Markforged Holding Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue performance and strategic developments. The company generated revenue of $20.5 million in Q3 2024, a slight increase from $20.1 million in Q3 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $62.7 million from $69.6 million in the same period of the previous year, reflecting a 10% decline. This decline was primarily attributed to a 19% drop in hardware revenue, which fell to $35.5 million, while service revenue increased by approximately 19% to $9.1 million, driven by subscription offerings.

Markforged's net loss for Q3 2024 was $23.4 million, significantly reduced from a loss of $51.4 million in Q3 2023. For the nine-month period, the net loss improved to $73.7 million from $89.4 million in the prior year. The company reported a gross profit margin of 50% for the nine months ended September 30, 2024, up from 47% in the same period of 2023, attributed to operational efficiencies and a favorable product mix.

The company has been actively managing its costs, implementing a $25 million cost reduction initiative aimed at lowering annual operating expenses to approximately $70 million. This initiative follows a 10% workforce reduction announced in November 2023, expected to save between $9 million and $12 million in 2024. Total operating expenses for the nine months ended September 30, 2024, decreased by 18% to $102.7 million compared to $124.7 million in 2023.

In terms of strategic developments, Markforged announced a merger agreement with Nano Dimension Ltd. on September 25, 2024, where each outstanding share of Markforged common stock will be converted into cash of $5.00 per share, subject to stockholder and regulatory approvals. The merger follows a reverse stock split executed on September 19, 2024, aimed at regaining compliance with NYSE listing requirements, which was achieved on October 30, 2024.

Additionally, the company is addressing a significant legal liability stemming from a patent infringement case with Continuous Composites, which resulted in a jury verdict of $17.3 million. A settlement agreement was reached on September 20, 2024, with an initial payment of $18 million made on October 10, 2024, and further installment payments scheduled through 2027.

As of September 30, 2024, Markforged reported cash and cash equivalents of $59.3 million, down from $116.9 million at the end of 2023, and an accumulated deficit of $278.4 million. The company continues to face challenges in the competitive additive manufacturing industry, including supply chain disruptions and inflationary pressures, which may impact future performance.