3D Systems (DDD) Finally Turns The Corner, But Cracks Remain

3D Systems (DDD) reported its second-quarter results on August 3, showing a mixed bag for the company. While total revenue remained flat at $94.6 million, stripping out the sold-off software units revealed a 1.4 percent increase. The standout performer was Healthcare Solutions, which saw a 6.8 percent revenue boost to $48.1 million, driven by a 20 percent jump in Med Tech sales and a 3 percent growth in Dental.

Industrial Solutions, however, struggled with a 6.7 percent revenue decline to $46.5 million, despite gains in Aerospace & Defense and Data Center Infrastructure segments, each exceeding 20 percent growth. Adjusted EBITDA improved from a loss of $4.7 million a year earlier to a loss of $0.8 million, and the company turned positive for the first half of 2026 with $1.3 million Adjusted EBITDA, contrasted with a $30.8 million loss in the same period last year.

The company raised $53.2 million by issuing new shares, bringing total cash to $129.0 million. Despite the progress, Industrial Solutions' performance and gross margin challenges indicate a business still searching for stability. The stock saw increased hedge fund interest and a significant short interest, reflecting differing views on the recovery trajectory.

While the recovery appears promising, the company's progress remains uneven, with significant challenges in the Industrial segment.