3D Systems’ Financial Struggles Lead to Hold Rating Amid Revenue Declines and Withdrawn Guidance

Needham analyst James Ricchiuti has maintained their neutral stance on DDD stock, giving a Hold rating yesterday.

James Ricchiuti has given his Hold rating due to a combination of factors, primarily stemming from 3D Systems’ recent financial performance. The company reported a weaker-than-expected first quarter, which led to the withdrawal of its 2025 revenue guidance. This decision was influenced by concerns over continued cautious spending by customers.
Additionally, the first quarter saw an 8% year-over-year decline in revenues, which was significantly below market expectations. The company’s adjusted EBITDA loss was also larger than anticipated. Notably, the Healthcare segment experienced a substantial revenue drop, particularly in the dental orthodontics sector, alongside a decline in the Industrial market. These factors contributed to the decision to revise down revenue and EBITDA estimates for the coming years.