Stratasys, Ltd.

Greetings and welcome to the Stratasys Q1 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Yona Lloyd, Chief Communications Officer and VP of IR. Thank you. You may begin.

Good morning, everyone, and thank you for joining us to discuss our 2025 first quarter financial results. On the call with us today are our CEO, Dr. Yoav Zaif, and our CFO, Eitan Zamir. I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the investor relations section of our website. Please note that some of the information provided during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes, and other future financial performance, and our expectations for our business outlook. All statements that speak to future performance, events, expectations, or results are forward-looking statements. Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those set forth in forward-looking statements, please refer to the risk factors discussed or referenced in Stratus' annual report on Form 20F for the 2024 year. Please also refer to that annual report along with our reports filed with or furnished to the SEC throughout 2025 for additional operational and financial details. Reports on Form 6-K that are furnished to the SEC on a quarterly basis and throughout the year provide updated current information regarding the company's operating results and material developments concerning our company. Stratasys assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. As in previous quarters, today's call will include GAAP and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance. Non-GAAP to GAAP reconciliations are provided in tables in our slide presentation and today's press release. I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zaif. Yoav?

Thank you, Yonah. Good morning, everyone, and thank you for joining us. Our solid first quarter performance continues to demonstrate the resilience of our recurring revenue model and the high utilization rate across our customer base. Our results reinforce our confidence in expanded implementation for years to come. The robust demand for consumables, which grew 7% sequentially underscores the enduring value placed in Stratasys additive manufacturing systems. Our strategic positioning remains excellent as we continue benefiting from our ongoing investments in R&D that support the introduction of innovative products, materials, and software solutions to serve our customers and enhance our presence as a digital manufacturing leader. Our long-term value creation strategy focuses on high growth end users driven by powerful megatrends. These include supply chain improvement through on-shoring, next-generation mobility, sustainability initiatives, and the continuous pursuit of manufacturing efficiency and cost reduction through a disciplined, market-focused approach. centered around the most compelling use cases, while paying close attention to our margin profile, we have established the foundation for Stratasys' profitable growth. To help drive our strategy, early in the second quarter, we closed on Fortissimo Capital's $120 million strategic investment in the company. bringing our cash and equivalent to approximately 270 million with no debt. This significant transaction brought YuvalCoin Fortissimo founding and managing partner with over three decades of financial experience to our board of directors. His innovative approach has created tremendous value for his firm and the companies in which they have invested. And we look forward to Yuval's contribution to our board. Before diving into the quarter, let me touch on how we are thinking about the ongoing tariff situation. Last quarter, we shared that from our perspective, we are relatively exempt from this issue. Most of our printers and materials are produced in the U.S. or in Israel. We are monitoring the news cycle closely. And at this time, we continue to expect no material revenue impact. In terms of our costs, we are reviewing various mitigation scenarios that can be quickly deployed if needed. As a reminder, additive manufacturing is ideally suited as a solution for high-tariff environments, as it promotes manufacturing locally, quickly, and cost-effectively. Tariffs can actually serve as a long-term positive business catalyst, and we look forward to increase activity with our customers as we demonstrate these benefits. Turning to new technology offerings and customer success, beginning with hardware. We launched the NEO 800 Plus, an advanced air lithography 3D printer that builds on the success of the NEO 800. With significant performance enhancements, for industries that benefit from large, accurate, high fidelity parts. The new model incorporates technology that boosts printing speed by up to 50% while maintaining precision. Enhanced reliability features and real-time environmental monitoring maximize uptime and consistency at faster scan speeds Without compromising quality, together with our GrabCAD print build preparation software, complementary post-processing solutions, and the new improved portfolio of materials, the NEO 800 Plus provides a complete SLA ecosystem that streamlines production workflows for applications in automotive, aerospace, wind tunnel testing, prototyping, and tooling. We launched this exciting new technology alongside Rivian Automotive, an ENCO customer, at the Rapid Trade Show in April. In aerospace, a recent and exciting example of manufacturing flight-grade parts is Boom Supersonic, where our FDM portfolio is helping to build the next generation of supersonic commercial jets. Their XB-1 jet broke the sound barrier during the first quarter, and we were proud that over 350 end-use parts on the aircraft were made using our system. Our FDM also printed over 750 drill guides for use during aircraft assembly, as well as the Starlink mount on the chase plane to support live streaming of the event. As an example of how additive manufacturing has a clear economic advantage, the flight-controlled test ring tooling for the XB1 resulted in a 90% savings on cost and lead time as compared to conventionally produced alternatives. And we are proud to mark the 10th anniversary of our Fortus 450MC. with the launch of the Gen3 model, an upgraded factory floor ready solution designed for high strength tooling and production applications. With 92% of units installed over the past decade still in use, the Fortus 450MC and its reputation is a reliable FDM workhorse. The new Gen3 builds on that legacy. with bundled hardened components for advanced materials like nylon 12CF, a license for full access to the Photos 450MC material portfolio, and enhanced processing capabilities with included GrabCut Print Pro for great precision and productivity. Additional upgrades in the coming months include support for glass-filled fire-resistant materials, and features to enable faster build time, expanding the system's application range for jigs, fixtures, and other factory-ready parts. The Fortus 450 MC Gen 3 reinforces Stratasys' commitment to delivering reliable, connected solutions that help manufacturers boost output, reduce costs, and streamline operations. On the material side, we reached another significant milestone in our effort to scale and accelerate adoption of qualified additive manufacturing with the launch of two new validated Antero materials for the Stratasys F900. These were developed through rigorous qualification collaboration with industry leaders, including Northrop Grumman, Boeing, and BAE Systems. and several defense organizations, including U.S. Navy and Air Force. These advanced industrial solution materials meet stringent requirements for mission-critical applications in aerospace, defense, and other highly regulated industries. The materials offer exceptional resistance to extreme temperatures and harsh chemicals, enabling manufacturers to confidently adopt 3D printing with proven reliability, reduced qualification cost, and consistent performance across production sites, empowering faster innovation and deployment of additive manufacturing for qualified end-use application throughout enterprise operations. We also introduced PolyJet Tough1, an advanced material that addresses a key point of feedback from our customers, providing PolyJet with functional prototyping capabilities to expand the amount of use cases. The material combines exceptional design precision with functional strength for our high-end platforms, enabling engineers and designers to create prototypes and end-use parts without compromising between aesthetic and durability. StaffOne allows engineers to move from concept to functional testing faster while maintaining precision and performance, and it integrates seamlessly with other PolyJet materials to enable hybrid models that combine different mechanical properties or colors within a single part. Now, over to Eitan to review our financials. Eitan?