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.