Velo3D Q2 Revenue Jumps 52% and Gross Margin Turns Positive

Velo3D delivered its strongest quarter since going public. Second-quarter revenue hit $20.7 million, up 52.3% from $13.6 million in the same quarter a year ago and up 50% from the first quarter of 2026. The company also turned gross margin positive for the first time, hitting 21.5% compared to negative 11.7% a year earlier.

Where the growth came from

Revenue from 3D printers and parts rose 57% year over year to $19.0 million. Velo3D CEO Arun Jeldi credited higher average selling prices, a better product mix, and increased revenue from its Rapid Production Services business, which manufactures parts on behalf of aerospace and defense customers.

The backlog ended June at $31 million, nearly double the $16 million backlog from a year prior. Cash and cash equivalents stood at $91.1 million at quarter-end, up sharply from $39.0 million at the end of 2025, after the company raised roughly $109 million through equity offerings earlier in the year and reduced debt by more than 70%.

Guidance raised

Velo3D increased its full-year 2026 revenue guidance to $65 million to $75 million, up from $60 million to $70 million. Management expects gross margin to exceed 30% in the second half of the year and aims for positive EBITDA during that period. Capital spending is projected at $40 million to $50 million, mostly to expand the new Livermore production campus that opened in August and is expected to triple manufacturing capacity.

The bottom line

The GAAP net loss for the quarter was $11.5 million, improved from $13.3 million a year earlier. Operating expenses grew to $15.5 million from $10.0 million, reflecting hiring to support the larger revenue base. Non-GAAP adjusted operating expenses were $13.1 million. Adjusted EBITDA was negative $8.1 million, better than negative $8.9 million in Q2 2025.

The Livermore campus is the physical bet behind the numbers. If the facility performs as planned, Velo3D can take larger metal AM systems and parts production jobs without the capacity constraints that have limited its backlog conversion in recent quarters. The earnings report suggests demand is already outpacing what the old footprint could handle.