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Exhibit 99.1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2025
(UNAUDITED)
 


1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
 
 
INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025
(UNAUDITED)
 
Item Page
 3
 4
 5
 6
 7-20





2
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Balance Sheets
(U.S. $ in thousands, except share data)
September 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$71,470 $70,200 
Short-term bank deposits183,500 80,500 
Accounts receivable, net of allowance for credit losses of $3,549 and $3,058 as of September 30, 2025 and December 31, 2024, respectively
151,344 152,979 
Inventories159,335 179,809 
Prepaid expenses8,239 7,630 
Other current assets29,796 21,843 
Total current assets603,684 512,961 
Non-current assets
Property, plant and equipment, net189,285 184,379 
Goodwill101,515 99,082 
Other intangible assets, net101,267 106,253 
Operating lease right-of-use assets30,669 32,169 
Long-term investments46,064 80,205 
Other non-current assets14,724 14,697 
Total non-current assets483,524 516,785 
Total assets$1,087,208 $1,029,746 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $40,244 $44,977 
Accrued expenses and other current liabilities36,167 39,749 
Accrued compensation and related benefits 32,988 29,206 
Deferred revenues - short-term48,564 46,347 
Operating lease liabilities - short-term7,283 6,935 
Total current liabilities165,246 167,214 
Non-current liabilities
Deferred revenues - long-term18,766 19,057 
Deferred income taxes412 507 
Operating lease liabilities - long-term23,810 25,155 
Contingent consideration - long-term5,125 4,933 
Other non-current liabilities21,324 19,889 
Total non-current liabilities69,437 69,541 
Total liabilities$234,683 $236,755 
Contingencies (see note 12)
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 85,702 shares and 71,982 shares issued at September 30, 2025 and December 31, 2024, respectively; 85,436 shares and 71,716 shares outstanding at September 30, 2025 and December 31, 2024, respectively
$240 $202 
Treasury shares at cost, 266 shares at September 30, 2025 and December 31, 2024
(1,995)(1,995)
Additional paid-in capital3,266,492 3,123,024 
Accumulated other comprehensive loss(6,570)(8,031)
Accumulated deficit(2,405,642)(2,320,209)
Total equity852,525 792,991 
Total liabilities and equity$1,087,208 $1,029,746 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.

3
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Operations and Comprehensive Loss
(U.S. $ in thousands, except per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenues
Products$94,061 $94,092 $282,647 $286,882 
Services42,909 45,916 128,455 135,217 
136,970 140,008 411,102 422,099 
Cost of revenues
Products49,808 47,707 145,693 144,220 
Services31,070 29,571 89,584 90,752 
80,878 77,278 235,277 234,972 
Gross profit56,092 62,730 175,825 187,127 
Operating expenses
Research and development, net20,561 24,700 59,274 74,357 
Selling, general and administrative58,235 63,495 168,279 188,731 
78,796 88,195 227,553 263,088 
Operating loss(22,704)(25,465)(51,728)(75,961)
Financial income, net
2,656 1,009 7,415 1,500 
Loss before income taxes(20,048)(24,456)(44,313)(74,461)
Income tax expenses
524 842 2,020 2,320 
Share in losses of associated companies
35,062 1,316 39,100 1,559 
Net loss$(55,634)$(26,614)$(85,433)$(78,340)
Net loss per share - basic and diluted$(0.65)$(0.37)$(1.06)$(1.11)
Weighted average ordinary shares outstanding - basic and diluted85,151 71,271 80,230 70,670 
Comprehensive loss
Net loss(55,634)(26,614)(85,433)(78,340)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments(306)3,128 6,466 918 
Unrealized losses on derivatives designated as cash flow hedges, net
(46)(1,777)(5,005)(1,621)
Other comprehensive income (loss), net of tax
(352)1,351 1,461 (703)
Comprehensive loss$(55,986)$(25,263)$(83,972)$(79,043)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Changes in Equity
(U.S. $ in thousands)
Three and Nine Months Ended September 30, 2025Ordinary SharesTreasury Shares
Number of shares Par ValueNumber of sharesPar ValueAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal Equity
Balances as of December 31, 202471,982 $202 (266)$(1,995)$3,123,024 $(2,320,209)$(8,031)$792,991 
Issuance of ordinary shares in connection with share-based compensation plans
675 1 — — (1)— — — 
Share-based compensation
— — — — 6,213 — — 6,213 
Comprehensive loss— — — — — (13,054)(1,309)(14,363)
Balances as of March 31, 202572,657 $203 (266)$(1,995)$3,129,236 $(2,333,263)$(9,340)$784,841 
Issuance of ordinary shares in connection with share-based compensation plans
324 1 — — — — — 1 
Share-based compensation
— — — — 6,138 — — 6,138 
Comprehensive income (loss)
— — — — — (16,745)3,122 (13,623)
Issuance of ordinary shares under employee share purchase plan
318 1 — — 2,597 — — 2,598 
PIPE newly-issued ordinary shares, net
11,650 32 — — 119,259 — — 119,291 
Issuance of ordinary shares as part of Nexa3D Inc. acquisition
300 1 — — 3,134 — — 3,135 
Balance as of June 30, 202585,249 $238 (266)$(1,995)$3,260,364 $(2,350,008)$(6,218)$902,381 
Issuance of ordinary shares in connection with share-based compensation plans
409 2 — — (2)— — — 
Share-based compensation
— — — — 5,635 — — 5,635 
Comprehensive loss
— — — — — (55,634)(352)(55,986)
Issuance of shares as part of the Covestro acquisition44 — — — 495 — — 495 
Balance as of September 30, 202585,702 $240 (266)$(1,995)$3,266,492 $(2,405,642)$(6,570)$852,525 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Consolidated Statements of Changes in Equity
(U.S. $ in thousands)
Three and Nine Months Ended September 30, 2024Ordinary Shares
Number of sharesPar ValueAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal Equity
Balances as of December 31, 202369,656 $195 $3,091,649 $(2,199,926)$(7,079)$884,839 
Issuance of ordinary shares in connection with share-based compensation plans784 2 147 — — 149 
Share-based compensation— — 8,649 — — 8,649 
Comprehensive loss
— — — (25,983)(1,504)(27,487)
Balances as of March 31, 202470,440 $197 $3,100,445 $(2,225,909)$(8,583)$866,150 
Issuance of ordinary shares in connection with share-based compensation plans249 1 3 — — 4 
Share-based compensation— — 7,346 — — 7,346 
Comprehensive loss
— — — (25,743)(550)(26,293)
Issuance of ordinary shares under employee share purchase plan
443 1 3,263 — — 3,264 
Balances as of June 30, 202471,132 $199 $3,111,057 $(2,251,652)$(9,133)$850,471 
Issuance of ordinary shares in connection with share-based compensation plans
253 1 — — — 1 
Share-based compensation
— — 6,569 — — 6,569 
Comprehensive income (loss)— — — (26,614)1,351 (25,263)
Balances as of September 30, 202471,385 $200 $3,117,626 $(2,278,266)$(7,782)$831,778 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Cash Flows
(U.S. $ in thousands)
Nine Months Ended September 30,
20252024
Cash flows from operating activities
Net loss$(85,433)$(78,340)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization32,029 35,068 
Share-based compensation17,986 22,564 
Foreign currency transaction gain(8,792)(1,413)
Share in losses of associated companies39,100 1,559 
Revaluation of investments and other assets4,235 3,424 
Revaluation of contingent consideration862 1,553 
Deferred income taxes, net and uncertain tax positions460 238 
Other non-cash items, net849 2,751 
Change in cash attributable to changes in operating assets and liabilities:
Accounts receivable, net953 18,480 
Inventories24,765 171 
Other current assets and prepaid expenses(7,582)6,173 
Other non-current assets7,553 5,257 
Accounts payable(7,714)550 
Other current liabilities(4,652)(2,926)
Deferred revenues408 (7,819)
Other non-current liabilities(4,689)(6,853)
 Net cash provided by operating activities10,338 437 
Cash flows from investing activities
Cash paid for business combinations
(5,448)— 
Purchase of property and equipment(15,487)(6,668)
Investments in short-term bank deposits(223,500)(90,000)
Proceeds from short-term bank deposits120,500 90,000 
Investments in unconsolidated entities(1,557)(8,845)
Purchase of intangibles and other assets(4,389)(1,486)
Other investing activities(550)(176)
Net cash used in investing activities(130,431)(17,175)
Cash flows from financing activities
Proceeds from exercise of share options— 153 
Payment of contingent consideration(951)(1,302)
Proceeds from PIPE transaction, net of issuance costs
119,291 — 
Other financing activities(57)33 
Net cash provided by (used in) financing activities118,283 (1,116)
Effect of exchange rate changes on cash, cash equivalents and restricted cash3,049 (178)
Net change in cash, cash equivalents and restricted cash1,239 (18,032)
Cash, cash equivalents and restricted cash, beginning of period71,076 82,864 
Cash, cash equivalents and restricted cash, end of period$72,315 $64,832 
Supplemental disclosures of cash flow information:
Transfer of inventories to fixed assets3,236 1,850 
Transfer of fixed assets to inventories22 4,829 
Issuance of ordinary shares under employee share purchase plan
2,598 3,264 
Issuance of ordinary shares as part of Nexa3D Inc. transaction
3,135 — 
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets:
Cash and cash equivalents71,470 63,956 
Restricted cash included in other current assets845 876 
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows$72,315 $64,832 
The accompanying notes are an integral part of these condensed consolidated interim financial statements.

6
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Business Description and Basis of Presentation
Stratasys Ltd. (collectively with its subsidiaries, the “Company” or “Stratasys”) is a global leader in connected, polymer-based 3D printing solutions, across the entire manufacturing value chain. The Company leverages its competitive advantages, which include a broad set of best-in-class 3D printing platforms, software, a materials and technology partner ecosystem, innovative leadership, and global GTM infrastructure, in order to position itself to capture share in a significant and growing global marketplace, with a focus on manufacturing, which the Company views as having the largest and fastest growing total addressable market. The Company’s approximately 2,700 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, fashion and education. Stratasys’ products and comprehensive solutions improve product quality, development time, cost, time-to-market and patient care. The Company’s 3D ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production.
The condensed consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation.
The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the Company to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in its financial statements. Although the Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from the Company’s expectations, which could materially affect the Company's results of operations and financial position. 
The Company's financial results for the periods covered by its financial statements are impacted by global and regional macroeconomic and geopolitical developments. Since October 2023, Israel (where one of the Company's dual global headquarters and one of its manufacturing facilities are located) was engaged in military conflict on multiple fronts against terrorist organizations and hostile regional regimes for a two-year period. The conflict evolved, and during the three-month and nine-month periods covered by these financial statements, the remaining front of the conflict— Israel’s war against the Hamas terrorist organization in the Gaza Strip continued. Following the completion of the periods covered by these financial statements, in October 2025, the Israeli-Hamas war concluded pursuant to a ceasefire that has mostly been upheld by the sides. The Company's activities in Israel, as well as the Company's overall results of operations and financial condition, were largely unaffected throughout the two-year duration of the war, including during the three months and nine months ended September 30, 2025 covered by these financial statements. Throughout the conflict, the Company maintained business continuity plans backed by its inventory levels located outside of Israel.
In addition to Israel's multi-front war, a number of global developments that have been impacting, and may continue to impact, macroeconomic conditions also may affect the accounting estimates and assumptions that underlie the Company's financial statements, including, most prominently: the manner and extent (if at all) to which new tariffs slow economic growth and impact the industries into which the Company sells its products; the degree to which inflation remains moderate; whether and when interest rate cuts are implemented by central banks, whether tight credit markets are loosened; whether capital markets continue to rise; and whether global supply chains fully recover. As a result of those uncertainties, the accounting estimates and assumptions underlying these consolidated financial statements may change over time. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuations, and the Company's allowance for expected credit losses. These financial statements reflect the effects of global developments based upon Stratasys' management’s estimates and assumptions utilizing the most currently available information.
The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The reader is referred to the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 6, 2025 as part of the Company’s Annual Report on Form 20-F for such year.
Note 2. New Accounting Pronouncements
Recently issued accounting pronouncements, not yet adopted
In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In November 2024, the FASB issued ASU 2024-03 “Income Statement: Reporting Comprehensive Income— Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In May 2025, the FASB issued ASU 2025-03 “Business Combinations and Consolidation: Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity”, which amends the guidance for determining the accounting acquirer in certain transactions. The guidance should be applied prospectively. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The adoption of this guidance will affect acquisition transactions of variable interest entities that occur after the initial application date.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient when estimating credit losses on accounts receivable and contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The Company does not expect ASU 2025-05 to have a material impact on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-07 (“ASU 2025-07”), Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The guidance refines the scope of Topic 815 by clarifying which contracts are subject to derivative accounting and expand the scope exception for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendments may be applied prospectively or on a modified retrospective basis. The Company does not expect ASU 2025-07 will have a material impact on its consolidated financial statements.

7
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 3. Certain Transactions
MakerBot and Ultimaker transaction ("Ultimaker")
On August 31, 2022, Stratasys completed the merger of MakerBot (previously, a wholly-owned subsidiary) with Ultimaker, which together formed a new entity under the name Ultimaker.
The Company accounts for its investment in the combined company Ultimaker according to the equity method in accordance with ASC Topic 323, as it has retained the ability to exercise significant influence but does not control the new entity. The Company recognized an equity method investment in a total amount of $105.6 million comprised of the assumed fair value of the MakerBot shares and additional amount invested in cash by the Company, representing a share of 46.5% in the new entity.
During 2025, Ultimaker continued to encounter difficulties in its business as a result of tighter competition and global market conditions resulting in revenue decline compared with prior expectations. In addition, during the third quarter management concluded that the decline in Ultimaker's revenues is expected to continue in 2026. The Company considered such events as indicators of potential impairment and accordingly performed an impairment analysis for the investment in Ultimaker. Based on such valuation, the fair value of the investment was estimated below its carrying amount and such reduction in fair value was determined to be other than temporary. Accordingly the Company recorded an impairment charge in an amount of $33.9 million, which was recorded in share in losses of associated companies in the Consolidated Statements of Operations and Comprehensive Loss. Management’s cash flow projections and the fair value of assets and liabilities projected for the fair value of the investment in Ultimaker include significant judgments and assumptions relating to the cash flow projections, future growth and future profitability. Actual results could differ from those estimates.
As of September 30, 2025 and December 31, 2024 the Company's equity investment in Ultimaker was valued at $0 and $39.1 million, respectively, which represents the Company's investment in Ultimaker, net of the Company's share in Ultimaker's net losses, including impairments in the carrying value of the investment. The Company's share in losses of Ultimaker and the impairments in the carrying value for the nine-month periods ended September 30, 2025 and 2024 were approximately $39.1 million and $1.4 million, respectively.
Recent acquisitions
During the nine-month period ended September 30, 2025, the Company completed several immaterial transactions, including the acquisition of Forward AM and certain assets of Nexa3D Inc.
Other long-term investments
In addition to the investment in Ultimaker, other investments included under long-term investments consist of investments in non-marketable equity securities and convertible notes of several companies without readily determinable fair value in which the Company does not have a controlling interest or significant influence. During the nine months ended September 30, 2025 and during 2024, the Company invested a total of $6.5 million and $13.8 million, respectively, in non-marketable equity securities and convertible notes of several companies. As of September 30, 2025 and December 31, 2024, the total net amount invested by the Company in other long-term investments was $46.1 million and $41.1 million, respectively.
8
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 4. Revenues
Disaggregation of Revenues
The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(U.S. $ in thousands)(U.S. $ in thousands)
Americas*
Systems$18,149 $17,844 $52,997 $49,891 
Consumables34,175 34,378 101,303 106,102 
Service31,313 34,869 94,432 101,394 
Total Americas83,637 87,091 248,732 257,387 
EMEA
Systems9,573 10,467 28,907 29,990 
Consumables18,941 19,204 58,727 60,319 
Service7,925 7,393 22,806 22,281 
Total EMEA36,439 37,064 110,440 112,590 
Asia Pacific
Systems4,314 3,411 11,894 13,705 
Consumables8,909 8,788 28,819 26,875 
Service3,671 3,654 11,217 11,542 
Total Asia Pacific16,894 15,853 51,930 52,122 
Total Revenues$136,970 $140,008 $411,102 $422,099 
*Revenues in the United States for the three months ended September 30, 2025 and 2024 amounted to $80.2 million and $81.0 million, respectively, and are included under the Americas region in the above table. Revenues in the United States for the nine months ended September 30, 2025 and 2024 amounted to $237.4 million and $239.9 million, respectively, and are included under the Americas region in the above table.

9
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(U.S. $ in thousands)(U.S. $ in thousands)
Revenues recognized in point in time from:
Products$94,061 $94,092 $282,647 $286,882 
Services11,501 12,991 36,246 39,610 
Total revenues recognized in point in time105,562 107,083 318,893 326,492 
Revenues recognized over time from:
Services31,408 32,925 92,209 95,607 
Total revenues recognized over time31,408 32,925 92,209 95,607 
Total Revenues$136,970 $140,008 $411,102 $422,099 
Contract Assets and Contract Liabilities
Contract assets are recorded when the Company's right to consideration is conditioned on constraints other than the passage of time. The Company had no material contract assets as of September 30, 2025 or December 31, 2024.
Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenue. The Company's deferred revenue as of September 30, 2025 and December 31, 2024 was as follows:
September 30, 2025December 31, 2024
(U.S. $ in thousands)
Deferred revenue *$67,330 $65,404 
*Includes $18.8 million and $19.1 million under long-term deferred revenue in the Company's consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively.
Revenue recognized in 2025 that was included in deferred revenue balance as of December 31, 2024 was $9.6 million and $37.6 million for the three and nine months ended September 30, 2025, respectively.
10
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Remaining Performance Obligations
Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2025, the total RPO amounted to $89.1 million. The Company expects to recognize $57.8 million of this RPO during the next 12 months, $15.9 million over the subsequent 12 months and the remaining $15.4 million thereafter.
Incremental Costs of Obtaining a Contract
Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the deferred commissions amounted to $9.3 million and $10.3 million, respectively.
11
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 5. Inventories
Inventories consisted of the following:
September 30, 2025December 31, 2024
(U.S. $ in thousands)
Finished goods$85,583 $90,702 
Work-in-process6,471 7,491 
Raw materials67,281 81,616 
$159,335 $179,809 
Note 6. Goodwill and Other Intangible Assets
 Goodwill
Changes in the carrying amount of the Company’s goodwill during the nine months ended September 30, 2025 were as follows:
(U.S. $ in thousands)
Goodwill as of January 1, 2025
$99,082 
Goodwill acquired651 
Currency translation adjustments
1,782 
Goodwill as of September 30, 2025
$101,515 
Other Intangible Assets
Other intangible assets consisted of the following:
September 30, 2025December 31, 2024
Carrying Amount, net of ImpairmentAccumulated AmortizationNet book value  Carrying Amount, net of ImpairmentAccumulated AmortizationNet book value
(U.S. $ in thousands)
Developed technology$406,434 $(332,035)$74,399 $402,976 $(318,312)$84,664 
Patents29,808 (13,031)16,777 21,902 (11,726)10,176 
Trademarks and trade names22,394 (18,804)3,590 22,149 (17,957)4,192 
Customer relationships103,145 (96,644)6,501 102,560 (95,339)7,221 
Capitalized software development costs3,292 (3,292)— 3,117 (3,117)— 
$565,073 $(463,806)$101,267 $552,704 $(446,451)$106,253 
Amortization expenses relating to intangible assets for the three-month periods ended September 30, 2025 and 2024 were approximately $5.6 million and $5.6 million, respectively. Amortization expenses relating to intangible assets for the nine-month periods ended September 30, 2025 and 2024 were approximately $16.5 million and $18.2 million, respectively.
12
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
As of September 30, 2025, the estimated amortization expenses relating to intangible assets for each of the following future periods were as follows:
Estimated Amortization Expenses
(U.S. $ in thousands)
Remaining 3 months of 2025
$5,695 
202622,735 
202721,771 
202817,541 
202911,782 
2030 and thereafter
21,743 
Total$101,267 
Note 7. Net Loss Per Share
The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(U.S. $ in thousands, except per share amounts)(U.S. $ in thousands, except per share amounts)
Numerator:
Net loss for basic and diluted net loss per share$(55,634)$(26,614)$(85,433)$(78,340)
Denominator:
Weighted average shares, net of treasury shares - for basic and diluted net loss per share85,151 71,271 80,230 70,670 
Net loss per share
Basic and diluted$(0.65)$(0.37)$(1.06)$(1.11)
The computation of diluted net loss per share excluded share awards of 2.8 million shares and 5.1 million shares for the three months ended September 30, 2025 and 2024, respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share. 
The computation of diluted net loss per share excluded share awards of 1.6 million shares and 4.0 million shares for the nine months ended September 30, 2025 and 2024 respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share.
Note 8. Income Taxes
The Company had income tax expenses of $0.5 million for the three-month period ended September 30, 2025, compared to income tax expenses of $0.8 million for the three-month period ended September 30, 2024. The Company had income tax expenses of $2.0 million for the nine-month period ended September 30, 2025, compared to income tax expenses of $2.3 million for the nine-month period ended September 30, 2024. The Company’s effective tax rate as of September 30, 2025, was primarily impacted by the geographic mix of its earnings and losses, movements in its valuation allowance and changes in its uncertain tax positions.
13
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 9. Fair Value Measurements
The following table summarizes the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets:
September 30, 2025December 31, 2024
Level 1Level 2Level 3Level 1Level 2Level 3
(U.S. $ in thousands)
Assets:
Foreign exchange forward contracts not designated as hedging instruments$— $80 $— $— $71 $— 
Foreign exchange forward contracts designated as hedging instruments— 2,104 — — 4,005 — 
Convertible notes— — 15,193 — — 10,486 
Marketable securities
309 — — 596 — — 
Liabilities:
Foreign exchange forward contracts not designated as hedging instruments— (29)— — (21)— 
Foreign exchange forward contracts designated as hedging instruments— (1,306)— — (3)— 
Contingent consideration*— — (12,508)— — (12,694)
$309 $849 $2,685 $596 $4,052 $(2,208)
*Includes $7.4 million and $7.8 million under accrued expenses and other current liabilities in the Company's consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively.
The Company's foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs).
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 3).
Other financial instruments consist mainly of cash and cash equivalents, short-term deposits, current and non-current receivables, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values.
14
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 10. Derivative instruments and hedging activities
Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes.
The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, British Pound, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. These contracts mature through December 2026.
The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments:
Fair ValueNotional Amount
Balance sheet locationSeptember 30, 2025December 31, 2024September 30, 2025December 31, 2024
(U.S. $ in thousands)
Assets derivatives - Foreign exchange contracts, not designated as hedging instruments
Other current assets$80 $71 $87,158 $29,244 
Assets derivatives - Foreign exchange contracts, designated as cash flow hedge
Other current assets2,104 4,005 53,904 89,414 
Liability derivatives - Foreign exchange contracts, not designated as hedging instruments
Accrued expenses and other current liabilities(29)(21)24,502 82,818 
Liability derivatives - Foreign exchange contracts, designated as cash flow hedge
Accrued expenses and other current liabilities(1,306)(3)30,559 5,687 
$849 $4,052 $196,123 $207,163 
Foreign exchange contracts not designated as hedging instruments
As of September 30, 2025, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $111.7 million, and were used to reduce foreign currency exposures of the Euro, NIS, British Pound, Japanese Yen, Korean Won and Chinese Yuan. With respect to such derivatives, a gain of $1.4 million and a loss of $3.0 million were recognized under financial income, net for the three-month periods ended September 30, 2025 and 2024, respectively and a loss of $4.1 million and a loss of $1.2 million were recognized under financial income, net for the nine-month periods ended September 30, 2025 and 2024, respectively. Such gains and losses partially offset the revaluation losses of the balance sheet items which are also recognized under financial income, net.

15
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Cash Flow Hedging - Hedges of Forecasted Foreign Currency Payroll and other operating expenses
As of September 30, 2025, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of $15.1 million into NIS. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in New Israeli Shekels. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss.
Cash Flow Hedging - Hedges of Forecasted Foreign Currency Revenue
The Company transacts business in U.S. dollars and in various other currencies. The Company may use foreign exchange or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to fifteen months. The Company enters into these foreign exchange contracts to hedge a portion of its forecasted foreign currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature.
As of September 30, 2025, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of €59.4 million into dollars.

Note 11. Equity
a. Share capital
The Company’s issued share capital is composed of ordinary shares, NIS 0.01 par value per share (“ordinary shares”). Ordinary shares confer upon their holders the right to receive notice, participate and vote at general meetings of the Company, and the right to receive dividends if declared. The Company’s ordinary shares are traded in the United States on the Nasdaq Global Select Market under the ticker symbol “SSYS”. As of September 30, 2025 and December 31, 2024, there were 85,702 thousand ordinary shares and 71,982 thousand ordinary shares issued, respectively, and 85,436 thousand ordinary shares and 71,716 thousand ordinary shares outstanding, net of treasury shares, respectively. The change in the issued and outstanding ordinary shares during the nine months ended September 30, 2025 was attributable to exercises of share options and settlement of RSUs under the Company’s share-based compensation plans (including its ESPP), the issuance of ordinary shares to Fortissimo in respect of its PIPE investment in the Company, and the issuance of ordinary shares as consideration for the Company's acquisition of certain assets from Nexa3D Inc. and Covestro acquisition. During the nine months ended September 30, 2025, the Company's board of directors increased the reserve pool under the Company's 2022 Share Incentive Plan by 2.7 million shares.
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STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
b. Share Repurchase Program and Treasury Shares
On September 16, 2024, the Company’s Board of Directors (the “Board”) authorized a share repurchase program that provides for the repurchase of up to $50 million of the Company’s ordinary shares, from time to time. Under the share repurchase program, the Company may effect repurchases by way of a variety of methods, including open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its ordinary shares under the Board authorization. The repurchase program does not obligate the Company to acquire any particular number or value of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion. In accordance with Section 7C of the Israeli Companies Regulations, the share repurchase program became effective 30 days after notice of the Board’s adoption of the repurchase program was provided to the Company’s material creditors and secured creditors.
During the year ended December 31, 2024, the Company repurchased 266 thousand ordinary shares for approximately $2.0 million, at a weighted average cost of $7.50 per share. During the three and nine months ended September 30, 2025, the Company did not repurchase any additional ordinary shares.
c. Issuance of Shares
Closing of PIPE Transaction
On April 8, 2025, the Company completed its previously-reported private investment in public equity transaction pursuant to which FF6-SSYS, Limited Partnership, an affiliate of Fortissimo Capital, an Israeli private equity fund, invested $120 million in Stratasys and acquired 11,650,485 newly-issued ordinary shares of the Company at a price of $10.30 per share.
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STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
d. Share-based compensation program
Share-based compensation expenses for equity-classified share options, restricted share units (“RSUs”) and performance-based restricted share units (“PSUs”), in the aggregate, were allocated as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(U.S. $ in thousands)(U.S. $ in thousands)
Cost of revenues$819 $912 $2,273 $2,875 
Research and development, net1,540 1,765 4,338 6,016 
Selling, general and administrative3,276 3,892 11,375 13,673 
Total share-based compensation expenses
$5,635 $6,569 $17,986 $22,564 
A summary of the Company’s share option activity for the nine months ended September 30, 2025 is as follows:
Number of OptionsWeighted Average Exercise Price
Options outstanding as of January 1, 2025
1,250,004 19.18 
Granted48,752 11.20 
Forfeited(110,045)29.57 
Options outstanding as of September 30, 2025
1,188,711 17.89 
Options exercisable as of September 30, 2025
1,057,448 18.36 
As of September 30, 2025, the unrecognized compensation cost of $0.6 million related to all unvested, equity-classified share options is expected to be recognized as an expense over a weighted-average period of 1.0 year.
A summary of the Company’s RSUs and PSUs activity for the nine months ended September 30, 2025 is as follows:
Number of RSUs and PSUsWeighted Average Grant Date Fair Value
Unvested as of January 1, 2025
3,945,120 13.67 
Granted2,612,050 10.51 
Vested(1,395,904)15.09 
Forfeited(344,055)14.32 
Unvested as of September 30, 2025
4,817,211 11.50 
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant.
As of September 30, 2025, the unrecognized compensation cost of $44.4 million related to all unvested, equity-classified RSUs and PSUs is expected to be recognized as expense over a weighted-average period of 2.59 years.
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STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
e. Accumulated other comprehensive loss
The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2025 and 2024, respectively:
Nine Months Ended September 30, 2025
Net Unrealized Gain (Loss) on Cash Flow HedgesForeign Currency Translation AdjustmentsTotal
(U.S. $ in thousands)
Balance as of January 1, 2025
$4,907 $(12,938)$(8,031)
Other comprehensive income (loss) before reclassifications(1,144)6,466 5,322 
Amounts reclassified from accumulated other comprehensive loss(3,861)— (3,861)
Other comprehensive income (loss)(5,005)6,466 1,461 
Balance as of September 30, 2025$(98)$(6,472)$(6,570)
Nine Months Ended September 30, 2024
Net Unrealized Gain (Loss) on Cash Flow HedgesForeign Currency Translation AdjustmentsTotal
(U.S. $ in thousands)
Balance as of January 1, 2024
$1,790 $(8,869)$(7,079)
Other comprehensive income before reclassifications
430 918 1,348 
Amounts reclassified from accumulated other comprehensive loss(2,051)— (2,051)
Other comprehensive income (loss)(1,621)918 (703)
Balance as of September 30, 2024$169 $(7,951)$(7,782)

Note 12. Contingencies
Legal proceedings
Ordinary course litigation
The Company is a party to various legal proceedings from time to time, the outcome of which, in the opinion of management, will not have a significant effect on the financial position, profitability or cash flows of the Company.
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STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 13. Segment
The Company's chief operating decision maker (“CODM”) manages the Company’s business activities as a single operating and reportable segment and reviews financial information prepared on a consolidated basis. The Company's reportable segment generates revenues through the sale of its 3D printing systems, related services and consumables and by providing additive manufacturing (“AM”) solutions. The CODM reviews and utilizes budget-to-actual variances of profit measures and functional expenses (cost of revenues, research and development, net, and selling, general and administrative), at the consolidated level to manage the Company’s operations and to make key operating decisions. Other segment items included in consolidated net loss are financial income, net and income tax expenses, which are reflected in the consolidated statements of operations and comprehensive loss.
Note 14. Restructuring costs
In August 2024, the Company announced cost savings initiatives (the “2024 Restructuring Plan”) that includes a global workforce reduction. As a result of this restructuring plan, the Company expected $40 million of aggregate annualized cost savings. The Company substantially completed the implementation of this initiative by the end of 2024.
During the nine months ended September 30, 2025 and 2024, the Company recorded the following activity related to the 2024 Restructuring Plan in accrued expenses and other current liabilities on the balance sheet:
Nine Months Ended September 30,
20252024
(U.S. $ in thousands)
Accrued expenses and other current liabilities as of January 1,
$3,859 $— 
Restructuring charges and exchange rate impact1,408 6,707 
Cash payments(2,665)(708)
Accrued expenses and other current liabilities as of September 30,
$2,602 $5,999 
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