Materialise (NASDAQ:MTLS) Issues Quarterly Earnings Results

Materialise (NASDAQ:MTLS) posted its earnings results on Wednesday. The software maker reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.01, Zacks reports. The firm had revenue of $76.65 million for the quarter, compared to analysts’ expectations of $78.13 million. Materialise had a return on equity of 5.20% and a net margin of 4.85%.

Here are the key takeaways from Materialise’s conference call:

• Full-year 2026 guidance was reaffirmed, with revenue expected at €273 million–€283 million and adjusted EBIT at €12 million–€14 million despite the impact of recent divestitures.
• Medical remained the primary growth driver, with revenue up nearly 10% year over year, supported by demand for personalized surgical planning, CMF solutions, cardiac workflows, and soft-tissue applications.
• Core manufacturing series-production revenue rose more than 30%, led by aerospace, semiconductor, and defense demand; excluding divestitures, manufacturing revenue grew 1.5% in the quarter and its adjusted EBITDA loss narrowed.
• Cash generation and the balance sheet strengthened, with year-to-date free cash flow more than doubling to €22.8 million and net cash reaching €82.5 million. The company also repurchased €7.5 million of shares through the first nine months.
• Software revenue declined just over 4% as cautious industrial spending and extended sales cycles weighed on demand, while increased R&D and one-time costs reduced third-quarter adjusted EBIT to €2.5 million, or a 3.7% margin.

Materialise Trading Up 5.8%

Shares of NASDAQ:MTLS traded up $0.40 on Thursday, hitting $7.17. 170,401 shares of the company’s stock were exchanged, compared to its average volume of 139,739. The business’s 50 day simple moving average is $7.80 and its two-hundred day simple moving average is $6.37. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.41 and a quick ratio of 2.22. The stock has a market capitalization of $423.83 million, a price-to-earnings ratio of 26.58 and a beta of 1.33. Materialise has a 12 month low of $4.78 and a 12 month high of $8.82.

Analysts Set New Price Targets

Several brokerages have issued reports on MTLS. Wall Street Zen cut shares of Materialise from a “strong-buy” rating to a “buy” rating in a report on Sunday, August 30th. DA Davidson initiated coverage on shares of Materialise in a research note on Tuesday, September 29th. They set a “buy” rating on the stock. Finally, Weiss Ratings upgraded shares of Materialise from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Materialise has an average rating of “Moderate Buy” and an average target price of $10.00.

Hedge Funds Weigh In On Materialise

Several institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC raised its stake in Materialise by 33.2% in the 3rd quarter. GAMMA Investing LLC now owns 10,892 shares of the software maker’s stock worth $93,000 after acquiring an additional 2,716 shares during the last quarter. QRG Capital Management Inc. acquired a new stake in shares of Materialise in the second quarter valued at about $81,000. Engineers Gate Manager LP boosted its stake in shares of Materialise by 175.0% in the second quarter. Engineers Gate Manager LP now owns 34,723 shares of the software maker’s stock worth $258,000 after acquiring an additional 22,098 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Materialise by 1,606.7% in the second quarter. NewEdge Advisors LLC now owns 26,300 shares of the software maker’s stock valued at $195,000 after purchasing an additional 24,759 shares in the last quarter. Finally, AXQ Capital LP purchased a new position in shares of Materialise during the 2nd quarter worth $118,000. 19.30% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Materialise

Here are the key news stories impacting Materialise this week:

• Positive Sentiment: Third-quarter revenue increased 2.1% year over year to €67.67 million. Materialise also reaffirmed its fiscal 2026 adjusted EBIT and revenue guidance, providing some support for the investment case. Materialise Reports Third Quarter 2026 Results
• Positive Sentiment: Reported EPS of $0.03 exceeded the cited analyst consensus of $0.02. Management’s earnings call also emphasized continued growth initiatives and investments in the company’s medical and additive-manufacturing software businesses. Materialise NV Earnings Call Highlights Growth, Investments
• Neutral Sentiment: Management is continuing to invest in research and development and other growth initiatives. Those investments could strengthen long-term product development, but they are currently weighing on near-term margins and earnings. Materialise Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue came in below the approximately €69 million consensus estimate, while profit declined as higher research-and-development and other costs pressured profitability. The combination of modest sales growth and rising expenses raised concerns about operating leverage. Materialise Q3 Profit Declines
• Negative Sentiment: The market reaction was negative because the earnings performance and outlook suggested that near-term investments are limiting profitability, despite the company’s maintained full-year guidance. Materialise Stock Price Sinks After Q3 Results Miss Profit Expectations

Materialise Company Profile

Materialise NV is a Belgium-based company that develops software and provides services for additive manufacturing, commonly known as 3D printing. Its technologies are used by manufacturers, medical professionals and researchers to design, prepare, manage and produce three-dimensional parts and devices.

The company’s software portfolio includes solutions such as Magics for preparing and managing 3D-printing jobs, the Mimics Innovation Suite for processing medical imaging data and creating patient-specific models, and 3-matic for advanced design and engineering applications.