3D Systems (DDD) Q2 2026: Revenue Decline, Adjusted EBITDA Improvement — Cautiously Optimistic

3D Systems Corporation (NYSE: DDD) reported its financial results for the second quarter ended June 30, 2026, revealing a slight revenue decline but notable improvements in adjusted EBITDA. The company’s revenue for Q2 2026 was $94.6 million, down $0.2 million or -0.3% year-over-year. However, when excluding divestitures, revenue increased by 1.4%.

This quarter presents a mixed bag for shareholders. While the revenue decline is disappointing, the improvement in adjusted EBITDA and growth in key segments suggest a potential turnaround. The net loss for the quarter was $(12.9) million, a significant decrease from a net income of $104.4 million in the prior year, primarily due to a one-time gain from the sale of Geomagic in 2025.

Key Financial Metrics:

• Revenue: $94.6 million (down $0.2 million or -0.3% YoY)
• Adjusted EBITDA: $(0.8) million (improved by $4.6 million YoY)
• Net Loss: $(12.9) million (compared to net income of $104.4 million in Q2 2025)
• Diluted Loss per Share: $(0.09) (compared to earnings of $0.57 in Q2 2025)
• Healthcare Revenue: $48.1 million (up 6.8% YoY)
• Industrial Revenue: $46.5 million (down 6.7% YoY)

The healthcare segment remains a stronghold for 3D Systems, with revenue growth driven by over 20% growth in Med Tech and 3% growth in Dental. Conversely, the industrial segment faced challenges, with a 6.7% decline in revenue, although it did show a sequential increase of 2.4%.

Shareholder Perspective

For shareholders, this quarter is a cautious optimism. The decline in revenue is concerning, but the company has made strides in improving its adjusted EBITDA, which reflects the benefits of cost reduction initiatives. The focus on key markets such as Med Tech, Dental, Aerospace & Defense, and Data Center Infrastructure, all of which delivered over 20% growth in the first half of 2026, indicates a strategic direction that could yield positive results moving forward.

3D Systems also issued 18.9 million shares of common stock for $53.2 million in cash, enhancing its liquidity position, which stood at $129.0 million at the end of the quarter. This capital can be crucial for funding ongoing investments in research and development, which the company views as essential for future growth.

Guidance and Future Outlook

Looking ahead, 3D Systems provided guidance for Q3 2026, projecting revenue between $96 million and $99 million and adjusted EBITDA losses between $(3) million and $(1) million. Investors should closely monitor the company's ability to meet these targets, particularly in light of the ongoing challenges in the industrial segment.

Conclusion

In summary, while 3D Systems faced a revenue decline in Q2 2026, the improvement in adjusted EBITDA and growth in key segments provide a foundation for cautious optimism. Investors should watch for the company's performance in the upcoming quarter, especially in its ability to capitalize on growth in healthcare and manage the challenges in industrial revenue. The strategic focus on high-growth markets and continued investment in R&D will be critical as the company navigates the evolving landscape of additive manufacturing.

Here are the extracted tables from the press release:

Condensed Consolidated Statements of Operations

(Note: All amounts are in thousands)

(in thousands, except per share data)	Three Months Ended	Six Months Ended
June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenue	$94,617	$94,801	$190,136	$189,402
Cost of revenue	60,252	58,502	118,713	118,129
Gross profit	34,365	36,299	71,423	71,273
Operating expenses	45,135	51,499	86,076	121,869
Operating loss	(10,770)	(15,200)	(14,653)	(50,596)
Other income (expense), net	(893)	7,069	2,811	6,641
Loss before income tax	(11,663)	(8,131)	(11,842)	(43,955)
Income tax (provision) benefit	(2,774)	12,120	(1,482)	15,068
Net loss attributable to 3D Systems Corporation	(12,437)	104,427	(17,324)	67,526
Loss per share, basic	(0.09)	0.57	(0.12)	0.37
Weighted-average shares used to compute net income per share, basic	146,605	132,967	146,530	183,026

Condensed Consolidated Balance Sheets

(Note: All amounts are in thousands)

(in thousands, except par value)	June 30, 2026	December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	127,951	95,635
Accounts receivable, net of reserves	80,174	83,806
Inventories	121,847	127,496
Prepaid expenses and other current assets	35,639	39,770
Total current assets	365,611	346,707
Property and equipment, net	49,697	49,249
Intangible assets, net	15,646	16,614
Goodwill	15,404	15,575
Operating lease right-of-use assets	41,170	45,364
Long-term deferred income tax assets	2,443	2,787
Other assets	38,113	37,658
Total assets	535,244	521,728
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current liabilities:
Current portion of long-term debt, net of deferred financing costs	3,944	3,944
Current operating lease liabilities	9,266	11,583
Accounts payable	32,425	41,017
Accrued and other liabilities	39,781	46,656
Customer deposits and deferred revenue	22,182	17,423
Total current liabilities	107,598	120,623
Long-term debt, net of deferred financing costs	87,240	86,394
Long-term operating lease liabilities	41,238	45,420
Long-term deferred income tax liabilities	2,818	2,740
Other liabilities	22,787	24,000
Total liabilities	261,681	279,177
Commitments and contingencies
Redeemable non-controlling interest	—	2,193
Stockholders’ equity:
Common stock, $0.001 par value, authorized 220,000 shares; shares issued 166,149 and 145,581 as of June 30, 2026 and December 31, 2025
Additional paid-in capital	1,677,775	1,620,399
Accumulated deficit	(1,349,645)	(1,332,360)
Accumulated other comprehensive loss	(54,733)	(47,827)
Total stockholders’ equity	273,563	240,358
Total liabilities, redeemable non-controlling interest and stockholders’ equity	535,244	521,728

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