Stratasys’ Q2 2026 results showed a business with two very different faces. System sales remain soft, but recurring consumables, aerospace and defense, and Stratasys Direct are building a more production-oriented revenue base.
Quarterly revenue was approximately $137.6 million. Consumables reached a record $66.3 million, aerospace and defense grew about 17% year over year, and Stratasys Direct parts manufacturing grew 12.1%. Adjusted EBITDA was roughly $5.3 million. The weakness: system revenue fell about 14% year over year and operating cash flow was negative.
Defense may be improving revenue quality
Aerospace and defense is now one of Stratasys’ most important growth areas. Management highlighted U.S. Air Force adoption and multi-system industrial programs. This matters because defense demand can create more durable utilization than a one-time prototyping sale.
Record consumables revenue is the evidence investors should watch. The strongest printer business is not the one that ships the most boxes; it is the one whose installed base keeps consuming qualified materials.
The Markforged deal changes the strategic map
Stratasys has agreed to acquire Markforged for $42.5 million in cash, subject to closing conditions. The transaction is expected in the second half of 2026. Markforged adds continuous-carbon-fiber FFF, secure workflow software and a meaningful aerospace and defense footprint. Nano Dimension will retain Markforged’s metal binder-jetting product line.
Management expects cost synergies and a positive adjusted EBITDA contribution within the first year after closing. The investment case depends on whether Stratasys can cross-sell the combined portfolio rather than simply adding another hardware brand.
The balance sheet is an advantage — but cash flow matters
Stratasys remains debt-free, which gives it strategic flexibility. But Q2 used $18.7 million of operating cash, and management no longer expects full-year operating cash flow to be positive. That is the key near-term red flag.
Subscribe to continue reading
Subscribe to get access to the rest of this post and other subscriber-only content.