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Markforged Holding (MKFG)
NYSE:MKFG
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Markforged Holding
(NYSE:MKFG)
42Neutral
Markforged Holding (MKFG) vs. S&P 500 (SPY)
Market Cap
$95.23M
Dividend YieldN/A
Average Volume (3M)226.20K
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth-9.27%
EPS Growth19.30%
CountryUS
Employees270
SectorTechnology
Sector Strength40
IndustryComputer Hardware
Share Statistics
EPS (TTM)-4.24
Shares Outstanding20,746,967
10 Day Avg. Volume524,199
30 Day Avg. Volume226,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside8.93% Upside
Rating ConsensusHold
Number of Analyst Covering2
Markforged Holding Business Overview & Revenue Model
Company DescriptionMarkforged Holding Corporation (MKFG) is a leading innovator in the additive manufacturing industry, specializing in the development and production of advanced 3D printing technologies. The company operates primarily in the industrial sector, offering a range of high-performance 3D printers, materials, and software solutions that enable businesses to create durable end-use parts quickly and efficiently. Markforged's products are utilized across various industries, including aerospace, automotive, healthcare, and manufacturing, to streamline production processes and reduce costs.
How the Company Makes MoneyMarkforged generates revenue through the sale of its 3D printing hardware, which includes a range of printers tailored to different industrial needs. In addition to hardware sales, the company earns income through the sale of proprietary materials specifically designed for use with its printers, ensuring high-quality, reliable outputs. Another key revenue stream is the company's software solutions, which provide customers with advanced tools for designing, managing, and optimizing their 3D printing processes. Markforged also engages in service contracts and maintenance agreements, providing ongoing support and ensuring the longevity and efficiency of its products. Strategic partnerships and collaborations with other industry leaders further bolster its market presence and contribute to its revenue growth.
Markforged Holding Financial Statement Overview
Summary
Markforged Holding is struggling with profitability and cash generation amidst declining revenues. The company faces significant challenges in improving its financial performance, with high leverage and negative cash flow. While cash reserves offer some buffer, the overall financial health remains weak, necessitating strategic measures to stabilize and grow revenue while containing costs.Income Statement
Markforged Holding has experienced declining revenue over recent years, with a revenue drop from $100.96M in 2022 to $85.09M in 2024. The company is operating at a loss, with negative EBIT and net income margins, indicating challenges in covering operating expenses and achieving profitability. The gross profit margin has decreased, reflecting increased cost pressure or inefficient cost management.40
Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, rising from 0.19 in 2022 to 0.38 in 2024, signaling increased financial leverage. The equity ratio has declined, indicating reduced financial stability. The negative net income impacts Return on Equity (ROE), which remains negative, reflecting a lack of profitability. Despite these challenges, the company has maintained a decent level of cash reserves relative to liabilities.45
Neutral
Cash Flow
Operating cash flow remains negative, worsening from -$48.9M in 2023 to -$61.28M in 2024, highlighting difficulties in generating cash from core operations. Free cash flow is also negative, indicating challenges in supporting growth or returning value to shareholders. The company has not been able to translate net income into positive cash flow, further stressing financial health.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 85.09M | 93.78M | 100.96M | 91.22M | 71.85M | Gross Profit |
| 41.07M | 44.41M | 50.71M | 52.85M | 41.93M | EBIT |
| -86.68M | -111.38M | -87.08M | -61.04M | -17.74M | EBITDA |
| -86.68M | -98.46M | -23.35M | 5.65M | -15.94M | Net Income Common Stockholders |
| -85.57M | -103.57M | -25.39M | 3.85M | -17.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 53.63M | 116.85M | 167.88M | 288.60M | 58.72M | Total Assets |
| 168.92M | 247.95M | 345.89M | 337.31M | 89.60M | Total Debt |
| 32.64M | 43.14M | 48.63M | 0.00 | 5.02M | Net Debt |
| -20.98M | -73.72M | -75.61M | -288.60M | -53.69M | Total Liabilities |
| 82.41M | 86.34M | 93.39M | 93.14M | 165.07M | Stockholders Equity |
| 86.50M | 161.61M | 252.50M | 244.17M | -75.47M |
| Cash Flow | Free Cash Flow | |||
| -62.71M | -52.49M | -84.94M | -49.49M | -7.10M | Operating Cash Flow |
| -61.28M | -48.90M | -73.52M | -45.70M | -6.46M | Investing Cash Flow |
| -1.43M | 42.10M | -90.90M | -3.79M | -522.00K | Financing Cash Flow |
| -1.16M | -520.00K | 1.55M | 279.38M | 5.93M |
Markforged Holding Technical Analysis
Positive
4.59
Price Trends
3.08
Positive
3.42
Positive
3.56
Positive
Market Momentum
0.50
Negative
80.18
Negative
93.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKFG, the sentiment is Positive. The current price of 4.59 is above the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.08, and above the 200-day MA of 3.56, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 80.18 is Negative, neither overbought nor oversold. The STOCH value of 93.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKFG.
Markforged Holding Risk Analysis
Markforged Holding disclosed 78 risk factors in its most recent earnings report. Markforged Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Markforged Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $140.38M | 17.74 | 32.69% | ― | 3.37% | ― | |
67 Neutral | $73.25M | 25.02 | 2.95% | ― | 5.99% | -71.06% | |
57 Neutral | $18.54B | 9.84 | -14.38% | 2.71% | 5.07% | -23.65% | |
55 Neutral | $77.97M | ― | -6.35% | ― | 12.96% | 48.58% | |
45 Neutral | $77.65M | ― | -181.93% | ― | 31.76% | 2.90% | |
42 Neutral | $95.23M | ― | -68.97% | ― | -9.27% | 19.30% |
* Technology Sector Average
Performance Comparison
MKFG
Markforged Holding
4.59
-2.74
-37.38%
INTT
inTEST
5.92
-7.31
-55.25%
LTRX
Lantronix
2.01
-1.27
-38.72%
BKTI
BK Technologies
39.29
25.12
177.28%
REKR
Rekor Systems
0.70
-1.63
-69.96%
Markforged Holding Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: 0.44% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong execution, product innovation, and cost reduction initiatives, which were positive aspects. However, these were offset by a significant revenue decline, ongoing legal issues, and financial challenges, resulting in a mixed outlook.Highlights
Strong Execution and Product Innovation
The company demonstrated strong execution in Q2 and received positive market feedback on new products like FX10, FX20, PX100, and new materials Onyx FR and Vega.
Cost Reduction Initiative
Implementation of a $25 million cost reduction initiative expected to reduce annual operating expenses run rate to approximately $70 million in 2025.
Gross Margin Improvement
Gross margins for Q2 2024 were 51.9%, up 3.6% from the second quarter of 2023, driven by operational efficiencies and product mix.
Successful Product Launch
Successfully shipped the first PX100 in Q2, marking a significant milestone with potential for growth in highly regulated markets such as automotive, medical, aerospace, and luxury goods.
Reduced Operating Expenses
Operating expenses were $23.3 million in Q2 2024, down from $26.6 million in Q2 2023, showing improvement due to ongoing cost reduction efforts.
Lowlights
Revenue Decline
Revenue for Q2 2024 was $21.7 million, down from $25.4 million in Q2 2023, largely driven by lower system revenue due to tough market conditions with high interest rates.
Ongoing Legal Issues
Involvement in Continuous Composites lawsuit with significant restricted cash allocations and potential future financial impact from royalty claims.
Net Cash Reduction
Cash and cash equivalents, including restricted cash, were $93.9 million at the end of Q2, down from $113.3 million at the end of Q1.
Operational Loss
Operating loss for Q2 2024 was $12 million, although improved from $14.3 million in Q2 2023.
Company Guidance
During the Q2 2024 earnings call for Markforged Holding Corporation, significant guidance was provided for the remainder of the year. The company announced a $25 million cost reduction initiative aimed at reducing annual operating expenses to approximately $70 million by 2025. Revenue for Q2 2024 was reported at $21.7 million, a decrease from $25.4 million in Q2 2023, primarily due to lower system revenue influenced by tough market conditions with high interest rates. However, gross margins improved to 51.9%, up from 48.3% in the previous year, driven by operational efficiencies and product mix. The company also highlighted an anticipated revenue range of $90 million to $95 million for fiscal year 2024, with expectations of low single-digit quarter-over-quarter growth in Q3 and a return to double-digit year-over-year growth in the second half, propelled by new product sales, particularly the FX10. Furthermore, Markforged expects non-GAAP gross margins to be in the upper range of their previous 48% to 50% guidance and projects a non-GAAP operating loss between $42.5 million and $47 million for the year.Markforged Holding Corporate Events
Executive/Board Changes
Markforged Holding General Counsel Announces Resignation
Neutral
Feb 6, 2025
On February 4, 2025, Stephen Karp informed Markforged Holding Corporation’s Board of Directors of his resignation as General Counsel, effective March 3, 2025, to pursue an opportunity outside the company. His resignation was not due to any disagreements with the company’s operations, management, or policies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.