Overview of the Stock Offering#
Velo3D, Inc., a company specializing in metal additive manufacturing, has successfully completed a direct stock offering, raising approximately $50 million. The offering involved selling 3,571,428 shares of common stock and closed on Monday. Cantor acted as the sole book-running manager for this transaction.
Use of Proceeds#
The funds raised from this stock offering will be used for working capital and general corporate purposes. This financial boost is particularly important for Velo3D, which has reported a negative gross profit margin of -16% and has not turned a profit over the past year.
Company Performance and Challenges#
Despite a strong performance in the past year, with a 125% return, Velo3D's stock remains highly volatile, indicated by a beta of 2.01. Recently, the company reported a decline in revenue for the fourth quarter of 2025, attributed to strategic inventory adjustments and external challenges. However, there is a silver lining as the company has seen growth in its backlog, suggesting potential future demand.
Recent Developments#
In addition to the stock offering, Velo3D has secured a significant contract worth $9.8 million with the Defense Logistics Agency. This five-year contract is part of a program aimed at enhancing military readiness through additive manufacturing. Furthermore, Velo3D has appointed James Suva as its new Chief Financial Officer, effective April 6, 2026, succeeding Bernard Chung, who will continue as the company’s Controller. These changes reflect both the challenges and opportunities that Velo3D faces as it continues to grow in the additive manufacturing sector.