Materialise (NASDAQ:MTLS) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Materialise beat earnings expectations, reporting $0.04 EPS versus the $0.01 estimate, though revenue of $76.72 million came in slightly below forecasts.
• The company is shifting focus to core businesses by transferring its RapidFit and Eyewear operations to their management teams, while continuing to invest in medical and software growth areas.
• Management said financial performance remained resilient and reaffirmed full-year guidance, even as manufacturing revenue fell 8% due to soft prototyping demand and weakness in European automotive.

Materialise (NASDAQ:MTLS - Get Free Report) posted its quarterly earnings data on Thursday. The software maker reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.03, Zacks reports. The business had revenue of $76.72 million during the quarter, compared to analyst estimates of $77.06 million. Materialise had a net margin of 3.77% and a return on equity of 4.08%.

Here are the key takeaways from Materialise's conference call:

• Materialise transferred its RapidFit and Eyewear businesses to their management teams (retaining a minority stake in Eyewear), a strategic move intended to let Materialise focus capital and leadership on its core segments.
• Medical momentum continued with launches of custom-made PEEK cranio‑maxillofacial implants across Europe and OrthoView 3D Hip, broadening surgeon options and strengthening Materialise’s integrated MedTech ecosystem.
• Software traction accelerated—early access and pre-sales for CO‑AM Professional (seven customers onboarding) with full availability mid‑June, and a partnership to bundle Magics Print with HP’s MJF 1200 (commercial from early 2027) to expand market reach.
• Q1 financials showed resilience—revenue EUR 66.3m (stable y/y despite FX headwinds), improved gross margin (>57%), Adjusted EBIT EUR 2.5m, Adjusted EBITDA EUR 8m, and a stronger net cash position of EUR 72.8m with positive free cash flow.
• Manufacturing revenue declined 8% driven by soft prototyping and European automotive weakness (though sequentially improving and returning to positive EBITDA), while management reaffirmed full‑year guidance of EUR 273–283m revenue and EUR 10–12m adjusted EBIT.

Materialise Trading Down 0.6%

NASDAQ MTLS opened at $5.41 on Friday. Materialise has a 12 month low of $4.78 and a 12 month high of $6.80. The company has a 50-day moving average of $5.19 and a 200-day moving average of $5.56. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.43 and a quick ratio of 2.27. The company has a market cap of $319.57 million, a P/E ratio of 27.05 and a beta of 1.28.

Institutional Investors Weigh In On Materialise

Hedge funds have recently modified their holdings of the stock. Jane Street Group LLC acquired a new position in Materialise during the first quarter worth approximately $75,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Materialise by 15.1% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 467,276 shares of the software maker's stock valued at $2,640,000 after purchasing an additional 61,465 shares during the last quarter. Walleye Capital LLC acquired a new position in shares of Materialise in the 2nd quarter valued at $150,000. NewEdge Advisors LLC boosted its holdings in shares of Materialise by 19,063.2% in the 2nd quarter. NewEdge Advisors LLC now owns 13,031 shares of the software maker's stock valued at $74,000 after purchasing an additional 12,963 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN grew its stake in shares of Materialise by 0.8% during the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 1,890,920 shares of the software maker's stock valued at $10,684,000 after buying an additional 15,573 shares during the period. 19.30% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Cantor Fitzgerald set a $10.00 target price on shares of Materialise and gave the stock an "overweight" rating in a research report on Friday, February 20th. Wall Street Zen raised Materialise from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 2nd. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $10.00.

Materialise Company Profile

Materialise NV is a Belgium-based company specializing in 3D printing software and additive manufacturing services. Through its dual focus on software and printing, the company addresses a wide range of industries, including automotive, aerospace, consumer goods, and healthcare. Materialise's offerings span from design and simulation tools to end-to-end production, delivering both standardized and highly customized parts across polymer and metal platforms.

On the software side, Materialise develops a suite of proprietary applications—such as Magics for data preparation, Mimics for medical image processing and patient-specific modeling, and Streamics for production workflow management.