Stratasys Ltd. (NASDAQ: SSYS) shares are on a notable surge today following the announcement of its preliminary fourth-quarter results. As of the latest market update, SSYS stock was trading 20.95% up at $11.26. Investors took a positive view of the unaudited financial results, which indicated promising performance.
Our screener indicates that the price of SSYS stock is “Undervalued”, indicating an opportunity of a lucrative investment. For further options, investors may utilize our ST screener link to find out more about peer stocks in the Computer Hardware industry with comparable values.
Financial Performance Overview
Stratasys reported estimated fourth-quarter revenue between $150.1 million and $150.5 million, with hardware sales showing a sequential increase, while consumables experienced a slight decrease compared to the previous quarter.
The company also posted an Adjusted EBITDA ranging from $14.2 million to $14.6 million, accompanied by positive cash flow from operating activities. These results reflect a solid operational foundation, signaling potential for continued growth in the coming year.
Prospects for EBITDA Margins and 2025
With an eye beyond 2025, Stratasys has set a lofty goal to sustain an 8% EBITDA margin at present revenue levels. Nonetheless, the business expects EBITDA margins to increase to at least 10% for the entire year with modest revenue growth. SSYS also anticipates sustained positive cash flow from its business activities, which will improve its financial standing even further.
Fortissimo Capital’s Strategic Funding
In a major move, Stratasys has revealed that it would get a $120 million investment from Fortissimo Capital, a top Israeli private equity firm. 11.65 million newly issued ordinary shares will be purchased as part of the acquisition for $10.30 per share, which is 10.6% more than the market price on January 31, 2025.
By increasing Fortissimo’s ownership of Stratasys from 1.5% to 15.5%, this calculated move will significantly expand the company’s resources. It is anticipated that the collaboration would increase shareholder value and support Stratasys’ initiatives to promote expansion in the additive manufacturing industry.