On August 3, 3D Systems (NYSE:DDD) reported second-quarter results that finally showed some separation between the parts of the business pulling their weight and the parts still dragging it down. Total revenue held roughly flat at $94.6 million for the quarter ended June 30, but strip away the software units the company sold off in 2025, and sales actually grew 1.4 percent. The more interesting story sits underneath that headline number: Healthcare is pulling the company forward while Industrial has yet to find solid footing, even as management points to a wave of new products it says is starting to gain real traction.
Where The Growth Is Real
Healthcare Solutions revenue climbed 6.8 percent to $48.1 million, and the reason is not a rounding error. Med Tech sales grew more than 20 percent, while Dental added another 3 percent on top of that. Put those next to Industrial’s two other bright spots, Aerospace & Defense and Data Center Infrastructure, which also each grew more than 20 percent, and 3D Systems now has four markets it calls priorities, every one of which grew at least 20 percent across the first half of 2026. That kind of consistency across four unrelated end markets is hard to fake.
The bottom line is moving in the same direction. Adjusted EBITDA improved to a loss of $0.8 million in the quarter, up from a loss of $4.7 million a year earlier, and for the first six months of 2026 the company actually turned Adjusted EBITDA positive at $1.3 million, compared with a loss of $30.8 million over the same stretch in 2025. CEO Jeffrey Graves framed the moment as the additive manufacturing industry emerging from a multi-year downturn, with new product launches now gaining customer traction. The company also raised $53.2 million in the quarter by issuing 18.9 million new shares, pushing total cash to $129.0 million, more cushion for a business still working its way back to consistent profitability.
The Margin Squeeze Continues
Industrial Solutions told a rougher story, with revenue falling 6.7 percent to $46.5 million, or 3.7 percent once divestitures are excluded. The decline traces back to a non-core product line the company exited in the prior year and softer hardware services revenue, and it happened even as Aerospace & Defense and Data Center Infrastructure grew sharply within that same segment. Gross margin slipped to 36.4 percent from 38.1 percent a year earlier, a drop the company attributed to a shift toward lower-margin printer hardware sales and pricing pressure. The quarter’s Adjusted EBITDA improvement also leaned on $2.6 million in tariff refunds, a benefit that will not show up every quarter.
The net loss of $12.9 million looks worse on paper than the $104.4 million profit reported a year earlier, though that swing is mostly a comparison problem rather than an operational one, since the 2025 quarter included a $125.7 million gain on the sale of Geomagic. Still, the company diluted existing shareholders to fund itself, issuing those 18.9 million new shares in the quarter, and its own guidance for the third quarter of 2026 calls for Adjusted EBITDA of between a loss of $3 million and a loss of $1 million. That is not the guidance of a company that has fully escaped its downturn yet.
What The Smart Money Sees
Hedge fund ownership rose from 18 to 24 funds in the most recent quarter, a sign institutional buyers have been adding rather than trimming their positions. Short interest sits at 27.27 percent of the float, a heavy load of bearish bets stacked against a stock that just posted a GAAP net loss. That combination, rising fund interest set against elevated short interest, points to real disagreement over where this recovery goes from here.
Two Stories, One Stock
3D Systems is not the same company it was a year ago, but it has not become a stable one either. Healthcare and the four priority markets are proving to be real growth engines, while Industrial and gross margins still look like a business searching for consistency. Whether this becomes a durable turnaround likely depends on whether new product launches keep expanding beyond Med Tech and Aerospace & Defense, and whether Adjusted EBITDA can stay positive once tariff refunds and share issuances stop doing the heavy lifting. Hedge funds already seem to be leaning toward optimism. The short sellers are not convinced yet.
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