3D Systems Reports $440.1 Million Revenue for Fiscal Year 2024, Down 9.8%

3D Systems Corporation reported a total revenue of $440.1 million for the fiscal year ended December 31, 2024, a decrease of 9.8% from $488.1 million in 2023. The decline was primarily driven by a 15.1% drop in product revenue, which fell to $279.2 million, attributed to lower sales volumes in both the Industrial and Healthcare Solutions segments. In contrast, services revenue saw a slight increase of 1.0%, reaching $160.9 million, bolstered by higher personalized healthcare solutions and printer service maintenance agreements.

The company's gross profit also decreased, falling to $164.2 million from $196.4 million in the previous year, resulting in a gross profit margin of 37.3%, down from 40.2%. This decline was influenced by increased costs associated with inventory obsolescence and unfavorable manufacturing variances. Operating expenses totaled $441.6 million, a reduction from $602.4 million in 2023, largely due to a significant decrease in asset impairment charges, which dropped from $302.8 million to $145.0 million. The net loss attributable to 3D Systems was $255.6 million, compared to a loss of $362.7 million in the prior year.

Strategically, 3D Systems has been active in restructuring its operations, completing a multi-faceted plan aimed at improving efficiencies and reducing costs. This included in-sourcing certain manufacturing processes and exiting 18 leased facilities. The company also announced the sale of its Geomagic software business to Hexagon AB for $123 million, expected to close in mid-2025. Additionally, 3D Systems acquired Wematter AB, a Swedish 3D printer manufacturer, for approximately $10.2 million, enhancing its Selective Laser Sintering portfolio.

As of December 31, 2024, 3D Systems employed 1,833 individuals, a decrease from 1,925 in the previous year, reflecting ongoing efforts to streamline operations. The company reported a significant customer concentration, with one customer accounting for approximately 16% of total revenue. Looking ahead, 3D Systems anticipates that its restructuring initiatives will yield substantial savings and support sustainable growth, particularly in its core research and development activities. However, the company remains cautious about macroeconomic conditions that could impact its performance.