Stratasys (SSYS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $137.6M, up 3.7% sequentially but nearly flat year-over-year, with record consumables sales reflecting high system utilization and a strategic shift toward manufacturing, especially in aerospace and defense.

• Manufacturing-focused strategy deepened customer reliance in aerospace, defense, and automotive, with Stratasys Direct and A&D segments showing strong growth.

• Announced pending $42.5M acquisition of Markforged to enhance offerings in continuous carbon fiber technology and expand market reach, expected to close by year-end 2026.

• Opened a new 200,000 sq ft Americas Regional Corporate Headquarters (ARCH) in Minnesota to support anticipated demand, innovation, and production-scale additive manufacturing.

• Maintains a debt-free balance sheet with $212.5M in cash and equivalents as of June 30, 2026.

Financial highlights

• Q2 2026 consolidated revenue was $137.6M, with product revenue at $92.7M and service revenue at $44.9M; consumables revenue hit a record $66.3M.

• GAAP gross margin was 42.3% (down from 43.1%); non-GAAP gross margin was 47.2% (down from 47.7%).

• GAAP operating loss was $13.5M (improved from $16.6M); non-GAAP operating income was $0.1M.

• GAAP net loss was $16.9M ($0.19/share); non-GAAP net income was $2.3M ($0.03/share).

• Adjusted EBITDA was $5.3M, 3.9% of revenue, down from $6.1M year-over-year, but up from $2M last quarter.

• Used $18.7M in operating cash flow, mainly due to non-routine legal expenses.

Outlook and guidance

• Full-year 2026 revenue guidance: $565M–$575M, with sequential revenue growth expected in all four quarters.

• Non-GAAP gross margin expected at 46.7%–47.1%, with $7M adverse FX and tariff impact.

• Non-GAAP operating margin projected at 0.7%–1.5%; adjusted EBITDA $25M–$30M (4.5%–5.0% of revenue).

• Positive operating cash flow expected for H2 2026; full-year operating cash flow no longer expected to be positive.

• Capital expenditures for 2026 planned at $20M–$25M.