Nano Dimension NASDAQ: NNDM executives used the company’s first-quarter 2026 earnings call to outline progress on a three-phase strategic plan that includes continued cost reductions, monetization of product lines, and evaluation of broader strategic transactions. Management also reported year-over-year revenue growth driven by the inclusion of Markforged, while withdrawing full-year guidance due to potential additional portfolio changes.
Q1 revenue more than doubled on Markforged inclusion
CFO John Brenton said first-quarter revenue was $29.7 million, up about 106% from $14.4 million in the first quarter of 2025. Brenton attributed the increase primarily to Markforged, which contributed $17.1 million.
Excluding Markforged, Brenton said Nano Dimension’s standalone revenue was $12.6 million, down about 12% year over year, “primarily due to reduced sales driven by increased tariffs and the impact of divestments.”
Gross profit was $13.6 million, with adjusted gross margin of about 45.9%, compared with $6.2 million and 43.3% a year earlier. Brenton said the margin improvement reflected “the impact of divestments and product mix,” though he noted gross profit declined sequentially from the fourth quarter due to “normal quarterly variability and product mix.”
Operating expenses fell sequentially; adjusted EBITDA remained negative
Brenton reported operating expenses of $26.1 million, up about 60% from $16.3 million in the prior-year quarter, primarily due to the inclusion of Markforged. He said the increase was “partially offset by cost efficiencies from organizational synergies.”
On a standalone basis, Brenton said operating expenses declined about 22% year over year, citing divestments and “disciplined cost management.” He also highlighted sequential improvement: operating expenses fell more than 4% from $27.3 million in the fourth quarter of 2025 and were down about 20% versus what he described as a previously identified baseline of about $32.5 million (second-quarter operating expenses adjusted to include a full quarter of Markforged).
Adjusted EBITDA for the quarter was a loss of $12.5 million, compared with a loss of $10.1 million in the first quarter of 2025 and a loss of $9.8 million in the fourth quarter of 2025. Brenton said the change reflected Markforged’s inclusion and lower standalone revenue affected by tariffs and divestments, “partially offset by gross margin performance and continued cost discipline.”
Liquidity remained substantial; operating cash burn trending down
Brenton said the company’s financial position remained “exceptionally strong.” As of March 31, 2026, total cash, cash equivalents, deposits, restricted deposits, and marketable equity securities were about $441.6 million, down from $459.6 million at the end of the prior quarter.
He said the approximately $18 million change included $8.4 million related to fair value changes in marketable equity securities, with the remaining $9.6 million “primarily” reflecting lower sequential operating cash burn. Brenton added that operating cash burn has continued to trend down since the third quarter of 2025, driven by expense management and cost reduction actions.
CEO highlights product-line demand and strategic plan progress
CEO Dave Stehlin said first-quarter results were in line with typical seasonality, noting the first quarter is historically the company’s lightest period following a strong fourth quarter. He said Nano Dimension’s two largest product lines—Markforged’s Fused Filament Fabrication (FFF) and Essemtec’s Surface Mount Technology (SMT)—each delivered “solid revenue performances.”
Stehlin pointed to “healthy” underlying demand trends and customer engagement. In the FFF business, he said the company secured “a significant expansion with a major U.S.-based automotive manufacturer,” involving deployment of multiple systems across several sites, and said he expects further expansion over time. He also said the company is seeing growth in defense-related opportunities “across multiple applications and multiple regions,” with expectations that the segment will expand through the year.
On Essemtec, Stehlin said the SMT product line had a solid start and that momentum is expected to build. He cited electronics and AI-related manufacturing engagements, including with “leading global electronic manufacturing services companies serving large-scale customers,” and said the company is also seeing deployment expansion with “leading space and satellite companies.”
Stehlin then detailed a three-phase strategic plan that he said is operating in parallel:
- Phase 1: Streamlining remaining product lines and reducing operating costs while preserving growth potential. Stehlin said the company began seeing a significant reduction in cash burn in the fourth quarter of 2025, with the trend continuing into 2026.
- Phase 2: Monetization of product lines. Stehlin said the company, with support from Guggenheim Securities, is evaluating alternatives to monetize operating product lines. He said the sale of the AME and Fabrica product lines closed on April 6 and “is expected to reduce annualized cash burn by approximately $10 million,” while including both upfront and performance-based deferred consideration. Stehlin also said the company is “close to announcing the sale of another product line” and is in the regulatory approval phase.
- Phase 3: Evaluating go-forward alternatives, which Stehlin said may include “a strategic merger, a reverse merger, or other strategic transactions.” He said the board and management have been working with Houlihan Lokey, reviewed more than 12 opportunities, and narrowed the list to a short group of potential partners.
Stehlin also disclosed that, as part of the strategic alternatives review process, Nano Dimension identified factors that prompted a goodwill impairment review for the Markforged FFF product line. He said the company determined that the full goodwill balance associated with Markforged, totaling $40.4 million, was impaired as of quarter end, calling it “a non-cash adjustment” that does not impact liquidity or execution of the plan.
Guidance withdrawn amid potential portfolio changes; analyst presses on strategy and asset sale
Brenton said the company is withdrawing full-year financial guidance “given our ongoing execution of our defined strategic plan and the potential for additional significant changes across the business.” He said the decision reflects a range of outcomes under evaluation, including the timing and scope of potential monetization actions that could materially affect future results.
During the question-and-answer session, Moshe Sarfaty of Murchinson challenged management’s “excited” framing of potential transactions and expressed concern that shareholders could view the company as operating like a SPAC. Management responded that Nano Dimension is “absolutely not a SPAC,” pointing to the company’s operating assets and describing the strategy as seeking partners to create additional value.
Sarfaty also questioned the economics of the AME sale, noting the upfront consideration of $2 million and arguing the process took months while the company continued to burn cash. Management responded that the deal includes potential upside: Stehlin said the contract provides “upside potential of up to $10.5 million” beyond the upfront payment, though he said the company was not at a point to provide additional color on that deferred component. Management also declined to comment on how the buyer was sourced, while saying there was “a lot of dialogue back and forth” and that bankers were involved.
In closing remarks, Stehlin reiterated that the company is at “a very significant inflection point” and said Nano Dimension will share more information as Phase 3 options become firmer.
About Nano Dimension NASDAQ: NNDM
Nano Dimension Ltd. NASDAQ: NNDM is a provider of advanced additive manufacturing solutions tailored for the electronics industry. Founded in 2012 and headquartered in Ness Ziona, Israel, the company develops integrated hardware, software and material platforms designed to accelerate the design and production of printed circuit boards (PCBs) and conformal electronic devices. Its flagship DragonFly printers use patented inkjet-based 3D printing technology to produce multi-layer PCB prototypes in a single build process, reducing lead times and enabling rapid design iterations.
In addition to its 3D printing systems, Nano Dimension offers a suite of proprietary conductive and dielectric inks, as well as workflow software that connects designers, engineers and manufacturers.
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