3D SYSTEMS CORP
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
DDD$1.75+4.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000910638-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000910638-25-000016
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 160 current paragraphs.
88 unchanged; 34 reworded; 31 added; 5 removed; 2 previous and 7 current paragraphs rearranged.
Tables are not compared: 6 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
•our ability to comply with the covenants contained in our 2030 Indenture, 2026 Indenture and other current or future debt agreements, including the limitations, restrictions and prohibitions such covenants may impose on the way we conduct our business, including certain financial covenants, prohibitions on incurring additional debt if certain covenants are not met and restrictions on our ability to make certain investments and restricted payments;
Current report
Based primarily on macroeconomic uncertainties, our updated strategic plans and restructuring initiatives and the decline in our stock price during the second quarter of 2025, we concluded that changes to the timing and amount of expected future cash flows, among other factors, indicated a triggering event requiring an interim goodwill impairment assessment on our Healthcare reporting unit. As a result of the quantitative interim impairment test performed in the second quarter of 2025, we concluded that there was no impairment, as the estimated fair value of the Healthcare reporting unit exceeded the carrying value.
Current report
While there was no impairment found during our interim goodwill impairment test in the second quarter of 2025, changes in our future operating results, cash flows, share price, market capitalization or discount rates used when conducting future goodwill impairments tests could affect the implied fair value of goodwill and may result in additional impairment charges in the future.
Current report
For the three months ended June 30, 2025, revenue decreased $18.4 million, or 16.3%, compared to the three months ended June 30, 2024. The decrease in revenue was primarily due to a decline in product revenue of $17.9 million driven by lower materials volume to customers in the dental, service bureaus, and jewelry markets, unfavorable price/mix, and the impact of the Geomagic divestiture. Service revenue decreased $0.5 million as volume increases were more than offset be the impact of the Geomagic divestiture and lower sales to a key customer in the dental market.
Current report
For the six months ended June 30, 2025, cost of sales decreased to $120.5 million compared to $128.1 million for the six months ended June 30, 2024. This decline is primarily attributable to a lower volume of product sales from period to period.
Current report
For the six months ended June 30, 2025, gross profit decreased $19.2 million, or 21.8%, compared to the six months ended June 30, 2024. The decrease in gross profit was primarily due to a combination of lower sales volumes, the impact of the Geomagic divestiture and unfavorable price/mix.
Current report
•$2.7 million increase due to costs associated with our restructuring actions which were primarily related to severance.
Current report
For the six months ended June 30, 2025, SG&A decreased $24.9 million, or 22.9%, compared to the six months ended June 30, 2024. The year-over-year decline in SG&A was primarily due to:
Current report
•$3.3 million increase due to costs associated with our restructuring actions which were primarily related to severance.
Current report
For the six months ended June 30, 2025, R&D decreased $8.5 million, or 18.6%, compared to the six months ended June 30, 2024. The year-over-year decline in R&D was primarily due to:
Current report
For the three months ended June 30, 2025, Healthcare Solutions gross profit decreased $2.1 million, or 9.2%, compared to the three months ended June 30, 2024. The decrease in gross profit was primarily due to lower sales volumes.
Current report
For the six months ended June 30, 2025, Healthcare Solutions gross profit decreased $3.0 million, or 7.6%, compared to the six months ended June 30, 2024. The decrease in gross profit was primarily due to lower sales volumes.
Current report
For the six months ended June 30, 2025, Industrial Solutions revenue decreased $18.8 million, or 15.4%, compared to the six months ended June 30, 2024. The decrease in revenue related to lower product, materials and service revenue of $9.5 million, $5.5 million, and $ 3.8 million, respectively. The decline in product revenue was driven by lower materials sales to customers in the service bureaus and jewelry markets and the impact of the Geomagic divestiture which was partially offset by increased sales in the aerospace and defense market. The decline in service revenue was primarily due to the impact of the Geomagic divestiture.
Current report
For the six months ended June 30, 2025, Industrial Solutions gross profit decreased $16.2 million, or 33.3%, compared to the six months ended June 30, 2024. The decrease in gross profit was primarily due to unfavorable price and mix, the impact of the Geomagic divestiture, and lower sales volumes.
Current report
Interest income increased $0.3 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to the Company's higher average cash and cash equivalent balances in the quarter due to the proceeds received from the Geomagic divestiture on April 1, 2025.
Current report
Interest expense increased $0.1 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to interest expense related to the 2030 Notes.
Current report
Gain on disposition
Current report
Gain on disposition, increased $125.7 million for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, due the sale of Geomagic.
Current report
Other income, net
Current report
Other income, net, decreased $14.9 million for the six months June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a higher gain on the repurchase of debt in the six months ended June 30, 2024.
Current report
Net cash provided by investing activities was $112.9 million during the six months ended June 30, 2025, an increase of $122.4 million, as compared to the six months ended June 30, 2024, driven primarily by proceeds from the sale of the Geomagic business.
Current report
Convertible senior secured notes due 2030
Current report
Pursuant to an indenture dated June 23, 2025 (the "2030 Indenture"), the Company issued $92.0 million aggregate principal amount of 5.875% convertible senior secured notes due 2030 (the "2030 Notes") in a private placement to a limited number of qualified institutional buyers. The net proceeds from the 2030 Notes, along with $78.0 million of cash on hand, were used to repurchase an aggregate principal amount of$179.7 million of the Company's outstanding 0% convertible senior notes due 2026 (the “2026 Notes”).
Current report
The 2030 Notes are senior secured obligations, guaranteed by certain U.S. subsidiaries of the Company (the "Note Parties"), and bear interest semiannually at a rate of 5.875%, payable on June 15 and December 15 of each year, beginning December 15, 2025. The 2030 Notes are secured on a first-priority basis by substantially all assets of Note Parties, subject to certain exceptions (including with respect to the intellectual property of Note Parties; provided that, certain breaches by the Company or any of its subsidiaries of the limitation on liens covenant in the 2030 Indenture with respect to liens on its intellectual property will cause the 2030 Notes to automatically become secured by a prior security interest in all the intellectual property of the Note Parties). The 2030 Indenture also includes certain financial covenants, including a requirement for the Note Parties to maintain certain minimum cash, accounts receivable and inventory balances each quarter. As of the last day of each fiscal quarter, the Note Parties must maintain at least $40.0 million in qualified cash; maintain a combined minimum of $75.0 million in accounts receivable and inventory; and maintain at least $16.8 million in restricted cash until the remaining balance are paid.
Current report
The initial conversion rate was 445.6328 shares per $1,000 principal amount, equivalent to a conversion price of approximately $2.24 per share, which reflected a 20% premium over the $1.87 closing price of the Company’s common stock on June 17, 2025. The 2030 Notes are set to mature on June 15, 2030, unless earlier converted, redeemed, or repurchased. The 2030 Notes will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the election of the Company.
Current report
Holders of the 2030 Notes have a one-time put right on June 23, 2028, to require the Company to repurchase all or a portion of their 2030 Notes for cash at 100% of the principal amount, plus accrued and unpaid interest. Additionally, upon a fundamental change (as defined in the 2030 Indenture), holders may require repurchase on the same terms. The Company is required to increase the conversion rate for holders who convert in connection with certain fundamental changes or in connection with a redemption.
Current report
On or after June 23, 2028 and prior to the 41 st scheduled trading day immediately preceding the maturity date, the 2030 Notes will be redeemable, in whole or in part, at the Company's option, for cash, provided that the last reported sale price of the Company's common stock has been at least 130% of the conversion price then in effect for a specified period, as described in the 2030 Indenture.
Current report
Convertible senior notes due 2026
Current report
The 2026 Notes were issued pursuant to an indenture dated November 16, 2021 (the “2026 Indenture”) between the Company and The Bank of New York Mellon, N.A., as trustee (the “Trustee”), in an initial aggregate principal amount of $460.0 million. Although the 2026 Notes do not bear regular interest and their principal does not accrete, they have an annual effective interest rate of 0.594%, reflecting original issue discounts, commissions, and offering expenses. The 2026 Notes had an initial conversion rate of 27.8364 shares of common stock per $1 principal amount of Notes (which is subject to adjustment in certain circumstances). This is equivalent to an initial conversion price of approximately $35.92 per share. The conversion rate is subject to customary adjustments under certain circumstances in accordance with the terms of the Indenture. The 2026 Notes are scheduled to mature on November 15, 2026, unless earlier redeemed, repurchased, or converted in accordance with their terms.
Current report
Prior to August 15, 2026, the 2026 Notes will only be convertible upon the occurrence of certain events and will be convertible thereafter at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
Current report
The 2026 Notes are redeemable, in whole or in part, for cash at the Company’s option at any time, and from time to time, on or after November 20, 2024 and before the 41st scheduled trading day immediately preceding the maturity date, but only if the last reported sale price per share of the Company's common stock has been at least 130% of the conversion price then in effect for a specified period of time.
Removed paragraphs (5)
Previous report
Other Strategic Business Decisions and Cost Saving Initiatives
Previous report
For the three months ended March 31, 2025, Healthcare Solutions gross profit decreased $1.0 million, or 5.6%, compared to the three months ended March 31, 2024. The decrease in gross profit was primarily due to lower sales volumes.
Previous report
Other (loss) income, net
Previous report
Net cash used in investing activities was $3.4 million during the three months ended March 31, 2025, a decrease of $0.2 million, as compared to the three months ended March 31, 2024, driven primarily by a decrease in purchases of property and equipment of $0.4 million, which was partially offset by an increase in our Enhatch investment of $0.6 million.
Reworded paragraphs (34)
Previous wording
This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide a reader of our financial statements with a narrative from the perspective of management and is intended to help the reader understand the results of operations and financial condition of the Company. Our MD&A should be read in conjunction with our MD&A and Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Annual Report on Form 10-K") and our Consolidated Condensed Financial Statements as of and for the three months ended March 31, 2024 included in this Form 10-Q.
Current wording
This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide a reader of our financial statements with a narrative from the perspective of management and is intended to help the reader understand the results of operations and financial condition of the Company. Our MD&A should be read in conjunction with our MD&A and Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Annual Report on Form 10-K") and our Condensed Consolidated Financial Statements as of and for the three months ended June 30, 2025 included in this Form 10-Q.
Previous wording
•our ability to service our debt and ability to raise funds necessary to settle conversions of the Notes in cash, repay the Notes at maturity, or repurchase the Notes in the case of a fundamental change;
Current wording
•our ability to service our debt and ability to raise funds necessary to settle conversions of the 2030 Notes or 2026 Notes in cash, repay the 2030 Notes or 2026 Notes at maturity, repurchase the 2030 Notes upon the exercise of the holders’ one-time put right or repurchase the 2030 Notes or the 2026 Notes in the case of a fundamental change;
Previous wording
•the other factors discussed in the reports we file with or furnish to the SEC from time to time, including the risks and important factors set forth in additional detail in Item 1A. “Risk Factors” in the 2024 Annual Report on Form 10-K and this Form 10-Q.
Current wording
•the other factors discussed in the reports we file with or furnish to the SEC from time to time, including the risks and important factors set forth in additional detail in Item 1A. “Risk Factors” in the 2024 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.
Previous wording
In March 2025, the Company authorized the next phase of its multi-faceted cost savings and restructuring initiative (the “2025 Restructuring Plan”). The 2025 Restructuring Plan includes initiatives to deliver sustainable growth and profitability, enabled by a streamlining of both infrastructure and business processes, while consistently investing in core research and development activities to support long-term growth opportunities.
Current wording
In March 2025, the Company authorized the next phase of its multi-faceted cost savings and restructuring initiative (the “2025 Restructuring Plan”). The 2025 Restructuring Plan includes initiatives to deliver sustainable growth and profitability, enabled by a streamlining of both infrastructure and business processes, while consistently investing in core research and development activities to support long-term growth opportunities. Additionally, in May 2025, the Company announced an incremental cost reduction initiative focused on labor force reductions in response to the uncertain macroeconomic environment that is expected to deliver significant cost savings in the second half of the year.
Previous wording
The Company expects to incur approximately $12 million to $20 million in pre-tax restructuring and other related costs by the end of the second fiscal quarter of 2026. The charges under the 2025 Restructuring Plan are expected to be primarily cash charges.
Current wording
The Company expects to incur approximately $11 million to $20 million in pre-tax restructuring and other related costs by the end of the second fiscal quarter of 2026. The charges under the 2025 Restructuring Plan are expected to be primarily cash charges.
Previous wording
In December 2024, the Company entered into a definitive agreement with Hexagon AB for the sale of its Geomagic software business ("Geomagic"), which was included in our Industrial Solutions segment. On April 1, 2025, the Company completed the sale of Geomagic and received $119.4 million in cash, which reflected applicable purchase price adjustments under the Asset Purchase Agreement and Business Transfer Agreement. The Company estimates it will record a pre-tax gain of $125.3 million from the sale of Geomagic in the second quarter of 2025.
Current wording
In December 2024, the Company entered into a definitive agreement with Hexagon AB for the sale of its Geomagic software business ("Geomagic"), which was included in our Industrial Solutions segment. On April 1, 2025, the Company completed the sale of Geomagic and received $119.4 million in cash, which reflected applicable purchase price adjustments under the Asset Purchase Agreement and Business Transfer Agreement. The Company recorded a pre-tax gain of $125.7 million from the sale of Geomagic in the three months ended June 30, 2025.
Previous wording
The following table sets forth changes in our revenue for the three months ended March 31, 2025.
Current wording
The following tables sets forth changes in our revenue for the three and six months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025, revenue decreased $8.4 million, or 8.1%, compared to the three months ended March 31, 2024. The decrease in revenue was primarily due to a decline in product revenue of $9.3 million driven by lower materials volume to customers in the dental, service bureaus, and jewelry markets and unfavorable price/mix which were partially offset by an increase in revenue from hardware systems. The decline in product revenue was partially offset by a $1.0 million increase in service revenue due to higher volume.
Current wording
For the six months ended June 30, 2025, revenue decreased $26.8 million, or 12.4%, compared to the six months ended June 30, 2024. The decrease in revenue was primarily due to a decline in product revenue of $27.3 million driven by lower materials volume to customers in the dental, service bureaus, and jewelry markets, unfavorable price/mix, and the impact of the Geomagic divestiture. The decline in product revenue was partially offset by a $0.5 million increase in service revenue due to higher volume which was mostly offset by the Geomagic divestiture.
Previous wording
For the three months ended March 31, 2025, cost of sales remained relatively flat at $61.9 million compared to $62.0 million for the three months ended March 31, 2024. Declines related to lower sales volumes and a decrease in the provision for inventory obsolescence were mostly offset by unfavorable price/mix.
Current wording
For the three months ended June 30, 2025, cost of sales decreased to $58.7 million compared to $66.2 million for the three months ended June 30, 2024. Declines primarily related to lower sales volumes in printers and materials which were partially offset by unfavorable price/mix.
Previous wording
For the three months ended March 31, 2025, gross profit decreased $8.2 million, or 20.1%, compared to the three months ended March 31, 2024. The decrease in gross profit was primarily due to a combination of lower sales volumes and price/mix headwinds.
Current wording
For the three months ended June 30, 2025, gross profit decreased $10.9 million, or 23.2%, compared to the three months ended June 30, 2024. The decrease in gross profit was primarily due to a combination of lower sales volumes, the impact of the Geomagic divestiture and unfavorable price/mix.
Previous wording
For the three months ended March 31, 2025, selling, general and administrative expenses ("SG&A") decreased $7.5 million, or 13.1%, compared to the three months ended March 31, 2024. The year-over-year decline in SG&A was primarily due to:
Current wording
For the three months ended June 30, 2025, selling, general and administrative expenses ("SG&A") decreased $17.4 million, or 33.7%, compared to the three months ended June 30, 2024. The year-over-year decline in SG&A was primarily due to:
Previous wording
•$5.7 million decrease in third-party service provider and consulting costs due to the increased cost to complete our fiscal 2023 audit during three three months ended March 31, 2024;
Current wording
•$3.2 million decrease in third-party service provider and consulting costs due to the increased cost to complete our fiscal 2023 audit during the three months ended June 30, 2024; and
Previous wording
•$1.2 million decrease in amortization expense related to intangible assets due to lower intangible asset balances which were reduced by prior-year impairment charges; and
Current wording
•$1.6 million decrease in amortization expense related to intangible assets due to lower intangible asset balances which were reduced by prior-year impairment charges; which were partially offset by
Previous wording
•$0.6 million decrease in compensation and benefits expense primarily related to lower stock-based compensation expense due to the timing of awards which was partially offset by increased incentive compensation.
Current wording
•$17.3 million decrease in compensation and benefits expense primarily related to lower compensation expense due to the impact of our restructuring actions and lower stock-based compensation expense due to the timing of awards;
Previous wording
For the three months ended March 31, 2025, research and development expenses ("R&D") decreased $3.8 million, or 16.2%, compared to the three months ended March 31, 2024. The year-over-year decline in R&D was primarily due to:
Current wording
For the three months ended June 30, 2025, research and development expenses ("R&D") decreased $4.7 million, or 21.1%, compared to the three months ended June 30, 2024. The year-over-year decline in R&D was primarily due to:
Previous wording
For the three months ended March 31, 2025, Healthcare Solutions revenue decreased $4.1 million, or 9.0%, compared to the three months ended March 31, 2024. The decrease in revenue was primarily due to a decline in product revenue of $6.1 million which was partially offset by an increase in service revenue of $2.0 million. The decline in product revenue was primarily due to lower sales in the dental market, including lower materials volume with a key customer. Service revenue increased due to growth in personalized healthcare solutions and parts manufacturing revenue.
Current wording
For the three months ended June 30, 2025, Healthcare Solutions revenue decreased $3.9 million, or 7.9%, compared to the three months ended June 30, 2024. The decrease in revenue was primarily due to a decline in materials revenue of $6.9 million which was partially offset by an increase in service revenue of $2.2 million. The decline in materials revenue was primarily due to lower sales in the dental market, including lower materials volume with a key customer. Service revenue increased due to growth in personalized healthcare solutions and parts manufacturing revenue.
Previous wording
For the three months ended March 31, 2025, Industrial Solutions revenue decreased $4.3 million, or 7.4%, compared to the three months ended March 31, 2024. The decrease in revenue related to lower product and service revenue of $3.3 million and $1.0 million, respectively. The decline in product revenue was driven by lower materials sales to customers in the service bureaus and jewelry markets. The decline in service revenue was primarily due to decreases in hardware services and parts manufacturing revenue.
Current wording
For the three months ended June 30, 2025, Industrial Solutions revenue decreased $14.5 million, or 22.6%, compared to the three months ended June 30, 2024. The decrease in revenue related to lower product, materials, and service revenue of $9.6 million, $2.2 million, and $2.7 million, respectively. The decline in product revenue was driven by lower materials sales to customers in the service bureaus and jewelry markets and the impact of the Geomagic divestiture which was partially offset by increased sales in the aerospace and defense market. The decline in service revenue was primarily due to the impact of the Geomagic divestiture.
Previous wording
For the three months ended March 31, 2025, Industrial Solutions gross profit decreased $7.3 million, or 30.4%, compared to the three months ended March 31, 2024. The decrease in gross profit was primarily due to unfavorable price and mix and lower sales volumes.
Current wording
For the three months ended June 30, 2025, Industrial Solutions gross profit decreased $8.9 million, or 36.1%, compared to the three months ended June 30, 2024. The decrease in gross profit was primarily due to the impact of the Geomagic divestiture, unfavorable price and mix, and lower sales volumes.
Previous wording
Foreign exchange gain, net decreased by $0.8 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to realized and unrealized gains related to our foreign operations.
Current wording
Foreign exchange gain, net decreased by $0.9 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to realized and unrealized gains related to our foreign operations.
Previous wording
Interest income decreased $1.8 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to the Company's lower cash and cash equivalent balances.
Current wording
Interest income decreased $1.6 million for the six months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to the Company's lower cash and cash equivalent balances.
Previous wording
Interest expense decreased $0.1 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to lower debt issuance cost amortization on lower debt balances resulting from the repurchase of debt in the prior year.
Current wording
Interest expense decreased $0.1 million for the six months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to lower debt issuance cost amortization on lower debt balances resulting from the repurchase of debt in the prior year.
Previous wording
Other (loss) income, net, decreased $21.5 million for the three months March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to a gain on the repurchase of debt in the three months ended March 31, 2024.
Current wording
Other income, net, increased $6.6 million for the three months June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a gain on the repurchase of debt in the three months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was (1.9)% and (9.5)%, respectively. The differences between the U.S. statutory tax rate and the effective tax rates for the three months ended March 31, 2025 and 2024 were primarily driven by the recognition of a full deferred tax asset valuation allowance in various jurisdictions.
Current wording
For the three and six months ended June 30, 2024, the Company’s effective tax rate was (1.8)% and (4.6)%, respectively. The differences between the U.S. statutory tax rate and the effective tax rates for the three and six months ended June 20, 2024 were primarily driven by the recognition of a full deferred tax asset valuation allowance in various jurisdictions.
Previous wording
At March 31, 2025, cash and cash equivalents totaled $135.0 million and decreased $36.3 million since December 31, 2024. This decrease resulted primarily from cash used in operations of $33.8 million and capital expenditures of $2.8 million.
Current wording
At June 30, 2025, cash and cash equivalents totaled $116.4 million and decreased $55.0 million since December 31, 2024. This decrease resulted primarily from cash used in operations of $59.6 million, capital expenditures of $5.7 million, and cash used in financing activities of $97.3 million which was partially offset by proceeds from the sale of Geomagic of $119.4 million.
Previous wording
Cash held outside the U.S. at March 31, 2025 was $58.2 million, or 43.1% of total cash and cash equivalents, compared to $63.8 million, or 37.3% of total cash and cash equivalents, at December 31, 2024. As our previously unremitted earnings have been subjected to U.S. federal income tax, we expect any repatriation of these earnings to the U.S. (e.g., via dividends) would not incur significant federal and state taxes. However, these dividends would be subject to foreign withholding taxes that are estimated to result in the Company incurring tax costs in excess of the cost to obtain cash through other means. Cash equivalents are comprised of funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments. We strive to minimize our credit risk by investing primarily in investment grade, liquid instruments and limit exposure to any one issuer depending upon credit quality. See “Cash Flow” discussion below.
Current wording
Cash held outside the U.S. at June 30, 2025 was $56.9 million, or 48.9% of total cash and cash equivalents, compared to $63.8 million, or 37.3% of total cash and cash equivalents, at December 31, 2024. As our previously unremitted earnings have been subjected to U.S. federal income tax, we expect any repatriation of these earnings to the U.S. (e.g., via dividends) would not incur significant federal and state taxes. However, these dividends would be subject to foreign withholding taxes that are estimated to result in the Company incurring tax costs in excess of the cost to obtain cash through other means. Cash equivalents are comprised of funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments. We strive to minimize our credit risk by investing primarily in investment grade, liquid instruments and limit exposure to any one issuer depending upon credit quality. See “Cash Flow” discussion below.
Previous wording
The Company currently funds its operations, including working capital and capital expenditures, and acquisitions through cash on hand, cash equivalents, and financing activities as necessary. We expect that cash, cash equivalents, and other sources of liquidity, such as issuing equity, equity-linked, and/or debt securities, subject to market conditions, will be available and sufficient to meet our anticipated cash requirements. The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes:
Current wording
The Company currently funds its operations, including working capital and capital expenditures, and acquisitions through cash on hand, cash equivalents, and financing activities as necessary. While challenging macroeconomic conditions, both in general and specific to the 3D printing industry, have had an impact on our financial performance and cash flows, we expect that cash, cash equivalents, and other sources of liquidity, such as issuing equity, equity-linked, and/or debt securities, subject to market conditions, will be available and sufficient to meet our anticipated cash requirements. The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes:
Previous wording
Cash flows used in operating activities were $33.8 million during the three months ended March 31, 2025, an increase of $8.2 million, as compared to the three months ended March 31, 2024. The year-over-year change in operating cash flows was primarily attributable to the following factors:
Current wording
Cash flows used in operating activities were $59.6 million during the six months ended June 30, 2025, an increase of $23.3 million, as compared to the six months ended June 30, 2024. The year-over-year change in operating cash flows was primarily attributable to the following factors:
Previous wording
•Year-over-year decrease of $6.5 million in operating cash flows from net earnings, net of non-cash items.
Current wording
•Year-over-year decrease of $49.2 million in operating cash flows from net earnings, net of non-cash items due to unfavorable business performance and restructuring actions.
Previous wording
•The aggregate changes in trade accounts receivable, inventory, and trade accounts payable used $5.9 million of cash during the three months ended March 31, 2025 as compared to using $11.1 million during the prior year comparable period. The amount of cash flow generated from or used by the aggregate of trade accounts receivable, inventories, and trade accounts payable depends upon how effectively we manage the cash conversion cycle, which generally represents the number of days that elapse from the day we pay for the purchase of raw materials and components to the collection of cash from our customers, and can be significantly impacted by the timing of collections and payments in a period.
Current wording
•The aggregate changes in trade accounts receivable, inventory, and trade accounts payable used $9.9 million of cash during the six months ended June 30, 2025 as compared to using $4.5 million during the prior year comparable period. The amount of cash flow generated from or used by the aggregate of trade accounts receivable, inventories, and trade accounts payable depends upon how effectively we manage the cash conversion cycle, which generally represents the number of days that elapse from the day we pay for the purchase of raw materials and components to the collection of cash from our customers, and can be significantly impacted by the timing of collections and payments in a period.
Previous wording
•The aggregate change in prepaid expenses, other assets, accrued expenses, and other liabilities used $7.8 million in the three months ended March 31, 2025 as compared to using $0.9 million in the comparable period in the prior year comparable period. The year-over-year changes were driven by the timing of accruals and payments and tax-related amounts.
Current wording
•The aggregate change in prepaid expenses, other assets, accrued expenses, and other liabilities used $0.6 million in the six months ended June 30, 2025 as compared to using $9.5 million in the prior year comparable period. The year-over-year changes were driven by the timing of accruals and payments and tax-related amounts.
Previous wording
Net cash used in financing activities was $0.6 million during the three months ended March 31, 2025, a decrease of $88.5 million, as compared to the three months ended March 31, 2024, driven primarily by repayments of long-term debt of $87.2 million and a decrease in taxes paid related to net-share settlement of equity awards of $1.4 million in the prior year period.
Current wording
Net cash used in financing activities was $97.3 million during the six months ended June 30, 2025, an increase of $7.0 million, as compared to the six months ended June 30, 2024, driven primarily by net repayments of long-term debt of $81.4 million and stock repurchases of $15.0 million.
Previous wording
At March 31, 2025, we had $214.4 million of outstanding 0% convertible notes which mature in November of 2026. Management may consider pursuing additional long-term financing if it is appropriate in light of cash requirements for operations or strategic opportunities, which could result in higher financing costs.
Current wording
At June 30, 2025, we had $126.7 million of outstanding long-term debt, comprising $34.7 million of 2026 Notes and $92.0 million of 2030 Notes. . Management may consider pursuing additional long-term financing if it is appropriate in light of cash requirements for operations or strategic opportunities, which could result in higher financing costs.
Previous wording
We have purchase commitments under legally enforceable agreements for goods and services with defined terms as to quantity, price and timing of delivery. The Company has certain purchase commitments under agreements with remaining terms in excess of a year, which primarily relate to printer assemblies, inventory, capital expenditures, and software licenses. As of March 31, 2025, such purchase commitments totaled $14.4 million, with approximately $8.1 million, expected to be due within the next twelve months.
Current wording
We have purchase commitments under legally enforceable agreements for goods and services with defined terms as to quantity, price and timing of delivery. The Company has certain purchase commitments under agreements with remaining terms in excess of a year, which primarily relate to printer assemblies, inventory, capital expenditures, and software licenses. As of June 30, 2025, such purchase commitments totaled $19.8 million, with approximately $10.3 million, expected to be due within the next twelve months.
Previous wording
The Company had operating and financing lease obligations (inclusive of interest) of $98.0 million at March 31, 2025, primarily related to real estate and equipment leases, of which approximately $18.2 million in payments are expected over the next twelve months.
Current wording
The Company had operating and financing lease obligations (inclusive of interest) of $95.2 million at June 30, 2025, primarily related to real estate and equipment leases, of which, approximately $18.3 million in payments are expected over the next twelve months.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
•$16.3 million decrease in compensation and benefits expense primarily related to lower compensation expense due to the impact of our restructuring actions and lower stock-based compensation expense due to the timing of awards and lower incentive compensation;
Current report — wording carried from elsewhere
•$8.9 million decrease in third-party service provider and consulting costs due to the increased cost to complete our fiscal 2023 audit during the three months ended June 30, 2024; and
Current report — wording carried from elsewhere
•$2.8 million decrease in amortization expense related to intangible assets due to lower intangible asset balances which were reduced by prior-year impairment charges; which were partially offset by
Current report — wording carried from elsewhere
•$6.8 million decrease in compensation and benefits expense and other R&D expenses primarily due to improved operating efficiency and cost reductions realized from our restructuring activities.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, Healthcare Solutions revenue decreased $8.0 million, or 8.5%, compared to the six months ended June 30, 2024. The decrease in revenue was primarily due to a decline in materials revenue of $13.7 million which was partially offset by an increase in service revenue of $4.2 million. The decline in materials revenue was primarily due to lower sales in the dental market, including lower materials volume with a key customer. Service revenue increased due to growth in personalized healthcare solutions and parts manufacturing revenue.
Current report — wording carried from elsewhere
Foreign exchange gain, net decreased by $1.6 million for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to realized and unrealized gains related to our foreign operations.
Current report — wording carried from elsewhere
For the three and six months ended June 30, 2025, the Company’s effective tax rate was 9.4% and 14.4%, respectively. The differences between the U.S. statutory tax rate and the effective tax rates for the three and six months ended June 30, 2025 were primarily driven by the recognition of a full deferred tax asset valuation allowance in various jurisdictions and a gain recognized in connection with the divestiture of Geomagic.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Previous report — wording carried elsewhere
Additionally, in May 2025, the Company announced an incremental cost reduction initiative focused on labor force reductions in response to the uncertain macroeconomic environment that is expected to deliver significant cost savings in the second half of the year.