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Velo3D (VELO)
NASDAQ:VELO
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Velo3D
(NASDAQ:VELO)
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Rating:39Underperform
Price Target:
$3.00
▼(-10.71% Downside)
Velo3D's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues, negative margins, and high leverage. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.
Velo3D (VELO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.70M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)-4.77
Revenue Growth-5.66%
EPS Growth78.51%
CountryUS
Employees237
SectorTechnology
Sector Strength88
IndustryShell Companies
Share Statistics
EPS (TTM)-0.98
Shares Outstanding19,900,885
10 Day Avg. Volume251,177
30 Day Avg. Volume1,037,171
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.21
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit48.27
Enterprise Value/Ebitda-1.87
Forecast
1Y Price Target
$3.00Price Target Upside-10.71% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Velo3D Business Overview & Revenue Model
Company DescriptionVelo3D (VELO) is a technology company specializing in advanced metal additive manufacturing solutions. The company focuses on providing innovative 3D printing systems and software that enable the production of high-quality, complex metal parts for industries such as aerospace, automotive, and energy. Velo3D's core products include its proprietary Sapphire 3D printer and associated software, which facilitate precision engineering and design freedom while reducing material waste and production time.
How the Company Makes MoneyVelo3D generates revenue primarily through the sale of its 3D printing systems, including the Sapphire printer, as well as through the sales of materials, software licenses, and support services. Key revenue streams include direct sales of printers to manufacturers, ongoing contracts for software updates and maintenance, and the sale of specialized metal powders used in the printing process. The company also engages in partnerships with aerospace and industrial firms, which can lead to collaborative projects that enhance its offerings and expand its market reach, contributing significantly to its earnings.
Velo3D Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company in a transformative growth phase with positive developments such as the launch of RPS, improved financial discipline, and a clear path to profitability. Despite challenges like a slight revenue decline and ongoing net losses, the strategic initiatives in place suggest a cautiously optimistic future.Q1-2025 Updates
Positive Updates
Positive Gross Margin Achieved
Velo3D reported a positive gross margin of 7.5% in Q1 2025, reflecting improvements in cost optimization and pricing strategies, a significant turnaround from a negative gross margin in the prior year.
RPS Launch and Customer Contracts
The successful launch of Rapid Production Services (RPS) was marked by strong customer response and multiple new customer agreements, including a five-year $15 million master service agreement with Momentus, highlighting the strategic growth potential of RPS.
Revenue Visibility and Backlog
Velo3D ended the first quarter with a firm backlog of $18 million, reflecting committed orders that enhance revenue visibility and future growth prospects.
Improved Financial Position
The company strengthened its financial position by reducing debt, securing $15 million in bridge financing, and removing nearly all senior debt and warrant liabilities, which substantially lowered interest expenses.
Path to Profitability
Velo3D outlined a clear path to EBITDA profitability by the first half of 2026, driven by revenue growth, improved average selling prices, and operational efficiencies.
Negative Updates
Revenue Decline
First quarter revenue was $9.3 million, a decrease of 4.8% compared to the same quarter in the previous year, driven by a modest decrease in system sales as the company focuses on high-value customers.
GAAP Net Loss
Velo3D reported a GAAP net loss for the quarter of $25.4 million, indicating ongoing financial challenges despite improvements in other areas.
Low Cash Reserves
As of March 31, 2025, the company had cash and cash equivalents of $3.9 million, which may be considered low given the scale of operations and future investment needs.
Company Guidance
During the Velo3D First Quarter 2025 Conference Call, the company provided several key metrics regarding their financial performance and strategic direction. The first quarter revenue was reported at $9.3 million, representing a 4.8% decrease compared to the previous year, primarily due to a strategic focus on high-value customers. Gross margin improved significantly to 7.5% from a negative figure in the prior year, driven by higher absorption of fixed costs and the contribution of Rapid Production Solutions (RPS) to revenue. The company reported a backlog of $18 million as of March 31, 2025, indicating committed orders expected over the next 12 months. Additionally, the company reiterated its 2025 full-year guidance, projecting revenue between $50 million and $60 million, with gross margins expected to exceed 30% by year-end. Non-GAAP operating expenses were reduced to $8.8 million from $14.1 million in the previous year, reflecting cost optimization efforts. Velo3D aims for EBITDA profitability by the first half of 2026, leveraging improved average selling prices and operational efficiency.Velo3D Financial Statement Overview
Summary
Velo3D is facing significant financial difficulties, with declining revenues, negative profitability margins, and high leverage. Cash flow issues are evident, with negative operating and free cash flows. The financial position is precarious, with declining equity and high debt levels, posing risks to long-term sustainability.Income Statement
Velo3D's income statement reveals significant challenges. The company has experienced a drastic decline in revenue, with a negative growth rate of -47% in the most recent year. Gross profit margin is negative, indicating that the cost of goods sold exceeds revenue. The net profit margin is also negative, reflecting substantial net losses. EBIT and EBITDA margins are deeply negative, highlighting operational inefficiencies and high operating expenses.30
Negative
Balance Sheet
The balance sheet shows a concerning debt-to-equity ratio, with total debt nearly half of stockholders' equity, indicating potential leverage risks. The equity ratio is moderate, suggesting that a significant portion of the company's assets is financed by equity. However, the declining stockholders' equity over the years raises concerns about financial stability.40
Negative
Cash Flow
Cash flow analysis indicates severe cash flow challenges. Operating cash flow is negative, and free cash flow has been consistently negative, though there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is unfavorable, suggesting that the company struggles to convert income into cash. The free cash flow to net income ratio is also negative, further emphasizing liquidity issues.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.77M | 41.00M | 77.44M | 78.71M | 27.44M |
| Gross Profit | 2.74M | -2.08M | -26.27M | 843.00K | 4.96M |
| EBITDA | -70.72M | -52.44M | -116.11M | 13.63M | 10.27M |
| Net Income | -83.98M | -73.30M | -135.14M | 7.97M | 10.20M |
Balance Sheet | |||||
| Total Assets | 78.56M | 89.18M | 153.80M | 223.06M | 302.72M |
| Cash, Cash Equivalents and Short-Term Investments | 854.00K | 1.21M | 31.11M | 80.20M | 1.19K |
| Total Debt | 31.81M | 15.92M | 45.57M | 22.85M | 19.51M |
| Total Liabilities | 57.02M | 49.52M | 85.46M | 84.27M | 14.95K |
| Stockholders Equity | 21.54M | 39.66M | 68.34M | 138.79M | 110.42M |
Cash Flow | |||||
| Free Cash Flow | -19.55M | -32.69M | -108.85M | -143.38M | -375.88K |
| Operating Cash Flow | -17.75M | -32.68M | -105.64M | -123.96M | -375.88K |
| Investing Cash Flow | 2.00K | 7.77M | 38.89M | -53.02M | -230.00M |
| Financing Cash Flow | 15.97M | 1.46M | 59.26M | 1.34M | 231.51M |
Velo3D Technical Analysis
Neutral
3.36
Price Trends
4.53
Negative
6.13
Negative
8.09
Negative
Market Momentum
-0.38
Negative
44.05
Neutral
40.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VELO, the sentiment is Neutral. The current price of 3.36 is above the 20-day moving average (MA) of 3.21, below the 50-day MA of 4.53, and below the 200-day MA of 8.09, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VELO.
Velo3D Risk Analysis
Velo3D disclosed 63 risk factors in its most recent earnings report. Velo3D 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
Velo3D Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $142.50M | -6.86 | -219.87% | ― | 172.93% | 34.97% | |
51 Neutral | $101.19M | -107.45 | ― | ― | 7.13% | -99.15% | |
49 Neutral | $101.35M | -12.97 | -26.25% | ― | -25.90% | -459.91% | |
49 Neutral | $96.48M | -24.42 | -4.15% | ― | -33.25% | 81.55% | |
45 Neutral | $65.68M | -0.45 | -210.25% | ― | -11.22% | 6.15% | |
39 Underperform | $59.70M | ― | -228.03% | ― | -5.66% | 78.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VELO
Velo3D
3.36
-7.89
-70.13%
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6.17
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-19.45%
SOL
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1.88
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-32.62%
DUOT
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7.34
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WBX
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4.55
-18.65
-80.39%
Velo3D Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Velo3D’s Major Restructuring and Leadership Changes
Neutral
Dec 26, 2024
Velo3D announced a significant debt-for-equity exchange transaction with Arrayed Notes Acquisition Corp., resulting in the cancellation of approximately $22.4 million in senior secured notes. This transaction significantly reduces Velo3D’s debt, with Arrayed Notes Acquisition Corp. holding 95% of the company’s common stock. Following the exchange, Arun Jeldi, CEO of Arrayed Additive Inc., will become Velo3D’s CEO, leading the company into a new growth chapter. As part of the restructuring, several board members resigned, and the board was reduced to five members, with Brad Kreger assuming the role of Chief Operating Officer.
More about Velo3D
Velo3D is a leader in scalable metal 3D printing technology, focusing on innovative solutions for industries such as space exploration, aviation, energy, and semiconductors. The company’s integrated ecosystem includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system, enabling customers to manufacture complex, mission-critical metal parts.
YTD Price Performance: -95.83%
Average Trading Volume: 62,752
Technical Sentiment Consensus Rating: Buy
Current Market Cap: $5.58M
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.