Velo3D (VELO) stock jumped more than 17% in pre-market trading on Wednesday, August 12, 2026, after the metal additive manufacturing company reported second-quarter results that significantly exceeded Wall Street expectations.

Shares had already gained 19.28% in after-hours trading on Tuesday, closing the regular session at $13.69 before the earnings release.

Q2 2026 Financial Results

Q2 2026 revenue reached $20.7 million, representing a 52.3% year-over-year increase and approximately 50% sequential growth. The figure surpassed the analyst consensus estimate of $13.52 million by more than 52%.

VELO3D $VELO Q2'26 EARNINGS HIGHLIGHTS 🔹 Revenue: $20.7M (Est. $13.5M) 🟢; +52.3% YoY 🔹 Adj. EPS: -$0.30 (Est. -$0.31) 🟢 Raises FY26 Guide: 🔹 Revenue: $65M-$75M (Est. $64.2M) 🟢; from $60M-$70M 🔹 CapEx: $40M-$50M (Est. $45.6M) 🟡 🔹 Non-GAAP Adjusted OpEx: $45M-$55M 🔹… — Wall St Engine (@wallstengine) August 11, 2026

Earnings per share came in at -$0.30, compared to an estimate of -$0.27, missing by approximately 11%. However, investors focused on the company's broader operational improvements rather than the per-share loss, as Velo3D is directing capital toward scaling production to meet demand that exceeds current capacity.

Gross margin climbed to 21.5%, a sharp turnaround from negative 11.7% in the same quarter a year earlier. The improvement was driven by higher average selling prices and stronger revenue contributions from Rapid Production Services.

Backlog and Balance Sheet

Backlog nearly doubled year-over-year, reaching $31 million as of June 30, 2026. Cash on the balance sheet rose to $91.1 million, while total debt declined by more than 70% to $8.2 million. The strengthened balance sheet provides flexibility as the company funds its planned capacity expansion from internal resources.

CEO Arun Jaldi stated during the earnings call that demand is currently outpacing production capacity. "We absolutely need 100 machines as of today to actually run all the programs on the demand we have," he said.

Livermore Production Campus

To address capacity constraints, Velo3D announced plans for a new Livermore Production Campus. The facility is expected to triple manufacturing capacity, with a target of 100 production machines operational by mid-2028. The expansion comes as the metal additive manufacturing sector increasingly transitions from prototyping and low-volume work toward qualified serial production for mission-critical applications.

Jaldi reflected on the company's recent trajectory: "The last one and a half year for Velo3D is just purely the stability of the company. Now we are beyond that point. Now it's a growth phase."

He described the preceding period as challenging but essential. "It's been an 18-month really hard journey, and turning around a company is not easy. We have faced a lot of ups and downs, and I think we're in a position to thrive now."

Raised Full-Year Guidance

Velo3D raised its full-year 2026 revenue guidance to a range of $65 million to $75 million, up from the prior range of $60 million to $70 million. The company also reiterated its expectation of reaching positive adjusted EBITDA in the second half of 2026.

Demand is being driven by defense, space, and energy end markets. Velo3D's metal 3D-printing systems are used by customers including SpaceX, and the company's technology enables production of complex geometries that conventional subtractive manufacturing methods cannot achieve.

Market Context

The Nasdaq rose 0.7% and the S&P 500 gained 0.2% on the day, moves too modest to account for VELO's pre-market surge.

Velo3D's 52-week range runs from a low of $2.81 to a high of $31.75. The company carries a market capitalization of approximately $408 million.