STRATASYS LTD. Q4 FY2025 earnings call

• 2025 saw Stratasys maintain operational discipline, generate solid cash flow, and protect margin profile. Manufacturing revenue contribution increased. • Focused on additive manufacturing in target areas like aerospace and defense, automotive tooling, dental, and medical, with these areas showing year - over - year revenue growth. • Partnerships were key: partnered with nTop to integrate nTop simulation technology into GrabCAD Print Pro, launched post - processing partnership with PostProcess Technologies, partnered with Oak Ridge Systems, and established a medical advisory board.

In 2025, 37.5% of Stratasys Ltd.'s revenues came from manufacturing, up from 36% in 2024 and just over 25% in 2020. For the fourth quarter, consolidated revenue was $140 million, down 6.9% year - over - year. Product revenue was $97.6 million, with system revenue at $37.8 million (18% higher sequentially from the third quarter, but down from $46.7 million in the same period last year due to constrained capital budgets) and consumables revenue at $59.8 million (up 2.4% year - over - year). Service revenue was $42.4 million, down from $45.3 million in the same period last year. For the full year 2025, consolidated revenue was $551.1 million, down from $572.5 million in 2024. Product revenue was $380.3 million, with system revenue at $131.6 million (down from $140.3 million in 2024), consumables revenue at $248.7 million (down from $261.7 million in 2024), and service revenue at $170.8 million (down from $180.5 million in 2024).

• 2026 revenue expected to be in the range of $565 million to $575 million, with sequential growth each quarter and higher revenues in the second half. • Consumables revenue expected to increase in 2026. • Non - GAAP gross margin expected to be in the range of 46.7% to 47.1%, second half stronger than first half. • Operating expenses expected to range between $260 million to $262 million, including approximately $10 million adverse impact from foreign exchange rates. • GAAP net loss expected to be in the range of $67 million to $83 million, non - GAAP net income expected to be in the range of $8 million to $12.5 million. • Adjusted EBITDA expected to be in the range of 4.5% to 5% of revenue, or $25 million to $30 million. • Capital expenditures expected to range between $20 million and $25 million, and full - year positive operating cash flow expected subject to uncertainty around FX and tariffs.

Refer to Stratasys Ltd.'s annual reports on Form 20 - F for 2024 and 2025 for risks such as macro spending constraints, foreign exchange rate fluctuations, tariff impacts, market competition, and technology innovation risks.

Q: How to size up the aerospace and defense market for Stratasys and its growth outlook?

A: Aerospace and defense is a large contributor to Stratasys' revenue. It has high - requirement verticals with Stratasys having established credibility and relationships. The U.S. is more advanced in defense spending, and drones and other areas present growth opportunities.

Q: Regarding the FX and tariff impacts in the 2026 guidance, are they assuming current levels and any conservatism?

A: The shekel is strong in 2026 with adverse impact, and hedging may be considered as the shekel weakens. Tariffs are also an uncertain factor.

Q: What are the demand trends in Q1 2026 and seasonality?

A: Q1 is historically the weakest quarter, but there is sequential growth expected over the year, with better government and defense demand and new product launches in H2.

Q: What is the incremental OpEx in 2026 related to?

A: The main increase in OpEx in 2026 is driven by the shekel.

Q: How does material pricing impact the adoption of additive or FDM in production?

A: Stratasys is a value player focusing on high - value use cases. High - performance materials have higher utilization and value, and customer relationships and reliability are key factors in adoption.

Q: Any update on follow - on orders from a large tech company for F3300s?

A: Confidential as per company policy.

Q: Time to completion and sizing of revenue opportunity for SaaS with Boeing, Raytheon, etc.?

A: It is a large revenue opportunity with different timeframes for part qualification depending on the class of the part.