Stratasys, Ltd.

Good day, and welcome to today's conference call to discuss Stratasys' second quarter 2025 financial results. My name is Kevin, and I'm your operator for today's call. Now I'd like to hand the call over to Jonah Lloyd, Chief Communications Officer and Vice President of Investor Relations for Stratasys. Mr. Lloyd, please go ahead.

Good morning, everyone, and thank you for joining us to discuss our 2025 second 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. The 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 STRATIS' 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 FCC throughout 2025, for additional operational and financial details. Reports on Form 6K that are furnished to the FCC 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 Zait. Yoav.

Thank you, Yonah. Good morning, everyone, and thank you for joining us. Our second quarter results aligned with expectations as revenue grew slightly over the second quarter last year, reflecting the resilience of our recurring revenue streams and the continued reliance customers place on our additive manufacturing technologies. Customer engagement for our solution remains strong, despite a global operating environment marked by ongoing uncertainty around challenged macroeconomic conditions and terrorist policies. The result is customers maintaining disciplined capital spending approaches as they await signs of normalcy to emerge. Importantly, we are making meaningful progress in crafting and delivering key use cases with major customers that we believe will eventually begin flowing through to a financial result at some point in the future. Furthermore, our ongoing investment and commitment to R&D excellence bolstered by our strong balance sheet positions us well to continue delivering innovative products materials and software capabilities that further solidify our leadership in digital manufacturing, particularly when customer spending eventually and inevitably returns. Innovation and execution remain the foundation of our long-term growth strategy, which centers on capturing opportunities within high-growth sectors that are being transformed by key megatrends. These include the drive towards supply chain localization and on-shoring, the evolution of next-generation mobility platforms, advancing sustainability requirements, and a relentless focus on operational efficiency and cost optimization by companies around the globe. By maintaining our disciplined approach to end-use development, prioritizing the most compelling applications While working to preserve margin integrity, we have built a platform that will enable strategies to emerge stronger as market dynamics stabilize. While the tariff environment continues to evolve, it is worth re-emphasizing that additive manufacturing can be an ideal solution in tariff-sensitive environments by enabling local, rapid, and cost-effective production capabilities. Harris policies can actually accelerate adoption of our technologies, and we anticipate increased customer engagement as we continue to highlight these strategic advantages. Turning to new technology offerings and customer success. During the quarter, we launched the North American Strategies Tooling Center in collaboration with Automation Intelligence, at their Flint, Michigan location. This facility is a dedicated hub to help manufacturers validate and scale additive manufacturing applications in production environments. The center operates Stratasys F3300 and F900 3D printers to demonstrate practical tooling solutions, including jigs, fixtures, end of arms tooling, and automotive components enabling customers to explore how additive manufacturing can streamline operations, reduce costs, and accelerate response to manufacturing challenges. By combining additive manufacturing technologies with traditional capabilities, this new center addresses the growing demand for localized on-demand production solutions while providing manufacturers with validated proof that additive polymer tooling is both viable and cost-effective for production environments. Our strategic collaboration with General Motors exemplifies the transformative power additive manufacturing brings to automotive production. For over two decades, we have helped GM revolutionize its manufacturing processes through our industrial 3D printing solutions. culminating in GM's launch of its additive innovation and additive industrialization centers in Michigan, one of North America's largest and most advanced additive manufacturing facilities. This collaboration has extended with many F900 systems deployed across over 15 high-value GM plants throughout North America, achieving excellent utilization rates and demonstrating the mature, production-ready nature of our technology. The results demonstrate substantial value delivery to enterprise customers. GM has achieved significant cost reduction on additive tooling compared to traditional methods while streamlining manufacturing workflow and accelerating tooling lead time From weeks to days or even hours, this provides critical competitive advantage, enabling a faster ramp of new vehicles in both internal combustion engine and electric vehicle programs. We are supporting GM's aggressive EV launch schedules with rapid production of specialized tools for battery and high voltage component handling, while improving operator safety through lightweight custom polymer tooling solutions. Importantly, our solution helps GM achieve localized supply chain resilience and security, reducing dependencies and transportation requirements while enabling faster response to urgent production needs. Also within automotive, we recently shared a video highlighting our strong multi-year partnership with Toyota. featuring testimonials from their production engineering group around the critical value our technology plays in their production plans. Through this collaboration, Toyota has achieved significant cost reduction by producing tools additively compared to traditional methods. We have helped compress lead times from weeks to days or even hours allowing programs to reach production readiness far faster and supporting rapid replacement of damaged tools to minimize production line downtime. Our additive solutions enable Toyota to create highly precise custom fit tools that reduce manufacturing variation and support consistent assembly while lightweight ergonomic designs reduce operator strain and improve workplace safety. As Toyota seeks to compress vehicle development time by nearly 33%, our additive manufacturing technology is integral to meeting these accelerated targets. Our systems provide parts Toyota cannot produce using conventional methods. with comparable speed or accuracy, often creating polymer components stronger than metal alternatives. Toyota utilizes all five of our additive technologies, plus our GrabCut software, to manage their printer fleet, exemplifying how we partner with customers to expand their understanding and adoption of 3D printing in an opportunity that could be far greater than today's market penetration. Also during the quarter, our aerospace customer, Blue Origin, purchased multiple NEO 800SL systems for the production of investment casting patterns. Blue Origin is a leading aerospace manufacturer and space technology trailblazer in reusable rocket technology and a major participant In NASA contract, including the current Artemis program, plan to bring astronauts to the moon in 2027. Stratasys is also participating in this program. This partnership represents more than just today's application. Blue Origin is validating the strength and durability of our polymer product for space flight applications, which could translate to approval for use in the tens of thousands of aerospace parts still made by hand today. The rigorous quality and data security standards that spaceflight demands position our technology for potentially significant future aerospace production applications. These sales align with our manufacturing strategy around aerospace production parts, demonstrating how our technology contributes to space travel today while potentially enabling next generation travel solution that could extend far beyond space exploration tomorrow. In the medical sector, utilizing Stratasys and 3D printing capabilities proved critical in preparing for complex life-saving procedures, showcasing how 3D printing technology is revolutionizing life-saving medical applications and unprecedented pre-operative planning capabilities. As a reminder, last year we launched the J5DAP system, an affordable anatomical model solution targeting thousands of hospitals worldwide. And we are seeing positive traction and life-saving examples. One such recent case was how Brisbane's Hairston Biofabrication Institute created a life-size 3D printed model based on a patient's scan that revealed he was walking around with a ticking time bomb inside his chest. The aorta, the biggest blood vessel in the body, had ballooned to about four times the usual size, leaving it in danger of rupturing, a medical emergency likely to have cost him his life. The printed model enabled the surgeons at Prince Charles Hospital to better understand the complex anatomy and to plan and practice on the lifelike model prior to the operation. This allowed them to optimize execution of the surgery and minimize potential risks and complications, in the end, saving the patient's life. The anatomical model opportunity, four strategies, such as training and pre-surgical planning, is $1.8 billion annually. On the material side, we commercially launched P3 silicon 25A, a high-performance material developed through strategic collaboration with global silicon leader Shinetsu, the largest chemical company in Japan. It is designed exclusively for the Stratasys Origin DLP platform to produce flexible parts that match traditionally molded silicone performance. This breakthrough material addresses a critical gap in industrial 3D printing by delivering genuine silicone parts with precision, durability, and repeatability while eliminating tooling costs. reducing lead times and enabling localized low-volume production for applications, including seals, gaskets, vibration dampers, and soft-touch components. The material has passed Shinetsu's biocompatibility and flame retardancy certification, representing the first in a planned portfolio of silicone materials that combine Stratasys production grade P3DLP technology with Inetsu's silicon chemistry expertise to deliver trusted performance backed by repeatable results and real-world data. On the software side, our progress reflects our commitment to delivering complete use case solutions that align with customer needs. In the second quarter, we signed an exclusive agreement with Rinkel 3D GmbH, a German-based software company, to integrate its fixture-made software into Stratasys GraphCAD Print Pro, enabling users to design and generate production-ready fixtures quickly without CAD experience needed. This capability, launched in GraphCAD Print Pro 2025, uses intelligent automation in designing custom fixtures allowing manufacturers to create secure, precise, work-holding solutions in minutes. This combined solution eliminates the manual effort and complexity traditionally associated with fixture design, enabling accelerated adoption of 3D printing by removing the constraint of needing an expert CAD designer, shifting fixture design to additive operators, and reducing fixtures creation time from days to hours. This results in a higher utilization of the printers and higher rates of 3D printing adoption. The new Photos 450MC we mentioned last quarter exemplifies our complete solution approach, providing an integrated tooling solution, combining software, printer, and material in a factory-ready package. We are also receiving great feedback from customers regarding our software ecosystem, which continues to drive customer value. NASCAR's Tim Murphy recently stated that what sets our partnership with Stratasys apart is the complete ecosystem, from our in-house machine to streamlined pro software to on-demand production. NASCAR now manage hundreds of parts through a single platform and has transformed 3D printing from a support function into a strategic business unit with full P&L tracking. Furthermore, to continue to scale this success across our customer base, we are launching a dedicated software customer success management team in the third quarter to enhance onboarding drive engagement and support renewals for both Rabkat Print Pro and Streamline Pro users. These are all real world examples of how we are pushing forward our leadership position despite longer than expected market headwinds. We are excited by the innovation across our portfolio, making meaningful inroads into a multitude of high-growth industries and customer opportunities. Our customer spending has remained challenged for longer than expected, impacting our near-term view of the business. But our long-term outlook for our company and industry remains intact. We have the financial strength to invest and innovate so that our leadership position expands over time With that, I would like to turn the call to Eitan to review our financials. Eitan?