to rock, and we’ve got cash on the balance sheet to do it.”
About 3D Systems (NYSE:DDD)
3D Systems, founded in 1986 by stereolithography pioneer Chuck Hull, is a leading provider of additive manufacturing solutions. Headquartered in Rock Hill, South Carolina, the company develops and sells a broad range of 3D printers, materials, software, and on-demand manufacturing services. Its core technologies include stereolithography (SLA), selective laser sintering (SLS), direct metal printing (DMP), and multi-jet printing (MJP), enabling customers to build prototypes, production parts, and complex geometries across a variety of industries.
The company's hardware portfolio spans desktop to production-scale systems designed for applications in aerospace, automotive, healthcare, consumer products, and education.
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