Stratasys Q3 2026 Earnings Call Transcript

Stratasys (NASDAQ:SSYS) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Stratasys Ltd reported 4.1% year-over-year revenue growth, primarily driven by strong performance in Aerospace and Defense (A&D), which grew over 35% compared to the previous year.

The company highlighted a strategic shift from rapid prototyping to manufacturing, with notable growth in A&D, automotive, dental and Stratasys Direct businesses.

Stratasys generated positive operating cash flow and ended the quarter with $210.7 million in cash while remaining debt-free.

New revenue guidance for 2026 was revised down to $556 million to $561 million due to longer sales cycles and timing variability for larger orders.

Stratasys emphasized its continued strategic focus on key verticals such as aerospace and defense, with significant orders and partnerships enhancing its position.

Operational highlights included the launch of the F870 platform and strategic partnerships with major automotive players such as General Motors and Toyota.

The termination of the acquisition of Machforge Inc. with Nano Dimension was announced, with no financial repercussions for Stratasys.

Management expressed confidence in the long-term demand and structural growth opportunities across high-value verticals despite near-term variability.

Full Transcript

Kevin (Operator)

Good day and welcome to today’s conference call to discuss Stratasys third quarter 2026 results. My name is Kevin, and I’ll be your operator for today’s call. And now I’d like to turn the call over to Yona Lloyd, Chief Communications Officer and Vice President, Investor Relations for Stratasys. Mr. Lloyd, please go ahead.

Yona Lloyd (Chief Communications Officer and Vice President, Investor Relations)

Good morning, everyone, and thank you for joining us to discuss our 2026 third quarter financial results. On the call with us today are our CEO, Dr. Yoav Zeif, and CFO, Eitan Zamir. I would like to remind you that access to today’s call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today’s call, including access to the slide presentation, will also be available and can be accessed through the Investor Relations section of our website.

Please note that some of the information provided during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes, and other future financial performance, and our expectations for our business outlook. All statements that speak to future performance, events, expectations, or results are forward-looking statements.

Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those described in forward-looking statements, please refer to the risk factors discussed or referenced in Stratasys Annual Report on Form 20-F for the 2025 year. Please also refer to that annual report, along with our reports filed with or furnished to the SEC throughout 2026, for additional operational and financial details.

Reports on Form 6-K that are furnished to the SEC on a quarterly basis and throughout the year provide updated current information regarding the company’s operating results and material developments concerning our company. Stratasys assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. As in previous quarters, today’s call will include GAAP and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance. Non-GAAP to GAAP reconciliations are provided in tables in our slide presentation and today’s press release.

I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zeif. Yoav.

Yoav Zeif (Chief Executive Officer)

Thank you, Yona. Good morning, everyone, and thank you for joining us. Our third quarter results reflect the successful ongoing shift from rapid prototyping to manufacturing, as reflected in the 4.1% growth year over year. Our largest business, Aerospace and Defense, or A&D, had a particularly strong quarter, growing over 35% compared to the third quarter of last year and approximately 25% sequentially from the second quarter of this year, and our automotive, dental and Stratasys Direct business grew as well.

Importantly, we generated positive operating cash flow this quarter, as we had previously communicated. Our growth across A&D and automotive demonstrates the long-term value propositions of industrial additive manufacturing, addressing key benefits including onshoring, speed, cost and customization, while enabling rapid scaling. Furthermore, the mix continues to shift from prototyping toward qualified production, driving recurring industrial systems, materials, service and Stratasys Direct parts revenue.

Regarding aerospace and defense, in the third quarter we demonstrated ongoing success and would like to highlight two significant defense orders. These orders enabled the customers to continue scaling their respective production programs utilizing both our FDM and SAF technologies. We also saw strong follow-on order activity from existing FDM customers already embedded in production environments, especially focused on our qualified processes used in flight-grade applications.

Demand continues to be broad across our FDM portfolio. The growth comprises a number of A&D sub-verticals. This includes drones, space, munitions, eVTOL, advanced air mobility, along with the service bureaus and contract manufacturers that support this ecosystem. We have also seen an uptick in customers turning to our SAF powder systems, replacing traditional supply chains for just-in-time bridge production work. This megatrend, combined with our focus on high-requirements scaling programs, results in larger relative order sizes, which by nature have longer sales cycles and more time variability. However, it’s important to note that once a part is qualified on our platforms, the relationship tends to be long term. This is primarily due to the constant complexity of requalifying another resource. Furthermore, we have strong feedback from customers that our systems enable enhanced ROIs.

Mission-critical performance requirements and accelerating supply chain resiliency mandates are megatrends. They are translating into longer-term durable structural demand for our platforms. This is especially true for scaling programs within aviation, space and space launch, drones and munitions industries. The consistent growth, high level of engagement and demand reinforce our conviction that we are still early on this transformative journey. We see significant opportunity to expand our customer base and grow wallet share longer term with both legacy users and startups.

To that point, we would like to welcome David Chin to our Board of Directors. David is a long-term McKinsey senior partner who co-leads their firm’s work with defense ministries and armed forces globally. He has advised on transformations across aerospace and defense manufacturing, cybersecurity and other key sectors. This appointment reflects the company’s continued strategic focus on defense as a key vertical. We also want to thank Aris Khakagian for his service as a board member.

Turning to automotive, this quarter we exhibited at IMTS 2026, the largest manufacturing technology event in the world, where we highlighted our strong and growing relationship with General Motors. By partnering with GM, our products and software are helping to meaningfully improve their legacy tooling and production support, with measurable results in terms of speed and efficiency across multiple plants. GM partnered with us to establish an Additive Manufacturing Center of Excellence to scale effective production.

It is a hub-and-spoke model, deploying dozens of industrial 3D printers across more than 20 plants, making custom tools, jigs and fixtures on demand. This year alone, over 5,000 GM factory floor applications were supported by Stratasys printers, and that number is expected to climb in the coming years. Note that GM is consistently one of our top customers in terms of printer utilization in production environments. This utilization is a reflection of the high quality of our materials, which translates into recurring revenue for us.

GM, in turn, is gaining efficiency in production and saving $10 million in annual cost. This partnership is a true symbiotic relationship where we all win, including the end consumer that ultimately gets a better-produced vehicle. The benefits for GM are substantial beyond the annual savings. From localized additive manufacturing, production tooling response times are roughly four times faster. Worker safety and ergonomics are improved by customized production tooling, which reduces physical strain on operators. This model continues to expand across GM’s plants in the United States and Mexico. It’s a production-scale evidentiary point for our manufacturing strategy and a compelling case study for other manufacturers currently evaluating our additive manufacturing solutions.

At IMTS, we also launched the F870, a new large-format FDM platform purpose-built for factory floor tooling, fixtures and end-use parts, with the longest heated build chamber in its class. Toyota and Rivian were among the first adopters evaluating the system for automotive tooling and manufacturing aids at their North American facilities. Both the F870 launch and the General Motors rollout reflect the same underlying trend: manufacturers are moving additive manufacturing out of the prototyping lab and onto the factory floor as a standard procedure of how they run production.

Additionally, FAW Group, one of China’s largest auto OEMs, continued to expand its use of our platforms for production purposes. On last quarter’s call, we noted that FAW had signed an agreement to purchase 12 F900 systems this year. Two were sold in Q2 and several more in the third quarter. By year’s end, they are expected to have 17 total F900s and eight other Stratasys printers, reinforcing the high quality of our systems and recurring nature of the business as customers scale after their initial deployment.

Turning to Stratasys Direct, our U.S.-based parts manufacturing business grew 9% over Q3 last year. Once again, demand for defense and drone production was robust, with the top customers all coming from this sector. This dynamic has remained consistent for the past two years. One of our customers, a large drone prime, recently switched to Stratasys technology and is now placing repeat orders. This is a great example of the continued Stratasys Direct and OEM business synergies, as we provide a differentiated end-to-end model helping A&D customers move from application development through qualification and scaled production.

Another key component of the improvement of our Stratasys Direct operations has been the increased throughput we recognized from using the new F3300 system to support A&D and automotive applications. In one case, the F3300 was able to produce parts at three times the output of previous systems, providing the customer with a significant reduction in lead time on an expedited order. Overall, the backlog for part production orders is higher than ever before across all technologies, and we are starting to see a shift in demand from standard, simple parts to complex, high-requirement contract manufacturing, including more finishing, paints, inserts and quality to meet the demanding use cases. Stratasys Direct customers value the ancillary post-processing operations, providing a trusted one-stop solution for end-use parts. This approach reduces the risk associated with using multiple suppliers.

We continue to improve utilization of each function in our process. For example, we are evolving the manufacturing execution system to include new features to collect data at each operation, and we are engaging with AI firms to improve efficiency across the workflow stream. Moreover, Stratasys Direct is providing an onshoring solution for U.S. companies. As ongoing capacity shortages, especially in the A&D industries, continue to expand, potential customers are increasingly recognizing the true value of our comprehensive turnkey production solution. Leveraging hardware and software, Stratasys Direct enables us to prove our production capabilities for a high-performance requirement customer and then to deliver manufacturing at scale at their facilities.

As we move forward and AI automation is implemented on a larger scale, we expect Stratasys is well-positioned to be a long-term beneficiary. Moving to dental, Stratasys was awarded CDSCO approval for our TrueDent material to be used as a medical device in India. This is one of the world’s largest dentures-producing countries, with approximately 7 million dentures produced each year. Our technology will allow us to begin to introduce our dentures at a significantly lower price than current alternatives, where many cannot afford the cost, and the speed of our system should help remediate their current situation where wait times for dentures run more than a year.

Additionally, DDS Lab in Tampa Bay, Florida, launched its new product line, Direct to Finish partial dentures powered by Stratasys TrueDent and the metal 3D printing technology. The result is a more digital and predictable approach, with fewer traditional processing variables and the ability to get the finished dentures appliance back to the dental office faster. We are excited by the potential of the dental business in the coming years and believe once we commercialize it meaningfully it will become a major growth driver.

We have a unique solution and have already lined up key partners such as Glidewell and Affordable Dentures, as we begin to address this multibillion-dollar target opportunity. I also want to highlight a milestone on the community side as part of our long-standing commitment to corporate social responsibility. In August, we expanded our 12-year partnership with Limbitless Solutions, a university-based nonprofit that is using our technology to bring hundreds of 3D-printed prosthetic limbs to children across North America and beyond. The expanded partnership broadens the program’s reach and has a renewed focus on sustainability and education, employing our certified pre-owned F-Series printers.

It’s a good reminder that the same production-grade additive manufacturing capabilities driving our results across industries are also changing lives in very direct, human ways. With that, I will turn the call to Eitan to review our financials. Eitan.

Eitan Zamir (Chief Financial Officer)

Thank you, Yoav, and good morning, everyone. Our third quarter results reflect continued execution on our manufacturing-focused strategy, as our key industrial focus areas of aerospace, defense, and automotive all performed well. As Yoav mentioned, our results were led by A&D, our largest business, which grew over 35% year over year and approximately 25% sequentially from the second quarter. Let me get into the details. Third quarter consolidated revenue was $142.6 million, up 4.1% compared to $137 million in the same period last year and up 3.6% sequentially from last quarter. System revenue was $35.9 million, up 11.8% compared to $32.1 million in Q3 last year, driven in large part by the aerospace and defense momentum described earlier. Consumables revenue was $61.2 million, roughly flat compared to $62 million in the same period last year. Service revenue, which includes Stratasys Direct, was $45.5 million compared to $42.9 million in the same period last year, an increase of 6.1%.

Within service revenue, customer support revenue was $30.5 million, up 4.3% year over year. Turning to gross margins, GAAP gross margin was 43.7% for the quarter compared to 41% in the same period last year. Non-GAAP gross margin was 47.8% for the quarter compared to 45.3% in the same period last year. The change in gross margin was primarily due to improved margins in the mix of system sales and a tariff credit, partially offset by lower consumables. That said, netting out certain one-time items, our gross margin would have been 45% to 46%.

GAAP operating expenses were $73.3 million compared to $78.8 million during the same period last year. Non-GAAP operating expenses were $65.5 million, or 45.9% of revenue, roughly flat compared to 45.3% of revenue in the same period last year, reflecting continued disciplined expense management. Regarding our consolidated earnings, GAAP operating loss for the quarter was $11 million compared to a loss of $22.7 million for the same period last year. Non-GAAP operating income for the quarter was $2.7 million compared to essentially breakeven in the same period last year. GAAP net loss for the quarter was $10.2 million, or $0.12 per diluted share, compared to a net loss of $55.6 million, or $0.65 per diluted share, for the same period last year.

As a reminder, last year’s GAAP net loss included a one-time $33.9 million non-cash loss related to our non-cash impairment charges of an associated company. Non-GAAP net income for the quarter was $3.5 million, or $0.04 per diluted share, compared to a non-GAAP net income of $1.5 million, or $0.02 per diluted share, in the same period last year. Adjusted EBITDA was $8 million for the quarter compared to $5 million in the same period last year. Turning to cash flow, we generated $3.5 million of positive operating cash flow this quarter compared to generating $6.9 million in the third quarter last year. We ended the quarter with approximately $210.7 million in cash, cash equivalents, and short-term deposits compared to $212.5 million at the end of the second quarter and continue to operate debt free.

As we look ahead, we want to share that Stratasys and Nano Dimension have mutually agreed to terminate Stratasys’ acquisition of Machforge Inc., a wholly owned subsidiary of Nano Dimension, as it has now become apparent to both parties that the regulatory process is set to be longer and more expensive than initially anticipated. Overall, customer engagement remains strong for the Stratasys business with a number of large and advancing pipeline opportunities. Still, with this shift towards larger orders, particularly production-focused applications, there are longer sales cycles and, as we mentioned last time, higher variability of timing. As a result of these shifts in sales cycles, we are updating our outlook for the remainder of 2026. New revenue guidance is $556 million to $561 million, from our prior range of $565 million to $575 million.

Other metrics outlined in our earnings release have also been updated and largely reflect the impact of the new revenue expectation. We believe the depth and quality of expected larger orders in 2027, combined with the momentum we’re seeing across a number of our end-use verticals, positions us well long term. Our debt-free balance sheet and healthy cash position give us the added financial flexibility from a position of strength. This allows us to support investing in technology and adapting to market developments, both organically and inorganically, to spur further growth. With that, let me turn the call back over to Yoav for closing remarks.

Yoav Zeif (Chief Executive Officer)

Thank you, Eitan. Our solid results this quarter and continued revenue growth demonstrate the progress of our manufacturing-focused strategy. Our ongoing momentum in aerospace and defense, together with flagship customer proof points like General Motors, Toyota, and Rivian in automotive, reinforce the structural demand we see across our highest-value verticals. While the larger orders now driving our pipeline take longer to close and the timing is more variable, our third quarter shows what our production-focused strategy can deliver. We remain focused on converting customer engagement into qualified, recurring production and are confident in the demand behind these programs and in the long-term path ahead. With that, let’s open it up for questions. Operator.

Kevin (Operator)

Thank you. We’ll now be conducting a question-and-answer session. If you’d like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you’d like to remove your question from the queue. If you’re on a speakerphone, it may be necessary to pick up your handset before pressing star 1. And as a reminder, we ask you please ask one question and one follow-up, then return to the queue.

Our first question is coming from Jim Raschutti from Needham & Company. Your line is now live.

Jim Raschutti (Analyst at Needham & Company)

Hi. Thank you. Afternoon. Can you speak to the sequential decline and the flattish year-over-year performance in consumables? And the follow-up relates to margins, because you still managed to deliver better gross margins, a little surprising given the mix. So were systems margins better, or is it a function maybe of a larger contribution from Stratasys Direct?

Eitan Zamir (Chief Financial Officer)

Thank you, Jim, for the question. First, I’ll start by saying that we still anticipate that for the full year of 2026 we’ll have more consumables compared to the full year of 2025. I mentioned in previous calls that, you know, in the transition of our business and the portfolio that we have, we have a range of, you know, $63 to $64 million of consumables per quarter. But certain quarters can be slightly higher and other quarters can be slightly lower.

Last quarter we had $66.3 million, which was slightly higher than our normal average. This quarter was slightly lower. But it doesn’t mean anything about the demand nor about the coming quarter. And we still see ourselves at least in the near term with levels that are somewhere around the $63 million to $64 million on an average quarter.

Yoav Zeif (Chief Executive Officer)

Maybe I can add. That’s on the consumables. And Jim, thank you for the call and question. In general, we are a company in transition. We put behind us the rapid prototyping and we move forward into manufacturing, which is, in a sense, a blue ocean. But we are the ones developing this market with our manufacturing-grade machines. We have the best machines in the industry. This transition is also coming with a change in our consumables portfolio and also in the utilization of our machines. So we will see some type of variability. By the way, I think that the variability this quarter was mainly because people were equipping themselves with more material before they went to some vacations. But this is really tactical. In the long term, we have more utilization in our machines and we will see more utilization. And that’s why also in our guidance we see that we will have overall year-over-year growth in our consumables.

And Eitan, if you can relate, please, to the gross margin.

Eitan Zamir (Chief Financial Officer)

Sure. So, Jim, as we mentioned, this quarter there were a few one-off items, including a tariff refund and also a few other items in the opposite direction. And we also mentioned how you should consider the kind of average level of gross margin in the near future, as Yoav mentioned, and in the near future it’s between the 45% to 46% gross margins. As Yoav mentioned, we’re in a transition period. So this is relevant only for the transition. And as we leverage our portfolio and future growth engines and everything that Yoav has just mentioned, we see ourselves going back to the levels that we used to be in the last few years.

Jim Raschutti (Analyst at Needham & Company)

And just on the reset to the full year versus your prior expectations, you talk about longer sales cycles. Is that something you anticipate in some of those sales cycles extending into the first half of next year, or is it also just a function of continued slow recovery in the legacy business? And that’s it. Thank you.

Eitan Zamir (Chief Financial Officer)

So, Jim, there is no change in the demand. The demand is high, continues to be high. We’re talking about a few large opportunities that were pushed out further than we anticipated. But I think it’s also worth mentioning when you look at the sequential revenue for the last three, four quarters from the beginning of the year. We started the year with Q1 revenue of $132.7. Then we moved to a revenue of $137.6. This quarter we’re at $142.6, and Q4, when you do the math with the revised guidance, it’s between $143 to $148.

So I think we do see the sequential growth as we mentioned and promised at the beginning of the year. And as I mentioned, the reduction in revenue guidance is due to a few large deals that were pushed further.

Kevin (Operator)

Thank you. Our next question today, coming from Greg Paul from Craig-Hallum, your line is now live.

Greg Paul (Analyst at Craig-Hallum)

Yeah, thanks. So A&D obviously the bright spot, I guess it implies that you’re seeing some maybe significant weakness outside of that in other verticals. I think you mentioned growth, dental growth in auto, dental. So I guess where are you seeing the most sort of softness overall?

Yoav Zeif (Chief Executive Officer)

Hi Greg, thank you for the question. So the most important thing to notice is that our strategy is working. We can relate this separately to the quarter and to the trends, but our strategy is working. We are successfully moving from prototype to manufacturing. And you can see it year over year, 4.1% growth. Which means that we made sure that the use cases growth exceeds the decline in rapid prototyping. And that’s why we also maintain the annual growth expectations year over year compared to 2025.

This is the most important thing to notice because we are in transition. One part of the business is declining and another part is growing. The parts that are growing now relating to your question directly are mainly aerospace and defense, also SDM. So the growth drivers are first and foremost the aerospace and defense. And I can also share the number more than 35% year over year. And the second one is the SDM which is supporting the aerospace and defense because our customers start printing in SDM and then they take the cells and print by themselves.

Because of this growth of aerospace and defense, we also saw system sales practically. System sales made a comeback 12% year over year growth and 36% sequentially. The other use cases also grew. We are talking about tooling, we are talking about automotive, we are talking about dental. They contributed to our growth and they have a contribution also to the recurring revenue because this is manufacturing applications. So those are the growth drivers.

Where the which business declined? The usual suspect where we decided in our strategy we are not going to fight on low end rapid prototyping. We let it go. For us it’s the growth in the high requirement. And as a result we see repeated sales in those areas because we have fantastic relationship, credible relationship with our customers. We are expanding with those customers. We are deploying more across their organizations. And you can see it, you can see it in GM, you can see it in Rivian, you can see it in Toyota and even in China in FAW.

When they need high requirement they go to Stratasys. This is the growth, the decline in the low end rapid prototype.

Greg Paul (Analyst at Craig-Hallum)

Yep, appreciate that color. And then I guess my other question is related to Markforged. Are there any financial repercussions from the termination on your end?

Eitan Zamir (Chief Financial Officer)

No financial repercussions.

Kevin (Operator)

Thank you. Our next question is coming from Brian Drab from William Blair. Your line is now live.

Brian Drab (Analyst at William Blair)

Hi, thanks for taking my questions. Just to follow up on the Markforged question. Where are you left in your thinking regarding expanding capabilities or capital allocation following discontinuing the discussions around acquiring Markforged? There was obviously some technology there that you’re interested in. Can you develop it internally or you can go look and try and get it elsewhere.

Yoav Zeif (Chief Executive Officer)

Thank you, Brian. It’s very clear both parties decided that it better at this point of time, from both parties perspective to terminate now. There are also good technologies there. But I want to take a step back and share that. From our perspective, we wanted the deal. It’s a complementary technology. It’s not a transformative one for Stratasys. We are still the leaders in FDM. It doesn’t change the strength of our position or the direction of us going forward standalone.

Having said that there are alternatives. We remained committed to be at the forefront of FDM with advanced additive manufacturing. There are other alternatives. There are other technologies that will put us there.

Brian Drab (Analyst at William Blair)

Okay, got it, got it. Thank you. And then non-GAAP operating expense in the quarter was 45.9% of sales. That ticked up a little bit year over year. How should we model that for the fourth quarter. And what direction does that go in 2027?

Eitan Zamir (Chief Financial Officer)

Thank you, Brian, for the question. So our OPEX in the last few quarters was relatively flattish. When you look on our new guidance and you do the math, you’ll see that our OpEx in Q4 is going to be lower than Q3. And basically from the last three quarters, as we did in the past, we continue to monitor very tightly our cost and find areas of savings in discretionary items without changing our approach and our strategy about investing in R and D and future technologies.

And that’s what we’re going to do. And that will positively impact reduce Q4 OPEX. Regarding 2027. It’s too early. We’re not providing direction on that.

Kevin (Operator)

Thank you. Our next question today is coming from Troy Jensen from Cantor Fitzgerald. Your line is now live.

Troy Jensen (Analyst at Cantor Fitzgerald)

Hey gentlemen, thanks for taking my questions here. A question for you, Eitan. I’d be curious to know if given all these larger deals in the quarter and in the pipeline, do you have anybody at or near 10% of sales or expect to next year?

Eitan Zamir (Chief Financial Officer)

We don’t get too specifics for now we don’t have 10% as you probably know. If we were to have at least in our annual report, we should have provided disclosure on this. At this point we don’t have 10%.

Troy Jensen (Analyst at Cantor Fitzgerald)

Would you expect to have some in 27?

Eitan Zamir (Chief Financial Officer)

It’s hard to say. Those large deals, as we all know, they take time to complete. So it’s too early to know. But I

Yoav Zeif (Chief Executive Officer)

would like to add something. Troy, thank you for the question. The nature of the business is changing and you can see it in our earnings. Every quarter. We have more multi systems deal than we ever had and less one off. And it has an impact on everything, on how you support how you close the deal, how you support the deal going forward, how you adapt your back end. Everything is different. We are and this is what we wanted to be in. It’s a transition not only in the front end, it’s also a transition of the entire company to support manufacturing. And we’re happy that we are experiencing it.

Troy Jensen (Analyst at Cantor Fitzgerald)

All right. And for my follow up, I guess I’d be curious. Powder bed platforms, you guys, SAF platform. Obviously HP came out with a lower price product that’s, you know, pretty good. And Formlabs is there now too. Just your SAF. I guess when you guys launched it, I thought it was gonna be a platform where there’d be other products, other dimensions. Just love to get an update on where you guys are there.

Yoav Zeif (Chief Executive Officer)

You should hold your breath you should hold your breath because we are focusing on our requirement large format. Also in this space we are much more interested in the large corporate and to have SAF as a backbone and to make sure that it’s a real backbone for companies like GM and aerospace and defense and others. We are not going to compete with 20 or $30,000 SAF machine. It’s not for us. It’s not our value proposition. You cannot send an application engineer with a $20,000 machine.

But it is definitely an evolving platform and you will see more of it.

Kevin (Operator)

Thank you. Our next question today is a follow up from Jim Raschutti from Needham and Company. Your line is now live.

Jim Raschutti (Analyst at Needham & Company)

Thanks. You may have mentioned this, but for some of the larger deal business that slipped out a bit. Can you say, did you say what end markets they were coming from and just in general, any thoughts on 2027 just given what you’re seeing in the market?

Yoav Zeif (Chief Executive Officer)

Tim, it is, you know, by nature these that are focusing on our use cases, on our industrial solution and it’s a mix. Some of them are aerospace and defense, some of them are service bureaus. But this is the nature it’s manufacturing. Okay, thank you.

Kevin (Operator)

Thank you. We reached the end of our question and answer session. I’d like to turn the floor back over for any further closing comments.

Yoav Zeif (Chief Executive Officer)

Thank you for joining us. We look forward to updating you again next quarter.

Kevin (Operator)

Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.