Velo3D (NASDAQ: VELO) raised its full-year revenue guidance after a second quarter that beat the Street by a wide margin. The headline number is only part of the story. The additive manufacturing company is betting that a new production campus and a fortified balance sheet can turn a strong quarter into a sustained trajectory.
Revenue hit $20.7 million, up 52.3% from $13.6 million a year ago and 44% above the $14.4 million consensus estimate. The beat came from 3D Printer and parts revenue, which rose 57% to $19.0 million. Higher average selling prices, a favorable product mix, and increased production volume all contributed. The company swung to a GAAP gross margin of 21.5% from negative 11.7% in the year-ago period, reflecting better cost allocation, manufacturing efficiencies, and a higher-margin mix.
The GAAP net loss narrowed to $11.5 million ($0.39 per share) from $13.3 million ($0.94 per share). The non-GAAP loss of $0.30 per share missed the estimate of a $0.27 loss by a penny. Adjusted EBITDA improved to negative $8.1 million from negative $8.9 million.
Management sees momentum accelerating. The clearest signal is the raised guidance. Full-year revenue is now expected in the range of $65 million to $75 million, up from the prior $60 million to $70 million range. That implies second-half revenue of roughly $30.5 million to $40.5 million, or sequential growth from the first half's $34.5 million. Management also reiterated expectations for gross margin above 30% in the second half and positive EBITDA in the same period.
The guidance has credibility. The company reported $29 million in new bookings during Q2 and an ending backlog of $31 million. With first-half revenue of $34.5 million, the backlog alone covers a meaningful portion of the implied second-half range. That reduces execution risk relative to a pipeline-dependent forecast.
The Livermore Production Campus is the strategic centerpiece. Expected to triple manufacturing capacity and become operational later this year, it positions Velo3D to serve accelerating demand from defense and aerospace customers. The company also expanded its partnership with Mears Machine Corporation, which ordered its fifth Sapphire XC system with options for two more, and entered a strategic collaboration with Aurelia Technologies for next-generation gas turbine components. These are repeat orders and named partnerships that validate the commercial model.
The balance sheet has been transformed. Cash and equivalents stood at $91.1 million as of June 30, up from $39.0 million at year-end 2025, after raising approximately $109 million in gross equity proceeds through a registered direct offering and an at-the-market program. Total debt was reduced by more than 70% to $8.2 million. The company now has the financial flexibility to fund the Livermore expansion and the $40 million to $50 million in planned capital expenditures without the existential liquidity risk that has hung over the stock in prior periods.
Velo3D is no longer a story about survival. It is a story about scaling into proven demand. The gross margin swing from negative to 21.5% is not a one-time artifact of cost allocation changes. The company explicitly cited higher average selling prices, favorable product mix, and manufacturing efficiencies as drivers, alongside the allocation refinement. Those are structural improvements that should persist as volumes grow. The 57% jump in printer and parts revenue, combined with the backlog coverage, suggests that the revenue guide is achievable without heroic assumptions.
What to watch next: the pace at which the Livermore campus comes online and whether the company can sustain the gross margin trajectory into the second half. The 30%+ margin target is ambitious given the current 21.5% level, but the mix shift toward higher-margin RPS parts production and the operating leverage from the new facility provide a credible path. The equity dilution from the capital raises is real, but the alternative would have been a constrained growth trajectory. For now, the market is rewarding the trade-off.