In its Q4 and full-year 2025 results, 3D Systems reported a stronger finish to the year, with fourth-quarter revenue of $106.3 million rising 16% sequentially, well above its 8%-10% guidance, as new product launches drove printer and material sales across both industrial and healthcare segments. Full-year revenue was $387 million, down 7% ex-Geomagic (9% also adjusting for the prior-year regenerative medicine adjustment), reflecting industry-wide macroeconomic headwinds, while Q4 gross margin compressed to 31% on a less favorable printer-weighted mix. Cost discipline was the standout: cost-reduction programs delivered roughly $55 million in annualized savings, exceeding the $50 million target, cutting full-year non-GAAP OpEx 19% to $196 million and improving full-year adjusted EBITDA $31 million to -$45.4 million. The company strengthened its balance sheet via an equitization transaction that retired the bulk of its November 2026 debt, leaving only $3.9 million due then and $92 million due 2030. Management emphasized three key growth markets — aerospace and defense (16% full-year growth, over 20% expected in 2026), personalized health services, and dental (NextDent jetted dentures) — while limiting financial guidance to Q1 2026 amid geopolitical uncertainty.
Hello, welcome to 3D Systems fourth quarter and full year 2025 earnings conference call. With me on today's call are Dr. Jeffrey Graves, President and CEO, and Phyllis Nordstrom, Interim CFO. The webcast portion of this call contains a slide presentation that we will refer to during the call. Those following along on the phone who wish to access the slide portion of this presentation may do so on the investor relations section of our website. The following discussion and responses to your questions reflect management's views as of today only and will include forward-looking statements as described on this slide. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in our latest press release and our filings with the SEC, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q.
During this call, we will discuss certain non-GAAP financial measures. In our press release and slides accompanying this webcast, you will find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures. Unless otherwise stated, all comparisons in this call will be against our results for the comparable periods of 2024. With that, I'll turn the call over to our CEO, Jeff Graves for opening remarks.
Thank you, Monica. Good morning, everyone. Having executed well on both our 2025 savings initiatives and new product launches, I'm pleased to report a stronger finish to 2025, with momentum continuing to build as we move into 2026. I'll start today by reviewing a few highlights from our 4th quarter and provide some comments on overall market conditions as we enter the new year. I'll focus very specifically on our strategy and key growth initiatives, the early stages of which you can see reflected even now in our operating trends. After this, I'll turn things over to our Interim CFO, Phyllis Nordstrom, to provide details on the quarter's financials. When Phyllis concludes, we'll open the call for Q&A. Let's turn to slide 5.
Despite global economic and geopolitical challenges that have translated to restraint in CapEx spending by our customers for some time now, we've been able to balance the need for significant cost reduction with the requirement for continuity in key R&D programs that are essential to long-term growth and value creation for our customers and shareholders alike. I'm extremely proud of our employees and their ability to execute this balance day-to-day over the last 2 years, and I'm pleased to see the results of their hard work and creativity now entering the market. These efforts are allowing us to refresh our installed base of printers, which is the largest and most diverse in the world, and launch exciting new products and applications that provide extraordinary value to our customers.
During a period in our industry where cost savings are imperative, we've reduced overall operating costs while selectively doubling down on those industries where additive manufacturing is poised to reshape the market and where we have a unique competitive advantage. I'll provide specific details on these markets in a few moments, Phyllis will summarize the impact of both our cost actions and growth initiatives on our financial performance and trends. Slide 6. I'll start by reviewing our highlights from the fourth quarter. Consistent with past years, we had seasonally strong Q4 in our historic markets. What was unusual this year was the additional top-line benefits specifically related to our 3 key growth initiatives. Given their importance, I'll cover these key growth areas in some detail in a few moments. Revenue increased 16% sequentially above our guidance of 8%-10% growth.
From a product standpoint, these results reflect the strengthening of both our printer and material sales, driven by key new product launches over the last year in both our industrial and healthcare businesses. Let me give you a little more insight into what drove this strength, beginning with changes in our historic markets. Within our industrial solutions business, we saw sequential double-digit growth in several of our more traditional consumer-oriented end markets, including both automotive and jewelry manufacturing. In automotive, this growth reflected the impact of our newest SLA printing platform, specifically our dual laser SLA 750 that we launched just over a year ago, which is the most precise and productive industrial scale SLA printer in the market today. It's being adopted preferentially in both motorsports and in consumer automotive OEMs, delivering significant improvements in productivity in their development labs.
The strong sequential growth in jewelry was driven by the recent launch of our new wax printer, the MJP 300W+, which delivers significantly improved accuracy and surface finish in wax patterns that are central to the casting process. These factors are very important to manufacturers as they provide dramatic reductions in gold loss during final polishing of the product, particularly at a time when gold prices are at record levels. Interesting note with regard to gold jewelry is the rate at which the entire industry is now adopting additive manufacturing, which allows for virtually limitless customization of designs without increasing the cost of the product, or in some cases even reducing it.
Anticipating these inflection points in an industry is essential in order to capitalize on the rapid CapEx investments that follow, disproportionately benefiting those companies that are well-positioned to meet this rise in demand from its outset. With our industry-leading application engineering team, we're experts at doing just this. Within our healthcare solutions business, we saw sequential growth in dental material sales, driven largely by stabilization of demand for aligners. We are also beginning to see sales from the commercial release of our new NextDent jetted denture platform, which is being very well received in the market, and I'll offer some more comments in a moment. Looking beyond these trends in our traditional markets, I'd like to now spend a few minutes on what I believe are the three most exciting growth markets that are opening before us.
These are aerospace and defense, personalized health services, and dental. Applications within these markets greatly benefit from additive manufacturing in that their performance is greatly enhanced by mass customization of design. With the latest evolution of our printing technologies, the manufacturing cost has declined to a point to support rapid adoption. Turning to slide 7. One of our key growth markets is aerospace and defense, which has become the largest and one of the fastest-growing segments within our industrial solutions business. On a full year basis, our aerospace and defense revenue, which includes production printing systems, consumable materials, and custom metal parts, achieved 16% growth, and we continue to expect over 20% growth for 2026. What technologies are required to deliver sustainable revenue growth in aerospace and defense?
Well, the fastest-growing and highest value portion of this market, which is where we're focused, comes from the manufacture of metal parts. These parts can be made in one of two ways, either by metal casting or by direct metal printing. We've invested heavily in both of these technologies. They are playing a vital role in the growth we're now experiencing in this market. In the casting process, our market-leading photopolymer printing technology is used to manufacture complex cores and shells for high-performance cast metal components. While our direct metal printing systems, which are known for outstanding environmental control and precision, are used to manufacture high-value metal parts directly from powder using materials such as titanium and nickel-based superalloys. Indeed, an increasing range of advanced aerospace and defense applications can only be made by direct metal printing due to the complexity of the designs needed for today's applications.
This is why we have maintained our R&D investments in this area, even through these challenging periods. Without this suite of technologies, a company simply cannot participate in the high-value end of the market. From a customer standpoint in aerospace and defense, we define three phases of growth. First is the development of a specific process to manufacture a customer's key components. Second is an offer of metal part production at a low to intermediate volume that allows the customer to directly scale from the initial test and manufacture the system to full-scale production. The third, the sale of the complete printing systems that allow a customer to further scale manufacturing to high volumes.
This approach to aerospace and defense, which has been under intense development for the last three years, is proving to be very attractive to our customers and is a key in sustaining the growth we're now enjoying. From a geographic standpoint, we're taking this approach through our operations in Littleton, Colorado, for the US market, in Leuven, Belgium, for our European market, and through our Saudi Arabian joint venture in NAMI for our growing demand in the Middle East. Each of these has very similar capabilities to serve their regional customer base. As a final comment, this three-phase customer approach is the same one we've used very successfully in our healthcare business for many years, which has given us the operating model and the quality infrastructure to make it work at scale in this adjacent market.
Because aerospace and defense is a very broad market, many folks are asking, what are the key focal areas for us? The ones we're gaining the most traction and look to be the most sustainable in the years ahead include satellites, naval and marine applications, aircraft and rockets, and flight systems. More specifically, in satellite systems, our technology is being used to provide antenna arrays, waveguides, and filters, as well as numerous lightweight structural brackets. This is a rapidly expanding market as satellite communication is proving essential in many areas of the world. For naval applications, submarines are often leading the way as our printing technology provides high reliability hydraulic fittings, piping, and valves, as well as advanced turbomachinery and pumps, all manufactured from very special materials that are resistant to the extreme environments that these boats encounter.
For aircraft and drone applications, our printing systems are most often used for critical aerodynamic parts such as winglets, fairings, and ducts, structural elements and airframes, rotor blades and stabilizers, and aero-propulsion components, including complex turbine components. In addition to the printing system themselves, recurring revenue in aerospace and defense comes from material pull-through, which in this case includes both polymer resins used in casting workflows, as well as finished parts consumed by customers at the early stages of full-scale manufacturing. Casting processes in aerospace and defense have been critical for decades, but they've assumed a new and even higher level of importance in the most advanced rocket and aero-propulsion systems being introduced today. Interestingly, this acceleration has been driven not only by enhanced component performance requirements, but also in simplifying complex assemblies to reduce part count and therefore the cost of new propulsion systems.
Thank you, Jeff, and good morning, everyone. Before I begin reviewing our fourth quarter results, I'd like to remind you that we completed the divestiture of our Geomagic software business on April first, 2025. Throughout today's call, I will reference both reported results and adjustment comparisons that exclude Geomagic to provide a clear apples to apples comparison of our performance across periods. Additionally, in the fourth quarter of 2024, we recorded a one-time regenerative medicine accounting adjustment that reduced revenue by $8.7 million due to a change in estimate. I will reference this accounting adjustment when discussing certain prior year comparisons. I would like to start off by highlighting a few of our key accomplishments in 2025. We have been strongly focused on driving expense reductions while also supporting new product launches, strengthening our balance sheet by reducing debt, and improving operational excellence and cost discipline.
These actions have enhanced the strength of our core business while allowing us to invest in new growth opportunities that are now beginning to deliver results. I will begin with revenue for the quarter. Turning to slide 15. Fourth quarter consolidated revenue was $106.3 million, an increase of 3% year-over-year, adjusting for Geomagic. When further adjusting for the regenerative medicine adjustment impacting prior year quarter, consolidated revenue declined 5%. Year-over-year decrease was primarily driven by softness in industrial printer and materials demand, which was partially offset by double-digit growth across our priority markets, including both PHS and aerospace and defense. To slide 16.
As we manage revenue headwinds in the first three quarters of the year, we saw solid strengthening in the Fourth quarter, reflecting not only normal seasonality, but also what we believe to be a return to growth as we exit 2025 and begin 2026. We believe the sequential improvement is driven by returning customer demand and our focus on priority markets that continue to accelerate the adoption of additive manufacturing. With that summary, I will now walk through our sequential revenue growth for the quarter. Fourth quarter consolidated revenue increased 16% sequentially from the third quarter, driven by growth in new printer system sales and increased materials consumption. Within our segments, Industrial Solutions revenue was $55.8 million, an increase of 15% sequentially.
This growth was driven by continued strength in aerospace and defense, as well as higher new printer sales within our consumer end markets, including increasing demand for our new NGP printer for jewelry applications. Healthcare Solutions revenue of $50.5 million grew 18% sequentially. This increase was primarily driven by strengthening of dental material sales within the quarter and the continued positive performance of our PHS business. Now moving to slide 17. In reviewing 2025 performance, the additive manufacturing industry faced strong macroeconomic headwinds impacting customer spending. As a result, we realized a decline in our year-over-year revenue. For the full year 2025, consolidated revenue was $387 million. When adjusting for the divestiture of Geomagic, revenue declined 7% year-over-year or 9% when adjusting for both Geomagic and the prior year regenerative medicine adjustment. Turning to slide 18.
For the fourth quarter, non-GAAP gross margin was 31%, up 3% when adjusting for Geomagic and down 2% when adjusting for both Geomagic and regenerative medicine. For full year 2025, non-GAAP gross margin was 34.3%, down 70 basis points when adjusting for Geomagic, and down 2 percentage points when adjusting for both Geomagic and regenerative medicine. Non-GAAP gross margin decline over the prior periods was primarily driven by lower sales volume and less favorable product mix in the current quarter. Moving to slides 19 and 20. We continue to see the positive impact of our cost reduction initiatives both in the fourth quarter and for the full year 2025. In the fourth quarter, non-GAAP operating expenses were $43 million, down 23% or $13 million from the prior year period when adjusting for Geomagic.
For the full year, non-GAAP operating expenses were $196 million, a reduction of 19% or $46 million year-over-year when adjusting for Geomagic. We remain keenly focused on executing the cost reduction initiatives we have previously outlined. Actions already underway and that will be complete by the first half of 2026 include optimizing our organizational capacity, streamlining our facility footprint, and reducing expenses across our business. To date, our cost reduction and efficiency programs have delivered approximately $55 million in annualized savings completed in 2025, exceeding our target of $50 million. Looking ahead to the first half of 2026, our cost savings initiatives will remain closely aligned with the company's 2026 priorities, ensuring we focus on investments on the products and markets with the strongest opportunities for both growth and profitability. Moving to slide 21 to finalize the P&L.
Adjusted EBITDA for the fourth quarter was negative $5.3 million, an improvement of $17 million compared to the prior year when adjusting for Geomagic. For the full year 2025, adjusted EBITDA was negative $45.4 million, an improvement of $31 million when adjusting for Geomagic. Adjusted EBITDA improvements were primarily driven by the company's cost reduction initiatives, which delivered meaningful expense reductions throughout 2025. Full year 2025 non-GAAP loss per share was $0.37, an improvement from a loss of $0.62 in the prior year period. Moving to slide 22 for a review of the balance sheet. We ended the quarter with $97.1 million in total cash, consisting of $95.6 million in cash and cash equivalents and one and a half million in restricted cash.
During the quarter, we executed an equitization transaction to retire the majority of our debt scheduled to mature in the fourth quarter of 2026. As a result, only $3.9 million of that debt now remains outstanding, with the remaining $92 million scheduled to mature in 2030. As we move to 2026, my priorities remain focused on continuing to optimize our cost structure while working closely with the business to prioritize the key growth markets. Lastly, I'll turn to slide 23 for an update on the company's 2026 outlook. Given the current geopolitical environment and its potential impact on near-term macroeconomic conditions, we believe at this time it is appropriate to limit financial guidance the first quarter of 2026.
We expect revenue to be in the range of $91 million-$94 million and adjusted EBITDA to be within the range of a loss of $5 million-$3 million for the quarter. Key contributors to our first quarter performance include cost, continued cost management discipline, consistent execution of our core business, strong performance in our priority markets, and positive momentum in product sales driven by recent printer launches. We thank you for your time and continued support of 3D Systems. We will now open the line for questions. Operator.