Nano Dimension Ltd. (NASDAQ: NNDM) Q2 2025 Earnings Call | 06/12/2025

Summary of Nano Dimensions' First Quarter 2025 Financial Results Conference Call.

Overview of Nano Dimensions (Core Business) in Q1 2025

The call focused on Nano Dimensions' standalone core business results for the first quarter ending March 31, 2025. It also provided updates on the strategic integration of recent acquisitions, Markforged and Desktop Metal, which occurred after the quarter closed in April.

• Company Identity: Nano Dimensions positions itself as a digital manufacturing leader, innovating high-performance, high-value parts through a multidisciplinary approach combining hardware, software, and materials science.

Q1 2025 Financial Results (Nano Dimensions Core Business - Non-IFRS)

• Total Revenue: $14.4 million, an 8% growth from Q1 2024, despite macroeconomic headwinds.
• Adjusted Gross Margin: 43.8% (compared to 49.8% in Q1 2024), impacted by the discontinuation of non-strategic assets.
• OPEX (Net of One-time Expenses): Declined to $14 million (from $25.3 million in Q1 2024), reflecting a strong focus on cost controls and operational efficiencies.
• Adjusted EBITDA Loss: Improved to $9 million (from $13.6 million in Q1 2024).
• Cash, Cash Equivalents, and Investable Securities: $840 million as of March 31, 2025. This balance excludes the combined purchase price of the Markforged and Desktop Metal acquisitions ($294.5 million), which closed in April.

Key Strategic Decisions and Program (Core Business)

Nano Dimensions implemented an "assess, transform, invest, and grow" program:

• Product Discontinuation: Several non-strategic products (Admitech, DeepCube, Fabrica, Formatech) were discontinued, projected to save approximately $20 million in annual operating expenses.
• Product Rationalization: Ensuring solutions have a competitive advantage, command high margins, focus on high-value, high-performance parts manufacturing at scale (not experimental designs), and deliver clear ROI for customers.
• Operating Model Optimization: Further reducing expenses to achieve world-class financial ratios, breaking down organizational silos, and fostering a flatter organization with more "doers" and fewer managers to innovate and deliver value at speed.

Post-Merger Integration (PMI) of Acquisitions

• Markforged Integration:
  • Acquisition occurred in April 2025 (post-Q1).
  • Markforged's Q1 2025 revenue was just under $17 million (compared to Nano Dimensions' core business revenue of just under $15 million).
  • The PMI process for Markforged is mirroring the "product rationalization and operating model optimization" applied to the core business, aiming to reduce operating expenses and drive strategic sales.
  • Building on three strong foundations: a leading software platform for digital manufacturing, adopted FFF technology for end parts, and metal binder jetting solution for high-performance metal parts at scale.
• Desktop Metal (DM) Acquisition:
  • Acquisition also occurred in April 2025 (post-Q1).
  • DM is currently undergoing an independent strategic assessment by its own independent management, financial advisors, and board.
  • Nano Dimensions stated it is meeting its obligations regarding DM's convertible notes.
  • Due to DM's independent strategic assessment, Nano Dimensions is currently not providing specific guidance on the combined business model for the Markforged and DM acquisitions.

Overall Confidence and Outlook

• Nano Dimensions is confident in its actions to create shareholder value, both in addressing the core business challenges and integrating Markforged.
• The company aims to be a formidable digital manufacturing leader through pioneering technology, backed by a strong P&L and balance sheet.
• Despite the lack of specific combined guidance, the CFO emphasized a disciplined approach to expenses and cash burn, continuing the operational improvements seen in the core business.