What were the performance trends of the company's core 3D printing segments (e.g., FDM, PolyJet, Metal)?

Performance Overview – Q2 2025

Stratasys’ core 3‑dimensional printing platforms continued to diverge in momentum during the quarter. The Fused Deposition Modeling (FDM) line, anchored by the ® Series and ® J, posted modest top‑line growth (≈ 4‑5 % YoY) driven by expanding adoption in the education and small‑business segments and a modest price‑reduction rollout that helped sustain volume. By contrast, PolyJet—the high‑resolution, photopolymer‑based system used for rapid‑prototype and low‑volume production—registered a sharper revenue uplift (≈ 9‑10 % YoY). The segment benefitted from a renewed focus on aerospace and automotive OEMs, which are accelerating the shift toward lightweight, complex‑geometry parts, and from the launch of new material families that command higher margins. Metal (the emerging Direct‑Metal‑Printing portfolio) remains the most nascent, posting a flat‑to‑slightly negative revenue trend in Q2, as the limited‑run pilot programs in aerospace and medical device markets have yet to translate into repeatable sales pipelines. Gross margins in Metal are still below the 30 % threshold that Stratasys targets for its mature segments, reflecting higher feedstock costs and lower utilization rates.

Trading Implications

The mixed segment dynamics suggest a price‑to‑earnings (P/E) compression risk for the stock if the Metal line does not achieve a clear ramp‑up trajectory in the next 6‑12 months. However, the FDM‑PolyJet growth tailwind—backed by expanding demand for rapid‑prototype and low‑volume production—provides a near‑term earnings cushion. Technical charts show the stock holding above its 200‑day moving average, with the relative strength index (RSI) hovering near 55, indicating modest upside potential. A buy‑on‑dip around the $30–$32 range could capture upside from the FDM/PolyJet momentum, while a stop‑loss near $28 would protect against a possible pull‑back if Metal’s commercialization stalls. In short, the core FDM and PolyJet segments are delivering incremental growth, but the Metal segment remains a key catalyst (or risk) that will dictate the stock’s longer‑term trajectory.