Key Takeaways
- Stratasys' revenue decreased to $132.7 million in the first quarter of 2026, down from $136 million in the same period last year
- Product revenue dropped by 4.7% to $88.8 million, while system revenue fell by 7.7% to $28.8 million
- The company is shifting its focus to aerospace, defense, dental, and production-focused applications
- Stratasys' margins were under pressure, with gross margin falling to 41.7% and adjusted gross margin declining to 46.3%
- The company reported a net loss of $23.8 million, or 28 cents per share, compared to a net loss of $13.1 million, or 18 cents per share, in the first quarter of 2025
Introduction to Stratasys' Financial Performance
Stratasys, a leading 3D printing company, has reported a decline in revenue and an increase in losses in the first quarter of 2026. The company's revenue decreased by 2.3% to $132.7 million, with product revenue and system revenue experiencing significant drops. Despite this, Stratasys is focusing on high-growth areas such as aerospace, defense, dental, and production-focused applications.
Revenue Breakdown
The revenue breakdown for Stratasys is as follows:
| Category | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Product Revenue | $88.8 million | $93.8 million | -4.7% |
| System Revenue | $28.8 million | $31.2 million | -7.7% |
| Consumables Revenue | $60 million | $62.6 million | -4.1% |
| Service Revenue | $43.9 million | $42.2 million | 4.3% |
| Customer Support Revenue | $29.7 million | $30 million | -1% |
Margins and Losses
The company's margins were under pressure, with gross margin falling to 41.7% and adjusted gross margin declining to 46.3%. The decline in margins was mainly due to lower revenue and a $2.4 million year-over-year increase in tariff costs. Stratasys reported a net loss of $23.8 million, or 28 cents per share, compared to a net loss of $13.1 million, or 18 cents per share, in the first quarter of 2025.
Shift in Focus
Stratasys is shifting its focus to high-growth areas such as aerospace, defense, dental, and production-focused applications. The company's parts manufacturing business, Stratasys Direct, continued to experience growth during the quarter. This shift in focus is expected to help Stratasys navigate the challenges in the 3D printing market.
Bottom Line
In conclusion, Stratasys' financial performance in the first quarter of 2026 was impacted by a decline in revenue and an increase in losses. However, the company is shifting its focus to high-growth areas and experiencing growth in its parts manufacturing business. With a strong portfolio of products and services, Stratasys is well-positioned to navigate the challenges in the 3D printing market and achieve long-term growth and profitability.