Executive Summary

Mixed quarter: revenue declined 16% YoY to $94.8M on continued customer capex delays, but improved sequentially ex-Geomagic and delivered better profitability from cost actions; GAAP EPS turned positive on one-time gains while non-GAAP EPS narrowed to a $0.07 loss . Versus S&P consensus, revenue was a slight miss, but non-GAAP EPS and Adjusted EBITDA were notable beats (see Estimates Context).*
Cost program execution tracking ahead: non-GAAP OpEx fell 27% YoY to $46.8M; management targets exiting Q4 with OpEx in the low-$40M range and >$85M annualized savings by mid-2026, underpinning a path to positive cash flow in 2026 .
Mix drivers: MedTech (+13% YoY, +16% QoQ) and Aerospace & Defense (+84% YoY, +53% QoQ) strength offset dental aligner softness and consumer-facing industrial weakness; gross margin benefited ~200 bps sequentially, aided by a ~$2M regenerative milestone .
Balance sheet actions: sold Geomagic (gain), retired $88M of debt at a discount, extended maturities to 2030, and repurchased 8M shares; cash stood at $116.4M and total debt at $122.6M at quarter-end .

What Went Well and What Went Wrong

What Went Well

Cost discipline and margin execution: non-GAAP OpEx cut to $46.8M (–27% YoY; –24% QoQ) with gross margin stabilization; management targets OpEx low-$40Ms by Q4 as restructuring progresses . CEO: “We delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies...” .
Segment outperformance where focused: MedTech grew 13% YoY/16% QoQ; A&D revenues up 84% YoY/53% QoQ, now >$30M annual run-rate, supported by the “3Ps” strategy (process, parts, printers) .
Strategic product catalysts: Full U.S. commercial release of NextDent Jetted Denture Solution (addressable U.S. replacement market ~$600M by 2029), with beta-validated 300% efficiency improvement potential; orders began and ramp planned in 2H25 .

What Went Wrong

Capex-driven top-line pressure: revenue -16% YoY on customer delays tied to tariff uncertainty; dental aligner demand fell 19% sequentially, driving a 3% overall dental decline .
Tariff headwinds: ~+$1M cost impact in Q2, expected to persist into 2H25 despite partial offsets from insourcing and efficiencies .
Governance and controls overhang: Board rejected contingent resignation of Audit Chair amid ongoing remediation of material weaknesses in internal control over financial reporting, keeping a lingering risk perception .

Financial Results

Headline metrics (USD, millions except per-share)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue	$111.0	$94.5	$94.8
Gross Margin % (GAAP)	31.0%	34.6%	38.1%
Gross Margin % (Non-GAAP)	31.3%	35.0%	39.2%
Operating Expense (GAAP)	$64.8	$69.5	$51.5
Operating Expense (Non-GAAP)	$58.4	$61.6	$46.8
Operating Income (Loss)	$(30.4)	$(36.8)	$(15.4)
Net Income (Loss)	$(33.7)	$(37.0)	$104.4
Diluted EPS (GAAP)	$(0.25)	$(0.28)	$0.57
Diluted EPS (Non-GAAP)	$(0.19)	$(0.21)	$(0.07)
Adjusted EBITDA	$(19.1)	$(23.9)	$(5.3)

Year-over-year context: Q2 revenue declined 16% YoY; GAAP gross margin 38.1% vs 41.6% last year; non-GAAP GM 39.2% vs 40.9% last year; non-GAAP OpEx down to $46.8M from $64.2M; adjusted EBITDA loss improved to $(5.3)M from $(12.9)M .

Segment revenue (USD, thousands)

Segment	Q2 2024	Q2 2025
Healthcare Solutions	$48,900	$45,020
Industrial Solutions	$64,352	$49,818
Total	$113,252	$94,838

Additional KPIs and balance sheet

KPI	Q1 2025	Q2 2025
Cash & Cash Equivalents	$135.0	$116.4
Cash, Cash Eq. & Restricted Cash	$136.2	$133.9
Total Debt (net of deferred costs)	$212.3	$122.6
Non-GAAP Gross Margin %	35.0%	39.2%
Non-GAAP OpEx	$61.6	$46.8
Adjusted EBITDA	$(23.9)	$(5.3)

Key non-GAAP adjustments impacting optics in Q2: $125.7M gain on Geomagic disposition; $8.2M gain on debt repurchase; ~$2M regenerative milestone benefit to gross margin . These items drove positive GAAP EPS despite ongoing underlying losses on a non-GAAP basis.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (FY)	FY2025	$420–$435M (provided 3/26/25)	Withdrawn (5/12/25) ; no update in Q2	Lowered/Withdrawn
Adjusted EBITDA	Q4 2025	Break-even or better (3/26/25)	Still targeting profitability first; no change indicated (Q2 call)	Maintained
Non-GAAP OpEx exit rate	Q4 2025	—	“Low $40M” target (Q2 call)	New
Annualized Cost Savings	By mid-2026	>$50M (announced Q1)	>$85M (Q2 call)	Raised
Cash Flow	FY2026	—	“Return to positive cash flow in 2026” (press)	New/Clarified

Company does not provide forward-looking GAAP reconciliations for certain non-GAAP measures (gross margin, Adjusted EBITDA, non-GAAP OpEx) .

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior-2)	Q1 2025 (Prior-1)	Q2 2025 (Current)	Trend
Tariffs/macro & capex delays	Accounting estimate reduced RM milestone; macro weak; planning >$50M cost saves	Withdrew FY25 guidance; added $20M incremental cost saves; capex delays noted	Tariffs causing ongoing capex delays; ~$1M cost headwind; offset by insourcing efficiencies	Headwind persists; mitigation improving
Cost program & OpEx	Announced >$50M program through mid-2026	Added $20M 2025 in-year savings	>$85M annualized savings by mid-2026; OpEx exit low-$40Ms	Accelerating
A&D demand	Industrial rebound in Q4	Strength in A&D highlighted	A&D +84% YoY/+53% QoQ; >$30M run-rate	Strong uptrend
MedTech momentum	Product launches; healthcare platform strength	PHS +17%; FDA-approved parts manufacturing +18%	MedTech +13% YoY/+16% QoQ; expanding into trauma; point-of-care services as app dev flywheel	Strengthening
Dental initiatives	FDA-cleared jetted denture (Sept 2024)	Dental aligner inventory management pressure	U.S. launch of NextDent 300; orders started; aligners -19% QoQ; overall dental -3%	Mixed: new product ramps vs aligner softness
Regenerative medicine	Estimate change hit Q4; continued progress	—	New lung printing milestone; ~$2M milestone benefit recognized	Progressing
R&D allocation	—	Preserving R&D despite pressure	Reduce R&D from ~20% to mid-teens; mothball Systemic Bio; focus on ROI	Tightening focus

Management Commentary

“We delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies... Our cost savings initiatives... favorably impacted both gross margins and operating expenses” .
“In the second quarter, tariffs increased our costs by roughly $1 million, but were largely countered through improved operating efficiencies in manufacturing operations” .
On demand mix: “Med Tech... grew 13% year-over-year and 16% sequentially... Aerospace & Defense... revenues growing 84% from prior year, and 53% sequentially... Total A&D revenues now exceed $30 million annually” .
Balance sheet actions: “We... permanently retir[ed] $88 million in outstanding debt... extend[ed] maturities... and repurchas[ed] 8 million shares...” .
CFO on margin optics: “Gross margins include approximately $2,000,000 of benefit associated with milestone recognition within our regenerative medicine business” .
Cost program scope: “We plan to deliver over $85,000,000 in annualized savings by mid-2026” .

Q&A Highlights

Dental mix: Aligners down 19% sequentially; including that decline, dental was down 3%; ex-aligners, broader dental improving, with NextDent 300 ramp expected to be material in 2026 .
Gross margin cadence: Ex-milestone, Q2 gross margin ~38%; expect more normalized levels the rest of the year while pursuing efficiencies .
R&D discipline: After a period at ~20% of revenue, R&D to be brought to “mid-teens” with focus on short payback; Systemic Bio investments curtailed .
A&D and AI infrastructure: A&D >$30M TTM, sticky programs; exploring copper/thermal management for data centers and semiconductor equipment applications .
Tariffs and “3Ps” bridge: Customers delaying capex due to tariff uncertainty; DDD bridging with parts production until printer capex decisions are made .

Estimates Context

Q2 2025 vs S&P Global consensus

Metric	Actual	S&P Consensus	Surprise
Revenue ($M)	$94.8	$95.7*	$(0.9)M (miss)
EPS (Non-GAAP, $)	$(0.07)	$(0.155)*	+$0.085 (beat)
Adjusted EBITDA ($M)	$(5.3)	$(13.7)*	+$8.4M (beat)

Q1 2025 context: revenue $94.5M vs $99.5M*; EPS (non-GAAP) $(0.21) vs $(0.145); EBITDA $(23.9)M vs $(12.4)M (missed as cost savings were early-stage) .
Q3 2025 (reported post period): actual revenue $91.25M vs $93.04M*; actual EPS (non-GAAP) $(0.08) vs $(0.085)* (in line) — for trajectory assessment only.*

Values marked with an asterisk were retrieved from S&P Global.*

Drivers of the Q2 beats/misses:

Revenue slight miss: continued tariff-driven capex delays and dental aligner softness, partly offset by MedTech and A&D strength .
EPS/EBITDA beats: lower OpEx from accelerated cost actions; one-time ~$2M milestone benefit to margins .

Key Takeaways for Investors

Execution on cost roadmap is the near-term stock driver: non-GAAP OpEx fell sharply and management reiterated an exit to low-$40Ms in Q4; monitor sequential OpEx and adjusted EBITDA progress toward Q4 breakeven .
Mix shift is constructive: MedTech and A&D are scaling and higher-quality; watch orders tied to the “3Ps” model and U.S./EMEA regionalization as tariff uncertainty persists .
Dental catalyst building: U.S. NextDent dentures launched with favorable economics; aligner weakness may mask the ramp near term, but 2026 contribution could be material if adoption curves hold .
One-time items boosted GAAP EPS; focus on non-GAAP profitability and cash: milestone and divestiture/debt gains won’t repeat; the 2026 positive cash flow target hinges on delivery of >$85M annualized savings and OpEx discipline .
Balance sheet improved and maturities pushed: debt cut and term extended to 2030; liquidity adequate for restructuring and product launches, but cash burn moderation remains a watch item .
Risk factors: tariff volatility, dental aligner demand variability, governance/control remediation, and timing of facility subleases could affect the pace of improvement .

Appendix: Additional Detail

Q2 vs Prior Year, Prior Quarter, and Estimates (select metrics)

Revenue: $94.8M vs $113.3M YoY (–16%); modest sequential growth ex-Geomagic; Q2 consensus ~$95.7M* .
Non-GAAP EPS: $(0.07) vs $(0.14) YoY; consensus $(0.155)* (beat) .
Adjusted EBITDA: $(5.3)M vs $(12.9)M YoY; consensus $(13.7)M* (beat) .
Segment: Healthcare $45.0M (–8% YoY); Industrial $49.8M (–23% YoY) .
Cash & debt: cash $116.4M; total debt $122.6M at quarter-end .

Citations:

Q2 2025 press release and exhibit 99.1 (Form 8-K): financials, segment, non-GAAP reconciliations, liquidity, governance .
Q2 2025 earnings call transcript: cost program, margin mechanics, segment commentary, R&D, dental and A&D color .
Prior quarters: Q1 2025 release (withdrew FY guidance, financials) ; Q4 2024 release (outlook, cost plan) .
Other relevant press releases: NextDent Jetted Denture launch (U.S. commercial release) ; USAF $7.65M contract (A&D momentum) .