Markforged Holding Corporation

Q2 2024 revenue was $21.7 million versus $25.4 million in Q2 2023. Gross margin was 51.9%, up 3.6% from the prior-year quarter. Operating expenses were $23.3 million, down from $26.6 million a year ago; operating loss was $12 million versus $14.3 million; net loss was $10.8 million versus $12.5 million; and loss per share was $0.05. Cash and cash equivalents, including restricted cash, were $93.9 million at quarter-end, and net cash used in operating activities in the first six months of 2024 was $21.9 million, an improvement of about 29% year over year. For FY2024, revenue is expected to be $90 million to $95 million, non-GAAP gross margin is expected in the upper range of the prior 48% to 50% guidance, non-GAAP operating loss is expected to be $42.5 million to $47 million, and non-GAAP loss per share is expected to be $0.19 to $0.22.

Shai Terem framed the quarter as one of strong execution despite industry headwinds and emphasized that customer response to new products remains positive. He repeatedly pointed to FX10, FX20, PX100, and new materials as the basis for a second-half return to growth, saying the pipeline is robust and conversion should support growth if macro conditions do not worsen. His tone was confident and upbeat, but grounded in the need for disciplined cost control and cash management.

Assaf Zipori focused on margin improvement, expense discipline, cash, and litigation-related items. He highlighted gross margin of 51.9%, operating expenses of $23.3 million, and an operating loss of $12 million, while noting that the company initiated an approximately $25 million annualized cost reduction program expected to reduce 2025 OpEx run-rate to about $70 million. He also said cash used in operations was $21.9 million for the first six months, cash and cash equivalents including restricted cash were $93.9 million at quarter-end, and the Watertown lease termination required a one-time $2.75 million payment but should save about $600,000 in 2024 and about $6.2 million in 2025 and beyond. On litigation, he said restricted cash includes $19.1 million tied to the Continuous Composites matter and that any awarded royalties could reduce gross margins by 5 to 7 percentage points in the near term.

Analysts pressed on the cumulative legal fees, where they sit in the P&L, and the details of the cost-cutting plan. Management said the legal fees are included in the GAAP-to-non-GAAP reconciliation and excluded from non-GAAP results, while Shai Terem said the majority of the $25 million savings will come from R&D as the company shifts from launching new platforms to scaling them. On the revenue ramp, management said the second-half outlook depends on a growing pipeline, especially for FX10, and on continued demand for newly introduced products despite a still-challenging capital equipment environment.