Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 67

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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2 million, respectively, an increase of $1.9
million, or 14.5%.

Cost
of 3D Printers was $14.0 million and $10.7 million for the three months ended June 30, 2025 and 2024, respectively. The increase of $3.3
million was due to the higher overhead and labor absorption to manufacture the systems which were started in 2024 and sold in 2025 for
the three months ended June 30, 2025, compared to the three months ended June 30, 2024. We expect the cost to manufacture new systems
in 2025 to improve as a result of overhead and fixed cost reduction efforts implement in late 2024.

Cost
of Recurring Payment was $0.0 and $0.2 million for the three months ended June 30, 2025 and 2024, respectively. This decrease of $0.2
million was primarily due to a decrease in depreciation of the equipment subject to operating lease and allocable Cost of Support Services as a result
of fewer 3D Printers in service in the three months ended June 30, 2025, compared to the three months June 30, 2024.

Cost
of Support Services was $1.2 million and $2.3 million for the three months ended June 30, 2025 and 2024, respectively. Cost of Support
Services decreased by $1.1 million, due to reliability improvement efforts that the Company undertook in 2024 leading to lower field
service engineering labor and overhead in June 30, 2025, compared to June 30, 2024. We expect this to decrease on a per unit basis as
the Sapphire XC, Sapphire 1MZ and Sapphire XC 1MZ system reliability improves. We also expect our Cost of Support Services will increase
with the delivery of more 3D Printer systems to customers.

35

Cost
of revenue as a percentage of revenue was 111.7% and 128.0% for the three months ended June 30, 2025 and 2024, respectively. The decrease
in the cost of revenue as a percentage of revenue was primarily driven by product mix and improvements in the average selling price of
3D Printers.

We
may experience increasing component costs from our suppliers due to international tariffs and our current financial situation. We are
currently unable to secure credit terms and