Materialise (MTLS) AI Stock Analysis

• Market Cap: $318.96M
• Dividend Yield: N/A
• Average Volume (3M): 118.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 0.73%
• EPS Growth: -54.49%
• Country: US
• Employees: 488
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 59,067,184
• 10 Day Avg. Volume: 102,168
• 30 Day Avg. Volume: 118,089
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: $10.00
• Price Target Upside: 84.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $5.50 ▲(1.29% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

MTLS scores as moderately attractive primarily due to a healthier balance sheet and improving cash generation, supported by constructive 2026 guidance and strong Medical performance plus increasing recurring software revenue. The score is held back by weakening recent top-line/margin trends and a bearish technical setup, while valuation signals are unavailable (no P/E or dividend yield provided).

Positive Factors

High‑growth, high‑margin Medical segment

Materialise Medical’s double‑digit growth and 35% adjusted EBITDA margin reflect a durable shift toward higher‑value, clinical offerings. Patient milestones and clinical adoption create sticky demand, driving sustainable margin expansion and less cyclical revenue versus prototyping services.

Shift to recurring cloud software revenue

The move to cloud subscriptions and an 82% recurring mix materially improves revenue predictability and customer lock‑in. A higher recurring base supports steady deferred revenue, smoother cash conversion and long‑term upsell potential as customers scale additive manufacturing operations.

Strong liquidity and positive cash generation

A net cash position and multi‑year positive free cash flow provide durable financial flexibility to fund R&D, support the Software transition and Medical investments, and absorb Manufacturing cyclicality without immediate refinancing risk; buyback optionality underlines capacity to allocate capital.

Negative Factors

Manufacturing segment weakness

Persistent Manufacturing losses reduce consolidated profitability and require structural repositioning toward series production and aerospace. Negative EBITDA consumes cash and management bandwidth, and the shift away from prototyping will take time to restore scale and margins even with strategic contract wins.

2025 revenue decline and margin compression

A falling top line and compressed net margin signal weaker demand and pressure on operating leverage. Lower profitability reduces returns on invested capital and limits internal funding for growth initiatives, increasing dependency on cash reserves or tougher choices on investment pacing.

Volatile cash conversion and FCF history

Inconsistent cash conversion across years makes long‑term planning harder and raises execution risk for capital‑intensive shifts (e.g., Manufacturing repositioning). While 2025 showed positive FCF, volatility undermines assurance that cash will reliably fund both investment and shareholder actions.

Materialise Business Overview & Revenue Model

Company Description

Materialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. Its Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. The company's Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. Its Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.

How the Company Makes Money

Materialise generates revenue through multiple streams, primarily from software licensing and services. The company offers its software solutions, such as Magics and 3D Sprint, on a subscription basis, which provides a steady income as customers pay for access to the tools necessary for 3D printing. Additionally, Materialise earns revenue from its medical segment, where it provides 3D printing services for personalized medical devices, surgical planning, and anatomical models, often in collaboration with healthcare professionals and institutions. The company also engages in partnerships with other industry leaders to expand its service offerings and reach, further contributing to its revenue. Furthermore, Materialise capitalizes on the growing demand for additive manufacturing by providing consulting services and custom 3D printed products, adding to its diverse revenue mix.

Materialise Financial Statement Overview

Summary

Financials are stable but not strongly accelerating: 2025 revenue declined (-6.4%) and margins compressed (net margin ~2.9% vs ~5.0% in 2024). Positives include solid gross margin (~55–57%), moderate leverage (debt-to-equity ~0.26), and positive 2025 operating cash flow and free cash flow, though cash conversion and FCF have been volatile over the cycle.

Income Statement

Profitability is positive but compressed: 2025 revenue declined (-6.4%) and net margin fell to ~2.9% from ~5.0% in 2024, with EBIT margin also lower (~1.9% vs ~3.5%). Gross margin remains solid and stable (~55–57%) and the company stayed profitable in 2023–2025, but earnings have been volatile over the cycle (losses in 2020 and 2022) and the recent growth trajectory is weakening.

Balance Sheet

The balance sheet looks generally healthy with moderate leverage: 2025 debt-to-equity is ~0.26, improved versus 2020 (~0.86) and below 2022–2023 levels. Equity has grown over time (2020 to 2025), supporting stability. The main drawback is modest returns on equity (~2.9% in 2025, down from ~5.4% in 2024), indicating the capital base is not currently generating strong profitability.

Cash Flow

Cash generation is positive with operating cash flow of ~$22.7M and free cash flow of ~$9.1M in 2025, and free cash flow rebounded strongly versus 2024 (growth ~37%). However, conversion is mixed: free cash flow is ~40% of net income in 2025 (better than 2024), and free cash flow was negative in 2022, showing some volatility in the company’s ability to consistently translate operations into surplus cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	257.07M	266.76M	256.13M	232.02M	205.45M
Gross Profit	146.91M	150.82M	145.13M	128.77M	118.17M
EBITDA	25.79M	31.24M	30.09M	23.44M	36.72M
Net Income	7.41M	13.44M	6.72M	-2.12M	13.15M
Balance Sheet
Total Assets	420.47M	396.34M	396.63M	411.26M	413.41M
Cash, Cash Equivalents and Short-Term Investments	133.86M	102.30M	127.57M	140.87M	196.03M
Total Debt	66.15M	41.28M	64.40M	80.98M	99.11M
Total Liabilities	165.09M	147.84M	160.04M	182.33M	180.83M
Stockholders Equity	255.45M	248.58M	236.65M	228.96M	232.58M
Cash Flow
Free Cash Flow	9.14M	5.08M	8.40M	-2.48M	14.12M
Operating Cash Flow	22.68M	31.46M	20.16M	22.29M	25.84M
Investing Cash Flow	-9.32M	-28.59M	-11.04M	-53.86M	-13.13M
Financing Cash Flow	18.00M	-27.64M	-22.37M	-22.51M	71.16M

Materialise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTLS, the sentiment is Negative. The current price of 5.43 is below the 20-day moving average (MA) of 5.53, below the 50-day MA of 5.62, and below the 200-day MA of 5.59, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 53.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTLS.

Materialise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAK	67 Neutral	$167.47M	24.82	14.60%	0.57%	11.05%	18.55%
MKTW	66 Neutral	$230.98M	1.38	―	14.78%	-19.17%	308.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTLS	61 Neutral	$318.96M	―	1.73%	―	0.73%	-54.49%
API	54 Neutral	$442.31M	97.30	0.84%	―	1.62%	―
CMRC	49 Neutral	$242.98M	-12.27	-53.19%	―	2.97%	53.53%
NRDY	48 Neutral	$178.94M	―	-120.79%	―	-9.86%	0.87%

Materialise Corporate Events

Materialise Posts Strong Q4 2025 as Medical Growth Offsets Manufacturing Weakness

Materialise NV, a Belgium-based leader in 3D-printed medical devices and additive manufacturing software, serves healthcare, industrial and aerospace clients through its Medical, Software and Manufacturing segments. The company is increasingly emphasizing its high-growth, high-margin Medical business while repositioning Manufacturing away from prototyping toward series production.

On February 19, 2026, Materialise reported its fourth-quarter and full-year 2025 results, showing Q4 revenue up 6.8% to 70.2 million euros and a sharp improvement in profitability driven by 16.3% growth in its Medical segment. For 2025 overall, revenue was broadly flat at 267.6 million euros as strong 15.4% Medical growth offset weakness in Manufacturing, while margins improved, cash reserves rose to 133.9 million euros and the firm strengthened its net cash position, underlining balance-sheet resilience.

Management highlighted the successful Euronext listing and launch of a strategic share buyback in the final quarter of 2025, steps intended to reinforce long-term shareholder value and broaden the company’s capital markets presence. Although net profit for the year fell to 7.7 million euros from 13.4 million euros, the combination of tighter cost control, sustained R&D investment and growing traction in targeted aerospace and defense contracts signals a strategic shift toward higher-value applications that could support future growth.

Segment results underscored this transition, with Medical delivering record quarterly revenues and a 32.0% full-year adjusted EBITDA margin, while Software posted softer sales but improved profitability and Manufacturing saw double-digit revenue declines and negative margins amid weak prototyping demand. Even so, management reported ongoing commercial wins in series manufacturing and maintained operating cash flow generation, suggesting that current pressure in Manufacturing may be cyclical and that the group retains financial flexibility to invest in innovation and market opportunities.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Posts Strong Q4 on Medical Growth Despite Full-Year Profit Decline in 2025

Materialise reported higher fourth-quarter 2025 revenue of 70.2 million euros, up 6.8% year on year, driven by a 16.3% surge in its Medical segment that offset declines in Software and Manufacturing. Fourth-quarter gross margin improved, operating income swung to a profit, adjusted EBITDA more than doubled, and net profit rose to 6.2 million euros, while the company absorbed non-recurring costs tied to a recent Euronext listing.

For full year 2025, revenue was broadly flat at 267.6 million euros as strong 15.4% growth in Medical was offset by weaker Software and a double-digit decline in Manufacturing, but margins edged higher and adjusted EBITDA and adjusted EBIT improved. Net profit for 2025 fell to 7.7 million euros from 13.4 million euros due mainly to adverse exchange rate effects, even as free cash flow remained positive and the net cash position and shareholders’ equity increased, underscoring a solid balance sheet but continued pressure in the manufacturing business.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Updates Investors on Progress of EUR 30 Million Share Buyback Program

On February 17, 2026, Materialise reported progress on its share buyback program, originally announced on October 30, 2025, under which it can repurchase up to EUR 30 million of its shares via an independent financial intermediary. The company said it bought 52,222 shares between February 9 and 13, 2026 on Nasdaq at an average price of EUR 4.67 per share, for a total of EUR 243,734, with no cross or block trades.

Since the buyback effectively started on January 26, 2026, Materialise has repurchased 163,345 shares for EUR 754,080, equivalent to about 0.3% of its outstanding shares, all of which it now holds as treasury stock. The continuing buyback underscores management’s capital allocation strategy and may signal confidence in the company’s valuation to investors, while modestly reducing free float and potentially supporting earnings per share over time.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Details Progress of Ongoing €30 Million Share Buyback Program

On February 9, 2026, Materialise reported the latest progress in its share buyback program, which was launched on October 30, 2025 with capacity of up to €30 million and is executed via an independent financial intermediary. Between February 2 and February 6, 2026, the company repurchased 66,945 shares on Nasdaq at an average price of €4.54, for a total of €303,785, as part of this capital management initiative.

Since the start of the buyback on January 26, 2026, Materialise has acquired 111,123 shares for €510,346, equivalent to about 0.2% of its shares outstanding, all of which it currently holds as treasury stock. The ongoing purchases modestly reduce free float and may signal management’s confidence in the company’s valuation, with investors able to track weekly updates on the program via Materialise’s investor relations website.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Reports Initial Progress on €30 Million Share Buyback Program

On February 2, 2026, Materialise NV reported initial progress on the share buyback program it launched on October 30, 2025, authorizing up to €30 million in repurchases under a discretionary mandate to an independent financial intermediary. Between January 26 and January 30, 2026, the company repurchased 44,178 shares via the Nasdaq central order book at an average price of €4.68 per share, for a total outlay of €206,562, representing about 0.1% of its outstanding shares; Materialise now holds these shares as treasury stock and will continue to update investors weekly on the program’s evolution, signaling an ongoing capital allocation effort that may support its equity valuation and shareholder returns.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Announces Significant Transparency Notification

On December 2, 2025, Materialise NV announced the receipt of a transparency notification from Wilfried Vancraen, Hilde Ingelaere, and the IDEM partnership, regarding their holding of voting securities upon first admission to trading. This notification, dated November 28, 2025, indicated that the threshold of 70% voting rights had been crossed as of November 20, 2025. This development highlights a significant concentration of voting power within the company, potentially impacting its governance and strategic direction.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.