Markforged Reports 9% Revenue Decline and $85.6 Million Net Loss for Fiscal Year 2024

Markforged Holding Corporation reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $85.1 million, down 9% from $93.8 million in 2023. The company incurred a net loss of $85.6 million, a decrease from the previous year's loss of $103.6 million. This year's losses included an $18 million accrual related to a legal settlement with Continuous Composites. The decline in revenue was primarily attributed to a 17% drop in hardware sales, which the company linked to a challenging macroeconomic environment, increased competition, and pricing pressures. However, service revenue increased by 20%, reflecting the growing adoption of subscription offerings.

In terms of operational metrics, Markforged's customer base remains extensive, with thousands of users globally, including significant clients in industries such as aerospace, healthcare, and automotive. The company has also been focusing on expanding its market presence and product offerings, including the introduction of new printers and materials. As of December 31, 2024, Markforged had approximately 270 full-time employees, a reduction from previous headcounts due to restructuring efforts aimed at cost management. The company anticipates that its ongoing investments in research and development will continue to drive innovation and product enhancements.

Strategically, Markforged is in the process of merging with Nano Dimension Ltd., a move that could significantly reshape its operational landscape. The merger agreement, signed on September 25, 2024, stipulates that shareholders will receive $5.00 per share in cash, subject to certain conditions. However, the merger is currently under regulatory review, and any delays or complications could impact the company's financial stability and market position. The company has incurred substantial transaction costs related to the merger, totaling approximately $4.9 million in 2024, and anticipates further expenses in the upcoming fiscal year.

Markforged's liquidity position is under scrutiny, with cash and cash equivalents reported at $53.6 million as of December 31, 2024. The company has faced negative cash flows from operations, amounting to $61.3 million for the year, and has expressed concerns about its ability to continue as a going concern if additional capital cannot be raised. The ongoing payment obligations from the settlement with Continuous Composites, which includes future installment payments, further complicate the financial outlook. The company has implemented cost-saving measures, including workforce reductions, to mitigate these challenges.

Looking ahead, Markforged's management remains focused on enhancing its product offerings and expanding its market reach while navigating the complexities of the merger with Nano Dimension. The company acknowledges the risks associated with macroeconomic conditions, competition, and regulatory approvals, which could influence its operational and financial performance in the near term.