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Stratasys (SSYS)
NASDAQ:SSYS
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Stratasys
(NASDAQ:SSYS)
Rating:51Neutral
Price Target:
$10.50
▲(1.25% Upside)
Positive Factors
Earnings performance
The company made progress on its cost-savings initiatives in the quarter.
Financial stability
SSYS boasts a rock-solid balance sheet, giving it greater stability in the event of a more challenging macro while affording it the flexibility to invest in both organic and inorganic opportunities.
Investment potential
SSYS has an opportunity to pick up distressed assets with good underlying technologies and bring them into what is arguably the best-run company in the industry.
Negative Factors
Market challenges
Slower adoption of additive manufacturing and reduced customer spending create structural challenges to revenue growth.
Revenue guidance
Full-year revenue is expected to decline and is below the consensus estimate.
Sales and growth outlook
Management cited continuation of prolonged sales cycles at some key customers.
Stratasys (SSYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$906.24M
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-6.00%
EPS Growth17.87%
CountryUS
Employees1,779
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.03
Shares Outstanding85,093,280
10 Day Avg. Volume1,698,802
30 Day Avg. Volume1,031,117
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda-24.66
Forecast
1Y Price Target
$12.50Price Target Upside20.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Stratasys Business Overview & Revenue Model
Company DescriptionStratasys Ltd. is a leading provider of 3D printing and additive manufacturing solutions, serving various sectors including aerospace, automotive, healthcare, and education. Founded in 1989, the company is renowned for its advanced 3D printers, materials, and software, which enable businesses to optimize their product development processes and enhance manufacturing efficiency. Stratasys offers a diverse range of products, including Fused Deposition Modeling (FDM) and PolyJet technologies, catering to both prototyping and production applications.
How the Company Makes MoneyStratasys generates revenue through several key streams, primarily from the sale of 3D printers, materials, and software solutions. The company sells its 3D printers to businesses, educational institutions, and government entities, which can range from small desktop models to large industrial machines. Additionally, Stratasys earns significant income from the sale of consumables, such as polymers and resins, necessary for the operation of their printing systems. Software solutions, including design and management tools, also contribute to revenue. Service contracts and maintenance agreements provide ongoing revenue by supporting customers in the long-term use of their products. Partnerships with other technology firms and industry leaders further enhance its market reach and collaborative innovation, driving additional revenue opportunities.
Stratasys Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic partnerships and slight revenue growth, but also faced challenges with lower gross margins and delayed large deals. Despite these challenges, Stratasys remains optimistic about long-term growth, driven by innovation and strategic collaborations, particularly in the automotive and medical sectors.Q2-2025 Updates
Positive Updates
Slight Revenue Increase
Consolidated revenue of $138.1 million was slightly higher compared to the same quarter in 2024, indicating resilience of the operating model.
Strategic Collaborations with Automotive Giants
Stratasys has strong collaborations with General Motors and Toyota, leading to significant cost reduction and faster production lead times.
Positive Adjusted Operating Income
The company reported a positive adjusted operating income of $1.1 million compared to an operating loss of $3.2 million in the same period last year.
Innovation in Medical Sector
3D printing capabilities were critical in preparing for complex life-saving procedures, showcasing advances in medical applications.
Successful Material Launch
Commercial launch of P3 Silicone 25A, a high-performance material developed in collaboration with Shin-Etsu, is expected to drive future growth.
Negative Updates
Lower Gross Margins
GAAP gross margin was 43.1% for the quarter, down from 43.8% in the same period last year, primarily due to product revenue mix and higher absorption costs.
Reduced Revenue Guidance for 2025
Full year 2025 revenue is now expected to range between $550 million to $560 million, lower than previous guidance due to prolonged customer spending delays.
Impact of Tariffs
Changes in tariffs affected gross margins, with mitigation plans ongoing but not fully realized in the short term.
Delayed Large Deals
Several substantial opportunities have been delayed, pushing anticipated revenue into 2026.
Company Guidance
In the second quarter of 2025, Stratasys reported a slight increase in revenue to $138.1 million compared to the same quarter in 2024, despite ongoing macroeconomic uncertainties affecting customer spending. Product revenue reached $94.8 million, driven by system revenue of $30.6 million and consumables revenue of $64.2 million. Service revenue slightly declined to $43.3 million. The company reported a GAAP gross margin of 43.1% and a non-GAAP gross margin of 47.7%, impacted by changes in product mix and reduced inventory levels. Stratasys achieved a non-GAAP operating income of $1.1 million and adjusted EBITDA of $6.1 million. The company ended the quarter with $254.6 million in cash. Despite extended sales cycles, Stratasys adjusted its full-year 2025 guidance, anticipating revenue between $550 million to $560 million and adjusted EBITDA of $30 million to $32 million, with anticipated recovery in capital spending and strategic collaborations, such as those with General Motors and Toyota, expected to strengthen its market position.Stratasys Financial Statement Overview
Summary
Stratasys is facing financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet remains relatively strong with a high equity ratio, but increasing debt levels require attention. Cash flow management is a concern, with negative free cash flow and limited cash generation from operations.Income Statement
Stratasys has shown a consistent decline in revenue and profitability over the past few years. The TTM (Trailing-Twelve-Months) data indicates a negative EBIT and EBITDA margin, highlighting ongoing operational challenges. While the gross profit margin is relatively stable, the net profit margin remains negative, pointing to persistent losses.45
Neutral
Balance Sheet
The company maintains a healthy equity position with an equity ratio of 76.7% in the TTM period, showing financial stability. However, the debt-to-equity ratio is increasing slightly, which could pose future risks if not managed properly. Return on equity remains negative due to ongoing losses.60
Neutral
Cash Flow
Stratasys faces challenges in cash flow management, with negative free cash flow growth and an operating cash flow to net income ratio that suggests cash generation issues. However, the company has managed to maintain a positive operating cash flow in the TTM period, which is a slight improvement.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 564.45M | 572.46M | 627.60M | 651.48M | 607.22M | 520.82M |
| Gross Profit | 253.16M | 256.82M | 267.02M | 276.47M | 260.08M | 219.39M |
| EBITDA | -29.77M | -40.32M | -35.61M | 2.61M | -23.07M | -20.28M |
| Net Income | -107.35M | -120.28M | -123.07M | -28.97M | -61.98M | -443.72M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.03B | 1.13B | 1.26B | 1.28B | 990.00M |
| Cash, Cash Equivalents and Short-Term Investments | 150.06M | 150.70M | 162.59M | 327.84M | 502.18M | 299.09M |
| Total Debt | 31.28M | 32.09M | 18.66M | 17.84M | 14.97M | 21.85M |
| Total Liabilities | 238.30M | 236.75M | 249.07M | 300.36M | 321.21M | 230.63M |
| Stockholders Equity | 784.84M | 792.99M | 884.84M | 959.43M | 956.01M | 759.37M |
Cash Flow | ||||||
| Free Cash Flow | -8.94M | -4.89M | -76.67M | -95.16M | 9.07M | -1.21M |
| Operating Cash Flow | 5.03M | 7.83M | -61.65M | -75.41M | 35.82M | 27.80M |
| Investing Cash Flow | -20.81M | -14.82M | -3.83M | -7.21M | -291.17M | -52.63M |
| Financing Cash Flow | -3.30M | -3.31M | -1.52M | -2.77M | 227.31M | 228.00K |
Stratasys Technical Analysis
Negative
10.37
Price Trends
10.92
Negative
10.53
Negative
10.25
Positive
Market Momentum
-0.02
Negative
46.43
Neutral
52.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSYS, the sentiment is Negative. The current price of 10.37 is below the 20-day moving average (MA) of 10.57, below the 50-day MA of 10.92, and above the 200-day MA of 10.25, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 52.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSYS.
Stratasys Risk Analysis
Stratasys disclosed 52 risk factors in its most recent earnings report. Stratasys 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
Stratasys Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
SSYS
Stratasys
10.37
3.76
56.88%
DDD
3D Systems
2.18
0.29
15.34%
NNDM
Nano Dimension
1.36
-0.79
-36.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.