Stratasys’ Aerospace and Defense revenue increased 17% year-over-year in the second quarter of 2026 as adoption expands across its largest and highest-value vertical, while the 3D printing company expects operating cash flow to turn positive during the second half of the year.
Management said its pipeline of new Aerospace and Defense orders continues to build as expected, positioning Stratasys for sequential growth. The company sees increasing adoption within the vertical as an important part of its broader strategy to expand the role of additive manufacturing in production applications.
The A&D growth occurred despite relatively flat overall year-over-year revenue. Total Q2 revenue was $137.6 million compared with $138.1 million a year earlier, although revenue increased 3.7% sequentially from $132.7 million in the first quarter.
Consumables were another area of strength. Quarterly consumables revenue reached a record $66.3 million, driven by manufacturing materials. Stratasys said the performance reinforces its strategy of increasing the manufacturing portion of its business and building a larger recurring revenue contribution around its installed base of 3D printing systems.
The company is also preparing to expand its industrial portfolio through its pending acquisition of Markforged. Stratasys said the transaction would strengthen its offering through the addition of continuous carbon fiber technology, materials and a software platform.
Second-quarter GAAP gross margin was 42.3% compared with 43.1% a year earlier, while non-GAAP gross margin was 47.2% compared with 47.7%. GAAP operating loss improved to $13.5 million from $16.6 million, although non-GAAP operating income decreased to $100,000 from $1.1 million.
Stratasys reported a GAAP net loss of $16.9 million, or $0.19 per diluted share, compared with a loss of $16.7 million, or $0.20 per diluted share, in the prior-year period. Non-GAAP net income reached $2.3 million, or $0.03 per diluted share, compared with $2.2 million, or $0.03 per diluted share.
Adjusted EBITDA was $5.3 million compared with $6.1 million a year earlier. Stratasys said adjusted EBITDA would have reached $8.2 million excluding a $2.9 million net negative impact from the strength of the Israeli shekel.
Cash flow is expected to improve during the remainder of 2026. Stratasys used $18.7 million of operating cash during Q2, primarily because of what it described as atypical non-routine items. Increased first-half cash usage means the company no longer expects operating cash flow to be positive for the full year, but management expects positive operating cash flow during the second half.
Stratasys enters that period with $212.5 million in cash, equivalents and short-term deposits and no debt. Management said the debt-free balance sheet provides financial flexibility to continue investing in its strategy.
The company continues to expect full-year revenue of $565 million to $575 million, with revenue improving sequentially through 2026. Full-year adjusted EBITDA is expected to range from $25 million to $30 million, while non-GAAP net income is expected to reach $8 million to $12.5 million.
The outlook assumes global inflation, relatively high interest rates, tariffs, currency movements and other supply-chain costs do not create additional pressure. Stratasys currently expects approximately $7 million of adverse impact to non-GAAP gross profit from tariffs and foreign exchange rates relative to 2025 and approximately $10 million of adverse operating-expense impact from foreign exchange.
KEY QUOTES:
“Consumables reached a record level this quarter, driven by manufacturing materials, underscoring the continued strength of our strategy to grow the manufacturing portion of our business. Aerospace and defense (A&D) revenue grew 17% year-over-year, reinforcing the increasing level of adoption in our largest and highest-value vertical. We are also excited by our pending acquisition of MarkForged, which will meaningfully enhance our industrial offering through its continuous carbon fiber technology, materials, and software platform. Our pipeline of new A&D orders continues to build as expected, positioning us to achieve sequential growth. With a debt-free balance sheet, we are poised to keep investing in our strategy from a position of financial strength.”
Dr. Yoav Zeif, CEO of Stratasys
