Key Highlights
- Q2 2026 revenue reached $20.7 million, climbing 52.3% from the prior year and crushing analyst projections of $13.52 million by more than 50%
- Gross margin flipped positive to 21.5% versus negative 11.7% in the same quarter last year
- Order backlog surged nearly 100% year-over-year to $31 million at the end of June 2026
- Company boosted full-year 2026 revenue outlook to $65 million-$75 million from previous $60 million-$70 million range
- CEO Arun Jaldi states Velo3D has moved past stabilization into an active “growth phase”
Shares of Velo3D (VELO) climbed more than 17% during Wednesday’s pre-market session following the metal additive manufacturing specialist’s impressive second-quarter performance that significantly exceeded Wall Street expectations.
The rally extended gains from Tuesday’s after-hours session, where the stock surged 19.28%. Regular trading had closed at $13.69 before the quarterly report sparked investor enthusiasm.
Second-quarter revenue totaled $20.7 million, representing a 52.3% increase from the year-ago period and a 50% sequential gain. The figure significantly exceeded the Street consensus of $13.52 million, beating forecasts by over 52%.
The company posted a loss of $0.30 per share, slightly wider than the anticipated loss of $0.27, representing an 11% miss. However, market participants appeared unfazed by the bottom-line shortfall.
The margin performance stole the spotlight. Gross margin surged to 21.5%, marking a stunning reversal from the negative 11.7% recorded in the second quarter of 2025. The improvement stemmed from elevated average selling prices and robust contributions from Rapid Production Services.
Order Book and Production Expansion
The company’s backlog approached double its year-ago level, reaching $31 million as of June 30. Balance sheet strength improved notably, with cash rising to $91.1 million while outstanding debt dropped more than 70% to $8.2 million.
During the earnings conference call, CEO Arun Jaldi emphasized that customer demand has exceeded current production capabilities. “We absolutely need 100 machines as of today to actually run all the programs on the demand we have,” he stated.
In response to capacity constraints, Velo3D announced plans for a new Livermore Production Campus. The facility aims to triple manufacturing output, targeting 100 production machines operational by mid-2028.
Jaldi offered candid commentary on the company’s trajectory. “The last one and a half year for Velo3D is just purely the stability of the company,” he explained. “Now we are beyond that point. Now it’s a growth phase.”
Reflecting on the challenging turnaround period, he added: “It’s been an 18-month really hard journey, and turning around a company is not easy. We have faced a lot of ups and downs, and I think we’re in a position to thrive now.”
Upgraded Outlook
Management increased its full-year 2026 revenue projection to $65 million-$75 million from the previous $60 million-$70 million forecast.
The firm reiterated its goal of achieving positive adjusted EBITDA during the latter half of 2026.
Customer demand originates primarily from defense, aerospace, and energy sectors. The company’s advanced metal 3D-printing technology serves major clients including SpaceX.
Broader market indices showed modest gains Wednesday, with the Nasdaq advancing 0.7% and the S&P 500 up 0.2%—movements far too small to account for VELO’s pre-market surge. The stock’s performance appears driven entirely by company-specific developments.
Over the past 52 weeks, Velo3D shares have traded between $2.81 and $31.75. The company’s market capitalization stands at roughly $408 million.
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