Shares of Velo3D (VELO) shot up more than 50% on Wednesday after the metal 3D printing company reported first-quarter results that left Wall Street estimates in the dust. The stock's surge was turbocharged by heavy short interest — over a quarter of the float was sold short — which created a squeeze that sent buyers scrambling.
Velo3D posted a loss of $0.20 per share, far better than the $0.48 loss analysts had expected. Revenue jumped 48% year over year to $13.82 million, crushing the $9.85 million consensus estimate. Sequentially, revenue rose 46%, driven by higher average selling prices, more system shipments, and growing contributions from the company's Rapid Production Solution segment.
The company pointed to strong demand from aerospace and defense markets as a key driver. Its backlog swelled to about $30 million, up from $18 million a year earlier, signaling improving visibility into future revenue. Gross margin expanded to 17.2% from 7.5%, helped by better factory utilization and operational efficiencies. Velo3D ended the quarter with $16.6 million in cash.
During the quarter, the company locked in several defense contracts, including an $11.5 million production contract with a U.S. defense prime contractor and a $9.8 million five-year agreement with the Defense Logistics Agency under the JAMA program. These deals bolster the company's growth outlook.
Management reiterated its full-year 2026 revenue guidance of $60 million to $70 million and maintained its expectation of achieving positive EBITDA in the second half of the year. Gross margins are expected to exceed 30% in the second half as production scales. Capital expenditures for 2026 are projected between $40 million and $50 million, primarily for manufacturing expansion and automation.
At the time of publication, Velo3D shares were trading at $21.38, up 52.06% on the day.
