Velo3D Secures $11.5 Million Full Rate Production RPS Contract from Key US Defense Prime Contractor

Rhea-AI Summary

Velo3D (NASDAQ: VELO) was awarded a multi-year $11.5 million full rate production contract from a key U.S. defense prime to support a high-profile national security program.

The deal uses Velo3D's Rapid Production Solution (RPS) and industrial-scale LPBF printing to deliver critical metal components faster and at lower cost than subtractive methods. All Sapphire printers are assembled in the United States and can print parts up to 600mm diameter and 1 meter height.

Positive

• $11.5M multi-year full rate production contract secured
• Contract leverages RPS and LPBF for faster, lower-cost parts
• All Sapphire printers assembled in U.S.; print up to 600mm×1m

Negative

• Revenue exposure tied to a single defense prime/high-profile program

News Market Reaction – VELO

-15.67% 1.6x vol

67 alerts

-15.67% News Effect

+8.5% Peak Tracked

-26.5% Trough Tracked

-$51M Valuation Impact

$275M Market Cap

1.6x Rel. Volume

On the day this news was published, VELO declined 15.67%, reflecting a significant negative market reaction. Argus tracked a peak move of +8.5% during that session. Argus tracked a trough of -26.5% from its starting point during tracking. Our momentum scanner triggered 67 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $51M from the company's valuation, bringing the market cap to $275M at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Contract value: $11.5 million Max part diameter: 600mm Max part height: 1 meter

3 metrics

Contract value $11.5 million Multi-year full-rate production RPS contract with U.S. defense contractor

Max part diameter 600mm Maximum part diameter printable on Sapphire printers

Max part height 1 meter Maximum part height printable on Sapphire printers

Market Reality Check

Price: $9.05 Vol: Volume 1,091,448 is below...

low vol

$9.05 Last Close

Volume Volume 1,091,448 is below 20-day average of 2,427,905 (relative volume 0.45x). low

Technical Price 11.17 is above 200-day MA 8.88, but 53.15% below 52-week high 23.84 and 297.51% above 52-week low 2.81.

Peers on Argus

Peers show mixed moves: ALOT +0.22%, OSS +1.16%, while YIBO -3.67%, QMCO -1.87%....

1 Down

Peers show mixed moves: ALOT +0.22%, OSS +1.16%, while YIBO -3.67%, QMCO -1.87%. Momentum scanner flags only ZSPC -4.92%, indicating this defense contract is more stock-specific than sector-driven.

Historical Context

5 past events · Latest: 2026-02-10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2026-02-10	Defense qualification	Positive	-1.9%	Became first qualified AM vendor for U.S. Army GVSC program.
2026-01-13	Army partnership	Positive	-9.1%	CRADA with U.S. Army GVSC for additively manufactured vehicle parts.
2025-12-22	Private placement	Positive	+44.0%	Raised <b>$30M</b> via PIPE to fund growth and RPS scaling.
2025-12-22	Defense contract	Positive	+44.0%	Won <b>$32.6M</b> DIU contract to alleviate defense bottlenecks.
2025-11-10	Earnings update	Positive	+4.0%	Reported Q3 results, Nasdaq uplisting, and reaffirmed revenue guidance.

Pattern Detected

Recent government and defense-related positive news has produced mixed reactions, with some events selling off despite strong headlines and others triggering large gains.

Recent Company History

Recent news shows Velo3D building a defense and government footprint. In Nov 2025, it reported $13.6M Q3 revenue, a $21.1M backlog, and reaffirmed $50M–$60M 2025 guidance. Late Dec 2025 brought a $32.6M defense contract and a $30M private placement to scale RPS, both followed by strong price gains. Early 2026 Army collaborations saw negative price reactions, highlighting prior divergence between positive defense headlines and short-term performance.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-01-13

An effective S-3 resale shelf dated 2026-01-13 registers up to 3,636,363 shares of common stock for existing investors from a recent private placement. Velo3D is not selling shares under this shelf and will not receive proceeds from these resales, though it covers registration expenses.

Market Pulse Summary

The stock dropped -15.7% in the session following this news. A negative reaction despite the new $11...

Analysis

The stock dropped -15.7% in the session following this news. A negative reaction despite the new $11.5M contract would fit past instances where positive Army-related news on 2026-01-13 and 2026-02-10 coincided with declines of -9.08% and -1.9%. Such responses have previously reflected investor focus on balance sheet and dilution over contract wins, as seen around late-2025 financings and resale registrations.

Key Terms

additive manufacturing, laser powder bed fusion, lpbf, subtractive manufacturing, +1 more

5 terms

additive manufacturing technical

"a leading additive manufacturing technology company for mission-critical metal components"

Additive manufacturing, often called 3D printing, builds physical parts by laying down material layer by layer from a digital design, rather than cutting or molding from a solid block. It matters to investors because it can cut production time and waste, enable cheaper prototypes and customized products, and reshape supply chains—changes that can lower costs, speed new products to market, and create competitive advantages that affect a company's revenue and margins.

laser powder bed fusion technical

"industrial-scale Laser Powder Bed Fusion (LPBF) printing capability to produce high-performance"

Laser powder bed fusion is a type of 3D printing where a thin layer of metal powder is spread across a platform and a focused laser melts selected areas to fuse particles together, repeating layer by layer to build a finished metal part. Investors should care because it enables complex, lightweight designs, faster prototyping, and lower tooling costs compared with traditional manufacturing—factors that can reduce production time, cut supply‑chain steps, and open new market opportunities, but may require different quality controls and certification.

lpbf technical

"many benefits of LPBF technology, such as higher fidelity printing"

LPBF stands for laser powder bed fusion, a 3D metal-printing process where a laser melts fine metal powder layer by layer to build precise parts. For investors, LPBF matters because it can lower manufacturing costs, speed product development and enable complex, customized designs—factors that affect a company’s competitiveness, production scalability and regulatory pathway for safety-critical products like medical implants or aerospace components.

subtractive manufacturing technical

"lower cost than the same components produced using traditional subtractive manufacturing methods"

Subtractive manufacturing is a production method that makes parts by removing material from a solid block—think carving or sculpting a shape out of wood or metal—using tools like cutters or drills. Investors care because it affects production cost, waste, speed and precision: companies relying on subtractive methods may face higher material waste, longer lead times and greater equipment investment, which influence margins, scalability and supply-chain risk.

in-situ process monitoring technical

"best in class layer-by-layer in-situ process monitoring"

Real-time measurement and checking of a manufacturing or production step where it actually happens, using sensors or instruments built into the process. Like watching a car’s dashboard while driving, it helps spot problems early, keep product quality steady, reduce waste and delays, and meet regulatory rules—factors that can lower costs, protect revenue and make a company’s operations more reliable for investors.

AI-generated analysis. Not financial advice.

Contract delivers essential system components for a sensitive national security program entering full-rate production

FREMONT, Calif., Feb. 17, 2026 /PRNewswire/ -- Velo3D, Inc. (NASDAQ: VELO), a leading additive manufacturing technology company for mission-critical metal components has been awarded a multi-year full rate production contract from a key U.S. defense contractor, valued at $11.5 million in support of a high-profile national security program.

"Velo3D is absolutely honored to continue supporting key industry partners delivering critical programs that strengthen our national security," said Dr. Arun Jeldi, CEO of Velo3D. "This multi-year full rate production contract signals the trust and confidence our customers have in Velo3D to scale programs rapidly through faster part delivery, enhanced reliability and the surge capacity needed to meet evolving demands of their customers."

The contract leverages Velo3D's Rapid Production Solution (RPS) and industrial-scale Laser Powder Bed Fusion (LPBF) printing capability to produce high-performance, critical components quickly and at a lower cost than the same components produced using traditional subtractive manufacturing methods.

All Velo3D Sapphire® printers are assembled in the United States and capable of printing parts up to 600mm in diameter and one meter in height repeatably across the entire fleet of Velo3D Sapphire® printers. This advancement significantly expands addressable applications, enabling larger part production while offering the many benefits of LPBF technology, such as higher fidelity printing and Velo3D's best in class layer-by-layer in-situ process monitoring.

About Velo3D

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company's solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire® family of printers, and the Assure quality control system—all of which are powered by Velo3D's Intelligent Fusion® manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as Honeywell, Honda, Chromalloy, and Lam Research. Velo3D has been named as one of Fast Company's Most Innovative Companies for 2024. For more information, please visit Velo3D.com, or follow the company on LinkedIn or X.

Forward-Looking Statements:

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect", "estimate", "project", "budget", "forecast", "anticipate", "intend", "plan", "may", "will", "could", "should", "believes", "predicts", "potential", "continue", and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding the timing, size and expected gross proceeds of the offering, the satisfaction of customary closing conditions related to the offering and sale of securities, the Company's ability to complete the offering, the timing of the Cash Payment and the Company's other expectations, hopes, beliefs, intentions, or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company's control and are difficult to predict. The Company cautions not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

All Rights Reserved © Velo3D, Inc.

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SOURCE Velo3D, Inc.

FAQ

How much is the Velo3D (VELO) contract with the U.S. defense prime worth?

The contract is valued at $11.5 million and spans multiple years. According to the company, it is a full rate production award supporting a high-profile national security program and uses Velo3D's RPS capability.

What production solution will Velo3D (VELO) use under the $11.5M contract?

Velo3D will use its Rapid Production Solution (RPS) and LPBF printing. According to the company, this enables faster part delivery, enhanced reliability and lower cost versus subtractive methods.

What are Velo3D Sapphire printer capabilities mentioned in the VELO announcement?

All Sapphire printers are assembled in the United States and can print parts up to 600mm diameter and 1 meter height. According to the company, this expands addressable larger-part applications.

Does the Velo3D (VELO) contract affect production speed or cost?

Yes — the award is intended to speed production and reduce costs versus traditional subtractive manufacturing. According to the company, RPS and LPBF enable quicker, lower-cost production of critical components.

Is the Velo3D (VELO) contract tied to a classified or sensitive program?

The contract supports a described high-profile national security program with sensitive elements. According to the company, work is for a key U.S. defense contractor and involves mission-critical components.

What does the VELO contract mean for Velo3D's capacity and scale?

The award signals scaling to full rate production using industrial LPBF capability and surge capacity. According to the company, the contract leverages fleet-wide repeatable printing and larger part capability.