Velo3D, Inc. (VELO) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended June 30, 2026. Velo3D, Inc. is a developer of metal additive manufacturing (3D printing) solutions, primarily the Sapphire family of printers and Rapid Production Solutions (RPS). The company operates as a single reporting segment. As of June 30, 2026, the company had 32.15 million shares of common stock outstanding.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenue | $20.7 million | $13.6 million | $34.5 million | $22.9 million |
| Gross Profit | $4.4 million | ($1.6) million | $6.8 million | ($0.9) million |
| Gross Margin | 21.5% | (11.7)% | 19.8% | (3.9)% |
| Net Loss | ($11.5) million | ($13.3) million | ($18.5) million | ($38.3) million |
| Net Loss Per Share (Basic/Diluted) | ($0.39) | ($0.94) | ($0.68) | ($2.79) |
| Cash and Cash Equivalents | $91.1 million (as of June 30, 2026) | |||
| Total Debt | $8.2 million (2025 Equipment Loan only) | |||
| Operating Cash Flow (YTD) | ($39.5) million used |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 52.3% quarter-over-quarter and 50.6% year-over-year (YTD), driven by higher average selling prices, improved product mix, and increased volume in Rapid Production Solutions (RPS).
- Profitability Improvement: The company returned to positive gross profit in Q2 2026 ($4.4M) compared to a loss in Q2 2025. This was aided by a prospective refinement in the allocation of labor and overhead costs between cost of revenue and operating expenses.
- Debt Restructuring: The company fully converted its January and February Senior Secured Convertible Notes (totaling $15M principal plus interest) into common stock in March 2026. It also repaid $3.0M in Secured Notes. Outstanding debt now consists solely of an $8.2M Equipment Loan.
- Capital Raising: Significant liquidity was added via a $50M Registered Direct Offering in April 2026 and $59.4M in gross proceeds from an At-the-Market (ATM) offering program.
- Stock Split: A 1-for-15 reverse stock split was effective July 28, 2025. All share and per-share data in this filing are retroactively adjusted.
Guidance, Outlook, and Risks
- Going Concern Warning: Management has concluded that substantial doubt continues to exist regarding the company's ability to continue as a going concern for the twelve months following the issuance of these financial statements. Despite improved liquidity, the company expects to require additional financing to fund operations due to continued operating losses and negative operating cash flows.
- Operational Outlook: The company is shifting focus toward 3D Printer system sales and RPS, expecting recurring payment revenue to decrease. Backlog for firm orders stood at $31 million as of June 30, 2026.
- Expansion Risks: The company entered a long-term lease for a new 289,000 sq. ft. production facility in Livermore, CA (commencing July 2026). There are risks regarding cost overruns, delays, and the ability to ramp production to meet demand.
- Internal Controls: The company disclosed material weaknesses in internal control over financial reporting, including deficiencies in inventory accounting, contract assets/liabilities, and IT general controls. These have not been remediated as of June 30, 2026.
- Supplier Constraints: The company faces challenges securing credit terms and volume discounts from suppliers, leading to premium costs and unfavorable terms that negatively impact gross margins.
Investor Verification Checklist
- Verify the sufficiency of the $91.1M cash balance against the projected burn rate and the $31.5M in non-cancellable purchase commitments.
- Confirm the timeline and capital requirements for the new Livermore production facility ("Forge 1") and its impact on future cash flow.
- Monitor the progress of remediation efforts for the disclosed material weaknesses in internal controls over financial reporting.
- Assess the sustainability of gross margin improvements given the company's inability to secure favorable supplier credit terms.
- Review the terms of the remaining $8.2M Equipment Loan and any covenants that could restrict future operations.