Velo3D grew 2025 revenue to $46M, pivots to defense sector (now 56% of revenue), and announces ambitious plan to scale to ~400 production systems over the next decade.
Velo3D (NASDAQ: VELO) has released its full-year 2025 financial results, showing revenue growth and a significant strategic pivot toward defense applications, while also unveiling ambitious expansion plans.
2025 Financial Highlights
- Full-year 2025 revenue: $46.0 million (up 12% from $41.0 million in 2024)
- Q4 2025 revenue: $9.4 million (down 25% YoY due to inventory adjustments)
- GAAP net loss: $71.4 million
- Gross margin: -16.1% (negative, impacted by $7M obsolete inventory write-down)
- Cash position: $39.0 million (up from $1.2 million at end of 2024)
- Backlog: $31 million as of December 31, 2025
Defense Pivot
The most notable shift is Velo3D's transformation into a defense-focused company:
- Defense revenue: Now 56.4% of total revenue (overtaking aerospace at 23.73%)
- Major contract: $32.6 million Project FORGE contract with the Department of War
- Rapid Production Solutions (RPS) backlog: Surged 230% vs. Q3 2025
2026 Outlook
Management provided optimistic guidance for 2026:
- Revenue guidance: $60-70 million (30-52% growth)
- Gross margin: Targeting above 30% in second half of 2026
- EBITDA: Expected to turn positive in H2 2026
Long-Term Vision
Velo3D announced a demand-driven capacity plan envisioning up to approximately 400 production systems over the next decade—a dramatic scaling of its manufacturing capabilities.
With 79% of revenue now coming from defense and aerospace sectors, Velo3D is positioning itself as an essential supplier to the U.S. defense industrial base, with strong momentum heading into 2026.
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