Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 74

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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6)%
  
    Total Cost of Revenue 
    $23,783  
     100.0% 
    $25,842  
     100.0% 
    $(2,059) 
     (8.0)%

Total
cost of revenue for the six months ended June 30, 2025 and 2024 was $23.8 million and $25.8 million, respectively, a decrease of $2.1
million, or 8.0%.

Cost
of 3D Printers was $21.5 million and $20.1 million for
the six months ended June 30, 2025 and 2024, respectively. The increase of $1.4 million was due to the higher overhead and labor absorption
to manufacture the systems which were started in 2024 and sold in 2025, offset by the product mix and decrease in the number of systems
sold, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The Cost of 3D Printer also included cost
for printed parts and consumables.

Cost
of Recurring Payment was less than $0.1 million and $0.5 million for the six months ended June 30, 2025 and 2024, respectively. This
decrease of $0.5 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 six months ended June 30, 2025, compared to the six months June 30, 2024.

Cost
of Support Services was $2.2 million and $5.2 million for the six months ended June 30, 2025 and 2024, respectively. Cost of Support
Services decreased by $2.9 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.

Cost
of revenue as a percentage of revenue was 103.9%