Revenue accelerated 52.3% YoY to $20.7M in 2026Q2 with gross margin improving to 21.5%, yet operating margin remains deeply negative at -53.5% and trailing gross margin is -16.1%, indicating the company still loses money on each unit sold.
Velo3D, Inc. (VELO) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 57.56M | 45.97M | 41M | 77.44M | 80.76M | 27.44M | 18.98M | 15.22M |
| Revenue Growth % | 31.52% | 12.12% | -47.05% | -4.1% | 194.31% | 44.61% | 24.65% | - |
| Cost of Goods Sold | 57.25M | 53.38M | 43.09M | 103.71M | 77.86M | 22.48M | 12.61M | 10.39M |
| COGS % of Revenue | - | 116.11% | 105.09% | 133.92% | 96.42% | 81.93% | 66.45% | 68.27% |
| Gross Profit | 310K | -7.4M | -2.08M | -26.27M | 2.89M | 4.96M | 6.37M | 4.83M |
| Gross Margin % | 0.54% | -16.11% | -5.08% | -33.92% | 3.58% | 18.07% | 33.55% | 31.73% |
| Gross Profit Growth % | - | -255.11% | 92.06% | -1007.64% | -41.63% | -22.13% | 31.82% | - |
| Operating Expenses | 49.23M | 47.52M | 80.26M | 106.99M | 107.16M | 62.72M | 27.57M | 29.9M |
| OpEx % of Revenue | - | 103.36% | 195.75% | 138.15% | 132.69% | 228.57% | 145.32% | 196.43% |
| Selling, General & Admin | 36.67M | 36.86B | 63.15M | 64.96M | 60.89M | 35.72M | 13.39M | 15.53M |
| SG&A % of Revenue | - | 80184.02% | 154.02% | 83.88% | 75.4% | 130.16% | 70.55% | 102.01% |
| Research & Development | 10.66B | 10.65B | 17.11M | 42.03M | 46.27M | 27M | 14.19M | 14.59M |
| R&D % of Revenue | - | 23172.3% | 41.72% | 54.27% | 57.29% | 98.41% | 74.77% | 95.86% |
| Other Operating Expenses | -1000K | -47.47B | 0 | 506K | 0 | -88K | 0 | 0 |
| Operating Income | -48.92M | -54.92M | -82.35M | -133.25M | -106.31M | -57.76M | -21.21M | -25.29M |
| Operating Margin % | -84.98% | -119.46% | -200.83% | -172.07% | -131.64% | -210.5% | -111.76% | -166.14% |
| Operating Income Growth % | - | 33.31% | 38.2% | -25.34% | -84.06% | -172.36% | 16.15% | - |
| EBITDA | -45.79M | 3.46B | -82.35M | -123.94M | -101.02M | -55.59M | -19.97M | -24.15M |
| EBITDA Margin % | -79.55% | 7532.86% | -200.83% | -160.05% | -125.09% | -202.59% | -105.23% | -158.67% |
| EBITDA Growth % | 24.28% | 4305.47% | 33.56% | -22.69% | -81.73% | -178.4% | 17.33% | - |
| D&A (Non-Cash Add-back) | 3.13M | 3.52B | 0 | 9.31M | 5.29M | 2.17M | 1.24M | 1.14M |
| EBIT | -48.93M | 0 | 0 | -125.42M | -106.31M | -104.35M | -21.17M | -25.29M |
| Net Interest Income | -2.63M | -4.36M | 0 | -9.72M | -372K | -2.74M | -639K | 605K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 605K |
| Interest Expense | 2.63M | 4.36M | -15.97M | 9.72M | 372K | 2.74M | 639K | 0 |
| Other Income/Expense | -1.75M | -16.32M | 9.03M | -1.89M | 114.28M | -49.33M | -600K | -386K |
| Pretax Income | -50.67M | -71.25M | -73.32M | -135.14M | -106.31M | -107.09M | -21.81M | -25.68M |
| Pretax Margin % | -88.02% | -154.97% | -178.81% | -174.5% | -131.64% | -390.29% | -114.92% | -168.68% |
| Income Tax | 37K | -117M | 20K | 0 | -114.28M | 0 | 0 | 0 |
| Effective Tax Rate % | -0.07% | 164.22% | -0.03% | 0% | 107.5% | 0% | 0% | 0% |
| Net Income | -50.7M | -71.36B | -73.3M | -135.14M | 7.97M | -107.09M | -21.81M | -25.68M |
| Net Margin % | -88.09% | -155225.89% | -178.76% | -174.5% | 9.87% | -390.29% | -114.92% | -168.68% |
| Net Income Growth % | 39.62% | -97260.06% | 45.76% | -1795.81% | 107.44% | -391.09% | 15.08% | - |
| Net Income (Continuing) | -50.7M | -71.36B | -73.3M | -135.14M | 7.97M | -107.09M | -21.81M | -25.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.72 | -4.33 | -0.23 | -0.68 | 0.04 | -1.82 | -1.40 | -1.64 |
| EPS Growth % | -102.89% | -1782.61% | 66.18% | -1825.89% | 102.16% | -30% | 14.63% | - |
| EPS (Basic) | - | -4.33 | -0.23 | -0.68 | 1.51 | -1.82 | -1.40 | -1.64 |
| Diluted Shares Outstanding | 29.45M | 16.49B | 323.42M | 197.36M | 202.17M | 58.69M | 15.63M | 15.63M |
| Basic Shares Outstanding | 29.45M | 16.49B | 323.42M | 197.36M | 199.23M | 58.69M | 15.63M | 15.63M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying VELO stock.
For fiscal year 2025, Velo3D, Inc. (VELO) reported total revenue of $46.0M. This represents a 202.0% increase compared to $15.2M in 2019.
Velo3D, Inc. (VELO) reported a net loss of $71.36B for the fiscal year ending 2025.
Velo3D, Inc. (VELO) reported an operating income of $-54.9M, resulting in an operating profit margin of -119.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Velo3D, Inc. (VELO) generated $-7.4M in gross profit for the year, representing a gross profit margin of -16.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash runway and negative gross margins
Metrics are mathematically derived from official filings.
Revenue Acceleration Amidst Structural Losses
According to the latest quarterly data, VELO's revenue surged 52.3% year-over-year to $20.7M, marking the third consecutive quarter of accelerating growth, though this expansion appears to be outpacing the company's ability to achieve profitability.
The 52.3% YoY growth in 2026Q2 follows 48.2% in 2026Q1 and 65.4% in 2025Q3, indicating a clear acceleration trend. This suggests that the commercial strategy is gaining traction, likely driven by increased adoption of the Sapphire platform in aerospace and defense. However, the growth is coming from a low base and is not yet translating into positive gross margins, implying that the company may be sacrificing pricing to secure orders. Investors should monitor whether this growth is sustainable and whether it can eventually absorb the high fixed cost base.
Persistent Negative Gross Margins
As reported in the income statement, VELO's gross margin improved to 21.5% in 2026Q2 from -73.6% in 2025Q4, but the company still posted a negative gross margin of -16.1% on a trailing basis, indicating that it loses money on every unit sold.
The gross margin swing from -73.6% in 2025Q4 to 21.5% in 2026Q2 is dramatic, but the trailing twelve-month gross margin remains deeply negative. This suggests that the company's cost structure is not yet aligned with its pricing power. The improvement may be due to a favorable product mix or cost reductions, but the persistence of negative margins indicates that the production model remains fundamentally unscalable without significant price increases or cost reductions. The negative gross margin is a critical concern as it implies that each additional sale deepens the operating loss, unless the mix shifts toward higher-margin software and services.
Operating Leverage Still Elusive
Based on the latest quarterly figures, VELO's operating loss narrowed to -$11.1M in 2026Q2 from -$20.3M in 2025Q4, but operating margin remains deeply negative at -53.5%, indicating that fixed costs are still not being absorbed by revenue growth.
Despite the revenue surge, operating expenses (R&D and SG&A) totaled $15.5M in 2026Q2, which is only slightly below the $16.2M COGS. The operating loss of -$11.1M on $20.7M revenue implies that the company's cost structure is still heavily fixed, and the incremental revenue is not yet generating operating leverage. The SG&A line, at $11.2M, is particularly high relative to revenue, suggesting that the company is still investing heavily in sales and marketing to drive growth. This indicates that operating leverage will only materialize if revenue can scale significantly without a proportional increase in overhead.
Earnings Distorted by Non-Operating Items
The reported net margin of -55.7% in 2026Q2, while extreme, is far less distorted than the -7,553.3% in 2025Q4, which included massive one-time charges; however, the presence of stock-based compensation of -$1.9B in 2026Q2 raises questions about the quality of reported earnings.
The net income of -$11.5M in 2026Q2 is roughly in line with operating income, suggesting that non-operating items are not the primary driver of losses in the latest quarter. However, the SBC line of -$1.9B is a significant negative adjustment, which is unusual and may indicate a one-time charge or a revaluation of equity-based compensation. In contrast, 2025Q4's net loss of -$71.3B was driven by massive non-operating charges, likely related to restructuring or impairment. These distortions make it difficult to assess the underlying earnings power, and investors should focus on operating income as a cleaner measure of performance.
Cost Structure Remains the Core Challenge
In the latest quarter, COGS of $16.2M and SG&A of $11.2M together consumed 132% of revenue, highlighting that the company's cost structure is still not aligned with its revenue base, despite a notable improvement from prior quarters.
The cost structure is dominated by COGS and SG&A, with R&D at $4.3M being relatively modest. The gross margin improvement to 21.5% suggests that COGS is becoming more manageable, but SG&A remains high at 54% of revenue. This indicates that the company is still investing heavily in sales and marketing to support growth, which may be necessary but is not yet yielding economies of scale. The negative gross margin on a trailing basis implies that the company may be selling hardware at a loss to build market share, a strategy that is only viable if it leads to recurring software and service revenue in the future.
2025Q4: A Turning Point in Cost Discipline
The most significant inflection occurred in 2025Q4, when revenue fell to $9.4M and gross margin plunged to -73.6%, triggering a massive restructuring that appears to have reset the cost base, as evidenced by the subsequent margin recovery in 2026.
2025Q4 was a nadir for VELO, with revenue declining 25.2% YoY and gross margin collapsing to -73.6%, likely due to inventory write-downs and under-absorption of overhead. This quarter also saw a massive net loss of -$71.3B, which included substantial non-operating charges. The subsequent quarters show a clear recovery in revenue and gross margin, suggesting that management took decisive action to reduce costs and refocus the business. However, the persistence of negative operating margins indicates that the company has not yet achieved a sustainable cost structure, and the inflection may only be a temporary improvement rather than a structural change.
Growth Without Profitability: A Red Flag
Despite the impressive 52.3% revenue growth in 2026Q2, the company still posted a negative gross margin of -16.1% on a trailing basis and an EPS miss of -$0.39 versus -$0.27 expected, suggesting that the growth is not translating into bottom-line improvement.
Short-sellers would argue that VELO's revenue acceleration is unsustainable and that the company is buying growth through aggressive pricing and high sales spending. The persistent negative gross margins indicate that the company has no pricing power and that its technology, while differentiated, is not yet cost-competitive with traditional manufacturing. The raised guidance despite the EPS miss could be seen as a red flag, as it may indicate that management is prioritizing top-line growth over profitability. With only $1.2M in cash, the company is burning through its balance sheet, and any slowdown in revenue growth or further margin compression could force a dilutive capital raise or restructuring. Investors should monitor whether the company can achieve positive gross margins on a sustained basis, as this is critical to its survival.