Stratasys (SSYS) revenue holds near flat as H1 2026 losses and cash outflows rise
Stratasys Ltd. reported essentially flat revenue but higher losses for the three and six months ended June 30, 2026. Q2 2026 revenue was $137.6 million, down 0.3% year over year, as a 13.7% drop in systems revenue was largely offset by higher consumables and services, reflecting longer sales cycles in a weak macro environment.
Gross margin declined to 42.3% in Q2 and 42.0% for the first half, pressured by higher U.S. tariffs, unfavorable currency moves and one‑time manufacturing reorganization charges. Operating loss improved modestly in Q2 to $13.5 million but widened for the first half to $40.0 million, as higher legal expenses and FX effects raised selling, general and administrative costs.
Net loss was $16.9 million in Q2 and $40.7 million for the first half, with the effective tax rate elevated by geographic mix and valuation allowance movements. Operating cash flow turned negative at $(16.3) million for the first half. Stratasys ended June 30, 2026 with $92.5 million in cash and cash equivalents, $120.0 million in short‑term deposits and equity of $818.6 million, and it is pursuing a planned $42.5 million all‑cash acquisition of Markforged.
Positive
- None.
Negative
- Operating performance weakened: first-half 2026 operating loss increased to $40.0 million from $29.0 million, as margins compressed and legal expenses rose.
- Higher net losses: first-half net loss widened to $40.7 million from $29.8 million, with an effective tax rate of 2.5% of revenue.
- Cash generation deteriorated: net cash from operating activities for the first half shifted to an outflow of $(16.3) million versus an inflow of $3.4 million a year earlier.
- Margin pressure from tariffs and FX: total gross margin fell to 42.0% from 43.7% in the prior-year period, hurt by higher U.S. tariff costs, currency headwinds and reorganization charges.
Filing Explained
Existing holders face completed PIPE-related dilution; the Markforged purchase and share repurchase program remain uncompleted or unused.
As a Form 6-K, this report furnishes interim material information; it records a completed Fortissimo PIPE that issued
Fortissimo held approximately
For Markforged, Stratasys agreed to acquire all issued and outstanding shares for an all-cash value of
The company’s
Separately, June 30, 2026 issued and outstanding ordinary shares were 87.853 million and 87.587 million, respectively, versus 86.376 million and 86.110 million at December 31, 2025. The six-month changes included employee-plan issuances, an employee share purchase plan issuance, and 55 thousand shares issued for the Nexa3D acquisition; the board also increased the 2022 incentive-plan reserve by 2.2 million shares.
The next state-changing disclosures are the Fortissimo lock-up’s
Key Figures
Q2 2026 Revenue: $137,606 thousand
H1 2026 Revenue: $270,303 thousand
H1 2026 Operating Loss: $39,999 thousand
+5 more
8 metrics
Q2 2026 Revenue
$137,606 thousand
Three months ended June 30, 2026
H1 2026 Revenue
$270,303 thousand
Six months ended June 30, 2026
H1 2026 Operating Loss
$39,999 thousand
Six months ended June 30, 2026
H1 2026 Net Loss
$40,690 thousand
Six months ended June 30, 2026
Operating Cash Flow H1 2026
$(16,295) thousand
Net cash provided by (used in) operating activities
Cash and Cash Equivalents
$92,528 thousand
Balance sheet as of June 30, 2026
Short-term Bank Deposits
$120,000 thousand
Balance sheet as of June 30, 2026
Remaining Performance Obligations
$95,400 thousand
As of June 30, 2026
Key Terms
Remaining Performance Obligations, cash flow hedge, PIPE transaction, contingent consideration, +2 more
6 terms
Remaining Performance Obligations financial
"As of June 30, 2026, the total RPO amounted to $95.4 million."
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
cash flow hedge financial
"Foreign exchange forward contracts, designated as cash flow hedge for accounting purposes"
A cash flow hedge is an accounting label for a contract or arrangement used to offset expected future swings in a company’s cash payments or receipts — for example from variable-rate interest, foreign currency sales, or forecasted purchases. It matters to investors because it aims to smooth future cash and earnings volatility: gains or losses on the hedge are held out of current profit and reported separately until the underlying transaction affects results, much like buying insurance to steady future bills.
PIPE transaction financial
"we completed a private investment in public equity, or PIPE, transaction whereby FF6-SSYS"
A PIPE transaction is when a publicly traded company sells new shares or convertible securities directly to a select group of private investors, rather than through a public offering. It’s essentially a quick way for a company to raise cash, but it can dilute existing shareholders and often involves a price discount, so investors watch PIPEs for their potential impact on share value and ownership stakes—like a private top-up that changes the size of everyone’s slice of the pie.
contingent consideration financial
"Contingent consideration represents liabilities recorded at fair value in connection with acquisitions"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
share-based compensation financial
"Share-based compensation expenses for equity-classified share options, restricted share units"
Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.
additive manufacturing technical
"providing additive manufacturing (“AM”) solutions"
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.
FAQ
How did Stratasys (SSYS) revenue perform in Q2 2026 versus Q2 2025?
Stratasys reported $137.6 million in Q2 2026 revenue, a 0.3% decrease from $138.1 million in Q2 2025. Systems revenue declined, while consumables and services provided partial offsets.
What were Stratasys (SSYS) profits and losses for the first half of 2026?
For the six months ended June 30, 2026, Stratasys recorded an operating loss of $40.0 million and a net loss of $40.7 million, compared with a $29.0 million operating loss and $29.8 million net loss in 2025.
How strong is Stratasys’s (SSYS) balance sheet as of June 30, 2026?
As of June 30, 2026, Stratasys held $92.5 million in cash and cash equivalents, $120.0 million in short-term bank deposits, $77.6 million in long-term investments, total assets of $1.05 billion and equity of $818.6 million.
What is Stratasys’s (SSYS) gross margin trend in 2026?
Total gross margin was 42.3% in Q2 2026 and 42.0% for the first half, down from 43.1% and 43.7% a year earlier, mainly due to higher U.S. tariffs, unfavorable currency effects and manufacturing reorganization costs.
How much cash did Stratasys (SSYS) generate from operations in the first half of 2026?
Net cash from operating activities was a $(16.3) million outflow in the first half of 2026, compared with a $3.4 million inflow in the first half of 2025, reflecting weaker profitability and working-capital movements.
What major acquisition is Stratasys (SSYS) planning in 2026?
On May 26, 2026, Stratasys agreed to acquire Markforged, Inc. in an all-cash transaction valued at $42.5 million, subject to adjustments and regulatory and closing conditions, with completion expected in the second half of 2026.
What is Stratasys’s (SSYS) remaining performance obligations (RPO) balance?
As of June 30, 2026, Stratasys reported remaining performance obligations of $95.4 million. It expects to recognize $67.5 million within 12 months, $14.9 million in the subsequent 12 months, and $13.0 million thereafter.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number 001-35751
| (Translation of registrant’s name into English) | ||||||||||||||||||||
| c/o Stratasys, | Inc. | |||||||||||||||||||
| 5995 Opus Parkway | ||||||||||||||||||||
| Minnetonka | Minnesota | |||||||||||||||||||
| 55343 | ||||||||||||||||||||
| (Address of principal executive office) | ||||||||||||||||||||
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
The contents of this Report of Foreign Private Issuer on Form 6-K (this “Form 6-K”), including Exhibits 99.1, 99.2 and 101 annexed hereto, are incorporated by reference into the Registrant’s registration statements on Form S-8, SEC file numbers 333-190963, 333-236880, 333-253694, 333-262951, 333-262952, 333-270249, 333-277836, 333-285590 and 333-294041, filed by the Registrant with the SEC on September 3, 2013, March 4, 2020, March 1, 2021, February 24, 2022, February 24, 2022, March 3, 2023, March 12, 2024, March 6, 2025, and March 5, 2026, respectively, and Form F-3, SEC file numbers 333-251938, 333-288670 and 333-289567, filed by the Registrant with the SEC on January 7, 2021, July 15, 2025, and August 13, 2025, respectively, and shall be a part thereof from the date on which this Form 6-K is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
CONTENTS
Quarterly Financial Statements and Review of Results of Operations, Financial Condition and Prospects
On August 13, 2026, Stratasys Ltd., or Stratasys, released its financial results for the three and six months ended June 30, 2026.
Attached hereto as Exhibit 99.1 are the unaudited, condensed consolidated financial statements of Stratasys as of, and for the three and six months ended June 30, 2026 (including the notes thereto), or the Q2 2026 Financial Statements.
Attached hereto as Exhibit 99.2 is Stratasys’ review of its results of operations and financial condition for the three and six months ended June 30, 2026, including the following:
(i) Operating and Financial Review and Prospects
(ii) Quantitative and Qualitative Disclosures About Market Risk
(iii) Legal Proceedings
(iv) Risk Factors
Attached hereto as Exhibit 101 are the Q2 2026 Financial Statements, formatted in IXBRL (eXtensible Business Reporting Language), consisting of the sub-exhibits identified below.
Exhibits
Exhibit Number | Document Description | ||||
| 99.1 | Unaudited, condensed consolidated financial statements of Stratasys as of, and for the three and six months ended, June 30, 2026 | ||||
| 99.2 | Stratasys' review of its results of operations and financial condition for the three and six months ended June 30, 2026 | ||||
| EX-101.INS | IXBRL Taxonomy Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
| EX-101.SCH | IXBRL Taxonomy Extension Schema Document | ||||
| EX-101.CAL | IXBRL Taxonomy Calculation Linkbase Document | ||||
| EX-101.DEF | IXBRL Taxonomy Extension Definition Linkbase Document | ||||
| EX-101.LAB | IXBRL Taxonomy Label Linkbase Document | ||||
| EX-101.PRE | IXBRL Taxonomy Presentation Linkbase Document | ||||
| EX-104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| STRATASYS LTD. | ||||||||
Dated: August 13, 2026 | By: | /s/ Eitan Zamir | ||||||
| Name: | Eitan Zamir | |||||||
Title: | Chief Financial Officer | |||||||
Exhibit 99.1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2026
(UNAUDITED)
1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
(UNAUDITED)
| Item | Page | |||||||
Consolidated Balance Sheets | 3 | |||||||
Consolidated Statements of Operations and Comprehensive Loss | 4 | |||||||
Consolidated Statements of Changes in Equity | 5 | |||||||
Consolidated Statements of Cash Flows | 6 | |||||||
Notes to Condensed Consolidated Interim Financial Statements | 7-20 | |||||||
2
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Balance Sheets | ||||||||||||||
(U.S. $ in thousands, except share data) | ||||||||||||||
| June 30, 2026 | December 31, 2025 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Short-term bank deposits | ||||||||||||||
Accounts receivable, net of allowance for credit losses of $ | ||||||||||||||
| Inventories | ||||||||||||||
| Prepaid expenses | ||||||||||||||
| Other current assets | ||||||||||||||
| Total current assets | ||||||||||||||
| Non-current assets | ||||||||||||||
| Property, plant and equipment, net | ||||||||||||||
| Goodwill | ||||||||||||||
| Other intangible assets, net | ||||||||||||||
| Operating lease right-of-use assets | ||||||||||||||
| Long-term investments | ||||||||||||||
| Other non-current assets | ||||||||||||||
| Total non-current assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | $ | ||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||||
| Accrued compensation and related benefits | ||||||||||||||
| Deferred revenues - short-term | ||||||||||||||
| Operating lease liabilities - short-term | ||||||||||||||
| Total current liabilities | ||||||||||||||
| Non-current liabilities | ||||||||||||||
| Deferred revenues - long-term | ||||||||||||||
| Deferred income taxes | ||||||||||||||
| Operating lease liabilities - long-term | ||||||||||||||
| Contingent consideration - long-term | ||||||||||||||
| Other non-current liabilities | ||||||||||||||
| Total non-current liabilities | ||||||||||||||
| Total liabilities | $ | $ | ||||||||||||
| Contingencies (see note 12) | ||||||||||||||
| Equity | ||||||||||||||
Ordinary shares, NIS | $ | $ | ||||||||||||
Treasury shares at cost, | ( | ( | ||||||||||||
| Additional paid-in capital | ||||||||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||||||||
| Accumulated deficit | ( | ( | ||||||||||||
| Total equity | ||||||||||||||
| Total liabilities and equity | $ | $ | ||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||||||||||||
(U.S. $ in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Products | $ | $ | $ | $ | ||||||||||||||||||||||
| Services | ||||||||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||||||||
| Products | ||||||||||||||||||||||||||
| Services | ||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Research and development, net | ||||||||||||||||||||||||||
| Selling, general and administrative | ||||||||||||||||||||||||||
| Operating loss | ( | ( | ( | ( | ||||||||||||||||||||||
Financial income, net | ||||||||||||||||||||||||||
| Loss before income taxes | ( | ( | ( | ( | ||||||||||||||||||||||
Income tax expenses | ||||||||||||||||||||||||||
| Share in losses of associated companies | ||||||||||||||||||||||||||
| Net loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Net loss per share - basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Weighted average ordinary shares outstanding - basic and diluted | ||||||||||||||||||||||||||
| Comprehensive loss | ||||||||||||||||||||||||||
| Net loss | ( | ( | ( | ( | ||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Unrealized gains (losses) on derivatives designated as cash flow hedges, net | ( | ( | ||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||
| Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| (U.S. $ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three and Six Months Ended June 30, 2026 | Ordinary Shares | Treasury Shares | |||||||||||||||||||||||||||||||||||||||||||||
| Number of shares | Amount | Number of shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||||||||
| Balances as of December 31, 2025 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in connection with share-based compensation plans | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2026 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares in connection with share-based compensation plans | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares under employee share purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares as part of Nexa3D Inc. acquisition | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2026 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
| Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| (U.S. $ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three and Six Months Ended June 30, 2025 | Ordinary Shares | Treasury Shares | |||||||||||||||||||||||||||||||||||||||||||||
| Number of shares | Amount | Number of shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||||||||
| Balances as of December 31, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares in connection with share-based compensation plans | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Comprehensive loss | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Balances as of March 31, 2025 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares in connection with share-based compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares under employee share purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| PIPE newly-issued ordinary shares, net | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares as part of Nexa3D Inc. acquisition | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Balances as of June 30, 2025 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Cash Flows | |||||||||||
(U.S. $ in thousands) | Six Months Ended June 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Share-based compensation | |||||||||||
| Foreign currency transaction (gain) loss | ( | ||||||||||
| Share in losses of associated companies | |||||||||||
| Revaluation of investments | ( | ||||||||||
| Revaluation of contingent consideration | ( | ||||||||||
| Deferred income taxes, net and uncertain tax positions | |||||||||||
| Other non-cash items, net | ( | ( | |||||||||
| Change in cash attributable to changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | ( | ( | |||||||||
| Inventories | |||||||||||
| Other current assets and prepaid expenses | ( | ( | |||||||||
| Other non-current assets | |||||||||||
| Accounts payable | ( | ||||||||||
| Other current liabilities | ( | ||||||||||
| Deferred revenues | |||||||||||
| Other non-current liabilities | ( | ( | |||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
| Cash flows from investing activities | |||||||||||
Cash paid for business combinations, net of cash acquired | ( | ||||||||||
| Purchase of property and equipment | ( | ( | |||||||||
| Investments in short-term bank deposits | ( | ( | |||||||||
| Proceeds from short-term bank deposits | |||||||||||
| Investments in unconsolidated entities | ( | ( | |||||||||
| Purchase of intangibles and other assets | ( | ( | |||||||||
| Other investing activities | ( | ||||||||||
| Net cash provided by (used in) investing activities | ( | ||||||||||
| Cash flows from financing activities | |||||||||||
| Payment of contingent consideration | ( | ( | |||||||||
Proceeds from PIPE transaction, net of issuance costs | |||||||||||
| Other financing activities | ( | ||||||||||
| Net cash provided by (used in) financing activities | ( | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
| Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Transfer of inventories to fixed assets | |||||||||||
| Transfer of fixed assets to inventories | |||||||||||
Issuance of ordinary shares under employee share purchase plan | |||||||||||
Issuance of ordinary shares as part of Nexa3D Inc. transaction | |||||||||||
| Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash included in other current assets | |||||||||||
| Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
6
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Business Description and Basis of Presentation
Stratasys Ltd. (collectively with its subsidiaries, the “Company” or “Stratasys”) is a global leader in connected, polymer-based 3D printing solutions, across the entire manufacturing value chain. The Company leverages its distinct competitive advantages, which include a broad set of best-in-class 3D printing platforms, software, materials, a technology partner ecosystem, innovative leadership, and global GTM infrastructure, in order to position itself to capture share in a significant and growing global marketplace, with a focus on manufacturing, which the Company views as having the largest and fastest growing total addressable market.
The Company’s approximately 2,700 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, fashion and education. Stratasys’ products and comprehensive solutions improve product quality, development time, cost, time-to-market and patient care. The Company’s 3D ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production.
The condensed consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation.
The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the Company to make estimates based on assumptions about current and, for some estimates, future, economic and market conditions which affect reported amounts and related disclosures in its financial statements. Although the Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from the Company’s expectations, which could materially affect the Company's results of operations and financial position.
The Company's financial results for the periods covered by its financial statements are impacted by global and regional macroeconomic and geopolitical developments. During part of the six-month period ended June 30, 2026, Israel, together with the U.S., were engaged in a war against Iran and its sponsored terrorist organization in Lebanon, Hezbollah. Since the implementation of a ceasefire in April 2026, Israel has not been engaged in direct military conflict with Iran, although the Israeli-Hezbollah front in northern Israel and southern Lebanon has remained active for part of the time since the ceasefire, and the United States' conflict with Iran has continued intermittently. One of the Company's two global headquarters, many of the Company's employees, including several senior members of its management team, certain of its manufacturing and research and development facilities, and some of its suppliers, are located in Israel. As of the publication date of these financial statements and throughout the period covered by these financial statements, the Company's activities in Israel and globally were largely unaffected by the war.
In addition to the Israeli-U.S. war against Iran and Hezbollah, a number of global developments that have been impacting, and may continue to impact, macroeconomic conditions also may affect the accounting estimates and assumptions that underlie the Company's financial statements, including, most prominently: the extent to which tariffs continue to increase the prices the Company pays for finished goods used in offering its products and services, thereby adversely affecting its gross margins, and also potentially adversely impacting the industries and countries into which the Company sells its products; the degree to which inflation remains moderate; whether and when additional interest rate cuts are implemented by central banks; whether tight credit markets are loosened; whether capital markets continue to rise; whether oil prices and, indirectly, energy prices moderate and overcome the effects of the U.S. and Iranian blockades in the Strait of Hormuz; and whether global supply chains maintain resistance to ongoing challenges. As a result of those global uncertainties, the accounting estimates and assumptions underlying these consolidated financial statements may change over time. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuations, and the Company's allowance for expected credit losses. These financial statements reflect the effects of global developments based upon Stratasys' management’s estimates and assumptions utilizing the most currently available information.
The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The reader is referred to the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 5, 2026 as part of the Company’s Annual Report on Form 20-F for such year.
Note 2. New Accounting Pronouncements
Accounting Pronouncements Adopted
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient when estimating credit losses on accounts receivable and contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The Company has adopted this update on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.
Recently issued accounting pronouncements, not yet adopted
In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes new guidance for the recognition, measurement, presentation, and disclosure of environmental credits and related obligations. The new guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements.” The amendments in this update clarify interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this ASU are required to be adopted for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09 to amend the guidance in “Derivatives and Hedging” (Topic 815). The update provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-07 (“ASU 2025-07”), Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The guidance refines the scope of Topic 815 by clarifying which contracts are subject to derivative accounting and expand the scope exception for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendments may be applied prospectively or on a modified retrospective basis. The Company does not expect ASU 2025-07 will have a material impact on its consolidated financial statements.
In May 2025, the FASB issued ASU 2025-03 “Business Combinations and Consolidation: Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity”, which amends the guidance for determining the accounting acquirer in certain transactions. The guidance should be applied prospectively. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The adoption of this guidance will affect acquisition transactions of variable interest entities that occur after the initial application date.
In November 2024, the FASB issued ASU 2024-03 “Income Statement: Reporting Comprehensive Income— Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
7
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 3. Certain Transactions
MakerBot and Ultimaker transaction ("Ultimaker")
On August 31, 2022, Stratasys completed the merger of MakerBot (previously, a wholly-owned subsidiary) with Ultimaker, which together formed a new entity under the name Ultimaker.
The Company accounts for its investment in the combined company Ultimaker according to the equity method in accordance with ASC Topic 323, as it has retained the ability to exercise significant influence but does not control the new entity. The Company recognized an equity method investment in a total amount of $105.6 million comprised of the assumed fair value of the MakerBot shares and additional amount invested in cash by the Company, representing a share of 46.5 % in the new entity.
During 2025, Ultimaker continued to encounter difficulties in its business as a result of tighter competition and global market conditions resulting in revenue decline compared with prior expectations. In addition, the Company's management concluded that the decline in Ultimaker's revenues is expected to continue in 2026. The Company considered such events as indicators of potential impairment and accordingly performed an impairment analysis for the Company's investment in Ultimaker. Based on valuations performed, the fair value of the investment was estimated below its carrying amount in each year and such reduction in fair value was determined to be other than temporary.
Accordingly, the Company recorded an impairment charge in an amount of $33.9 million for the twelve-month period ended December 31, 2025, which was recorded in share in losses of associated companies and impairment charges in the Consolidated Statements of Operations and Comprehensive Loss.
As of June 30, 2026 and December 31, 2025 the Company's equity investment in Ultimaker was valued at $0 million, which represents the Company's investment in Ultimaker, net of the Company's share in Ultimaker's net losses, including impairments in the carrying value of the investment. The Company recorded no share of losses from Ultimaker during the six-month period ended June 30, 2026, compared to approximately $4.0 million for the six months ended June 30, 2025.
Other long-term investments
In addition to the investment in Ultimaker, other investments included under long-term investments consist of investments in marketable securities, and non-marketable equity securities and convertible notes of several companies without readily determinable fair value in which the Company does not have a controlling interest or significant influence. The Company invested in non-marketable equity securities and convertible notes of several companies in a total amount of $14.1 million during the six months ended June 30, 2026 and $22.9 million during 2025.
Prospective Acquisition of MarkForged
On May 26, 2026, Stratasys entered into a definitive agreement to acquire Markforged, Inc. (“Markforged”), a leading provider of end-to-end Fused Filament Fabrication (FFF) solutions and a wholly owned indirect subsidiary of Nano Dimension Ltd. (“Nano Dimension”), in an all-cash transaction valued at $42.5 million, subject to customary adjustments.
Under the terms of the agreement, Stratasys will acquire all issued and outstanding shares of Markforged. Nano Dimension will retain Markforged’s Metal Binder Jetting product line.
The acquisition is subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. The transaction is currently expected to be completed in the second half of 2026.
Stratasys expects to account for the acquisition using the acquisition method (business combination accounting), involving a purchase price allocation to the fair-valued assets and liabilities of Markforged being acquired by it, with any excess cash consideration paid above the total net fair value of those identifiable assets and liabilities to be recognized as goodwill on Stratasys' consolidated balance sheet.
8
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 4. Revenues
Disaggregation of Revenues
The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' location) and revenue type for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||||||||||
| Americas* | |||||||||||||||||||||||
| Systems | $ | $ | $ | $ | |||||||||||||||||||
| Consumables | |||||||||||||||||||||||
| Services | |||||||||||||||||||||||
| Total Americas | |||||||||||||||||||||||
| EMEA | |||||||||||||||||||||||
| Systems | |||||||||||||||||||||||
| Consumables | |||||||||||||||||||||||
| Services | |||||||||||||||||||||||
| Total EMEA | |||||||||||||||||||||||
| Asia Pacific | |||||||||||||||||||||||
| Systems | |||||||||||||||||||||||
| Consumables | |||||||||||||||||||||||
| Services | |||||||||||||||||||||||
| Total Asia Pacific | |||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | |||||||||||||||||||
*Revenues in the United States for the three months ended June 30, 2026 and 2025 amounted to $80.9 million and $80.4 million, respectively, and are included under the Americas region in the above table. Revenues in the United States for the six months ended June 30, 2026 and 2025 amounted to $155.9 million and $157.2 million, respectively, and are included under the Americas region in the above table.
9
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
The following table presents the Company’s revenues disaggregated based on the timing of revenues recognition (at a specific point in time or over the course of time) for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||||||||||
| Revenues recognized in point in time from: | |||||||||||||||||||||||
| Products | $ | $ | $ | $ | |||||||||||||||||||
| Services | |||||||||||||||||||||||
| Total revenues recognized in point in time | |||||||||||||||||||||||
| Revenues recognized over time from: | |||||||||||||||||||||||
| Services | |||||||||||||||||||||||
| Total revenues recognized over time | |||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | |||||||||||||||||||
Contract Assets and Contract Liabilities
Contract assets are recorded when the Company's right to consideration is conditioned on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2026 and December 31, 2025.
Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of June 30, 2026 and December 31, 2025 were as follows:
| June 30, 2026 | December 31, 2025 | |||||||||||||
| (U.S. $ in thousands) | ||||||||||||||
Deferred revenues * | $ | $ | ||||||||||||
*Includes $17.4 million and $19.1 million under long-term deferred revenues in the Company's consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.
Revenue recognized in 2026 that was included in deferred revenues balance as of December 31, 2025 was $12.7 million and $29.5 million for the three and six months ended June 30, 2026, respectively.
10
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Remaining Performance Obligations
Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2026, the total RPO amounted to $95.4 million. The Company expects to recognize $67.5 million of this RPO during the next 12 months, $14.9 million over the subsequent 12 months and the remaining $13.0 million thereafter.
Incremental Costs of Obtaining a Contract
11
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 5. Inventories
Inventories consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||||||||
(U.S. $ in thousands) | ||||||||||||||
| Finished goods | $ | $ | ||||||||||||
| Work-in-process | ||||||||||||||
| Raw materials | ||||||||||||||
| $ | $ | |||||||||||||
Note 6. Goodwill and Other Intangible Assets
Goodwill
Changes in the carrying amount of the Company’s goodwill during the six months ended June 30, 2026 were as follows:
| (U.S. $ in thousands) | ||||||||
Goodwill as of January 1, 2026 | $ | |||||||
Measurement period adjustments | ( | |||||||
Currency translation adjustments | ( | |||||||
Goodwill as of June 30, 2026 | $ | |||||||
Other Intangible Assets
Other intangible assets consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Carrying Amount, net of Impairment | Accumulated Amortization | Net book value | Carrying Amount, net of Impairment | Accumulated Amortization | Net book value | |||||||||||||||||||||||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | |||||||||||||||||||||||||||||||||||||
| Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Patents | ( | ( | ||||||||||||||||||||||||||||||||||||
| Trademarks and trade names | ( | ( | ||||||||||||||||||||||||||||||||||||
| Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||
| $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Amortization expenses relating to intangible assets for the three-month periods ended June 30, 2026 and 2025 were approximately $5.8 million and $5.4 million, respectively. Amortization expenses relating to intangible assets for the six-month periods ended June 30, 2026 and 2025 were approximately $11.5 million and $10.9 million, respectively.
12
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
As of June 30, 2026, the estimated amortization expenses relating to intangible assets for each of the following future periods were as follows:
| Estimated Amortization Expenses | ||||||||
| (U.S. $ in thousands) | ||||||||
Remaining 6 months of 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
2031 and thereafter | ||||||||
| Total | $ | |||||||
Note 7. Net Loss Per Share
The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (U.S. $ in thousands, except per share amounts) | (U.S. $ in thousands, except per share amounts) | |||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| Net loss for basic and diluted net loss per share | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
| Weighted average shares, net of treasury shares - for basic and diluted net loss per share | ||||||||||||||||||||||||||
| Net loss per share | ||||||||||||||||||||||||||
| Basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
The computation of diluted net loss per share excluded share awards of 5.7 million shares and 3.1 million shares for the three months ended June 30, 2026 and 2025, respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share. The computation of diluted net loss per share excluded share awards of $5.7 million shares and $2.1 million shares for the six months ended June 30, 2026 and 2025 respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share.
Note 8. Income Taxes
The Company had income tax expenses of $6.7 million for the three-month period ended June 30, 2026, compared to income tax expenses of $1.0 million for the three-month period ended June 30, 2025. The Company had income tax expenses of $6.7 million for the six-month period ended June 30, 2026, compared to income tax expenses of $1.5 million for the six-month period ended June 30, 2025. The Company’s effective tax rate as of June 30, 2026, was primarily impacted by the geographic mix of its earnings and losses, movements in its valuation allowance and changes in its uncertain tax positions.
13
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 9. Fair Value Measurements
The following table summarizes the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets:
| June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | |||||||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts not designated as hedging instruments | $ | — | $ | $ | — | $ | — | $ | $ | — | ||||||||||||||||||||||||||||
| Foreign exchange forward contracts designated as hedging instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Convertible notes | — | — | — | — | ||||||||||||||||||||||||||||||||||
Marketable securities | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts not designated as hedging instruments | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts designated as hedging instruments | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||
| Contingent consideration* | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
*Includes $0.5 million and $7.2 million under accrued expenses and other current liabilities in the Company's consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.
The Company's foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs).
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 3).
14
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 10. Derivative Instruments and Hedging Activities
Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes.
The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, British Pound, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. These contracts mature through December 2026.
The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments:
| Fair Value | Notional Amount | ||||||||||||||||||||||||||||
| Balance sheet location | June 30, 2026 | December 31, 2025 | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
(U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||||||||||||||||
Assets derivatives - Foreign exchange contracts, not designated as hedging instruments | Other current assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Assets derivatives - Foreign exchange contracts, designated as cash flow hedge | Other current assets | ||||||||||||||||||||||||||||
Liability derivatives - Foreign exchange contracts, not designated as hedging instruments | Accrued expenses and other current liabilities | ( | ( | ||||||||||||||||||||||||||
Liability derivatives - Foreign exchange contracts, designated as cash flow hedge | Accrued expenses and other current liabilities | ( | ( | ||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||
Foreign exchange contracts not designated as hedging instruments
As of June 30, 2026, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $98.0 million, and were used to reduce foreign currency exposures of the Euro, NIS, British Pound, Japanese Yen, Korean Won and Chinese Yuan. With respect to such derivatives, a gain of $2.7 million and a loss of $3.0 million were recognized under financial income, net for the three-month periods ended June 30, 2026 and 2025, respectively and a gain of $4.4 million and a loss of $5.5 million were recognized under financial income, net for the six-month periods ended June 30, 2026 and 2025, respectively. Such gains and losses partially offset the revaluation losses of the balance sheet items which are also recognized under financial income, net.
15
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Cash Flow Hedging - Hedges of Forecasted Foreign Currency Payroll and other operating expenses
As of June 30, 2026, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of $8.6 million into NIS. The Company uses, from time to time, short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in NIS. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss.
Cash Flow Hedging - Hedges of Forecasted Foreign Currency Revenue
The Company transacts business in U.S. Dollars and in various other currencies. The Company may use foreign exchange or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to six months . The Company enters into these foreign exchange contracts to hedge a portion of its forecasted foreign currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature.
As of June 30, 2026, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of €40.8 million into dollars.
16
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 11. Equity
a. Share capital
The Company’s issued share capital is composed of ordinary shares, NIS 0.01 par value per share (“ordinary shares”). Ordinary shares confer upon their holders the right to receive notice, participate and vote at general meetings of the Company, and the right to receive dividends if declared. The Company’s ordinary shares are traded in the United States on the Nasdaq Global Select Market under the ticker symbol “SSYS”. As of June 30, 2026 and December 31, 2025, there were 87,853 thousand ordinary shares and 86,376 thousand ordinary shares issued, respectively, and 87,587 thousand ordinary shares and 86,110 thousand ordinary shares outstanding, net of treasury shares, respectively. The change in the issued and outstanding ordinary shares during the three months ended June 30, 2026 was attributable to exercises of share options and settlement of RSUs under the Company’s share-based compensation plans (including its ESPP) and the issuance of ordinary shares as deferred consideration for our acquisition of certain assets from Nexa3D Inc.. During the six months ended June 30, 2026, the Company's board of directors increased the reserve pool under the Company's 2022 Share Incentive Plan by 2.2 million shares.
b. Share Repurchase Program and Treasury Shares
On September 16, 2024, the Company’s Board of Directors (the “Board”) authorized a share repurchase program that provides for the repurchase of up to $50 million of the Company’s ordinary shares, from time to time. Under the share repurchase program, the Company may effect repurchases by way of a variety of methods, including open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its ordinary shares under the Board authorization. The repurchase program does not obligate the Company to acquire any particular number or value of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion. In accordance with Section 7C of the Israeli Companies Regulations, the share repurchase program became effective 30 days after notice of the Board’s adoption of the repurchase program was provided to the Company’s material creditors and secured creditors.
During the year ended December 31, 2024, the Company repurchased 266 thousand ordinary shares for approximately $2.0 million, at a weighted average cost of $7.50 per share. During the year ended December 31, 2025 and during the three and six months ended June 30, 2026, the Company did not repurchase any additional ordinary shares.
c. Issuance of Shares
PIPE Transaction
On April 8, 2025, the Company completed its private investment in public equity (PIPE) transaction pursuant to which FF6-SSYS, Limited Partnership, an affiliate of Fortissimo Capital (together referred to as “Fortissimo”), an Israeli private equity fund, invested $120 million in Stratasys and acquired 11,650,485 newly-issued ordinary shares of the Company at a price of $10.30 per share. Upon completion of the PIPE, Fortissimo held approximately 15.5 % of the Company's issued and outstanding ordinary shares, which as of December 31, 2025 constituted approximately 14.9 % of the Company's issued and outstanding ordinary shares. As part of the transaction, Fortissimo entered into a shareholder agreement with the Company under which, among other things, Fortissimo became subject to an 18-month lock-up period, during which it will be prohibited from transferring any ordinary shares, subject to limited,
17
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
customary exceptions, and is entitled to the registration, under the Securities Act of 1933, as amended, of its resale of the ordinary shares purchased by it in the PIPE.
d. Share-based compensation program
Share-based compensation expenses for equity-classified share options, restricted share units (“RSUs”) and performance-based restricted share units (“PSUs”), in the aggregate, were allocated as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | |||||||||||||||||||||||||
| Cost of revenues | $ | $ | $ | $ | ||||||||||||||||||||||
| Research and development, net | ||||||||||||||||||||||||||
| Selling, general and administrative | ||||||||||||||||||||||||||
Total share-based compensation expenses | $ | $ | $ | $ | ||||||||||||||||||||||
A summary of the Company’s share option activity for the six months ended June 30, 2026 is as follows:
| Number of Options | Weighted Average Exercise Price | |||||||||||||
Options outstanding as of January 1, 2026 | ||||||||||||||
| Forfeited | ( | |||||||||||||
Options outstanding as of June 30, 2026 | ||||||||||||||
Options exercisable as of June 30, 2026 | ||||||||||||||
As of June 30, 2026, the unrecognized compensation cost of $0.2 million related to all unvested, equity-classified share options is expected to be recognized as an expense over a weighted-average period of 0.3 years.
A summary of the Company’s RSUs and PSUs activity for the six months ended June 30, 2026 is as follows:
| Number of RSUs and PSUs | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested as of January 1, 2026 | ||||||||||||||
| Granted | ||||||||||||||
| Vested | ( | |||||||||||||
| Forfeited | ( | |||||||||||||
Unvested as of June 30, 2026 | ||||||||||||||
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant.
As of June 30, 2026, the unrecognized compensation cost of $48.9 million related to all unvested, equity-classified RSUs and PSUs is expected to be recognized as expense over a weighted-average period of 2.74 years.
18
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
e. Accumulated other comprehensive loss
The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2026 and 2025, respectively:
| Six Months Ended June 30, 2026 | |||||||||||||||||
| Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| (U.S. $ in thousands) | |||||||||||||||||
Balances as of January 1, 2026 | $ | ( | $ | ( | $ | ( | |||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||
| Other comprehensive income (loss) | ( | ||||||||||||||||
| Balances as of June 30, 2026 | $ | $ | ( | $ | ( | ||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||
| Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| (U.S. $ in thousands) | |||||||||||||||||
Balances as of January 1, 2025 | $ | $ | ( | $ | ( | ||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||
| Other comprehensive income (loss) | ( | ||||||||||||||||
| Balances as of June 30, 2025 | $ | ( | $ | ( | $ | ( | |||||||||||
Note 12. Contingencies
Legal proceedings
Ordinary course litigation
The Company is a party to various legal proceedings from time to time, the outcome of which, in the opinion of management, will not have a significant effect on the financial position, profitability or cash flows of the Company.
19
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 13. Segment
The Company's chief operating decision maker (“CODM”) manages the Company’s business activities as a single operating and reportable segment and reviews financial information prepared on a consolidated basis. The Company's reportable segment generates revenues through the sale of its 3D printing systems, related services and consumables and by providing additive manufacturing (“AM”) solutions. The CODM reviews and utilizes budget-to-actual variances of profit measures and functional expenses (Cost of revenues, Research and development, net, and Selling, general and administrative), at the consolidated level to manage the Company’s operations and to make key operating decisions. Other segment items included in consolidated net loss are Financial income, net and the Income tax expenses, which are reflected in the Consolidated Statements of Operations and Comprehensive Loss.
Note 14. Restructuring costs
During the years ended December 31, 2025 and 2024, the Company initiated certain restructuring activities for some parts of its operations, as part of aligning the business to the Company's growth strategy and streamlining the organization for improved efficiency. In connection with these activities, certain operations were discontinued, and others were divested. These restructuring activities include global workforce reduction, employees related expenses, impairment charges to fixed assets, inventory write-off and other charges.
During the six months ended June 30, 2026 and 2025, the Company recorded the following activity related to the restructuring activities in accrued expenses and other current liabilities on the balance sheet:
| 2026 | 2025 | |||||||||||||
(U.S. $ in thousands) | ||||||||||||||
Accrued expenses and other current liabilities as of January 1, | $ | $ | ||||||||||||
| Restructuring charges and exchange rate impact | ||||||||||||||
| Cash payments | ( | ( | ||||||||||||
| Accrued expenses and other current liabilities as of June 30, | $ | $ | ||||||||||||
Includes $1.2 million of restructuring-related activity in other long term liabilities in the Company's consolidated Balance Sheet as of June 30, 2026.
During the six months ended June 30, 2026 and 2025 the Company recognized the following restructuring charges, related to the restructuring activities:
| Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (U.S. $ in thousands) | ||||||||||||||
Cost of revenues | $ | $ | ||||||||||||
| Research and development, net | — | |||||||||||||
| Selling, general and administrative | — | |||||||||||||
| Total restructuring charges | $ | $ | ||||||||||||
The Company substantially completed the implementation of its restructuring activities by December 31, 2025.
20
Exhibit 99.2
OPERATING AND FINANCIAL REVIEW AND PROSPECTS.
The following discussion, analysis and review of the financial condition results of operations, and prospects of Stratasys Ltd. (referred to throughout as Stratasys, we, us, our, or our company, or by using similar terms) as of, and for the three and six month periods ended, June 30, 2026, should be read in conjunction with our unaudited consolidated financial statements and the related notes included as Exhibit 99.1 to the Report of Foreign Private Issuer on Form 6-K, or the Form 6-K, to which this Operating and Financial Review and Prospects, or OFRP, is attached. The discussion and analysis below contain forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in “Forward-Looking Statements and Factors that May Affect Future Results of Operations” below, as well in the “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the year ended December 31, 2025, or our 2025 Annual Report, which we filed with the Securities and Exchange Commission, or SEC, on March 5, 2026.
Overview of Business and Trend Information
We are a global leader in connected, polymer-based 3D printing solutions, across the entire manufacturing value chain. Leveraging distinct competitive advantages that include a broad set of best-in-class 3D printing platforms, software, materials, a technology partner ecosystem, innovative leadership, and global GTM infrastructure, we are positioned to capture share in a significant and growing global marketplace, with a focus on manufacturing, which we view as having the largest and fastest growing total addressable market.
Our approximately 2,700 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, fashion and education. Our products and comprehensive solutions improve product quality, development time, cost, time-to-market and patient care. Our 3D ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production. By the end of 2025, we estimate that we derived over 37.5% of our revenues from manufacturing solutions.
A series of acquisitions and other transactions in the last several years has strengthened our leadership in various facets of our business, and has added incremental growth engines to our platform. In December 2020, we entered the market of manufacturing of end-use parts via our acquisition of Origin Laboratories, Inc. and its P3 Programmable PhotoPolymerization technology. Since the first quarter of 2021, we are a provider of industrial stereolithography 3D printers and solutions, and in November 2021, we accelerated our growth in production-scale 3D printing by acquiring the remaining shares of Xaar 3D not then held by us. As a result of an October 2022 asset acquisition, we have fully integrated a cloud-based software solution into our GrabCAD® Additive Manufacturing Platform, thereby enabling us to better compete for manufacturing customers for their end-use parts production. In April 2023, we strengthened our portfolio of 3D printing materials by acquiring Covestro and its resins, which are compatible with our Origin P3™, Neo® stereolithography, and H350™ printers. As part of that acquisition, we also significantly expanded our IP portfolio, obtaining ownership over hundreds of patents and pending patents that were held by Covestro. Our materials portfolio was similarly bolstered in May 2025 when we acquired key assets and operations of Forward AM Technologies GmbH, formerly a prominent additive manufacturing materials brand, particularly enhancing our Selective Absorption Fusion (SAF) and Digital Light Processing (DLP) portfolios. Our acquisition in June 2025 of a collection of assets, including the IP portfolio, of Nexa3D, added its lineup of high-speed resin 3D printers to our systems offerings. We also expect in the second
half of 2026 to complete our acquisition of MarkForged and its end-to-end Continuous Carbon Fiber technology within the space of Fused Filament Fabrication (FFF) 3D printing solutions, which enables production of high-strength, lightweight parts that are key to our ability to support mission-critical applications within the aerospace and defense industries in particular. We have furthermore effected, and expect to continue to effect, smaller acquisitions and investments in other companies from time to time to support execution of our strategy.
Recent Developments
Share Repurchase Program
On September 16, 2024, we announced that our board of directors had authorized a program for our repurchase of up to $50 million of our ordinary shares from time to time.
Under the share repurchase program, we may effect repurchases by way of a variety of methods, including open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the Exchange Act. We may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of our ordinary shares under the board authorization.
The repurchase program does not obligate us to acquire any particular number or value of ordinary shares, and the repurchase program may be suspended or discontinued at any time at our discretion.
In accordance with Section 7C of the Israeli Companies Regulations (Leniencies for Companies Whose Securities are Listed for Trading Outside of Israel), 5760-2000, the share repurchase program went into effect 30 days after notice of our board of directors’ adoption of the repurchase program was provided to our material creditors and secured creditors (if any).
During the year ended December 31, 2024, we repurchased 266 thousand ordinary shares for approximately $2.0 million, at a weighted average cost of $7.50 per share. During the year ended December 31, 2025, and during the three and six months ended June 30, 2026, we did not repurchase any additional ordinary shares.
PIPE Transaction
On April 8, 2025, we completed a private investment in public equity, or PIPE, transaction whereby FF6-SSYS, Limited Partnership (as assignee of Fortissimo Capital Fund VI, L.P.) (together with its affiliates, referred to collectively as Fortissimo), an Israeli private equity fund, invested $120 million in our company and acquired 11,650,485 newly-issued ordinary shares of Stratasys at a price of $10.30 per share, reflecting a premium of 10.6% over the closing market price of the ordinary shares on Nasdaq on January 31, 2025. The PIPE was completed pursuant to a securities purchase agreement, dated February 2, 2025, between our company and FF6-SSYS, Limited Partnership. Upon completion of the PIPE, Fortissimo held approximately 15.5% of our issued and outstanding ordinary shares, which constituted, as of February 17, 2026, approximately 14.9% of our issued and outstanding ordinary shares. The additional capital we have received from the PIPE investment has increased our available capital for potential value-enhancing, inorganic opportunities in the 3D printing industry.
Upon the closing of the PIPE, Fortissimo became subject to a lock-up for 18 months, (i.e., through October 7, 2026), during which period it will be prohibited from transferring any ordinary shares, subject to limited, customary exceptions. Following that lock-up period, we will be required to file with the SEC a registration statement to register Fortissimo’s resale of the ordinary shares sold to it in the PIPE. In connection with the PIPE, our board of directors exempted any acquisitions of ordinary shares by Fortissimo pursuant to the PIPE and thereafter from the application of our then-effective shareholder rights plan. Fortissimo is, however, subject to certain standstill and voting restrictions, including (i) not
being permitted to surpass 24.99% ownership of our issued and outstanding ordinary shares, and (ii) not being permitted to vote more than 20% of the outstanding ordinary shares, unless Fortissimo owns 35% or more of the outstanding ordinary shares, which ownership level it can only reach through a tender offer for at least 15% of the issued and outstanding ordinary shares. The closing of such a tender offer would require the approval of our shareholders.
Concurrent with the closing of the PIPE, we entered into a shareholder agreement with FF6-SSYS, Limited Partnership, pursuant to which our board of directors appointed Yuval Cohen, Fortissimo’s initial designee, to serve on our board of directors, replacing Yoav Zeif, who remains our chief executive officer. Under the shareholder agreement, Fortissimo is also permitted to designate a non-voting observer who may attend all of our board meetings; Eliezer Blatt was so designated by Fortissimo and affirmed by our board to serve in that position. Under the shareholder agreement, to the extent Fortissimo’s beneficial ownership equals at least 20% of the issued and outstanding ordinary shares, if Fortissimo requests, we are required to nominate for election by our shareholders a second Fortissimo designee as a voting member of our board of directors. The number of Fortissimo’s board designees is subject to phase-out to the extent Fortissimo’s holdings of the ordinary shares drops below certain thresholds.
Business Performance in Macro-Economic Environment
Our current outlook, as well as our results of operations for the second quarter of 2026, should be evaluated in light of current global macroeconomic conditions, including certain challenging trends that have also impacted the additive manufacturing industry. Our revenues in the quarterly period ended June 30, 2026 decreased by $0.5 million relative to the corresponding quarterly period ended June 30, 2025. This decrease in revenues was driven by a decrease in systems revenues, partially offset by an increase in consumables revenues and an increase in services revenues. These revenue results primarily reflects macro-economic pressure on the capital expenditure budgets of our customers, which has been causing longer sales cycles for our products.
We continue to closely monitor macroeconomic conditions, including: the degree to which inflation remains moderate; whether and when additional interest rates cuts are implemented by central banks; whether tight credit conditions ease; whether any relief becomes available from tariffs that have been reducing our gross margins and cutting into our profitability by increasing the prices we pay for finished goods used in offering our products and services; whether oil prices, and, consequently, energy prices moderate and overcome the effects of the U.S. and Iranian blockades in the Strait of Hormuz; and other trends that have been adversely impacting economic activity on a global scale, and which have also adversely affected the additive manufacturing industry generally and our company, in particular. We have been assessing, on an ongoing basis, the implications of those global conditions for our operations, supply chain, liquidity, cash flow and customer orders, and have been acting in an effort to mitigate adverse consequences to the extent possible. We estimate that those conditions have impacted us most notably by extending the length of our sales cycles and thereby reducing our products revenues (in the case of unfavorable credit conditions), as well as by reducing our gross margins (in the case of tariffs and the indirect impact of higher energy costs and inflation generally). Assuming that the foregoing conditions improve or are resolved, and the global economy otherwise further strengthens, we expect that (i) our products revenues will begin to improve more significantly, as and when we execute on our growth plans and as a result of shorter sales cycles, and (ii) the pressure on our gross margins will be reduced.
Specific developments that may potentially impact our operating performance in an adverse manner include:
•perceived or actual reluctance of central banks in Europe and the U.S. to reduce interest rates, and their potential decisions to raise interest rates, due to fears of inflationary pressure, which have been more pronounced due to the rise in oil prices as a result of the blockades in the Strait of Hormuz, which would result in moderately high interest rates for a longer period of time, thereby leaving in place unfavorable credit/financing conditions for our customers;
•the maintenance of higher levels of import tariffs (which were reimposed in the U.S. by the U.S. presidential administration following a recent U.S. Supreme Court decision that had abrogated the tariffs), which would continue to adversely affect our gross margins and, potentially, the demand for our products and services in target industries and countries in which our affected customers operate;
•further rounds of hostilities between the U.S. and/or Israel, on the one hand, and Iran and any of its sponsored terrorist groups, Hamas, Hezbollah, and the Houthis, on the other hand, which, if lasting for a protracted period, could worsen Israeli or global economic conditions, or could adversely impact our operations at one of our global headquarters, or at our manufacturing facilities or research and development facilities, that are located in Israel (although we seek to ensure that our stakeholders and customers are not adversely impacted by the hostilities to the extent we can prepare for and address difficulties as they arise);
•if currency exchange rates continue to reflect a weakened U.S. dollar relative to the New Israeli Shekel, or NIS, and Euro, the U.S. dollar value of our NIS-denominated expenses will be more significant, thereby hurting our results of operations, which are reported in U.S. dollars; and
•any other stresses to macroeconomic activity, such as displacement to the labor market caused by the absorption of artificial intelligence (AI) into various industries in too rapid of a manner that does not enable timely adjustments, thereby potentially triggering unemployment and recessionary conditions that would cause a decrease in consumer demand.
We cannot provide any assurances as to the extent of our resilience to the adverse impact of these specific developments in future periods.
Summary of Financial Results
Our unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. In the opinion of our management, all adjustments considered necessary for a fair statement of the unaudited condensed consolidated financial statements have been included herein and are of a normal recurring nature. The following discussion compares the actual results, on a GAAP basis, for the three and six months ended June 30, 2026 with the corresponding periods in 2025.
Results of Operations
Comparison of Three Months Ended June 30, 2026 to Three Months Ended June 30, 2025
The following table sets forth certain statement of operations data for the three-month periods indicated:
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | ||||||||||||||
| Revenues | $ | 137,606 | 100.0 | % | $ | 138,086 | 100.0 | % | |||||||||
| Cost of revenues | 79,368 | 57.7 | % | 78,592 | 56.9 | % | |||||||||||
| Gross profit | 58,238 | 42.3 | % | 59,494 | 43.1 | % | |||||||||||
| Research and development, net | 19,461 | 14.1 | % | 19,921 | 14.4 | % | |||||||||||
| Selling, general and administrative | 52,244 | 38.0 | % | 56,193 | 40.7 | % | |||||||||||
| Operating loss | (13,467) | (9.8) | % | (16,620) | (12.0) | % | |||||||||||
| Financial income, net | 3,285 | 2.4 | % | 3,286 | 2.4 | % | |||||||||||
| Loss before income taxes | (10,182) | (7.4) | % | (13,334) | (9.7) | % | |||||||||||
| Income tax expenses | 6,683 | 4.9 | % | 1,041 | 0.8 | % | |||||||||||
| Share in losses of associated companies | — | — | % | 2,370 | 1.7 | % | |||||||||||
| Net loss | $ | (16,865) | (12.3) | % | $ | (16,745) | (12.1) | % | |||||||||
Discussion of Results of Operations
The below tables and related discussion present an item by item comparison of our results of operations for the three months ended June 30, 2026 and 2025.
Revenues
Our products and services revenues in the three months ended June 30, 2026 and 2025, as well as the percentage change from the earlier period to the later period, were as follows:
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| U.S. $ in thousands | |||||||||||||||||
| Products | $ | 92,738 | $ | 94,791 | (2.2) | % | |||||||||||
| Services | 44,868 | 43,295 | 3.6 | % | |||||||||||||
| Total Revenues | $ | 137,606 | $ | 138,086 | (0.3) | % | |||||||||||
Products Revenues
Revenues derived from products (including systems and consumable materials) for the three months ended June 30, 2026, decreased by $2.1 million, or 2.2%, as compared to the three months ended June 30, 2025. The overall decrease was mainly attributable to longer sales cycles, partially offset by higher consumables revenues driven by our recent acquisitions.
Revenues derived from systems decreased by $4.2 million, or 13.7%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The decrease was mainly attributable to longer sales cycles.
Revenues derived from consumables increased by $2.1 million, or 3.3%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase was mainly attributable to higher utilization rates of systems by our customers, which required that initial materials be replenished, and higher consumables revenues driven by our recent acquisitions.
Services Revenues
Services revenues (including Stratasys Direct Manufacturing, or SDM, maintenance contracts, time and materials and other services) increased by $1.6 million for the three months ended June 30, 2026, or 3.6%, as compared to the three months ended June 30, 2025, mainly attributable to an increase of $1.5 million in our SDM revenues. Within services revenues, customer support revenue, which includes revenues generated mainly by maintenance contracts on our systems, slightly decreased by 1.0%.
Revenues by Region
Revenue amounts and the percentage of our overall revenues by region for the three months ended June 30, 2026 and 2025, as well as the percentage change in revenue amounts for each such region from the earlier such period to the later such period, were as follows:
| Three Months Ended June 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | % Change | |||||||||||||||||||||||||
| Americas* | $ | 84,347 | 61.3 | % | $ | 83,667 | 60.6 | % | 0.8 | % | |||||||||||||||||||
| EMEA | 35,408 | 25.7 | % | 37,306 | 27.0 | % | (5.1) | % | |||||||||||||||||||||
| Asia Pacific | 17,851 | 13.0 | % | 17,113 | 12.4 | % | 4.3 | % | |||||||||||||||||||||
| $ | 137,606 | 100 | % | $ | 138,086 | 100 | % | (0.3) | % | ||||||||||||||||||||
*The Americas region consists of the United States, Canada and Latin America. The only single country in any region in which revenues exceeded 10% of our consolidated, aggregate revenues was the United States, in which revenues amounted to $80.9 million and $80.4 million in the three months ended June 30, 2026 and 2025, respectively.
Revenues in the Americas region increased by $0.7 million, or 0.8%, to $84.3 million for the three months ended June 30, 2026, compared to $83.7 million for the three months ended June 30, 2025. The increase was mainly attributable to higher consumables revenues and higher services revenues, partially offset by a decrease in systems revenues.
Revenues in the EMEA region decreased by $1.9 million, or 5.1%, to $35.4 million for the three months ended June 30, 2026, compared to $37.3 million for the three months ended June 30, 2025. The decrease was primarily attributable to longer sales cycles for our systems, partially offset by higher consumables revenues and an increase in services revenues.
Revenues in the Asia Pacific region increased by $0.7 million, or 4.3%, to $17.9 million for the three months ended June 30, 2026, compared to $17.1 million for the three months ended June 30, 2025. The increase was mainly attributable to higher services revenues as well as an increase in products revenues.
Gross Profit
Gross profit from our products and services for the three months ended June 30, 2026 and 2025, as well as the percentage change from the earlier period to the later period, were as follows:
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Gross profit attributable to: | U.S. $ in thousands | ||||||||||||||||
| Products | $ | 44,710 | $ | 46,174 | (3.2) | % | |||||||||||
| Services | 13,528 | 13,320 | 1.6 | % | |||||||||||||
| $ | 58,238 | $ | 59,494 | (2.1) | % | ||||||||||||
Gross profit as a percentage of revenues from our products and services was as follows:
| Three Months Ended June 30, | |||||||||||
| Gross profit as a percentage of revenues from: | 2026 | 2025 | |||||||||
| Products | 48.2 | % | 48.7 | % | |||||||
| Services | 30.2 | % | 30.8 | % | |||||||
| Total gross margin | 42.3 | % | 43.1 | % | |||||||
Gross profit attributable to products revenues decreased by $1.5 million, or 3.2%, to $44.7 million for the three months ended June 30, 2026, compared to gross profit of $46.2 million for the three months ended June 30, 2025. Gross margin attributable to products revenues for the three months ended June 30, 2026 decreased to 48.2%, as compared to 48.7% for the three months ended June 30, 2025. The decrease in gross profit was mainly attributable to non-recurring charges related to our reorganization of manufacturing facilities, and unfavorable currency exchange rates. The decrease in gross margin was mainly a result of non-recurring reorganization charges and unfavorable currency exchange rates in an aggregate amount of $2.3 million, partially offset by a favorable mix of products revenues with higher gross margins.
Gross profit attributable to services revenues increased by $0.2 million, or 1.6%, to $13.5 million for the three months ended June 30, 2026, compared to $13.3 million for the three months ended June 30, 2025. Gross margin attributable to services revenues decreased to 30.2% in the three months ended June 30, 2026, as compared to 30.8% for the three months ended June 30, 2025. The increase in gross profit attributable to services revenues was mainly attributable to the increase in services revenues and the non-recurrence in the three months ended June 30, 2026 of the restructuring charges incurred in the three months ended June 30, 2025, partially offset by the impact of unfavorable currency exchange rates of $0.3 million and operational inefficiencies. Our gross margin from services revenues decreased mainly as a result of unfavorable currency exchange rates and operational inefficiencies, partially offset by the increase in services revenues as well as restructuring charges incurred in the three months ended June 30, 2025.
Operating Expenses
The amount of each type of operating expense for the three months ended June 30, 2026 and 2025, as well as the percentage change reflected from the earlier period to the later period, and total operating expenses as a percentage of our total revenues in each such period, were as follows:
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| U.S. $ in thousands | |||||||||||||||||
| Research and development, net | $ | 19,461 | $ | 19,921 | (2.3) | % | |||||||||||
| Selling, general and administrative | 52,244 | 56,193 | (7.0) | % | |||||||||||||
| $ | 71,705 | $ | 76,114 | (5.8) | % | ||||||||||||
| Percentage of revenues | 52.1 | % | 55.1 | % | |||||||||||||
Operating expenses were $71.7 million in the second quarter of 2026, compared to operating expenses of $76.1 million in the second quarter of 2025. The decrease in operating expenses was primarily driven by a $4.7 million decrease in the amount of contingent consideration liabilities and a $2.6 million decrease in operational expenses resulting from our cost control measures, partially offset by a $2.3 million increase in operating expenses due to unfavorable currency exchange rates.
Research and development expenses decreased by $0.5 million, or 2.3%, to $19.5 million for the three months ended June 30, 2026, compared to $19.9 million for the three months ended June 30, 2025. The amount of research and development expenses constituted 14.1% of our revenues for the three months ended June 30, 2026, as compared to 14.4% for the three months ended June 30, 2025. The decrease in research and development expenses was mainly attributable to lower operational expenses (reflecting a $0.8 million decrease) resulting from our cost control measures, partially offset by unfavorable currency exchange rates, which increased research and development expenses by $0.7 million.
We continue to invest in strategic long-term initiatives that include advancements in our core FDM and PolyJet technologies and in our new powder-based and photopolymer-based, SAF and P3 technologies, advanced composite materials, software and development of new applications that will enhance our current solutions offerings.
Selling, general and administrative expenses decreased by $3.9 million, or 7.0%, to $52.2 million for the three months ended June 30, 2026, compared to $56.2 million for the three months ended June 30, 2025. The amount of selling, general and administrative expenses constituted 38.0% of our revenues for the three months ended June 30, 2026, as compared to 40.7% for the three months ended June 30, 2025. The absolute decrease in selling, general and administrative expenses was mainly attributable to a decrease of $4.7 million in the amount of contingent consideration liabilities and lower operational expenses (reflecting a decrease of $1.8 million) resulting from our cost control measures, partially offset by a $1.6 million unfavorable impact of currency exchange rates.
Operating Loss
Operating loss and operating loss as a percentage of our total revenues were as follows:
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| U.S. $ in thousands | |||||||||||
| Operating loss | $ | (13,467) | $ | (16,620) | |||||||
| Percentage of revenues | (9.8) | % | (12.0) | % | |||||||
Operating loss amounted to $13.5 million for the three months ended June 30, 2026, compared to an operating loss of $16.6 million for the three months ended June 30, 2025. The absolute decrease in the operating loss of $3.2 million was primarily due to the $4.4 million decrease in operating expenses, partially offset by a $1.3 million decrease in gross profit. The decrease of operating loss as a percentage of revenues by 2.2%, was attributable to the decrease in operating expenses, partially offset by a decrease in our gross margin, for the reasons described in the discussion of the above line items.
Financial Income, net
Financial income, net, which was primarily comprised of foreign currencies effects, interest income and interest expenses, was $3.3 million for the three months ended June 30, 2026, compared to financial income, net of $3.3 million for the three months ended June 30, 2025.
Income Tax Expenses
Income tax expenses, and income tax expenses as a percentage of loss before income taxes, were as follows for the three months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| U.S. $ in thousands | |||||||||||
| Income tax expenses | $ | 6,683 | $ | 1,041 | |||||||
| As a percentage of loss before income taxes | (65.6) | % | (7.8) | % | |||||||
We had an effective tax rate of 65.6% for the three months ended June 30, 2026, compared to an effective tax rate of 7.8% for the three months ended June 30, 2025. Our effective tax rate in the second quarter of 2026 was primarily impacted by the geographic mix of our earnings and losses, movements in our valuation allowance, and changes in our uncertain tax positions.
Share in Losses of Associated Companies
Share in losses of associated companies reflects our proportionate share of the losses of unconsolidated entities accounted for by using the equity method of accounting. During the three months ended June 30, 2026, the net loss from our proportionate share of the losses of our equity method investments was $0.0 million, as our equity method investment in Ultimaker was fully impaired already during 2025, compared to a loss of $2.4 million in the three months ended June 30, 2025.
Net Loss and Net Loss Per Share
Net loss, net loss as a percentage of our total revenues, and diluted net loss per share, were as follows for the three months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
(U.S. $ in thousands, except per share amounts) | |||||||||||
| Net loss | $ | (16,865) | $ | (16,745) | |||||||
| As a percentage of revenues | (12.3) | % | (12.1) | % | |||||||
| Diluted net loss per share | $ | (0.19) | $ | (0.20) | |||||||
Net loss was $16.9 million for the three months ended June 30, 2026 compared to net loss of $16.7 million for the three months ended June 30, 2025. The absolute increase in net loss and increase in our net loss as a percentage of revenues, were mainly attributable to an increase in our income tax expenses of $5.6 million, partially offset by a decrease in our operating loss of $3.2 million as well as an increase in our share in losses of associated companies in an amount of $2.4 million,
Net loss per share was $0.19 for the three months ended June 30, 2026 as compared to net loss per share of $0.20 for the three months ended June 30, 2025. The weighted average, basic and diluted number of shares outstanding was 87.1 million during the three months ended June 30, 2026, compared to 83.5 million during the three months ended June 30, 2025.
Results of Operations
Comparison of Six Months Ended June 30, 2026 to Six Months Ended June 30, 2025
The following table sets forth certain statement of operations data for the six-month periods indicated:
| Six Months Ended June 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | |||||||||||||||||
| Revenues | $ | 270,303 | 100.0 | % | $ | 274,132 | 100.0 | % | ||||||||||||
| Cost of revenues | 156,704 | 58.0 | % | 154,399 | 56.3 | % | ||||||||||||||
| Gross profit | 113,599 | 42.0 | % | 119,733 | 43.7 | % | ||||||||||||||
| Research and development, net | 38,612 | 14.3 | % | 38,713 | 14.1 | % | ||||||||||||||
| Selling, general and administrative | 114,986 | 42.5 | % | 110,044 | 40.1 | % | ||||||||||||||
| Operating loss | (39,999) | (14.8) | % | (29,024) | (10.6) | % | ||||||||||||||
| Financial income, net | 6,017 | 2.2 | % | 4,759 | 1.7 | % | ||||||||||||||
| Loss before income taxes | (33,982) | (12.6) | % | (24,265) | (8.9) | % | ||||||||||||||
| Income tax expenses | 6,708 | 2.5 | % | 1,496 | 0.5 | % | ||||||||||||||
| Share in losses of associated companies | — | — | % | 4,038 | 1.5 | % | ||||||||||||||
| Net loss | $ | (40,690) | (15.1) | % | $ | (29,799) | (10.9) | % | ||||||||||||
Discussion of Results of Operations
Revenues
Our products and services revenues in the six months ended June 30, 2026 and 2025, as well as the percentage change from the earlier period to the later period, were as follows:
| Six Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| U.S. $ in thousands | |||||||||||||||||
| Products | $ | 181,492 | $ | 188,586 | (3.8) | % | |||||||||||
| Services | 88,811 | 85,546 | 3.8 | % | |||||||||||||
| Total Revenues | $ | 270,303 | $ | 274,132 | (1.4) | % | |||||||||||
Products Revenues
Revenues derived from products (including systems and consumable materials) decreased by $7.1 million, or 3.8%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, as a result of longer sales cycles, partially offset by higher consumables revenues driven by our recent acquisitions.
Revenues derived from systems for the six months ended June 30, 2026 decreased by $6.6 million, or 10.7%, as compared to during the six months ended June 30, 2025. The decrease was mainly attributable to longer sales cycles.
Revenues derived from consumables decreased by $0.5 million, or 0.4%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease in consumables
revenues was mainly attributable to longer sales cycles, partially offset by higher consumables revenues driven by our recent acquisitions.
Services Revenues
Services revenues (including SDM, maintenance contracts, time and materials and other services) increased by $3.3 million for the six months ended June 30, 2026, or 3.8%, as compared to the six months ended June 30, 2025. The increase was primarily attributable to a $3.1 million increase to our SDM revenues.
Revenues by Region
Revenues and the percentage of revenues by region for the six months ended June 30, 2026 and 2025, as well as the percentage change in revenues in each such region from the earlier such period to the later such period, were as follows:
| Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||||||||||||||
U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | ||||||||||||||||||||||||||
| Americas* | $ | 162,513 | 60.1 | % | $ | 165,095 | 60.2 | % | (1.6) | % | |||||||||||||||||||
| EMEA | 74,256 | 27.5 | % | 74,001 | 27.0 | % | 0.3 | % | |||||||||||||||||||||
| Asia Pacific | 33,534 | 12.4 | % | 35,036 | 12.8 | % | (4.3) | % | |||||||||||||||||||||
| $ | 270,303 | 100 | % | $ | 274,132 | 100 | % | (1.4) | % | ||||||||||||||||||||
* The Americas region consists of the United States, Canada and Latin America.
Revenues in the Americas region decreased by $2.6 million, or 1.6%, to $162.5 million for the six months ended June 30, 2026, compared to $165.1 million for the six months ended June 30, 2025. The decrease was mainly attributable to longer sales cycles for product revenues, partially offset by a $2.7 million increase in services revenues.
Revenues in the EMEA region increased by $0.3 million, or 0.3%, to $74.3 million for the six months ended June 30, 2026, compared to $74.0 million for the six months ended June 30, 2025. The increase was primarily attributable to an increase of $1.7 million in consumables revenues, partially offset by longer sales cycles for our systems.
Revenues in the Asia Pacific region decreased by $1.5 million, or 4.3%, to $33.5 million for the six months ended June 30, 2026, compared to $35.0 million for the six months ended June 30, 2025. The decrease was primarily attributable to longer sales cycles for products revenues, partially offset by an increase in services revenues.
Gross Profit
Gross profit from our products and services for the six months ended June 30, 2026 and 2025, as well as the percentage change from the earlier period to the later period, were as follows:
| Six Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | Change in % | |||||||||||||||
| Gross profit attributable to: | U.S. $ in thousands | ||||||||||||||||
| Products | $ | 86,910 | $ | 92,701 | (6.2) | % | |||||||||||
| Services | 26,689 | 27,032 | (1.3) | % | |||||||||||||
| $ | 113,599 | $ | 119,733 | (5.1) | % | ||||||||||||
Gross profit as a percentage of revenues from our products and services was as follows:
| Six Months Ended June 30, | |||||||||||
| Gross profit as a percentage of revenues from: | 2026 | 2025 | |||||||||
| Products | 47.9 | % | 49.2 | % | |||||||
| Services | 30.1 | % | 31.6 | % | |||||||
| Total gross margin | 42.0 | % | 43.7 | % | |||||||
Gross profit attributable to products revenues decreased by $5.8 million, or 6.2%, to $86.9 million for the six months ended June 30, 2026, compared to gross profit of $92.7 million for the six months ended June 30, 2025. Gross margin attributable to products revenues decreased to 47.9% for the six months ended June 30, 2026, compared to 49.2% for the six months ended June 30, 2025. Our gross profit from products revenues decreased mainly as a result of lower products revenues, higher U.S. tariff costs, as well as non-recurring charges related to our reorganization of manufacturing facilities. The decrease in gross margin was mainly attributable to higher U.S. tariff costs and non-recurring charges related to our reorganization of manufacturing facilities, partially offset by a favorable mix of products revenues with higher gross margins.
Gross profit attributable to services revenues decreased by $0.3 million, or 1.3%, to $26.7 million for the six months ended June 30, 2026, compared to $27.0 million for the six months ended June 30, 2025. Gross margin attributable to services revenues in the six months ended June 30, 2026 decreased to 30.1%, as compared to 31.6% for the six months ended June 30, 2025. The decrease in gross profit was mainly attributable to higher U.S. tariff costs, unfavorable currency exchange rates and operational inefficiencies, partially offset by the increase in services revenues and the non-recurrence in the six months ended June 30, 2026 of the restructuring charges incurred in the six months ended June 30, 2025. The decrease in gross margin was mainly attributable to higher U.S. tariff costs, unfavorable currency exchange rates and operational inefficiencies, as well as higher services revenues with lower gross margins, partially offset by the non-recurrence in the six months ended June 30, 2026 of the restructuring charges incurred in the six months ended June 30, 2025.
Operating Expenses
The amount of each type of operating expense for the six months ended June 30, 2026 and 2025, as well as the percentage change from the earlier such period to the later such period, and total operating expenses as a percentage of our total revenues in each such six-month period, were as follows:
| Six Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| U.S. $ in thousands | |||||||||||||||||
| Research and development, net | $ | 38,612 | $ | 38,713 | (0.3) | % | |||||||||||
| Selling, general and administrative | 114,986 | 110,044 | 4.5 | % | |||||||||||||
| $ | 153,598 | $ | 148,757 | 3.3 | % | ||||||||||||
| Percentage of revenues | 56.8 | % | 54.3 | % | |||||||||||||
Operating expenses were $153.6 million in the six months ended June 30, 2026, compared to operating expenses of $148.8 million in the six months ended June 30, 2025. The increase in operating expenses was primarily driven by an increase of $10.5 million in legal expenses related to litigations and an unfavorable impact of currency exchange rates in amount of $4.7 million, partially offset by a reduction of $5.0 million in the amount of contingent consideration liabilities, as well as lower employee and related costs associated with our restructuring activities and cost control measures.
Research and development expenses, net, decreased by $0.1 million, or 0.3%, to $38.6 million for the six months ended June 30, 2026, compared to $38.7 million for the six months ended June 30, 2025. The decrease was mainly attributable to lower employee and related costs associated with our restructuring activities and cost control measures, partially offset by an increase of $1.4 million in research and development expenses due to the unfavorable impact of currency exchange rates. The amount of research and development expenses increased as a percentage of revenues, constituting 14.3% of our revenues for the six months ended June 30, 2026, as compared to 14.1% for the six months ended June 30, 2025.
We continue to invest in strategic long-term initiatives that include advancements in our core FDM and PolyJet technologies and in our new powder-based and photopolymer-based, SAF and P3 technologies, advanced composite materials, software and development of new applications which will enhance our current solutions offerings.
Selling, general and administrative expenses increased by $4.9 million, or 4.5%, to $115.0 million for the six months ended June 30, 2026, compared to $110.0 million for the six months ended June 30, 2025. The amount of selling, general and administrative expenses constituted 42.5% of our revenues for the six months ended June 30, 2026, as compared to 40.1% for the six months ended June 30, 2025. The absolute increase was mainly attributable to an increase of $10.5 million in legal expenses related to litigations and a $3.3 million unfavorable impact of currency exchange rates, partially offset by a decrease of $5.0 million in the amount of contingent consideration liabilities and lower employee and related costs associated with our restructuring activities and cost control measures in the six months ended June 30, 2026.
Operating Loss
Operating loss and operating loss as a percentage of our total revenues were as follows for the six months ended June 30, 2026 and 2025:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| U.S. $ in thousands | |||||||||||
| Operating loss | $ | (39,999) | $ | (29,024) | |||||||
| Percentage of revenues | (14.8) | % | (10.6) | % | |||||||
Operating loss amounted to $40.0 million for the six months ended June 30, 2026 compared to an operating loss of $29.0 million for the six months ended June 30, 2025. The absolute increase in the operating loss of $11.0 million was primarily due to the $4.8 million increase in operating expenses, as well as the $6.1 million decrease in gross profit. The increase of operating loss as a percentage of revenue by 4.2% was attributable to the increase in operating expenses as a percentage of revenues, as well as a decrease in our gross margin, for the reasons described in the discussion of the above line items.
Financial Income, net
Financial income, net, which was primarily comprised of foreign currencies effects, interest income and interest expenses, was $6.0 million for the six months ended June 30, 2026, compared to $4.8 million of financial income, net for the six months ended June 30, 2025.
Income Tax Expenses
Income tax expenses and income tax expenses as a percentage of net loss before taxes were as follows for the six months ended June 30, 2026 and the six months ended June 30, 2025:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| U.S. $ in thousands | |||||||||||
| Income tax expenses | $ | 6,708 | $ | 1,496 | |||||||
| As a percentage of loss before income taxes | (19.7) | % | (6.2) | % | |||||||
We had an effective tax rate of 19.7% for the six months ended June 30, 2026, compared to an effective tax rate of 6.2% for the six months ended June 30, 2025. Our effective tax rate in the six months ended June 30, 2026 was primarily impacted by the geographic mix of our earnings and losses, movements in our valuation allowances, and changes in our uncertain tax positions.
Share in Losses of Associated Companies
Share in losses of associated companies reflects our proportionate share of the losses of unconsolidated entities accounted for by using the equity method of accounting. During the six months ended June 30, 2026, the net loss from our proportionate share of the losses of our equity method investments was $0.0 million, as our equity method investment in Ultimaker was already fully impaired during 2025, compared to a loss of $4.0 million in the six months ended June 30, 2025.
Net Loss and Net Loss Per Share
Net loss (on an absolute basis and as a percentage of revenues), and diluted net loss per share were as follows:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
(U.S. $ in thousands, except per share amounts) | |||||||||||
| Net loss | $ | (40,690) | $ | (29,799) | |||||||
| As a percentage of revenues | (15.1) | % | (10.9) | % | |||||||
| Diluted net loss per share | $ | (0.47) | $ | (0.38) | |||||||
Net loss was $40.7 million for the six months ended June 30, 2026 compared to a net loss of $29.8 million for the six months ended June 30, 2025. The absolute increase in our net loss as well as the increase in our net loss as a percentage of revenues, was mainly attributable to an increase in our operating loss of $11.0 million.
Net loss per share was $0.47 and $0.38 for the six months ended June 30, 2026 and 2025, respectively. The weighted average, basic and diluted number of shares outstanding was 86.7 million for the six months ended June 30, 2026, compared to 77.7 million for the six months ended June 30, 2025, which increase was primarily attributable to our issuance of 11,650,485 ordinary shares to Fortissimo in the April 2025 PIPE transaction.
The absolute increase in net loss and the increase in basic and diluted net loss per share, resulted from the aggregate impact of the foregoing line items in our results of operations in the first six months of 2026 as compared to the corresponding period in 2025.
Supplemental Operating Results on a Non-GAAP Basis
The following non-GAAP data, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expenses or gains and restructuring-related charges or gains, legal provisions, and (ii) excluding non-cash items such as share-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of investments and the corresponding tax effect of those items.
The items eliminated in our non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on our statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in the tables below.
Reconciliation of GAAP to Non-GAAP Results of Operations
The following tables present our financial results in accordance with generally accepted accounting principles in the U.S., or GAAP, our corresponding non-GAAP financial results, and the non-GAAP adjustments whereby we derived the non-GAAP results from the GAAP results for the applicable periods:
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2026 | Non-GAAP | 2026 | 2025 | Non-GAAP | 2025 | ||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | |||||||||||||||||||||||
| Gross profit (1) | $ | 58,238 | $ | 6,677 | $ | 64,915 | $ | 59,494 | $ | 6,323 | $ | 65,817 | |||||||||||
| Operating income (loss) (1,2) | (13,467) | 13,600 | 133 | (16,620) | 17,736 | 1,116 | |||||||||||||||||
| Net income (loss) (1,2,3) | (16,865) | 19,131 | 2,266 | (16,745) | 18,925 | 2,180 | |||||||||||||||||
| Net income (loss) per diluted share (4) | $ | (0.19) | $ | 0.22 | $ | 0.03 | $ | (0.20) | $ | 0.23 | $ | 0.03 | |||||||||||
| (1) | Acquired intangible assets amortization expenses | 4,521 | 4,517 | ||||||||||||||||||||
| Non-cash share-based compensation expenses | 788 | 746 | |||||||||||||||||||||
| Restructuring and other expenses | 1,368 | 1,060 | |||||||||||||||||||||
| 6,677 | 6,323 | ||||||||||||||||||||||
| (2) | Acquired intangible assets amortization expenses | 1,233 | 915 | ||||||||||||||||||||
| Non-cash share-based compensation expenses | 5,428 | 5,392 | |||||||||||||||||||||
| Restructuring and other related costs | 603 | 460 | |||||||||||||||||||||
| Contingent consideration | (4,066) | 643 | |||||||||||||||||||||
| Legal and other expenses | 3,725 | 4,003 | |||||||||||||||||||||
| 6,923 | 11,413 | ||||||||||||||||||||||
| 13,600 | 17,736 | ||||||||||||||||||||||
| (3) | Corresponding tax effect | 6,201 | 182 | ||||||||||||||||||||
| Equity method related expenses | — | 1,067 | |||||||||||||||||||||
| Finance income | (670) | (60) | |||||||||||||||||||||
| $ | 19,131 | $ | 18,925 | ||||||||||||||||||||
| (4) | Weighted average number of ordinary shares outstanding - Diluted | 87,053 | 87,454 | 83,485 | 84,024 | ||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2026 | Non-GAAP | 2026 | 2025 | Non-GAAP | 2025 | ||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
U.S. dollars and shares in thousands (except per share amounts) | |||||||||||||||||||||||
| Gross profit (1) | $ | 113,599 | $ | 12,751 | $ | 126,350 | $ | 119,733 | $ | 11,733 | $ | 131,466 | |||||||||||
Operating income (loss) (1,2) | (39,999) | 36,912 | (3,087) | (29,024) | 33,186 | 4,162 | |||||||||||||||||
Net income (loss) (1,2,3) | (40,690) | 41,679 | 989 | (29,799) | 34,857 | 5,058 | |||||||||||||||||
Net income (loss) per diluted share (4) | $ | (0.47) | $ | 0.48 | $ | 0.01 | $ | (0.38) | $ | 0.44 | $ | 0.06 | |||||||||||
| (1) | Acquired intangible assets amortization expenses | 9,043 | 9,005 | ||||||||||||||||||||
Non-cash share-based compensation expenses | 1,449 | 1,454 | |||||||||||||||||||||
Restructuring and other expenses | 2,259 | 1,274 | |||||||||||||||||||||
| 12,751 | 11,733 | ||||||||||||||||||||||
| (2) | Acquired intangible assets amortization expenses | 2,388 | 1,855 | ||||||||||||||||||||
Non-cash share-based compensation expenses | 10,052 | 10,897 | |||||||||||||||||||||
Restructuring and other related costs | 1,598 | 1,592 | |||||||||||||||||||||
| Contingent consideration | (3,731) | 1,288 | |||||||||||||||||||||
| Legal and other expenses | 13,854 | 5,821 | |||||||||||||||||||||
| 24,161 | 21,453 | ||||||||||||||||||||||
| 36,912 | 33,186 | ||||||||||||||||||||||
| (3) | Corresponding tax effect | 5,759 | 266 | ||||||||||||||||||||
Equity method related expenses | — | 1,908 | |||||||||||||||||||||
Finance income | (992) | (503) | |||||||||||||||||||||
| $ | 41,679 | $ | 34,857 | ||||||||||||||||||||
| (4) | Weighted average number of ordinary shares outstanding - Diluted | 86,723 | 87,311 | 77,722 | 78,321 | ||||||||||||||||||
Reconciliation of GAAP net loss to Adjusted EBITDA
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
U.S. $ in thousands | U.S. $ in thousands | ||||||||||||||||||||||
| Net loss | $ | (16,865) | $ | (16,745) | $ | (40,690) | $ | (29,799) | |||||||||||||||
Financial income, net | (3,285) | (3,286) | (6,017) | (4,759) | |||||||||||||||||||
| Income tax expenses | 6,683 | 1,041 | 6,708 | 1,496 | |||||||||||||||||||
Share in losses of associated companies | — | 2,370 | — | 4,038 | |||||||||||||||||||
Depreciation expenses | 5,318 | 5,129 | 11,049 | 10,463 | |||||||||||||||||||
Amortization expenses | 5,762 | 5,442 | 11,448 | 10,879 | |||||||||||||||||||
Non-cash share-based compensation expenses | 6,216 | 6,138 | 11,501 | 12,351 | |||||||||||||||||||
| Contingent consideration | (4,066) | 643 | (3,731) | 1,288 | |||||||||||||||||||
| Legal and other expenses | 3,723 | 3,878 | 14,084 | 5,554 | |||||||||||||||||||
Restructuring and other related costs | 1,858 | 1,519 | 2,969 | 2,788 | |||||||||||||||||||
| Adjusted EBITDA | $ | 5,344 | $ | 6,129 | $ | 7,321 | $ | 14,299 | |||||||||||||||
Liquidity and Capital Resources
A summary of our statements of cash flows is as follows:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
U.S. $ in thousands | |||||||||||
| Net loss | $ | (40,690) | $ | (29,799) | |||||||
| Depreciation and amortization | 22,497 | 21,342 | |||||||||
| Share-based compensation | 11,501 | 12,351 | |||||||||
| Foreign currency transaction (gain) loss | 1,231 | (9,137) | |||||||||
| Other non-cash items, net | 399 | 5,392 | |||||||||
| Change in working capital and other items | (11,233) | 3,282 | |||||||||
| Net cash provided by (used in) operating activities | (16,295) | 3,431 | |||||||||
| Net cash provided by (used in) investing activities | 16,706 | (123,943) | |||||||||
| Net cash provided by (used in) financing activities | (2,568) | 118,284 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 42 | 3,069 | |||||||||
| Net change in cash, cash equivalents and restricted cash | (2,115) | 841 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 95,356 | 71,076 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 93,241 | $ | 71,917 | |||||||
Our cash, cash equivalents and restricted cash balance decreased to $93.2 million as of June 30, 2026 from $95.4 million as of December 31, 2025. The decrease in cash, cash equivalents and restricted cash in the six months ended June 30, 2026 was primarily due to our use of $16.3 million of cash in operating activities, as well as our use of $2.6 million of cash in financing activities, partially offset by $16.7 million of cash provided by investing activities.
Cash flows from operating activities
We used $16.3 million of cash in our operating activities during the six months ended June 30, 2026. Cash used in operating activities reflects our net loss of $40.7 million, as adjusted to eliminate non-cash line items that increased our net loss, including depreciation and amortization in an aggregate amount of $22.5 million and $11.5 million of share-based compensation, as well as the elimination of non-cash foreign currency transactions loss of $1.2 million, and other non-cash items in an aggregate amount of $0.4 million, partially offset by negative adjustments related to our working capital in an aggregate amount of $11.2 million.
The $11.2 million negative change to our working capital was mainly driven by an increase of $9.2 million in accounts receivable, net, an increase of $8.1 million in other current assets and prepaid expenses, as well as a decrease of $2.7 million in other non-current liabilities, partially offset by an increase of $4.2 million in other current liabilities, an increase of $2.5 million in accounts payable, a decrease of $1.5 million in other non-current assets, and an increase of $0.5 million in deferred revenues.
Cash flows from investing activities
We generated $16.7 million of cash from our investing activities during the six months ended June 30, 2026. The cash provided by investing activities during this six-month period was mainly attributable to net proceeds from short-term bank deposits of $30.0 million, partially offset by purchases of property and equipment and intangible assets, in an aggregate amount of $8.8 million, as well as cash paid for investments in unconsolidated entities in an amount of $4.9 million.
Cash flows from financing activities
We used $2.6 million of cash in our financing activities during the six months ended June 30, 2026. These financing activities were mostly related to contingent consideration that we paid for acquisitions.
Capital resources and capital expenditures
We ended the second quarter of 2026 with $213.2 million in cash, cash equivalents, short-term deposits and restricted cash.
Our total current assets amounted to $555.5 million as of June 30, 2026 (which included $213.2 million in cash, cash equivalents, short-term deposits and restricted cash, as referenced above). Total current liabilities amounted to $159.5 million. Most of our cash and cash equivalents and short-term deposits are held in banks in Israel and the U.S.
The credit risk related to our accounts receivable is limited, due to the relatively large number of customers and their wide geographic distribution. In addition, we seek to reduce the credit exposure of our accounts receivable by imposing credit limits, conducting ongoing credit evaluation, and by implementing account monitoring procedures, as well as credit insurance for many of our customers.
We believe that we will have adequate cash and cash equivalents to fund our ongoing operations and that these sources of liquidity will be sufficient to satisfy our working capital and capital expenditures needs for the next twelve months. We furthermore believe that we are well suited to continue to manage the current global macro-economic climate with a strong balance sheet and no debt, while focusing on cost controls and cash generation. We have continued to selectively apply certain cost controls, while ensuring that our new product introduction, or NPI, programs are well-funded, and we plan to continue investing as needed in order to support our new product development programs. We may consider deploying our available capital towards potential value-enhancing, inorganic opportunities in the 3D printing industry.
Critical Accounting Estimates
We have prepared our consolidated financial statements and related disclosures in conformity with U.S. GAAP. This has required us to make estimates and assumptions in certain circumstances that affect the amounts we report. Actual results may differ from those estimates. To better understand our business activities and those accounting policies that are important to the presentation of our financial condition and results of operations and that require management's subjective judgments, please see our 2025 Annual Report. We base our judgments on our experience and on various assumptions that we believe to be reasonable under the circumstances.
Forward-Looking Statements and Factors That May Affect Future Results of Operations
Certain information included or incorporated by reference in this Operating and Financial Review and Prospects may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “project” or other similar words, but are not the only way these statements are identified.
These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future.
You should not place undue reliance on our forward-looking statements because the matters they describe are subject to certain risks, uncertainties and assumptions that are difficult to predict. Our forward-looking statements are based on the information currently available to us and speak only as of the date of the Form 6-K to which this Operating and Financial Review and Prospects is appended, or the Form 6-K. Over time, our actual results, performance or achievements may differ from those expressed or implied by our forward-looking statements, and such difference might be significant and materially adverse to our shareholders. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.
Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things:
•the extent of our success at introducing new or improved products and solutions that gain market share;
•the extent of growth of the 3D printing market generally;
•global macro-economic factors and their impact on our industry, including moderately high interest rates (which could increase further), strengthening inflationary conditions, and tight credit conditions, which could continue to reduce the capital expenditure budgets of our customers and potential customers;
•changes in our overall strategy, including as related to the focused restructuring actions that we have been implementing to streamline operations and enhance our go-to-market strategy;
•the impact of shifts in prices or margins of the products that we sell or services we provide, including due to a shift towards lower margin products or services;
•the impact of competition and new technologies, and developments involving competitors in our industry, which could impact potential merger and acquisition activity involving us and other companies in our industry;
•the ongoing impact of import tariffs imposed by the United States and other countries on the prices we pay for finished goods and component parts that we utilize for our products and services, which have been reducing our gross margins, and which may also potentially adversely reduce customer demand for our products and services in affected countries;
•impairments of goodwill or other intangible assets in respect of companies that we acquire or in which we have an equity interest, as occurred recently with Ultimaker;
•the extent of our success at efficiently and successfully integrating the operations of various companies that we have acquired or may acquire;
•the degree of our success at locating and acquiring additional value-enhancing, inorganic technology that furthers our business plan to lead in the realm of polymers;
•the potential adverse impact of any disruptions or delays to supply chain and distribution networks and, consequently, to our ability to successfully sell both our existing and newly-launched 3D printing products;
•global market, political and economic conditions, and in the countries in which we operate in particular, including changes in the relative values of various currencies;
•the degree to which global markets generally, and our company’s operations, in particular, remain resistant to disruptions caused by, or other potential adverse effects (and any follow-up military conflicts related to), Israeli or U.S. wars against Iran and its sponsored terrorist organizations Hezbollah (in Lebanon), Hamas (in Gaza), and, intermittently, the Houthis in Yemen;
•government regulations and approvals;
•litigation and regulatory proceedings;
•infringement of our intellectual property rights by others (including for replication and sale of consumables for use in our systems), or infringement of others’ intellectual property rights by us;
•potential cyber attacks against, or other breaches to, our information technologies systems;
•the extent of our success at maintaining our liquidity and financing our operations and capital needs;
•impact of tax regulations on our results of operations and financial conditions; and
•those factors referred to in “Item 3.D. Key Information— Risk Factors”, “Item 4. Information on the Company”, and “Item 5. Operating and Financial Review and Prospects” in our 2025 Annual Report, as supplemented herein, as well as in other portions of the 2025 Annual Report.
Readers are urged to carefully review and consider the various disclosures made throughout the Form 6-K, our 2025 Annual Report, and in our other reports that we file with or furnish to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Reference is made to “Item 11. Quantitative and Qualitative Disclosures About Market Risk” in our 2025 Annual Report.
LEGAL PROCEEDINGS
We are subject to various litigation and other legal proceedings from time to time. For a discussion of our litigation status, see Note 12 -“Contingencies” in the notes to our unaudited condensed consolidated interim financial statements attached as Exhibit 99.1 to the Form 6-K.
RISK FACTORS
As of the current time, we do not have any updates to the risk factors contained in the 2025 Annual Report. Please see “Item 3. Key Information— D. Risk Factors” in our 2025 Annual Report.
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