Materialise Reports First Quarter 2025 Results

• Boosted by 18.7% growth in our Materialise Medical segment, total revenue increased by 4.3% to 66,379 kEUR for the first quarter of 2025 compared to the corresponding 2024 period.
• Total deferred revenues from software maintenance and license fees increased during the quarter by 1,921 kEUR, to 48,870 kEUR.
• Adjusted EBIT improved to 646 kEUR for the first quarter of 2025 from (1,195) kEUR for the fourth quarter of 2024, but remained below the 2,656 kEUR of the corresponding 2024 period, reflecting the impact from macro-economic headwinds faced by our Materialise Manufacturing and Software segments.
• Net loss for the first quarter of 2025 was (535) kEUR, or (0.01) EUR per diluted share, compared to a net profit of 3,585 kEUR, or 0.06 EUR per diluted share, for the corresponding 2024 period.
• Driven by recurring positive free cash flow, our net cash position increased over the quarter by 6,716 kEUR to 67,736 kEUR.

CEO Brigitte de Vet-Veithen commented, “Amidst the current macro-economic and geo-political turbulence, we managed to grow our consolidated revenue by more than 4% in the first quarter of this year compared to the same period of 2024. At the same time, we significantly increased the deferred revenue carried on our balance sheet. Also in this quarter, our Materialise Medical segment continued to lead the way, with more than 18% revenue growth compared to the same period in 2024. Uncertain market conditions continued to weigh on our Materialise Manufacturing and Materialise Software segments, however. Although overall profitability in this year’s first quarter declined compared to the same period of 2024, we continue to realize operational efficiencies compared to the fourth quarter of 2024. At the same time, we further improved our net cash position while we continue to invest in sustainable growth, as detailed in our recently released 2024 Materialise Sustainability Report.”

Total revenue for the first quarter of 2025 increased 4.3% to 66,379 kEUR from 63,637 kEUR for the first quarter of 2024. Adjusted EBIT for the first quarter of 2025 was 646 kEUR compared to 2,656 kEUR for the 2024 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the first quarter of 2025 was 1.0%, compared to 4.2% for the first quarter of 2024. Adjusted EBITDA for the first quarter of 2025 was 6,147 kEUR compared to 8,094 kEUR for the 2024 period.

Revenue from our Materialise Medical segment increased 18.7% to 31,078 kEUR for the first quarter of 2025 compared to 26,183 kEUR for the same period in 2024. Segment Adjusted EBITDA increased 14.2% to 9,047 kEUR for the first quarter of 2025 compared to 7,921 kEUR, while the segment Adjusted EBITDA margin was 29.1% compared to 30.3% for the first quarter of 2024.

Revenue from our Materialise Software segment decreased 6.4% to 9,775 kEUR for the first quarter of 2025 from 10,438 kEUR for the same quarter last year. Segment Adjusted EBITDA decreased 45.1% to 599 kEUR from 1,090 kEUR, while the segment Adjusted EBITDA margin was 6.1%, compared to 10.4% for the prior-year period.

Revenue from our Materialise Manufacturing segment decreased 5.5% to 25,526 kEUR for the first quarter of 2025 from 27,016 kEUR for the first quarter of 2024. Segment Adjusted EBITDA decreased to (377) kEUR from 1,529 kEUR, while the segment Adjusted EBITDA margin was (1.5)%, compared to 5.7% for the first quarter of 2024.

Gross profit increased 2.2% to 36,724 kEUR compared to 35,935 kEUR for the same period last year, while gross profit as a percentage of revenue was 55.3% compared to 56.5% for the first quarter of 2024.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 6.9% to 36,510 kEUR for the first quarter of 2025 from 34,138 kEUR for the first quarter of 2024.

Net other operating income was 360 kEUR compared to 789 kEUR for the first quarter of 2024.

Operating result amounted to 574 kEUR compared to 2,585 kEUR for the first quarter of 2024.

Net financial result was (875) kEUR, compared to 1,510 kEUR for the first quarter of 2024, reflecting unfavorable effects from exchange rate fluctuations.

The first quarter of 2025 contained net tax expenses of (234) kEUR, compared to net tax expenses of (510) kEUR in the first quarter of 2024.

As a result of the above, net loss for the first quarter of 2025 was (535) kEUR, compared to a net profit of 3,585 kEUR for the same period in 2024. Total comprehensive loss for the first quarter of 2025, which includes exchange differences on translation of foreign operations, was (30) kEUR compared to 3,312 kEUR for the 2024 period.

At March 31, 2025, we had cash and cash equivalents of 104,180 kEUR compared to 102,304 kEUR at December 31, 2024. Gross debt amounted to 36,444 kEUR, compared to 41,284 kEUR at December 31, 2024. As a result, our net cash position increased by 6,716 kEUR to 67,736 kEUR.

Cash flow from operating activities for the first quarter of 2025 was 9,713 kEUR, compared to 9,970 kEUR for the same period in 2024. Total cash out from capital expenditures for the first quarter of 2025 amounted to 1,832 kEUR, resulting in a positive free cash flow.

Net shareholders’ equity at March 31, 2025 was 248,703 kEUR compared to 248,492 kEUR at December 31, 2024.

On April 2, 2025 Materialise released its 2024 Sustainability Report clearly outlining the initiatives we are taking to make a sustainable difference with additive manufacturing for a better and healthier world. The report is available on our corporate website or can be consulted directly through https://mtls.am/report.

Mrs. de Vet-Veithen concluded, “As already anticipated in our earlier guidance for the fiscal year 2025 issued in February, we expect uncertain macro-economic and geo-political conditions to impact the remainder of 2025 and in particular the second quarter, but we are convinced that the fundamentals of our business are solid and resilient. We therefore continue to expect to report consolidated revenue for the full fiscal year 2025 within the 270,000 to 285,000 kEUR range we communicated in February. We are also maintaining our Adjusted EBIT guidance of 6,000 kEUR to 10,000 kEUR for fiscal year 2025.”

Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA as supplemental financial measures of its financial performance. EBIT is calculated as net profit plus income taxes, financial expenses (less financial income) and shares of profit or loss in a joint venture. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBIT and Adjusted EBITDA are determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBIT and EBITDA, respectively. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of financing decisions and, in the case of EBITDA and Adjusted EBITDA, long term investment, rather than the performance of the company’s day-to-day operations. The company also uses segment Adjusted EBITDA to evaluate the performance of its three business segments. As compared to net profit, these measures are limited in that they do not reflect the cash requirements necessary to service interest or principal payments on the company’s indebtedness and, in the case of EBITDA and Adjusted EBITDA, these measures are further limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the changes associated with impairments. Management evaluates such items through other financial measures such as financial expenses, capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.0815, the reference rate of the European Central Bank on March 31, 2025.

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the first quarter of 2025 on Thursday, April 24, 2025, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Brigitte de Vet-Veithen, Chief Executive Officer and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

To access the call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or receive a call to connect to Materialise’s conference call.

• https://register-conf.media-server.com/register/BI8fc234f0695d41cda76124b7d2bea08d

The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at https://investors.materialise.com. The webcast of the conference call will be archived on the company's website for one year.

About Materialise

Materialise incorporates more than three decades of 3D printing experience into a range of software solutions and 3D printing services that empower sustainable 3D printing applications. Our open, secure, and flexible end-to-end solutions enable industrial manufacturing and mass personalization in various industries — including healthcare, automotive, aerospace, eyewear, art and design, wearables, and consumer goods. Headquartered in Belgium and with branches worldwide, Materialise combines the largest group of software developers in the industry with one of the world's largest and most complete 3D printing facilities