What 3D Systems (DDD) Said on Its Q3 Earnings Call

Key Points

• Third-quarter revenue rose 10.9% to $99.3 million on a comparable basis, while adjusted EBITDA improved by $13.1 million year over year to $3.1 million. Healthcare revenue grew 14.4%, and industrial revenue increased 7.7%.
• Growth was strongest in the company’s strategic markets, which expanded nearly 30% combined; aerospace and defense revenue grew more than 50%. Gross margin increased 420 basis points to 35.5%, supported by higher volumes and lower costs.
• For Q4, 3D Systems expects revenue of $100 million to $103 million and adjusted EBITDA between a $2 million loss and break-even. It ended the quarter with $120.5 million in cash and investments and plans a debt exchange intended to extend maturities and improve liquidity.

3D Systems NYSE: DDD reported third-quarter 2026 revenue of $99.3 million, up 10.9% from a year earlier on a basis that excludes businesses sold in 2025, as growth in healthcare and industrial applications helped the company post positive adjusted earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA was $3.1 million, an improvement of $13.1 million from the prior-year period. For the fourth quarter, the company forecast revenue of $100 million to $103 million and adjusted EBITDA ranging from a loss of $2 million to break-even.

CEO and President Jeffrey Graves said demand across the company’s four strategic markets—medical technology, dental, aerospace and defense, and data center infrastructure—was contributing to the improvement. CFO Phyllis Nordstrom said those markets collectively grew nearly 30% year over year in the third quarter.

“Revenue is growing, margins are expanding, profitability is strengthening, and most importantly, customer adoption is accelerating,” Graves said.

Healthcare and Industrial Growth

Healthcare Solutions revenue rose 14.4% to $49 million. Nordstrom said dental material sales increased at a strong double-digit rate, while medical technology benefited from demand for orthopedic implant applications, including spinal cages, knees and shoulders. The personalized healthcare business also grew, led by surgical planning solutions for cranial and trauma applications.

Industrial Solutions revenue increased 7.7% to $50.3 million. Aerospace and defense and data center infrastructure posted strong double-digit growth, more than offsetting a double-digit decline in price-sensitive markets including jewelry and parts of general manufacturing, Nordstrom said.

Graves said aerospace and defense revenue grew more than 50% in the quarter, excluding an Air Force development program, with printer sales for space launch systems and other defense applications leading the increase. He cautioned that defense program timing could make quarterly results uneven.

Companywide, printer hardware systems and parts manufacturing each grew more than 25% year over year, according to Nordstrom. All year-over-year financial comparisons discussed by management were adjusted to exclude the impact of the 2025 divestitures of legacy enterprise software businesses.

Margins Improve as Costs Fall

Third-quarter non-GAAP gross margin rose 420 basis points to 35.5%. Nordstrom attributed the improvement partly to higher printer and parts volumes and favorable product margins. The comparison also benefited from the absence of prior-year nonrecurring costs, including expenses related to a facility closure and a one-time regenerative medicine accounting adjustment.

Non-GAAP operating expenses declined nearly 15% to $36.1 million. Non-GAAP diluted loss per share narrowed to $0.06 from $0.08 a year earlier. For the first nine months of 2026, adjusted EBITDA was $4.4 million.

Nordstrom said the company typically sees slightly higher operating expenses in the fourth and first quarters, but expects spending discipline to continue. She said first-half operating expenses were indicative of the expected level in the second half.

Metal Printing Expansion and Capital Plans

Graves outlined growth opportunities in direct metal printing and in producing patterns for investment casting, particularly for aerospace and defense customers. He said 3D Systems recently opened an additional 50,000 square feet at its Littleton, Colorado, facility for industrial metal parts production. The expansion will also free capacity for medical implants, he said.

During the question-and-answer session, Graves said the company plans to launch additional metal printer platforms and is discussing larger sizes with customers. The designs are beyond the concept phase, he said, although the company is assessing which applications offer the best potential.

Graves also said a large-scale investment casting order discussed on the prior quarter’s call had been filled. The equipment is operating and producing parts used in spaceflight, he said.

3D Systems ended the quarter with $120.5 million in cash and investments and $96 million in debt. Since quarter-end, the company launched an at-the-market equity program and announced plans to exchange its secured notes due in 2030 for unsecured notes due in 2031, together with cash and common stock.

Nordstrom said the planned exchange is expected to extend the debt maturity and provide greater liquidity and capital-allocation flexibility upon closing. Graves said the company wants capital available to invest in growth opportunities, particularly in industrial markets.

Outlook and Leadership Transition

Nordstrom said the fourth-quarter forecast reflects variability in customer order timing and a more even distribution of printer material orders throughout the year. Graves said weakness in consumer-facing markets could also mute the seasonal year-end increase in sales.

Looking further ahead, Graves said he expects solid double-digit growth in healthcare over the next two to three years, while industrial growth may come in waves because of program timing. He also said independent board directors continue to search for his successor following his announced transition.

About 3D Systems (NYSE:DDD)

3D Systems is an additive manufacturing company that develops technologies for producing three-dimensional objects directly from digital designs. Founded in 1986 by Chuck Hull, who invented stereolithography, the company is recognized as one of the early pioneers of commercial 3D printing.

The company provides 3D printers, printing materials, software and related services. Its portfolio includes technologies such as stereolithography, selective laser sintering, direct metal printing and extrusion-based printing, along with specialized materials including photopolymers, thermoplastics and metal powders.

3D Systems serves industrial and healthcare customers in areas including aerospace, automotive, medical devices, dental products, consumer goods and manufacturing.

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