VELO

• Strategic Infrastructure Expansion • Launched the new Livermore Production Campus, a transformational manufacturing expansion that is expected to triple the company's total manufacturing capacity once fully operational. • The campus is scheduled to open in Q4 2026 and will become Velo3D's primary production and manufacturing center. • Centralized, highly automated operations at Livermore will capture large volumes of real-world manufacturing data to accelerate development of Velo3D's next-generation AI/ML-powered digital design and manufacturing software platform, creating a competitive data flywheel that improves print parameters, process predictability, customer qualification, and software functionality.

• Partnership Growth • Expanded the strategic partnership with Mears Machine Corporation: Mears ordered its fifth Velo3D Sapphire XC system, with options for two additional units, expanding capacity for aerospace, defense, energy, and space applications, and scaling Velo3D's distributed manufacturing network. • Announced a new strategic partnership with Aurelia Technologies to advance metal additive manufacturing adoption for next-generation gas turbine systems, supporting customer goals of design consolidation, faster development cycles, improved supply chain resilience, and cost reduction, and expanding Velo3D's reach beyond core aerospace into broader industrial markets.

• Corporate Milestones • Added to the Russell 3000 Index and Russell Microcap Index, increasing institutional investor visibility and broadening market awareness as a public company. • Strengthened corporate governance with the appointment of Lily May, former mayor of Fremont, California, as an independent board director, bringing valuable experience in advanced manufacturing economic development and public-private collaboration.

• Market Demand Trends • The broader additive manufacturing industry is shifting from isolated qualification programs to broad production-scale adoption, with a strengthening customer pipeline and increasing demand for large, strategic production deployments from both new and existing customers. • Secular macro trends, including government and commercial prioritization of domestic production, supply chain resilience, and manufacturing agility, are highly supportive of Velo3D's long-term growth strategy.

• Management increased 2026 full-year revenue guidance upward to a range of $65 million to $75 million, from the prior guidance range of $60 million to $70 million, reflecting accelerating adoption of Velo3D's rapid production solutions and expanding large-format additive manufacturing capabilities.
• The company continues to expect sequential gross margin improvement, projecting gross margins will exceed 30% in the second half of 2026 as production volumes increase and further operational efficiencies are realized.
• Non-GAAP adjusted operating expenses are projected to remain between $45 million and $55 million for the full year, with disciplined, selective investment to support strategic growth initiatives.
• Full-year 2026 capital expenditures are expected to remain in the range of $40 million to $50 million, primarily for RPS expansion, subject to availability of sufficient financing.
• Velo3D continues to reaffirm its prior target of achieving positive adjusted EBITDA in the second half of 2026.
• Revenue is expected to increase quarter-over-quarter sequentially through the second half of 2026, alongside expanding capacity.

Velo3D does not break out formal product segment financials in this transcript. Total company Q2 2026 revenue was $20.7 million, representing 52.3% year-over-year growth and 50% sequential quarter-over-quarter growth from Q1 2026. Revenue growth was driven by strength in the aerospace and defense end markets, as well as growth in Rapid Production Solutions (RPS) revenue and higher average selling prices. Total backlog as of Q2 end was $31 million, up from $16 million at the end of Q2 2025, with year-over-year growth in RPS backlog specifically. Gross margin for the quarter was 21.5%, up from -11.7% in the year-ago quarter and 17.2% in Q1 2026. GAAP net loss for Q2 2026 was $11.5 million, an improvement of $1.8 million from the $13.3 million net loss in Q2 2025. Non-GAAP net loss was $9.0 million, improved from a $11.4 million non-GAAP net loss in Q2 2025. Adjusted EBITDA improved to -$8.1 million from -$8.9 billion in Q2 2025. As of Q2 end, the company held $91.1 million in cash and cash equivalents, with total outstanding debt reduced by more than 70% to $8.2 million.

• The biggest near-term challenge is the mismatch between very high customer demand and Velo3D's current constrained production capacity; the company notes it needs significantly more machine capacity than it can currently produce to meet existing backlog and demand.
• Skilled labor availability to scale operations is a key consideration: the company is working to grow its skilled workforce and plans to implement increased automation over time to reduce long-term labor needs and control operational costs.
• Supply chain challenges are common across the industry, though the company notes this is not its primary constraint relative to labor and capacity.
• Scaling production to meet accelerating demand requires incremental upfront capital investment, which is subject to the availability of sufficient financing.

Q: What was Q2 2026 RPS revenue, and what share of total revenue is RPS expected to make up by the end of 2026? / A: RPS revenue grew double digits year-over-year in Q2. Velo3D expects RPS will double its revenue share from 2025, reaching 25% to 30% of total revenue by the end of 2026. RPS full growth ramp is expected to take approximately three years total from initial launch.

Q: What is the expected total machine production capacity by the end of 2026, following the opening of the Livermore facility? / A: Velo3D is on track to reach 40 total units of machine production capacity by the end of 2026, matching prior targets. The company will build 20 new machines and refabricate 5-6 buyback units this year, combining with existing 15 units of capacity in Fremont to hit the 40-unit target. Full capacity ramp will begin in 2027.

Q: What demand trends are you seeing across end markets, and what constraints exist to meeting accelerating demand? / A: All core end markets are booming: defense demand is rising due to stockpiling and reshoring needs, energy demand is growing from the need for new electricity infrastructure for AI data centers and clean energy, and space demand is rising from the ongoing global space race. Current unmet demand would require 100 machines to fulfill immediately, but Velo3D cannot build capacity that quickly. The primary constraint is scaling skilled labor, not supply chain. Velo3D targets 100 total machines by mid-2028, with demand projected to require 300-400 machines within two years.

Q: How does your manufacturing data strategy support AI/ML development and broader industry adoption of additive manufacturing? / A: The large proprietary dataset collected at Livermore will be used to build a new software product that eliminates the need for multiple prototype iterations by leveraging real-world production data to improve design simulation and process monitoring. This will reduce time-to-production for customers and create a new, high-margin revenue stream for Velo3D beyond hardware and part production, accelerating broader additive adoption.

Q: What is the outlook for Livermore capacity ramp by the end of 2026 and into 2027? / A: Velo3D will have 10 to 15 machines operational at Livermore by the end of 2026, alongside 25 units of capacity in Fremont for a total of 35-40 units. The company targets 75 to 80 total machines by the end of 2027, with roughly half of total capacity located at Livermore by mid-2028.