Velo3D (NASDAQ:VELO) Posts 52% Revenue Jump in Q2 2026, Raises Full-Year Guidance

Velo3D (NASDAQ: VELO) reported Q2 2026 revenue of $20.7 million, a 52.3% year-over-year increase from $13.6 million, as gross margin swung sharply from -11.7% to +21.5% in the same period. The company also raised its full-year 2026 revenue guidance to a range of $65 million to $75 million, up from its prior range of $60 million to $70 million.

Q2 2026 Results

• Revenue: $20.7 million, up 52.3% year-over-year from $13.6 million in Q2 2025
• 3D Printer and parts revenue: $19.0 million, up 57.0% from $12.1 million in Q2 2025, driven by higher average selling prices, favorable product mix, and increased RPS production volumes
• Gross margin: 21.5% in Q2 2026, compared to -11.7% in Q2 2025
• GAAP net loss: $11.5 million, an improvement of $1.8 million from a $13.3 million loss in Q2 2025
• Adjusted (non-GAAP) EPS: -$0.30, beating the consensus estimate of -$0.32 by 6.3%; GAAP EPS was -$0.39 versus -$0.94 in Q2 2025
• Cash and equivalents: $91.1 million as of June 30, 2026, up from $39.0 million at December 31, 2025

What Drove the Results

Adjusted EPS of -$0.30 beat the -$0.32 consensus by 6.3%. The gross margin expansion from -11.7% to 21.5% reflected a refinement in the allocation of certain labor and overhead costs between cost of revenue and operating expenses, alongside higher average selling prices, a more favorable product mix, and increased RPS revenue. GAAP net loss of $11.5 million differed from the non-GAAP net loss of $9.0 million primarily due to stock-based compensation of $2.4 million and other adjustments including fair value changes on warrants.

Backlog stood at $31 million at quarter-end, with $29 million in new bookings during Q2. Total outstanding debt was reduced by more than 70% to $8.2 million as of June 30, 2026, following debt-to-equity conversions and capital raises totaling approximately $109 million in gross proceeds during the first half of 2026, including a $50 million registered direct offering closed in April and approximately $59.4 million raised under an at-the-market program.

Business Developments

Velo3D launched its new Livermore Production Campus during the quarter, which the company expects will triple its manufacturing capacity and serve as its primary production center once operational later in 2026. The company expanded its strategic partnership with Mears Machine Corporation, which ordered a fifth Sapphire XC metal additive manufacturing system with options for two additional units. Velo3D also entered a new strategic partnership with Aurelia Technologies targeting metal additive manufacturing for next-generation gas turbine systems. Additionally, the company was included in the Russell 3000 and Russell Microcap indexes, and appointed Lily Mei, former Mayor of Fremont, California, to its Board of Directors as an independent director.

Full-year 2026 capital expenditure guidance is set at $40 million to $50 million, primarily for RPS expansion, subject to availability of sufficient financing. Management also targets positive EBITDA in the second half of 2026 and greater than 30% gross margin in H2 2026.

Wall Street View

Wall Street's posture on VELO is constructive, with a strong majority of analysts currently carrying Buy or equivalent ratings on the stock. Shares gained 5.71% on Tuesday, August 11, 2026, while the S&P 500 declined 0.32%.

Investor Takeaway

The sharp gross margin recovery, from deeply negative territory a year ago to 21.5% in Q2, represents a structural shift in unit economics rather than a one-quarter anomaly, and management's guidance for greater than 30% gross margin in the second half of 2026 sets a concrete near-term benchmark for investors to track. The combination of a strengthened balance sheet, $91.1 million in cash, and a tripling of manufacturing capacity at the Livermore campus positions the company to pursue larger production programs, though conversion of the $31 million backlog and the $40 million to $50 million capex commitment will be key execution tests in the quarters ahead.