Velo3D, Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
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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.
Sep 30, 2026 · Filed Nov 10, 2026
VELO$6.04-3.0%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001193125-26-344560
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001193125-26-455458
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 211 previous paragraphs and 188 current paragraphs.
76 unchanged; 63 reworded; 45 added; 70 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 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 (45)
Current report
We are a production-focused metal additive manufacturing technology company that develops and manufactures advanced metal additive manufacturing systems and provides production and engineering services that enable customers to manufacture high-value metal parts at scale.
Current report
Our business combines two complementary operating models: (i) equipment sales, consisting primarily of our Sapphire family of metal additive manufacturing systems and associated software, and (ii) production and engineering services, delivered through our Rapid Production Solutions (“RPS”) offering and Expert Services organization. Together, these models allow customers to adopt additive manufacturing through printer ownership, service-based production or hybrid manufacturing deployments based on program requirements, capital availability and manufacturing readiness.
Current report
We produce a fully integrated hardware and software solution based on our proprietary laser powder bed fusion (“L-PBF”) technology. Our platform includes our Sapphire family of metal additive manufacturing systems, Flow print preparation software, Assure quality assurance software and our proprietary Intelligent Fusion manufacturing process. These technologies are supported by our Expert Services engineering teams and RPS production capabilities.
Current report
Our Sapphire family of printers serves customers in the space, aviation, defense, automotive, energy and industrial markets. Our technology enables the production of highly complex, mission-critical metal parts, including parts with complex internal channels, structures and geometries that may be difficult to manufacture using traditional manufacturing methods or other additive manufacturing technologies. We believe the capabilities of our technology differentiate our platform from competing metal additive manufacturing solutions.
Current report
Through RPS, we provide production services to customers using our additive manufacturing technology, engineering expertise and fleet of Sapphire family metal 3D printers. RPS enables customers to access our additive manufacturing capabilities without an immediate investment in printer ownership and supports customers as they progress from development and qualification through production. RPS may serve as an entry point for additive manufacturing adoption, a source of supplemental production capacity or an ongoing manufacturing solution.
Current report
Our customers are primarily original equipment manufacturers (“OEMs”) and contract manufacturers (“CMs”) that use additive manufacturing to address limitations associated with traditional metal parts manufacturing technologies. Traditional manufacturing processes, including casting, stamping and forging, can require significant production volumes to achieve competitive costs and may involve long lead times. Additive manufacturing can enable customers to produce complex parts and assemblies with shorter lead times and can provide cost and performance advantages for certain applications and production volumes.
Current report
Our commercial model is designed to support customers as they progress from design exploration and feasibility through qualification, low-rate initial production and full-rate production. Customers may access our technology through RPS and Expert Services and subsequently scale production through printer ownership, continued production services with Velo3D or deployment across contract manufacturers operating Sapphire systems. We believe this flexible model reduces upfront barriers to adopting additive manufacturing and allows customers to select the production model that best aligns with their program requirements and manufacturing readiness.
Current report
Chief Financial Officer Transition
Current report
On September 28, 2026, James Suva separated from employment as our Chief Financial Officer, and our Board appointed Terence P. Wynn as Interim Chief Financial Officer and principal financial and accounting officer, effective the same date. Mr. Suva’s separation was not due to any disagreement with the Company on any matter related to the Company’s operations, policies or practices. In connection with Mr. Wynn’s appointment, we entered into an Officer Services Agreement with KongBasileConsulting LLC (“KBC”), under which we pay KBC a monthly fee of $32,500 for Mr. Wynn’s services, plus reimbursement of pre-approved expenses.
Current report
July 2026 Livermore Production Facility- "Forge 1"
Current report
On July 1, 2026, the Company commenced its lease for an approximately 289,000-square-foot manufacturing and production facility in Livermore, California. The facility is expected to support the expansion of the Company's Rapid Production Solutions capabilities and increase manufacturing capacity. The contractual lease term extends through October 2036 and includes a five-year renewal option. See Note 8, Leases, for additional information.
Current report
May 2026 At-the-Market Offering
Current report
March 2026 Convertible Note Conversions and Debt Repayment
Current report
On March 4, 2026, the Company issued 394,517 shares of common stock to Arrayed Notes Acquisition Corp. upon conversion of the January Note, including $5.0 million of outstanding principal and accrued and unpaid interest, at a conversion price of $16.38 per share. On the same date, the Company issued 1,145,830 shares of common stock to Thieneman Construction, Inc. upon conversion of the February Note, including $10.0 million of outstanding principal and accrued and unpaid interest, at a conversion price of $10.50 per share. Following the conversions, the January Note and February Note were fully extinguished. On March 18, 2026, the Company repaid its Secured Notes in full, consisting of $3.0 million of principal and approximately $0.3 million of accrued interest. Following the repayment, all obligations under the Secured Notes were fully satisfied. See Note 9, Debt, for additional information.
Current report
See "Liquidity and Capital Resources” below and Note 1 Description of Business and Basis of Presentation—Financial Condition, Liquidity and Capital Resources in the notes to the unaudited condensed consolidated interim financial statements, in this Quarterly Report, for information regarding the Company's liquidity and capital resources.
Current report
We will continue to evaluate the realizability of our deferred tax assets and the appropriateness of the valuation allowance on a quarterly basis. A reduction or reversal of the valuation allowance could result in an income tax benefit in the period in which such determination is made and could result in a higher effective tax rate in subsequent periods.
Current report
3D Printer and parts sales were $18.8 million and $12.0 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $6.8 million. The increase was primarily attributable to an increase in the number of 3D Printer systems sold, higher average selling prices and product mix, as well as an increase in RPS revenue driven by higher production volume during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Current report
Total cost of revenue for the three months ended September 30, 2026 and 2025 was $15.0 million and $13.2 million, respectively, an increase of $1.8 million, or 13.8%. Cost of revenue increased at a lower rate than revenue during the third quarter of 2026, primarily reflecting the continued impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026 to better align such costs with current operational activities, adjustments to the excess and obsolete inventory reserve attributable to the current period, including the release of reserves associated with the utilization in production of certain previously reserved inventory, partially offset by increases in reserves for other inventory, and improved manufacturing efficiencies associated with increased production volumes and cost-reduction initiatives.
Current report
Total gross profit was $5.4 million and $0.4 million for the three months ended September 30, 2026 and 2025, respectively. Gross margin was 26.5% and 3.2% for the three months ended September 30, 2026 and 2025, respectively. The improvement in gross profit and gross margin primarily reflected higher average selling prices, a more favorable product mix, current-period adjustments to the excess and obsolete inventory reserve, the continued impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026, and improved manufacturing efficiencies, including improved absorption of fixed manufacturing costs associated with increased production volumes.
Current report
Trends in material, component and shipping costs, including the impact of tariffs and supplier pricing;
Current report
Production volumes and their impact on factory overhead absorption;
Current report
System reliability and manufacturing performance; and
Current report
The mix and cost of services provided to support our installed base.
Current report
We continue to focus on accelerating production cycle times, reducing material and manufacturing costs and improving efficiencies on the production floor, which we expect to support improvements in gross profit and gross margin over time. However, gross margin may vary from period to period based on product mix, production volumes, inventory-related adjustments and other factors. Ongoing trends in component costs, tariffs and supplier pricing may also negatively impact gross profit and gross margin.
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025:
Current report
Total revenue for the nine months ended September 30, 2026 and 2025 was $54.9 million and $36.5 million, respectively, an increase of $18.4 million, or 50.4%.
Current report
3D Printer and parts revenue was $49.8 million and $31.6 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $18.2 million. The increase was primarily attributable to an increase in the number of 3D Printer systems sold, higher average selling prices and product mix, as well as an increase in RPS revenue driven by higher production volume during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
Current report
Total cost of revenue for the nine months ended September 30, 2026 and 2025 was $40.6 million and $37.0 million, respectively, an increase of $3.6 million, or 9.7%. The increase in cost of revenue was primarily attributable to higher 3D Printer system and RPS production volumes associated with the increase in revenue. The increase was partially offset by the continued impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026 to better align such costs with current operational activities, as well as the net benefit resulting from adjustments to the excess and obsolete inventory reserve during the nine months ended September 30, 2026. The inventory reserve adjustments included the release of reserves associated with the utilization in production of certain previously reserved inventory, partially offset by increases in reserves for other inventory.
Current report
Cost of 3D Printer and parts was $37.8 million and $33.4 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $4.4 million. The increase primarily reflected higher 3D Printer system and RPS production volumes and differences in product mix during the nine months ended September 30, 2026. These increases were partially offset by the net benefit resulting from adjustments to the excess and obsolete inventory reserve during the nine months ended September 30, 2026, the continued impact of the prospective refinement in the allocation of certain labor and overhead costs, and improved manufacturing efficiencies resulting from overhead and fixed-cost reduction initiatives implemented in late 2025 and increased production volumes.
Current report
There was no Cost of Recurring Payment for the nine months ended September 30, 2026 and less than $0.1 million for the nine months ended September 30, 2025.
Current report
Trends in material, component and shipping costs, including the impact of tariffs and supplier pricing;
Current report
Production volumes and their impact on factory overhead absorption;
Current report
System reliability and manufacturing performance; and
Current report
The mix and cost of services provided to support our installed base.
Current report
We continue to focus on accelerating production cycle times, reducing material and manufacturing costs and improving efficiencies on the production floor, which we expect to support improvements in gross profit and gross margin over time. However, gross profit and gross margin may vary from period to period based on product mix, production volumes, inventory-related adjustments and other factors. Ongoing trends in component costs, tariffs and supplier pricing may also negatively impact gross profit and gross margin.
Current report
Research and development expenses were $12.9 million and $7.4 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $5.6 million. The increase was primarily attributable to a $2.9 million increase in headcount, salaries and employee-related expenses, a $1.1 million increase in stock-based compensation expense, a $0.9 million increase in Sapphire and Sapphire XC-related development costs, and a $0.7 million increase in facility and overhead costs, including the impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026 to better align such costs with current operational activities. Research and development activities in 2026 have primarily focused on initiatives to improve system reliability and customer experience and advance our additive manufacturing solutions.
Current report
We expect selling and marketing expenses to increase as we continue to invest in sales and marketing activities and pursue opportunities in markets demonstrating demand for additive manufacturing solutions, including the defense and aerospace markets. These investments may include increased spending related to trade shows, marketing initiatives and branding activities.
Current report
General and administrative expenses were $27.4 million and $20.9 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $6.4 million. The increase was primarily attributable to a $3.4 million increase in facility and overhead costs, including the impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026, a $1.8 million increase in stock-based compensation expense and a $1.4 million increase in legal and professional services, partially offset by a $0.2 million decrease in headcount, salaries and employee-related expenses.
Current report
We expect general and administrative expenses to vary based on the level and timing of investments required to support our business and strategic initiatives. We continue to focus on company-wide initiatives to manage operating costs, including reducing our reliance on outside consultants, managing facility costs, negotiating improved vendor pricing and pursuing enterprise-level efficiency improvements. At the same time, advisory, consulting, legal and accounting expenses may increase in connection with strategic initiatives, including the planned expansion of our RPS manufacturing capabilities.
Current report
Other income (expense), net was income of $1.1 million and expense of less than $0.1 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $1.2 million. The increase was primarily driven by higher interest income during 2026 due to higher average cash balances.
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Removed paragraphs (70)
Previous report
We seek to fulfill the promise of additive manufacturing, also referred to as 3D printing ("AM"), to deliver breakthroughs in performance, cost, and lead time in the production of high-value metal parts.
Previous report
We produce a fully integrated hardware and software solution based on our proprietary laser powder bed fusion ("L-PBF") technology, which greatly reduces and often eliminates the need for support structures. Our technology enables the production of highly complex, mission-critical parts that existing AM solutions cannot produce without the need for redesign or additional assembly.
Previous report
Our Sapphire Family of Printers gives our customers who are in space, aviation, defense, automotive, energy and industrial markets the freedom to design and produce metal parts with complex internal features and geometries that had previously been considered impossible for AM. We believe our technology is ahead of competitors.
Previous report
We aim to enable our customers to build resilient supply chains for production parts across industries with a clear, reliable path from concept to production through our Rapid Production Solutions ("RPS") offering. RPS utilizes our deep engineering expertise, cutting-edge technology and a fleet of Sapphire XC large-format metal 3D printer and parts to accelerate path to production for our customers.
Previous report
Our technology is novel compared to other AM technologies because of its ability to deliver high-value metal parts that have complex internal channels, structures, and geometries. This affords a wide breadth of design freedom for creating new metal parts and it enables replication of existing parts without the need to redesign the part to be manufacturable with AM. Because of these features, we believe our technology and product capabilities are highly valued by our customers. Our customers are primarily original equipment manufacturers ("OEMs") and contract manufacturers ("CMs") who look to AM to solve issues with traditional metal parts manufacturing technologies. Those traditional manufacturing technologies rely on processes, including casting, stamping and forging, that typically require high volumes to drive competitive costs and have long lead times for production. Our customers look to AM solutions to produce assemblies that are lighter, stronger, and more reliable than those manufactured with traditional technologies. Our customers also expect AM solutions to drive lower costs for low-volume parts and substantially shorter lead times. However, many of our customers have found that other legacy AM technologies failed to produce the required designs for the high-value metal parts and assemblies that our customers wanted to produce with AM. As a result, other AM solutions often require that parts be redesigned so that they can be produced and frequently incur performance losses for high-value applications.
Previous report
In contrast, our technology can deliver complex high value metal parts with the design advantages, lower costs and faster lead times associated with AM, and generally avoids the need to redesign the parts. As a result, our customers have increasingly adopted our technology into their design and production processes. We believe our value is reflected in our sales patterns, as most of our customers initially purchased a single machine to validate our technology and have purchased additional systems over time as they have embedded our technology in their product roadmap and manufacturing infrastructure. We consider this approach a “land and expand” strategy, oriented around a demonstration of our value proposition followed by increasing penetration with key customers.
Previous report
Recent Debt and Equity Transactions
Previous report
On January 7, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $5,000,000 (the"January Note") to Thieneman Properties, LLC, an Indiana limited liability company. The January Note bore interest at a rate of 60.0% per annum, was payable in full on April 7, 2025 in the amount of $5,750,000 and if not paid on or prior to such date, would continue to accrue interest at the same rate until paid. The January Note could be prepaid in whole or in part at any time without penalty or premium and was convertible in the event of default into shares of the Company’s common stock, at a fixed conversion price of $23.40 per share. On April 7, 2025, the Company made a payment of $750,000, covering the first three months of interest on the January Note.
Previous report
On February 10, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $10,000,000 (the"February Note") to Thieneman Construction, Inc., an Indiana corporation, to be funded in two tranches of $5,000,000. The February Note bore interest at a rate of 30.0% per annum, was payable in full on the date that is six months from the date such tranche was funded (the first tranche and second tranche were received by the Company on February 10, 2025 and March 20, 2025, respectively), in the amount of $5,750,000 and given it was not paid on or prior to such date, would continue to accrue interest at the same rate until paid. The outstanding principal amount of the February Note was convertible into shares of the Company's common stock upon the occurrence of the Company’s successful listing of shares of its common stock on a national securities exchange or the occurrence and during the continuation of an event of default, into common stock at a fixed conversion price of $15.00 per share.
Previous report
On February 24, 2025, the Company entered into February Warrant Exchange Agreements with each of: (i) Highbridge Tactical Credit Master Fund, L.P. (“HM”); (ii) Highbridge Tactical Credit Institutional Fund, Ltd. (collectively with HM, the “Highbridge Holders”); (iii) Anson Investments Master Fund LP (“AMF”); (iv) Anson East Master Fund LP (collectively with AMF, the “Anson Holders”); (v) High Trail Investments ON LLC (“HTI”), and (vi) HB SPV I Master LLC (together with HTI, the “High Trail Holders”), pursuant to which: (a) the Highbridge Holders and the Anson Holders agreed to exchange an aggregate of 60,150 registered warrants issued in April 2024 and an aggregate of 99,048 registered warrants issued in August 2024, and (b) the High Trail Holders agreed to exchange an aggregate of 151,808 unregistered warrants issued in April 2024 and July 2024, and an aggregate of 19,048 registered warrants issued in December 2023, for an aggregate of 990,159 shares (the“Acquired Shares”) of the Company’s common stock, respectively, equating in each case to an exchange ratio of three Acquired Shares for each warrant.
Previous report
On August 14, 2025, the Company amended the January Note (the"January Note Amendment"), which amended certain provisions of the January Note, including: an extension of the maturity date under the January Note to February 14, 2027; a reduction of the interest rate under the January Note to 12%; and an adjustment of the fixed conversion price to $16.38 per share. On August 14, 2025, the Company also amended the February Note (the“February Note Amendment”) which, amended certain provisions of the February Note, including: an extension of the maturity dates for each tranche under the February Note to February 14, 2027; a reduction of the interest rate under the February Note to 12%; and an adjustment of the fixed conversion price to $10.50 per share. The Company has evaluated that the note amendments are both treated as a debt modification under ASC Topic 470, Debt.
Previous report
Immediately prior to the further amendment to the January Note described below, Thieneman Properties, LLC transferred the January Note to Arrayed Notes Acquisition Corp. ("Arrayed"), a Delaware corporation controlled by Arun Jeldi, the Chief Executive Officer and a director of the Company, pursuant to a Convertible Promissory Note Transfer Agreement between Thieneman Properties, LLC (as transferor) and Arrayed (as transferee).
Previous report
On March 4, 2026, the Company and Arrayed entered into a further amendment to the January Note, which amended certain provisions of the January Note to, among other things, provide that, at any time and from time to time, Arrayed (as holder) has the right, at its option, to convert all or any portion of the outstanding principal amount of the January Note, together with accrued and unpaid interest thereon, into shares of the Company’s common stock.
Previous report
On March 4, 2026, the Company and Thieneman Construction, Inc. entered into a further amendment to the February Note, which amended certain provisions of the February Note to, among other things, provide that, subject to the existing terms of the February Note, accrued and unpaid interest thereon, in addition to the outstanding principal amount, may be convertible into common stock at the holder’s option.
Previous report
On March 4, 2026, the Company issued 394,517 shares of common stock to Arrayed upon conversion of the January Note, in the principal amount of $5,000,000, together with accrued and unpaid interest thereon, at a conversion price of $16.38 per share, a premium to the Company’s share price on March 4, 2026. As of such date, the January Note (including principal and interest) was fully converted into shares of common stock of the Company.
Previous report
On March 4, 2026, the Company issued 1,145,830 shares of common stock to Thieneman Construction, Inc. upon conversion of the February Note, in the principal amount of $10,000,000, together with accrued and unpaid interest thereon, at a conversion price of $10.50 per share. As of such date, the February Note (including principal and interest) was fully converted into shares of common stock of the Company.
Previous report
2025 Reverse Stock Split
Previous report
Effective July 28, 2025, we implemented a 1-for-15 reverse stock split of our issued and outstanding common stock. The reverse stock split was effected by the filing of a certificate of amendment (the “Amendment”) to our Certificate of Incorporation with the
Previous report
Secretary of State of the State of Delaware, without any change to par value or the number of authorized shares of common stock. The Amendment became effective upon such filing. No fractional shares were issued in connection with the reverse stock split as all fractional shares were rounded up to the next whole share. All share and per share amounts of our common stock listed in this Quarterly Report have been adjusted, as applicable, to give effect to the reverse stock split.
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See Note 1, Description of Business and Basis of Presentation, for additional information on the 2025 reverse stock split in the notes to our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report.
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On August 19, 2025, the Company entered into an underwriting agreement (the“Underwriting Agreement”) with Lake Street Capital Markets, LLC, as representative of the several underwriters named therein (the“Representative”), relating to the public offering of 5,833,333 shares (the“Shares”) of the Company’s common stock, par value $0.00001 per share, at a purchase price per share of $3.00 (the“Offering Price”). Pursuant to the Underwriting Agreement, the Company also granted the Representative a 30-day option to purchase up to an additional 875,000 shares of common stock at the Offering Price, less any underwriting discounts and commissions, which was exercised in full.
Previous report
The offering closed on August 20, 2025 (the"August 2025 Offering"). Gross proceeds of $20.1 million was received from the August 2025 Offering of 5,833,333 shares of the Company's common stock ($17.5 million) and the exercise of the Representative option to purchase 875,000 shares of common stock. Net proceeds from the August 2025 Offering were approximately $17.8 million after deducting $2.3 million in the underwriting discounts and commissions, and other estimated offering expenses payable by the Company for legal and audit services. The Company intends to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes.
Previous report
Amendment to Company’s Certificate of Incorporation allowing stockholders to act by written consent
Previous report
On June 27, 2025, the stockholders of the Company, approved an amendment (the “Written Consent Amendment”) to the Company’s Certificate of Incorporation, as amended (the“Certificate of Incorporation”), to remove Section 1 of Article VIII of the Certificate of Incorporation, which prohibited stockholder action by written consent without a stockholder meeting. On July 1, 2025, the Written Consent Amendment was filed with the Secretary of State of the State of Delaware, and the Written Consent Amendment became effective on such date. As a result of the Written Consent Amendment, stockholders are now permitted to act by written consent to the extent permitted under the Delaware General Corporation Law.
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2025 Equipment Loan
Previous report
On December 8, 2025, the Company and Varilease Finance, Inc. (“Varilease”) entered into a Sale Leaseback Agreement (the“Sale Leaseback Agreement”) pursuant to which the Company agreed to sell to Varilease, and subject to the conditions set forth therein, Varilease agreed to purchase from the Company, assorted Velo3D Sapphire and Sapphire XC metal 3D printers and post processing tools and equipment owned and used by the Company (the“Equipment”). The aggregate purchase price for the Equipment to be received by the Company is $10 million and reported as debt (the"Equipment Loan"). For more information, see Note 9, Debt, in the notes to the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report.
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2025 Private Investment in Public Equity ("2025 PIPE")
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On December 22, 2025, the Company entered into a securities purchase agreement (the“Purchase Agreement”) with certain institutional accredited investors (the“Purchasers”), for the issuance and sale in a private placement of an aggregate of 3,636,363 shares of the Company’s common stock, at a purchase price of $8.25 per share. The foregoing transaction is referred to herein as the “Private Placement.” On December 23, 2025, the parties consummated the Private Placement. The aggregate gross proceeds to the Company from the Private Placement was approximately $30 million, before deducting placement agent fees and other offering expenses.
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April 2026 Offering
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At the Market Offering
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Notwithstanding the recent debt and equity transactions, as described under “—Liquidity and Capital Resources” and in Note 1 Description of Business and Basis of Presentation—Going Concern, Financial Condition and Liquidity and Capital Resources in the notes to these unaudited condensed consolidated interim financial statements, management concluded that substantial doubt continues to exist about the Company's ability to continue as a going concern. Although the Company significantly improved its liquidity position during the six months ended June 30, 2026 through equity financings, debt conversions and debt repayments, management expects that additional financing will be required to fund operations and satisfy obligations during the assessment period due to continued operating losses, negative operating cash flows and ongoing working capital requirements. There can be no assurance that additional financing will be available on acceptable terms, or at all. If the Company is unable to obtain additional financing or otherwise improve its liquidity, it may be required to significantly reduce or discontinue operations, sell assets, pursue strategic alternatives, restructure its obligations or seek protection under applicable bankruptcy laws.
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Other Income (Expense), Net
Previous report
We will continue to review our conclusions about the appropriate amount of the valuation allowance on a quarterly basis. If we were to generate profits, the U.S. valuation allowance position could be reversed in the foreseeable future. We expect a benefit to be recorded in the period the valuation allowance reversal is recorded and a higher effective tax rate in periods following the valuation allowance reversal.
Previous report
3D Printer and parts sales were $19.0 million and $12.1 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $6.9 million. The increase in revenue was primarily attributed to an increase in the average selling price, product mix, and an increase in RPS revenues related to an increase in production volume for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Previous report
Total cost of revenue for the three months ended June 30, 2026 and 2025 was $16.2 million and $15.2 million, respectively, an increase of $1.1 million, or 7.0%. While overall cost of revenue increased consistently with the increase in sales, during the second quarter of 2026, the cost of revenue also reflected the impact of a prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses to align with current operational activities, which offset this increase from sales.
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Trends in materials and shipping costs;
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Production volumes that may impact factory overhead absorption;
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System reliability performance; and
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Impact of product mix changes, including new product introductions, and other factors, on our Cost of Support Services.
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We expect to accelerate production cycle times and further improve efficiencies on the production floor, which we expect will continue to improve gross profit and gross margin during the second half of 2026. Ongoing trends in component costs, tariffs and supplier pricing may continue to negatively impact gross profit until our financial condition improves.
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Reworded paragraphs (63)
Previous wording
The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our results of operations and financial condition. This discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report. This discussion contains forward-looking statements based upon our current expectations, estimates and projections, and involves numerous risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements due to, among other considerations, the matters discussed in the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-looking Statements” herein. During the fiscal year ended December 31, 2025, we identified immaterial errors in our previously issued financial statements. We have corrected the amounts as presented in this Item 2 accordingly. Refer to Note 2, Summary of Significant Accounting Policies to the unaudited condensed consolidated interim financial statements included in Part I of this Quarterly Report for additional information regarding the prior-period corrections.
Current wording
The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our results of operations and financial condition. This discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report. This discussion contains forward-looking statements based upon our current expectations, estimates and projections, and involves numerous risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements due to, among other considerations, the matters discussed in the sections titled “Risk Factors” and “Special Note Regarding Forward-looking Statements” herein. During the fiscal year ended December 31, 2025, we identified certain immaterial errors in our previously issued financial statements, which were corrected in the amounts presented herein, as applicable. In addition, during the third quarter of 2026, we identified immaterial errors in our previously issued unaudited condensed consolidated interim financial statements for the three months ended March 31, 2026 and the three and six months ended June 30, 2026. We have revised the applicable prior-period amounts presented in this Item 2 to reflect the correction of these errors. Refer to Note 2, Summary of Significant Accounting Policies to the unaudited condensed consolidated interim financial statements elsewhere in this Quarterly Report for additional information regarding these revisions and the previously identified prior-period corrections.
Previous wording
On May 15, 2026, the Company entered into a sales agreement (the“Sales Agreement”) with Needham & Company, LLC ("Needham"), Cantor Fitzgerald & Co. ("Cantor") and Craig-Hallum Capital Group, LLC ("Craig-Hallum") (each, a “Sales Agent,” and collectively, the “Sales Agents”), acting as sales agents and/or principals. Pursuant to the terms of the Sales Agreement, the Company may sell from time to time to or through any Sales Agent shares of the Company’s common stock, par value $0.00001 per share (the“Shares”), having an aggregate offering price of up to $100,000,000 (the “Offering”). Sales of Shares, if any, under the Sales Agreement may be made in any transactions permitted by law that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act. See Note 16, At-the-Market Offering for further information.
Current wording
On May 15, 2026, the Company entered into a sales agreement (the“Sales Agreement”) with Needham & Company, LLC ("Needham"), Cantor Fitzgerald & Co. ("Cantor") and Craig-Hallum Capital Group, LLC ("Craig-Hallum") (each, a “Sales Agent,” and collectively, the “Sales Agents”), acting as sales agents and/or principals. Pursuant to the terms of the Sales Agreement, the Company may sell from time to time to or through any Sales Agent shares of the Company’s common stock, par value $0.00001 per share (the“Shares”), having an aggregate offering price of up to $100,000,000 (the “Offering”). During the nine months ended September 30, 2026, the Company sold approximately 2.2 million shares under the ATM program for aggregate gross proceeds of approximately $59.4 million. After deducting commissions and other offering costs of approximately $2.0 million, the Company received net proceeds of approximately $57.4 million. See Note 16, At-the-Market Offering for further information.
Previous wording
On April 27, 2026, the Company entered into an underwriting agreement (the“Underwriting Agreement”) with Cantor Fitzgerald & Co., as underwriter (the“Underwriter”), relating to the offer and sale in a firm commitment underwritten registered direct offering (the“Offering”) of 3,571,428 shares (the“Shares”) of the Company’s common stock, par value $0.00001 per share. The Shares were sold at a public offering price per share of $14.00. The gross proceeds from the Offering were approximately $50 million, before deducting underwriting discounts and commissions and other offering expenses of $3.4 million. The Company currently intends to use the net proceeds of the Offering for working capital and general corporate purposes.
Current wording
On April 27, 2026, the Company entered into an underwriting agreement (the“Underwriting Agreement”) with Cantor Fitzgerald & Co., as underwriter (the“Underwriter”), relating to the offer and sale in a firm commitment underwritten registered direct offering (the“Offering”) of 3,571,428 shares (the“Shares”) of the Company’s common stock, par value $0.00001 per share. The Shares were sold at a public offering price per share of $14.00. The gross proceeds from the Offering were approximately $50 million and net proceeds were approximately $46.6 million after deducting underwriting discounts and commissions and other offering expenses of $3.4 million. The Company used the net proceeds of the Offering for working capital, capital expenditures and other general corporate purposes.
Previous wording
Our operating results for the foreseeable future will continue to depend on sales to a small group of customers. For the three months ended June 30, 2026 and 2025, sales to the top three customers accounted for 45.9% and 65.2%, respectively, of our revenue. Of the top three customers for the three months ended June 30, 2026, all three customers were different from the top three customers for the comparable period in 2025. For the six months ended June 30, 2026 and 2025, sales of the top three customers accounted for 33.9% and 54.6%, respectively, of our revenue. Of the top three customers for the six months ended June 30, 2026, all three customers were different from the top three customers for the comparable period in 2025.
Current wording
Our operating results for the foreseeable future will continue to depend on sales to a small group of customers. For the three months ended September 30, 2026 and 2025, sales to the top three customers accounted for 58.3% and 49.5%, respectively, of our revenue. Of the top three customers for the three months ended September 30, 2026, all three customers were different from the top three customers for the comparable period in 2025. For the nine months ended September 30, 2026 and 2025, sales of the top three customers accounted for 29.6% and 36.7%, respectively, of our revenue. Of the top three customers for the nine months ended September 30, 2026, one customer was different from the top three customers for the comparable period in 2025.
Previous wording
We continue to be a customer-focused company working to develop innovative solutions to address customers’ needs and focus on our customers to identify the most impactful areas for research and development as we seek to further improve the capabilities of our AM solutions. We believe this process has contributed significantly to our development of the most advanced metal AM systems in the world. We believe that continued investments in our products are important to our future growth and, as a result, we will invest in enhancing our portfolio of AM solutions through certain research and development projects based on customer demand.
Current wording
We continue to be a customer-focused company working to develop innovative solutions to address customers’ needs and focus on our customers to identify the most impactful areas for research and development as we seek to further improve the capabilities of our AM solutions. We believe this process has contributed meaningfully to the development of our advanced metal AM systems. We believe that continued investments in our products are important to our future growth and, as a result, we will invest in enhancing our portfolio of AM solutions through certain research and development projects based on customer demand.
Previous wording
3D Printer and parts sale transactions -fixed purchase price model. The timeframe from order to completion of the site acceptance test usually occurs over three to nine months. As we scale our production, we expect to reduce this timeframe. Contract consideration allocated to the 3D Printer is recognized at a point in time, which occurs upon transfer of control to the customer at shipment.
Current wording
3D Printer and parts sale transactions -fixed purchase price model. The timeframe from order to completion of the applicable customer acceptance and delivery requirements generally ranges from three to nine months. As we scale our production, we expect to reduce this timeframe. Contract consideration allocated to a 3D Printer is recognized at a point in time when control of the 3D Printer transfers to the customer, which generally occurs upon shipment or, for qualifying ship-in-place arrangements, when the applicable control-transfer criteria have been satisfied.
Previous wording
Other revenue included under 3D Printer and parts sales includes parts and consumables, such as filters, powder or build plates, that are sold to customers and recognized upon transfer of control to the customer at shipment.
Current wording
Other revenue included under 3D Printer and parts sales includes parts and consumables, such as filters, powder or build plates, that are sold to customers and recognized upon transfer of control to the customer, which generally occurs upon shipment.
Previous wording
Rapid Production Solutions ("RPS") - RPS utilizes our deep engineering expertise, cutting-edge technology and a fleet of Sapphire XC large-format metal 3D printers to manufacture custom metal components in order to accelerate the path to production for our customers. RPS revenue is included under 3D Printer and parts revenue.
Current wording
Rapid Production Solutions ("RPS") - RPS utilizes our additive manufacturing expertise, technology and fleet of Sapphire family metal 3D printers to provide production solutions to customers, including the manufacture of custom metal components and other production-related services. RPS revenue is included within 3D Printer and parts revenue and occurs upon transfer of control to the customer, generally at shipment.
Previous wording
Support Services - are included with most 3D Printer sale transactions and Recurring Payment transactions. Support services consist of field service engineering, phone and email support, preventative maintenance, and limited on and off-site consulting support. A subsequent Extended Support Agreement is available for renewal after the initial contract period based on the then-fair value of the service, which is paid for separately. Support Service revenue is recognized over the contract period beginning with customer performance test acceptance.
Current wording
Support Services - are included with most 3D Printer sale transactions and Recurring Payment transactions. Support services consist of field service engineering, phone and email support, preventative maintenance, and limited on and off-site consulting support. A subsequent Extended Support Agreement is available for renewal after the initial contract period based on the then-fair value of the service, which is paid for separately. Support Service revenue is recognized over the applicable service period beginning when the related support services are made available to the customer.
Previous wording
Cost of 3D Printer and parts includes the manufacturing cost of our components and subassemblies purchased from vendors for the assembly, as well as raw materials and assemblies, shipping costs, cost of RPS solutions, and other directly associated costs. Cost of 3D Printers also includes allocated overhead costs from headcount-related costs, such as salaries, stock-based compensation, depreciation of manufacturing related equipment and facilities, and information technology costs.
Current wording
Cost of 3D Printer and parts includes direct and indirect manufacturing costs, including components and subassemblies purchased from vendors, raw materials, shipping costs, cost of RPS solutions, and other directly associated costs. Cost of 3D Printers also includes allocated overhead costs from manufacturing-related personnel, facility, depreciation and information technology costs.
Previous wording
Cost of Support Services includes the cost of spare or replacement parts for preventive maintenance, installation costs, headcount-related costs such as salaries, stock-based compensation, depreciation of manufacturing related equipment and facilities, and information technology costs. The headcount-related costs are directly associated with the engineers dedicated to remote and on-site support, training, travel costs and other services costs.
Current wording
Cost of Support Services includes the cost of spare or replacement parts for preventive maintenance, installation costs, personnel-related costs associated with providing customer support services, including salaries and stock-based compensation, travel costs, depreciation, information technology costs and allocated facility and other overhead costs.
Previous wording
Our research and development expenses represent costs incurred to support activities that advance the development of innovative AM technologies, new product platforms and consumables, as well as activities that enhance the capabilities of our existing product platforms. Our research and development expenses consist primarily of salaries and related personnel costs for individuals working in our research and development departments, including stock-based compensation, prototypes, design expenses, information technology costs and software license amortization, consulting and contractor costs, and an allocated portion of overhead costs, including depreciation of property and equipment used in research and development activities.
Current wording
Our research and development expenses represent costs incurred to support activities that advance the development of innovative AM technologies, new product platforms and consumables, as well as activities that enhance the capabilities of our existing product platforms. Our research and development expenses consist primarily of salaries and related personnel costs for individuals engaged in research and development activities, including stock-based compensation, prototypes, design expenses, information technology costs and software license amortization, consulting and contractor costs, and an allocated portion of overhead costs, including depreciation of property and equipment used in research and development activities.
Previous wording
Sales and marketing expenses consist primarily of salaries and related personnel costs for individuals working in our sales and marketing departments, including stock-based compensation, costs related to trade shows and events, advertising, marketing promotions, travel costs and an allocated portion of overhead costs, including information technology costs and costs for customer validation.
Current wording
Sales and marketing expenses consist primarily of salaries and related personnel costs for individuals engaged in sales and marketing activities, including stock-based compensation, costs related to trade shows and events, advertising, marketing promotions, travel costs and an allocated portion of overhead costs, including information technology costs and costs for customer validation.
Previous wording
Gain (Loss) on Fair value of Contingent Earnout Liabilities
Current wording
Gain on Fair value of Contingent Earnout Liabilities
Previous wording
Gain (loss) on valuation of contingent earnout liabilities relates to the changes in fair value of the contingent earnout liabilities in connection with the earnout shares, which are subject to remeasurement at each balance sheet date.
Current wording
Gain on valuation of contingent earnout liabilities relates to the changes in fair value of the contingent earnout liabilities in connection with the earnout shares, which are subject to remeasurement at each balance sheet date.
Previous wording
Other income (expense), net includes interest earned on our bank sweep account, gains and losses on disposals of fixed assets, transaction costs related to the warrant inducement transaction and other miscellaneous income/expenses.
Current wording
Other income (expense), net primarily consists of interest income, gains and losses on disposals of fixed assets and other miscellaneous income and expense.
Previous wording
Total revenue for the three months ended June 30, 2026 and 2025 was $20.7 million and $13.6 million, respectively, an increase of $7.1 million, or 52.3%.
Current wording
Total revenue for the three months ended September 30, 2026 and 2025 was $20.5 million and $13.6 million, respectively, an increase of $6.8 million, or 49.9%.
Previous wording
Our Support Services revenue was $1.5 million and $1.4 million for the three months ended June 30, 2026 and 2025, respectively, an increase of less than $0.1 million. Support Services revenue is primarily due to services provided to customers based on the installed base requiring preventive maintenance and other support services.
Current wording
Our Support Services revenue was $1.4 million and $1.4 million for the three months ended September 30, 2026 and 2025, respectively, an increase of less than $0.1 million. Support Services revenue primarily consists of preventive maintenance and other support services provided to customers based on our installed base of systems.
Previous wording
Other revenue was $0.2 million and less than $0.1 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $0.1 million.
Current wording
Other revenue was $0.2 million and $0.3 million for the three months ended September 30, 2026 and 2025, respectively, a decrease of less than $0.1 million.
Previous wording
As part of our Strategic Realignment started in 2025, we have implemented new go-to-market and service strategies to rebuild our bookings and backlog pipeline. As we rebuild our bookings and backlog, we expect the demand for the Sapphire, Sapphire 1MZ, Sapphire XC and Sapphire XC 1MZ to increase our revenue in the future. We expect Recurring Payment revenue to decrease as we continue to shift our focus to 3D Printer system sales and RPS for printed parts. We expect our Support Service revenue to increase as the number of systems we have in the field increases. As of June 30, 2026 our backlog for firm orders was $31 million for 3D Printer and printed parts. Our focus for revenue has shifted to ensuring customer success, improving system reliability to strengthen our existing customer network, developing new customer networks to increase demand and expanding our RPS for printed parts.
Current wording
As part of our Strategic Realignment initiated in 2025, we have implemented new go-to-market and service strategies focused on rebuilding our bookings and backlog pipeline. As we continue to execute these strategies, we expect future revenue growth to be driven by demand for our Sapphire and Sapphire XC systems, as well as continued expansion of our RPS printed parts business. We do not expect Recurring Payment revenue to be significant as we continue to shift our focus toward 3D Printer system sales and RPS printed parts revenue. We expect Support Services revenue to increase over time as our installed base of systems grows. As of September 30, 2026 our backlog of firm orders for 3D Printers and printed parts was $40 million. Our commercial and operational focus continues to include driving customer success, improving system reliability to strengthen our existing customer relationships, developing new customer relationships to increase demand, and expanding our RPS printed parts business.
Previous wording
Cost of 3D Printer and parts was $15.8 million and $14.0 million for the three months ended June 30, 2026 and 2025, respectively. The increase of $1.8 million primarily reflected differences in product mix and an increase in RPS volume for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. We expect manufacturing costs to improve as a percentage of revenue as a result of overhead and fixed cost reduction initiatives implemented in late 2025 and increased production volumes leading to economies of scale.
Current wording
Cost of 3D Printer and parts was $14.0 million and $11.9 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $2.1 million. The decrease primarily reflected current-period adjustments to the excess and obsolete inventory reserve, the continued impact of the prospective refinement in the allocation of certain labor and overhead costs, and improved manufacturing costs resulting from overhead and fixed-cost reduction initiatives implemented in late 2025 and increased production volumes, which contributed to improved absorption of fixed manufacturing costs. These decreases were partially offset by the increase in 3D Printer and RPS production volumes during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous wording
Cost of Support Services was $0.5 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively. Cost of Support Services decreased by $0.7 million, primarily reflected lower direct customer support costs and changes in employee responsibilities supporting existing customers.
Current wording
Cost of Support Services was $1.1 million and $1.4 million for the three months ended September 30, 2026 and 2025, respectively, a decrease of $0.3 million. The decrease primarily reflected lower direct customer support costs and changes in employee responsibilities supporting our existing customer base.
Previous wording
Cost of revenue as a percentage of revenue was 78.5% and 111.7% for the three months ended June 30, 2026 and 2025, respectively. The decrease was primarily attributable to a more favorable product mix and the impact of a prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses to align with current operational activities.
Current wording
Cost of revenue as a percentage of revenue was 73.5% and 96.8% for the three months ended September 30, 2026 and 2025, respectively. The decrease was primarily attributable to a more favorable product mix, current-period adjustments to the excess and obsolete inventory reserve, the continued impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses, and improved manufacturing efficiencies associated with increased production volumes and cost-reduction initiatives.
Previous wording
We may experience increasing component costs from our suppliers due to international tariffs and our current financial situation. We are currently unable to secure credit terms and volume discounts with our suppliers, causing us to pay a premium, in advance, or source from alternate suppliers at unfavorable terms for our products. This has negatively impacted our cost of revenue and will continue to negatively impact our cost of revenue until our financial condition improves and costs associated with tariffs ease.
Current wording
We may experience increased component costs from our suppliers due to international tariffs and our current financial condition. Our ability to secure favorable credit terms and volume discounts from certain suppliers remains limited, which may require us to make advance payments, pay premiums or source components from alternative suppliers on less favorable terms. These factors have negatively impacted, and may continue to negatively impact, our cost of revenue until our financial condition improves and tariff-related cost pressures ease.
Previous wording
We continue to focus on reducing material costs through improved purchasing and inventory planning, accelerating production cycle times and improving efficiencies on the production floor. These operational initiatives are expected to continue reducing manufacturing costs and improve gross margins over time.
Current wording
We continue to focus on reducing material costs through improved purchasing and inventory planning, accelerating production cycle times and improving production-floor efficiencies. We expect these operational initiatives to reduce manufacturing costs and improve gross margins over time.
Previous wording
Research and development expenses were $4.3 million and $2.6 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $1.7 million. The increase in research and development expenses was driven by a $0.6 million increase in headcount, salaries and employee-related expenses, an increase of $0.6 million in stock-based compensation, and an increase of $0.5 million in other costs, primarily reflecting higher facility-related costs and overhead allocations. Research and development projects in 2026 are focused primarily on projects aligned with increasing the reliability experience for customers.
Current wording
Research and development expenses were $5.4 million and $2.7 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $2.7 million. The increase was primarily attributable to a $1.4 million increase in headcount, salaries and employee-related expenses, a $0.8 million increase in Sapphire and Sapphire XC-related development costs, a $0.4 million increase in stock-based compensation expense, and approximately $0.5 million of other costs, primarily reflecting higher facility-related costs and overhead allocations, including the impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026 to better align such costs with current operational activities. Research and development activities in 2026 have primarily focused on initiatives to improve system reliability and customer experience and advance our additive manufacturing solutions.
Previous wording
We expect research and development expenses to increase during the remainder of 2026 and beyond as we execute our refreshed technology roadmap, expand our RPS capabilities, improve system utilization efficiency and continue to enhance our portfolio of additive manufacturing solutions.
Current wording
We expect research and development expenses to increase as we execute our refreshed technology roadmap, including investments intended to support customer demand for RPS, scale parts production, improve system utilization and efficiency, and enhance and advance our portfolio of additive manufacturing solutions.
Previous wording
Selling and marketing expenses were $2.9 million and $1.5 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $1.4 million. The increase was attributable to $0.7 million increase in facility and overhead costs, an increase of $0.3 million in headcount, salaries and employee-related expenses, a $0.3 million increase in stock-based compensation, and a $0.1 million increase in marketing costs and initiatives spending.
Current wording
Selling and marketing expenses were $3.2 million and $1.8 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $1.4 million. The increase was primarily attributable to a $0.8 million increase in facility and overhead costs, including the impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026, a $0.4 million increase in headcount, salaries and employee-related expenses, and a $0.3 million increase in stock-based compensation expense, partially offset by a $0.1 million decrease in marketing and related initiative spending.
Previous wording
We expect selling and marketing expenses to increase during the remainder of 2026 and beyond as we expand our commercial activities, including increased participation in the defense and aerospace markets, and continue investing in trade shows, marketing initiatives and brand awareness.
Current wording
We expect selling and marketing expenses to increase as we continue to invest in sales and marketing activities and pursue opportunities in markets demonstrating demand for additive manufacturing solutions, including the defense and aerospace markets. These investments may include increased spending related to trade shows, marketing initiatives and branding activities.
Previous wording
General and administrative expenses were $13.2 million and $15.0 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of $1.8 million. The decrease was attributable to a $2.2 million decrease in stock-based compensation, and a decrease of $0.4 million in headcount, salaries and employee-related expenses; offset by an increase of $0.6 million in legal and professional services and $0.2 million in facilities and overhead costs.
Current wording
General and administrative expenses were $14.1 million and $5.9 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $8.2 million. The increase was primarily attributable to a $4.0 million increase in stock-based compensation expense, a $3.2 million increase in facility and overhead costs, including the impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses implemented in the second quarter of 2026, a $0.8 million increase in legal and professional services, and a $0.2 million increase in headcount, salaries and employee-related expenses.
Previous wording
We expect general and administrative expenses to increase as we expand our business. However, we also continue to focus on our company-wide initiatives to reduce operating costs in other areas for 2026 as we reduce our general and administrative expenses through reducing our reliance on outside consultants, managing facility costs and negotiating with vendors for improved pricing and enterprise level efficiency improvements. We expect that related general and administrative expenses for advisory, consulting, legal and accounting fees may increase with Company projects related to the expansion in RPS with a new manufacturing facility.
Current wording
We expect general and administrative expenses to vary based on the level and timing of investments required to support our business and strategic initiatives. We continue to focus on company-wide initiatives to manage operating costs, including reducing our reliance on outside consultants, managing facility costs, negotiating improved vendor pricing and pursuing enterprise-level efficiency improvements. At the same time, advisory, consulting, legal and accounting expenses may increase in connection with strategic initiatives, including the planned expansion of our RPS manufacturing capabilities.
Previous wording
Interest expense was $0.2 million and $1.6 million for the three months ended June 30, 2026 and 2025, respectively. The decrease was due to the reduction of the outstanding balances in the Senior Secured Notes and Convertible Secured Notes.
Current wording
Interest expense was $0.2 million and $1.2 million for the three months ended September 30, 2026 and 2025, respectively. The decrease was due to the reduction of the outstanding balances in the Senior Secured Notes and Convertible Secured Notes.
Previous wording
The loss on fair value of warrants was less than $0.1 million and $0.0 million for the three months ended June 30, 2026 and 2025, respectively. The change was related to the non-cash fair value change of the warrant liabilities driven by the relative change in our stock price.
Current wording
The gain on fair value of warrants was less than $0.1 million for the three months ended September 30, 2026. The change was related to the non-cash fair value change of the warrant liabilities driven by the relative change in our stock price.
Previous wording
Other income (expense), net was income of $0.5 million and expense of less than $0.1 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $0.5 million. The increase was primarily driven by higher interest income for the first half of 2026.
Current wording
Other income (expense), net was $0.7 million and less than ($0.1) million for the three months ended September 30, 2026 and 2025, respectively, an increase of $0.7 million. The increase was primarily driven by higher interest income for the third quarter of 2026.
Previous wording
Recurring Payment revenue, structured as an operating lease, was $0.0 million for the three months ended June 30, 2026 and less than $0.1 million for the three months ended June 30, 2025.
Current wording
There was no Recurring Payment revenue structured as an operating lease for the nine months ended September 30, 2026, compared to less than $0.1 million for the nine months ended September 30, 2025.
Previous wording
Our Support Services revenue was $2.8 million and $3.1 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of $0.4 million. Support Services revenue is primarily due to services provided to customers based on the installed base requiring preventive maintenance and other support services.
Current wording
Our Support Services revenue was $4.2 million and $4.5 million for the nine months ended September 30, 2026 and 2025, respectively, a decrease of $0.3 million. Support Services revenue primarily consists of preventive maintenance and other support services provided to customers based on our installed base of systems.
Previous wording
Other revenue was $0.7 million and less than $0.1 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $0.7 million.The increase was primarily attributable to higher software revenue during the six months ended June 30, 2026.
Current wording
Other revenue was $0.9 million and $0.4 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $0.6 million. The increase was primarily attributable to higher software revenue during the nine months ended September 30, 2026.
Previous wording
As part of our Strategic Realignment started in 2025, we have implemented new go-to-market and service strategies to rebuild our bookings and backlog pipeline. As we rebuild our bookings and backlog, we expect the demand for the Sapphire, Sapphire 1MZ, Sapphire XC and Sapphire XC 1MZ to increase our revenue in the future. We expect Recurring Payment revenue to decrease as we continue to shift our focus to 3D Printer system sales and RPS for printed parts. We expect our Support Service revenue to increase as the number of systems we have in the field increases. As of June 30, 2026, our backlog for firm orders was $31 million for 3D Printer and printed parts. Our focus for revenue has shifted to ensuring customer success, improving system reliability to strengthen our existing customer network, developing new customer networks to increase demand and expanding our RPS for printed parts.
Current wording
As part of our Strategic Realignment initiated in 2025, we have implemented new go-to-market and service strategies focused on rebuilding our bookings and backlog pipeline. As we continue to execute these strategies, we expect future revenue growth to be driven by demand for our Sapphire and Sapphire XC systems, as well as continued expansion of our RPS printed parts business. We do not expect Recurring Payment revenue to be significant as we continue to shift our focus toward 3D Printer system sales and RPS printed parts revenue. We expect Support Services revenue to increase over time as our installed base of systems grows. As of September 30, 2026, our backlog of firm orders for 3D Printers and printed parts was $40 million. Our commercial and operational focus continues to include driving customer success, improving system reliability to strengthen our existing customer relationships, developing new customer relationships to increase demand, and expanding our RPS printed parts business.
Previous wording
Cost of Support Services was $1.7 million and $2.2 million for the six months ended June 30, 2026 and 2025, respectively. Cost of Support Services decreased by $0.6 million, primarily due to lower direct customer support costs and changes in employee responsibilities supporting existing customers.
Current wording
Cost of Support Services was $2.8 million and $3.6 million for the nine months ended September 30, 2026 and 2025, respectively, a decrease of $0.8 million. The decrease primarily reflected lower direct customer support costs and changes in employee responsibilities supporting our existing customer base.
Previous wording
Cost of revenue as a percentage of revenue was 80.2% and 103.9% for the six months ended June 30, 2026 and 2025, respectively. The decrease was primarily attributable to a more favorable product mix and the impact of a prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses to align with current operational activities.
Current wording
Cost of revenue as a percentage of revenue was 73.8% and 101.3% for the nine months ended September 30, 2026 and 2025, respectively. The decrease was primarily attributable to a more favorable product mix, the net benefit resulting from adjustments to the excess and obsolete inventory reserve during the nine months ended September 30, 2026, the continued impact of the prospective refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses, and improved manufacturing efficiencies associated with increased production volumes and cost-reduction initiatives.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Gain (loss) on Fair Value of Warrants
Current report — wording carried from elsewhere
Gain (Loss) on Fair Value of Warrants
Current report — wording carried from elsewhere
On April 27, 2026, the Company entered into an underwriting agreement (the“Underwriting Agreement”) with Cantor Fitzgerald & Co., as underwriter (the“Underwriter”), relating to the offer and sale in a firm commitment underwritten registered direct offering
Current report — wording carried from elsewhere
During the nine months ended September 30, 2026 there were no significant updates to the Company’s critical accounting policies and estimates, except as described in Note 2, Summary of Significant Accounting Policies, included in the notes to the unaudited condensed consolidated interim financial statements in this Quarterly Report.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Loss on Fair Value of Warrants
Previous report — wording carried elsewhere
Loss on Fair Value of Warrants