3D Systems Q3 Revenue Rises 10.9% as Adjusted EBITDA Turns Positive

3D Systems (NYSE: DDD) reported a 10.9% year-over-year increase in third-quarter 2026 non-GAAP revenue and moved to positive adjusted EBITDA, supported by higher sales across both healthcare and industrial markets. The additive-manufacturing company also posted a wider non-GAAP gross margin and lower operating expenses, although its GAAP loss per share increased from a year earlier.

Non-GAAP revenue, adjusted to exclude software businesses divested in 2025, rose to $99.3 million from $89.5 million in the third quarter of 2025. Adjusted EBITDA improved to $3.1 million from a $10.0 million loss.

Non-GAAP gross margin expanded to 35.5% from 31.3%, while non-GAAP operating expenses declined 14.7% to $36.1 million from $42.3 million. Non-GAAP loss per share narrowed to $0.06 from $0.08. On a GAAP basis, however, the loss per share widened to $0.21 from $0.14.

Healthcare and industrial revenue increase

Healthcare Solutions non-GAAP revenue reached $49.0 million, up from $42.8 million a year earlier. The company said higher dental-material sales supported the quarter, while orthopedic parts and Personalized Health Solutions also contributed to performance in healthcare markets.

Industrial Solutions non-GAAP revenue increased to $50.3 million from $46.7 million. Growth in aerospace and defense was led by printer sales, particularly for space and defense applications, while momentum in data-center infrastructure was driven by semiconductor-manufacturing equipment.

Management identified direct metal printing and investment casting as two principal areas of growth. The company said adoption of large-frame metal printers is increasing for the production of high-value parts, with direct-metal applications spanning aerospace and defense, medical technology and data-center infrastructure.

Demand is also increasing for polymer-printing systems used in investment casting, according to the presentation. 3D Systems is positioning these products as a way to digitize traditional casting workflows, shorten production cycles and enable more complex designs.

The company highlighted its SLA 825 Dual and MJP 300W Plus systems for investment-casting applications. It also emphasized the DMP 350 Triple and DMP 500 platforms for high-reliability metal production. Separately, 3D Systems opened a new industrial technology center in Littleton, Colorado, adding about 50,000 square feet of production and office space.

Fourth-quarter outlook

For the fourth quarter of 2026, 3D Systems expects revenue of $100 million to $103 million and adjusted EBITDA ranging from a $2 million loss to breakeven. Management said it aims to build on momentum in its strategic markets and deliver full-year growth.

The company does not provide a GAAP reconciliation for forward-looking adjusted EBITDA because several excluded items—including stock-based compensation, intangible-asset amortization, restructuring costs and potential impairment charges—are difficult to forecast.

Balance sheet and financing

3D Systems ended the quarter with $120.5 million in cash and investments, including $91.8 million of cash, cash equivalents and restricted cash, $27.1 million of short-term investments and $1.6 million of long-term investments. Total outstanding debt was $96 million.

The company said $3.9 million of 2026 notes would be fully retired following a fourth-quarter payment. It also intends to exchange $92 million of secured notes due in 2030 for $85 million of new senior unsecured convertible notes due in April 2031. The new notes carry a 3.30% coupon, down from 5.875%, which the company estimates will reduce annual cash interest by approximately $2.6 million.

3D Systems also launched a $42.5 million at-the-market equity program to support operations and future program-driven strategic investments.

The fourth-quarter outlook, expected product launches, regulatory approvals and projected market opportunities remain subject to uncertainty. The company cautioned that actual results may differ materially because of risks described in its regulatory filings and factors outside management’s control.