3D Systems' results in Q2 reflected ongoing challenges from weakened customer capital spending and tariff uncertainty, but the market reacted positively as the company delivered significant improvements in cost control and profitability measures. Management attributed the 16% year-over-year sales decline primarily to customers delaying new production capacity investments amid volatile tariffs and global economic uncertainty. CEO Jeffrey Graves highlighted that sequential revenue excluding the divested software business grew 8%, pointing to stabilization and the early benefits of strategic restructuring and operational efficiencies. In particular, cost reductions and in-sourcing initiatives helped narrow operating losses and strengthen margins.

Is now the time to buy DDD? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From 3D Systems’s Q2 Earnings Call

• Troy Donavon Jensen (Cantor Fitzgerald) asked about the MedTech revenue split and the impact of tariffs on hardware sales. CEO Jeffrey Graves clarified most revenue comes from personalized health services, with printer sales modestly affected by tariff uncertainty.
• James Andrew Ricchiuti (Needham & Company) pressed for details on dental segment performance excluding aligners and questioned the revenue impact of new dental launches. Graves explained the core dental business showed resilience, and upcoming dental product launches should meaningfully contribute in the next year.
• Gregory William Palm (Craig-Hallum) inquired about macro trends and sales cycles, probing whether dental growth could be dampened by the same CapEx headwinds as industrial. Graves argued dental printer investments are comparatively modest and less sensitive to tariffs, supporting his positive outlook for that segment.
• Trevor R. Sahr (William Blair) asked about R&D spending trends and whether reductions were planned going forward. Graves confirmed R&D will move from 20% of sales to mid-teens as new products commercialize, with future spend focused on high-return projects.
• Alek Oleg Valero (Loop Capital Markets) questioned the effectiveness of in-sourcing manufacturing in mitigating tariff impacts. Graves stated in-sourcing is nearly complete, driving quality and cost benefits, but noted tariffs still impact some component costs and complicate customer investment decisions.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will closely monitor (1) the pace of cost reductions and whether operating expenses reach management's targeted range, (2) the commercial uptake and regulatory progress of the NextDent Jetted Denture Solution in both the U.S. and international markets, and (3) sustained growth in MedTech and Aerospace revenues despite ongoing macro headwinds. Execution on facility consolidation and visibility into customer CapEx recovery will also serve as key indicators of future performance.

3D Systems currently trades at $2.04, up from $1.75 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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