Velo3D, Inc.

Greetings and welcome to the Velo3D Announces Second Quarter 2025 Financial Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should 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, James Carbonara, Investor Relations. Thank you, James. You may begin.

Thank you. I'd like to welcome everyone to Velo3D's Second Quarter 2025 earnings call. During today's call, management will make four looking statements that are subject to various risks and uncertainties that are described in the Safe Harbor slide of today's presentation, today's press release, as well as the company's 2024 10K and additional SEC filings. Please see those documents for additional information regarding those factors that may affect these forward-looking statements. Also, management will reference certain non-GAP metrics during today's call. Please refer to the appendix of our presentation, as well as today's earnings press release, for the appropriate GAP to non-GAP reconciliations. The company has posted a set of PowerPoint slides providing additional details on its strategic initiatives and financial performance on the events and presentation page of the company's Investor Relations website. As a reminder, a replay of this call will be available later today on the Investor Relations page of the company's website. With that, I'd like to turn the call over to Arun Jeldi, CEO of Velo3D. Arun, please go

ahead. Thank you, James. Good afternoon, everyone, and thank you all for joining Velo3D's Second Quarter 2025 earnings conference call. Let me start with a simple message. This quarter marks a pivotal step in Velo3D's transformation from an innovative equipment provider to a recurring high-margin industrial technology platform. We are not just seeing signs of this shift. We are living it operationally, financially, and strategically. Our Q2 performance demonstrates not only solid progress but also the early impact of key changes we have made to position the company for sustainable growth, margin expansion, and long-term value creation. RPS building momentum through our platform for scale. A central pillar of this transformation is our Rapid Production Services, or RPS, and I am pleased to report momentum is building quickly. We officially launched RPS in the first quarter, and in just one full quarter of operation, the results are already speaking for themselves. RPS directly addresses a critical market need. The ability to deliver high complexity, high performance production parts at speed, onshore, on demand, and with complete digital repeatability. RPS is resonating because it sits at the intersection of manufacturing, capability, national security, and supply chain modernization. A convergence that is reshaping the industrial economy. RPS is gaining market share. Fast. Let's talk numbers because the signal here is loud and clear. RPS bookings grew 79% -over-quarter showing rapid customer adoption in just its second full quarter of launch. 78% of this growth came from new customers, demonstrating both market expansion and new logos entering our ecosystem. And in terms of industry mix, space and defense accounted for a combined 87% of our RPS demand, with space contributing 54% and defense 33%. This is meaningful. These sectors are high growth, well funded, and high mission driven, and they are increasingly looking to Velo3D as a trusted production partner. Our success in these verticals is a direct result of years of investment in precision hardware, intelligent software, and material science, all of which are now co-sicking into a scalable, recurring revenue platform. At the end of second quarter, our backlog, including system orders, service contract, and RPS projects stood at $16 million. Just weeks later, by July 25th, it grew to $18 million. Now here's what's important. While the top line backlog figure is roughly consistent with Q1, the composition has fundamentally improved. We are seeing a significant makeshift towards RPS and services, which are higher margin, more predictable, and longer term in nature. This is precisely the kind of revenue transformation we have been focused on, and now it's taking hold. Beyond performance metrics, Q2 was packed with strategic wins and partnerships that further reinforce our leadership in additive manufacturing for mission critical industries. Let me highlight a few. A $4 million master service agreement with WyaSpace spanning two years. This expands our footprint in commercial space sector and deepens production ties with an emerging leader in propulsion and launch technology. A $22 million partnership with Amiro, which continued to gain traction in Q2, a major milestone was the qualification of our powder material through Auburn University's National Center for Additive Manufacturing Excellence. A critical validation point that de-risks scale-up in regulated aerospace programs. A five-year $15 million master service agreement with Momentus focused on delivering scalable production parts through RPS. A key signal customer confidence in a long-term outsourcing of complex parts to our platform. A new agreement with Ohio Ordnance Works, where Velo3D will provide applications engineering and design analysis services to support their 3D-printed military weapons development program. This is a strong word of confidence in our design to production capabilities in defense space. Mears Machine Corporation, a leader in precision components, purchased its fourth Sapphire XC printer. A clear indicator of both the technical trust and ROI of our customers seen in Velo3D platforms. And just recently, we signed a groundbreaking partnership with Blue Forge Alliance to develop and qualify copper nickel for use in our large format Sapphire XC printers. This is the first time this critical maritime alloy will be adopted for laser-based systems. And it plays directly into US maritime industrial based program to accelerate shipbuilding and defense supply chain resilience. These wins are strategic, creative, and synergetic to our broader goal to position Velo3D as the backbone of digital manufacturing across national security, energy, and industrial sectors. Operational execution and financial visibility. From an operational standpoint, our team is executing with discipline and speed. Our -to-market motion is becoming sharper and more verticalized, and our R&D continues to be focused on unlocking high material performance, system reliability, and production scalability. From a financial standpoint, we are seeing the results. A $22.9 million in revenue through the first half of 2025 with a clear line of sight to achieving over 30% -over-year growth. Gross margin improvement driven by better pricing, optimized production, and RPS scaling. Stronger operating leverage as we consolidate functions and reduce fixed cost intensity. And most importantly, we remain firmly on track to reach EBITDA profitability by first half of 2026. This will be enabled by a combination of high average selling prices and systems with stronger margins, a growing RPS base that delivers predictable compounding revenue, expansion of our software and service offerings, and enhanced operational efficiency across the organization. We are not chasing growth blindly. We are focused on sustainable, profitable scale that drives long-term shareholder value. For investors, here's what this all adds up to. Velo3D is becoming a mission-critical infrastructure provider for precision manufacturing. Our business model is shifting from transactional to platform-driven with clear visibility into customer lifetime value, expanding gross margins and a path to durable profitability. We're building an AI-native production as a service model. A category defining company to the convergence of national defense, space systems, industrial AI, and reshore manufacturing. Few companies have this combination of deep technical mode, platform leverage, recurring revenue visibility, and alignment with macroeconomic and geopolitical trends that are reshaping the industrial base. So, as we close out this quarter, I want to emphasize we are not just improving the business. We are redefining what this business is. The pieces are coming together, the customers, the contracts, the tech stack, the recurring engine, and it's happening at precisely the right moment in the market. We're building a company that is resilient, essential, and built for the long haul. Thank you for your continued support and partnership. I'll now turn the call over to our CFO, Hull Zhu, to walk you through the financial details of Q2.