Whoa, of us, maintain onto your hats as a result of Velo3D (NASDAQ: VELO) is making waves available in the market at present, and it’s not only a ripple—it’s a tsunami! As of this writing, Velo3D’s inventory is skyrocketing, with a pre-market surge of over 16% following a blockbuster announcement that’s obtained traders buzzing. The corporate simply inked a $6 million cope with the U.S. Navy to develop and qualify a particular copper-nickel alloy (CuNi) for its high-tech 3D printers. This isn’t simply any contract—it’s a giant step towards revolutionizing how the Navy builds and repairs ships, and it’s placing Velo3D entrance and heart within the additive manufacturing world. Let’s break this down, discuss what it means for the inventory, and discover the dangers and rewards of leaping into this high-flying identify. Plus, for those who’re hungry for extra market insights, you will get free each day inventory alerts despatched straight to your telephone by tapping right here.
Why Velo3D Is Making Headlines In the present day
So, what’s the massive deal? Velo3D, a frontrunner in steel 3D printing, simply introduced a partnership with the U.S. Navy’s Maritime Industrial Base Program to develop copper-nickel alloy components for his or her Sapphire XC printers. This isn’t your run-of-the-mill 3D printing gig—CuNi is a tricky materials that’s good for naval functions as a result of it resists corrosion from seawater like a champ. Historically, making these components entails casting, which is sluggish, costly, and infrequently wants a ton of rework. Velo3D’s tech, although, can churn out these complicated components quicker and with fewer complications, probably saving the Navy money and time whereas boosting shipbuilding effectivity.
This deal is a giant win for Velo3D, not only for the $6 million contract however for what it indicators: the corporate is carving out a distinct segment in high-stakes industries like protection and aerospace. The Navy’s program is all about strengthening the U.S. maritime provide chain, and Velo3D’s means to print mission-critical components may make it a go-to participant on this area. Add to that the truth that their Sapphire printers are constructed within the U.S. and meet strict Division of Protection cybersecurity requirements, and also you’ve obtained an organization that’s aligning itself with nationwide safety priorities. That’s the sort of information that will get Wall Avenue excited.
The Numbers Behind the Surge
Let’s discuss numbers, as a result of that’s the place the rubber meets the highway. As of this writing, Velo3D’s inventory is buying and selling at $3.68 in pre-market motion, up from yesterday’s shut of $3.16—a juicy 16.46% bounce. This comes on the heels of a unstable yr, with the inventory bouncing between a 52-week low of $0.00 and a excessive of $4.05. The corporate’s market cap continues to be modest, hovering round $4.24 million, which tells you it is a small-cap inventory with large ambitions—and massive dangers.
Velo3D’s financials paint a blended image. In Q2 2025, the corporate reported income of $13.6 million, a stable 31% enhance from the $10.3 million in Q2 2024. That development was pushed by their new Fast Manufacturing Companies (RPS) mannequin, which lets clients use Velo3D’s tech with out shopping for the printers outright—a sensible transfer to broaden their market. Gross margins are nonetheless unfavorable at -11.7%, however that’s a giant enchancment from -28% final yr, displaying they’re tightening up operations. Additionally they slashed non-GAAP working bills to $8.1 million from $13.4 million, a 40% minimize that’s serving to them inch towards profitability, which they’re concentrating on for 2026.
However right here’s the kicker: Velo3D’s money place is tight, with simply $854,000 available as of June 30, 2025. That’s not lots of runway, and it’s one purpose the inventory has been a rollercoaster. The Navy deal, although, could possibly be a lifeline, signaling extra authorities contracts and partnerships down the highway.
The Dangers: Volatility and Monetary Challenges
Now, let’s pump the brakes for a second and discuss dangers, as a result of buying and selling shares like Velo3D isn’t for the faint of coronary heart. This can be a small-cap inventory in a cutting-edge trade, and which means volatility is a part of the package deal. Over the previous yr, Velo3D’s inventory has been a wild journey, dropping over 90% from its peak of $14 to a low of $1.39 as just lately as August 15, 2024. A part of that slide got here from a tough patch, together with a delisting from the NYSE in March 2024 after their market cap fell under the required $50 million threshold. They’re now buying and selling on the OTCQX market, which may be much less liquid and extra unstable than main exchanges.
The corporate’s additionally been burning money and posting losses—$73.3 million in 2024 alone, although that’s down from the earlier yr. Their unfavorable gross margins and low money reserves elevate pink flags about their means to scale with out extra funding. Plus, they’ve confronted delays in authorities mission funding, which harm their income forecasts final yr. If these delays preserve occurring, it may put a dent within the optimism driving at present’s surge.
And let’s not overlook the broader market. Small-cap shares like Velo3D can get crushed when investor sentiment turns bitter or when greater financial components—like rates of interest or geopolitical tensions—take heart stage. Buying and selling on this area requires a powerful abdomen and a eager eye on the information.
The Rewards: A Wager on the Way forward for Manufacturing
On the flip aspect, the rewards could possibly be large for these prepared to roll the cube. Velo3D’s tech is a game-changer in additive manufacturing, letting corporations like SpaceX, Lockheed Martin, and now the U.S. Navy construct complicated steel components that have been as soon as unattainable to make with out pricey compromises. Their Sapphire printers, paired with software program like Movement and Guarantee, give them an edge in precision and scalability, particularly for high-value industries like aerospace, protection, and vitality.
In the present day’s Navy deal is a proof level that Velo3D is gaining traction within the protection sector, the place budgets are large and contracts may be long-term. Their RPS mannequin can be a sensible pivot, opening the door to recurring income streams—consider it like a subscription service for 3D printing. In Q2 2025, RPS bookings grew 79% quarter-over-quarter, with 87% of demand coming from area and protection. In the event that they preserve touchdown offers like this, Velo3D may grow to be a cornerstone of the U.S.’s push for a stronger, homegrown provide chain.
The inventory’s low value—underneath $4 as of this writing—makes it an intriguing play for speculative traders. If Velo3D can hit their income goal of $50-$60 million this yr and switch EBITDA optimistic by 2026, as they’re projecting, at present’s value may seem like a steal. Plus, their concentrate on home manufacturing and cybersecurity compliance positions them properly for extra authorities work, which may drive regular development.
What This Means for Merchants
For merchants, Velo3D’s surge at present is a textbook instance of how information can transfer a inventory. A single headline—like this Navy contract—can spark a rally, particularly for a small-cap identify with a low float. However right here’s the deal: chasing these pops may be dangerous. The inventory’s already up large in pre-market, and momentum merchants may attempt to journey the wave, however you’ve obtained to look at for a pullback. Shares like this typically spike on information after which settle as profit-taking kicks in.
When you’re considering longer-term, Velo3D’s story is compelling however requires endurance. The 3D printing trade continues to be younger, and Velo3D’s concentrate on high-value, mission-critical components places them in a candy spot for development. However with their money reserves low, you’ll need to control their stability sheet and any new funding bulletins. Dilution from new share choices may put stress on the inventory value, so keep sharp.
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The Larger Image: Why Velo3D Issues
Velo3D’s rise at present isn’t nearly one inventory—it’s a glimpse into the way forward for manufacturing. The U.S. is pushing arduous to carry important provide chains again residence, particularly for protection and aerospace. Firms like Velo3D, with their means to print complicated components on demand, are on the coronary heart of that shift. This Navy deal could possibly be the primary of many, and if Velo3D performs its playing cards proper, it may grow to be a key participant in a multi-billion-dollar trade.
However buying and selling shares like it is a balancing act. The potential for large positive factors comes with the danger of massive losses, particularly with an organization nonetheless working to show its profitability. Do your homework, watch the information, and think about your danger tolerance earlier than diving in. Velo3D’s story is thrilling, however it’s not a certain factor.
