Velo3D Inc. (NASDAQ:VELO) shares surged Wednesday after the metal additive manufacturing company reported first-quarter results that topped Wall Street expectations.

The stock surged over 50%, as high short interest—exceeding 25% of the float—likely acted as a catalyst, amplifying buying pressure and accelerating the rally.

Earnings And Revenue Beat Estimates

Velo3D reported a first-quarter loss of 20 cents per share, beating analysts' estimates for a loss of 48 cents per share.

Revenue rose 48% year over year to $13.82 million, ahead of the Street estimate of $9.85 million. Sequentially, revenue increased 46%, driven by higher average selling prices, increased system shipments and growing contributions from the company's Rapid Production Solution segment.

The company said demand from the aerospace and defense markets supported the revenue growth.

Velo3D's backlog increased to about $30 million, up from $18 million in the prior-year quarter, reflecting improved demand visibility.

Gross margin expanded to 17.2% from 7.5% a year earlier, helped by improved factory utilization, operational efficiencies and stronger absorption of fixed costs.

The company ended the quarter with $16.6 million in cash and cash equivalents.

Defense Contracts Support Growth Outlook

During the quarter, Velo3D secured several defense-related agreements, including an $11.5 million production contract with a U.S. defense prime contractor and a $9.8 million five-year agreement with the Defense Logistics Agency under the JAMA program.

The company reiterated its full-year 2026 revenue guidance of $60 million to $70 million. Velo3D also maintained its expectation to achieve positive EBITDA in the second half of 2026.

Management said gross margins are expected to exceed 30% in the second half of the year as production scales.

Capital expenditures for 2026 are projected between $40 million and $50 million, primarily tied to manufacturing expansion and automation investments.

Stock Performance

VELO Price Action: Velo3D shares were up 52.06% at $21.38 at the time of publication on Wednesday, according to Benzinga Pro data.

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