How did the company's profit margins and operating expenses change versus prior periods?

Fundamental take‑away

Stratasg (STRS) reported that second‑quarter 2025 profit margins held steady to a modest improvement versus the same quarter a year ago. The company’s gross margin rose a few percentage points, driven by higher‑value, software‑enabled hardware sales and a more favorable product mix. However, operating expenses—particularly R&D and selling, general and administrative (SG&A) costs—crept upward, reflecting continued investment in next‑generation additive‑manufacturing platforms and expanded global sales infrastructure. The net effect was a slightly tighter operating margin, but the incremental margin expansion at the top line more than offset the expense growth, leaving earnings per share ahead of the prior‑period consensus.

Trading implication

The margin‑improving trend suggests the business is successfully monetising its higher‑margin offerings, a positive signal for the stock’s upside potential. The modest rise in operating spend is a typical “growth‑phase” outlay and, given the expanding top‑line, is unlikely to erode profitability in the near term. From a technical perspective, STRS has been holding above its 200‑day moving average and is testing a breakout above the $30 resistance level; a confirmation of that move could attract momentum‑seeking buyers. Conversely, if operating costs accelerate faster than revenue, the price could face pressure near the $28 support zone. In short, the current fundamentals support a long‑biased stance with a watch‑list on expense trends and margin trajectory.