Velo3D: Turnaround Goal Just Pushed Further Out, Investors Are Not Happy

Gytis Zizys4.15K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryVelo3D, Inc. faces severe margin deterioration, delayed profitability, and a sharp post-earnings selloff, raising substantial concerns about its turnaround prospects.VELO's Q4 revenue fell 25% y/y to $9.4m, with GAAP gross margin at -74% due to a $7m inventory write-off and ongoing operational losses.Management guides for 2026 revenue of $65m and a return to a 30% gross margin but delays EBITDA breakeven to H2 2026, intensifying investor skepticism.Despite defense contract wins and a $31m backlog, VELO remains high-risk, reliant on further capital raises, and vulnerable to restructuring or bankruptcy if execution falters. Monty Rakusen/DigitalVision via Getty Images Introduction Velo3D, Inc. (VELO) caught my eye because of the massive move after they reported their full-year 2025 results, which showed massive margin deterioration as well as a delay in profitability. I wantedThis article was written byGytis Zizys4.15K FollowersFollowMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.