Why Stratasys Stock Just Crashed
Key Points
Stratasys beat on sales and earnings this morning -- sort of.
Sales still declined 7% year over year, and Stratasys reported another GAAP loss.
Stratasys (NASDAQ: SSYS) stock tumbled 12.6% through 11:05 a.m. Thursday despite beating on top and bottom lines in its Q4 earnings report.
Wall Street analysts forecast the 3D printing company would earn $0.06 per share, adjusted for one-time items, on quarterly sales of $139.3 million. In fact, Stratasys earned $0.07 per share on sales of $140 million.
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But the real news was a bit worse than that.
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Stratasys Q4 earnings
Although Stratasys "beat earnings" and reported $0.07 in non-GAAP profit, its actual net earnings calculated under generally accepted accounting principles (GAAP) showed not a beat, not even a profit, but a loss -- $0.22 per share for the quarter. Similarly, sales that exceeded expectations were still down 7% year over year.
For the full year, Stratasys reported a 4% decline in sales to $551.1 million and a net loss of $1.28 per share.
CEO Dr. Yoav Zeif boasted of "solid cash flow generation" for the quarter and the year, but the company did not say how much it spent on capital investment in either period. Until the company publishes a cash flow statement, it's hard to say for certain... but such capex may have been large enough to erase the positive cash flow and result in negative free cash flow for Stratasys.
Is Stratasys stock a sell?
Turning to guidance, Stratasys forecast sales to resume growing in 2026. Management expects full-year revenue to grow to about $570 million, up 3.4% from 2025.
The company does not expect to become profitable in 2026, but hopes to continue shrinking its losses, this time to no worse than $0.95 per share (and potentially as low as $0.76).
Still unprofitable and with the FCF situation murky, Stratasys stock remains a sell for me.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Stratasys. The Motley Fool has a disclosure policy.