Ship-in-place arrangements

For certain system sales, at the customer's request, the Company may recognize revenue prior to physical shipment when control of the system has transferred to the customer and the criteria for bill-and-hold revenue recognition are satisfied. Such criteria include, among other things, that the arrangement has a substantive business purpose, the system is separately identified as belonging to the customer, the system is complete and ready for physical transfer, and the Company does not have the ability to use the system or direct it to another customer. Physical delivery and installation may occur in a subsequent period. In certain arrangements, following the transfer of control, the Company may separately contract with the customer for rights to use customer-owned equipment. Any such rights are governed by a separate contractual arrangement and are evaluated separately under applicable accounting guidance.

Product Warranties

Our 3D printers are generally sold with a one-year warranty. The warranty period generally commences upon installation at the customer’s designated operating facility. For systems sold under ship-in-place arrangements, the warranty period may commence prior to physical delivery or installation based on the terms of the applicable customer agreement. After the warranty period, we generally offer service contracts that enable our customers to continue service and maintenance coverage. These service contracts are offered with various levels of support and options and are priced accordingly. One entitlement of our service contracts is our service engineers provide periodic preventive maintenance visits to customer sites. Additionally, we provide training to our partners to enable them to also perform these services. Another contract entitlement on certain printer models is proactive remote troubleshooting capability through the Company’s integrated platform. From time to time, we also offer upgrade kits for certain of our printers that enable our existing customers to take advantage of new or enhanced printer capabilities. In some cases, we have discontinued upgrade support and maintenance agreements for certain of our older legacy printers.

Printers and certain other products include a warranty that covers workmanship, software, and hardware components under which we provide maintenance for periods up to one year. For these initial product warranties, estimated costs are accrued at the time of the sale of the product. These cost estimates are established using historical information regarding the nature, frequency and average cost of claims for each type of printer or other product, as well as assumptions about future activity and events. Revisions to expense accruals are made as necessary based on changes in these historical and future factors.

Information by Segment and Geography

The Company manages its operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financial results as a single reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on an entity wide basis for purposes of making operating decisions, assessing financial performance, and allocating resources.

Specifically, our CODM uses consolidated net income (loss) to measure performance, allocate resources of the Company as a whole, including investing in future development efforts, customer retention and acquisition, and assessing performance. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in the condensed consolidated net income are interest income, other income (expense), net and the provision for (benefit from) income taxes, which are reflected in the unaudited condensed consolidated statements of operations.

Equipment Subject to Operating Lease

Our 3D printers subject to operating leases are classified using the following criteria:

If the 3D printer does not meet the above criteria, the equipment is classified under property and equipment, net.

For more information, see Note 7, Equipment Subject to Operating Lease, Net.

Restricted Cash

The Company maintains restricted cash within other assets to secure letters of credit issued for its leased manufacturing facilities. In June 2021, the Company secured an 80,000+ square foot facility with an annually renewing letter of credit originally set at $0.8 million, which was reduced to $0.6 million in October 2024 and permits further reductions tied to revenue performance. Additionally, in May 2026, the Company entered into a lease for an approximately 289,000-square-foot facility and provided a $3.3 million letter of credit that renews annually and is eligible for reductions upon satisfying specified lease terms.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The standard provides a practical expedient allowing entities to assume that current economic conditions at the measurement date remain unchanged over the remaining life of the receivable. The Company adopted this standard on January 1, 2026, on a prospective basis. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated interim financial statements.

Recently Issued Accounting Pronouncements

In September 2025, the FASB issued ASU No. 2025-07, which (1) refines the scope of the guidance on derivatives in ASC Topic 815 and (2) clarifies the guidance on share-based payments from a customer in ASC Topic 606. The ASU is intended to address concerns about the application of derivative accounting to contracts that have features based on the operations or activities of one of the parties to the contract and to reduce diversity in the accounting for share-based payments in revenue contracts. ASU Topic 2025-07 is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption of the standard is permitted in an interim or annual reporting period for which financial statements have not been issued or made available for issuance. If an entity elects to early adopt the standard in an interim period, the entity must apply the standard as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact this standard will have on its condensed consolidated interim financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This update contains amendments that require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments in this update are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments are expected to impact only the Company's financial statement disclosures and are not expected to affect the recognition or measurement of amounts reported in the consolidated financial statements. The Company will continue to evaluate the impact of adopting this standard on its financial statement disclosures.

Reclassifications of Previously Issued Financial Statements

Certain prior-period amounts in the unaudited condensed consolidated interim financial statements have been reclassified to conform to the current-period presentation. These reclassifications had no impact on previously reported total net income (loss), total cash flows, or total stockholders’ equity.

Revision of Previously Filed Financial Statements

The unaudited condensed consolidated interim financial statements as of and for the three and nine months ended September 30, 2025, have been revised to reflect corrections to previously issued financial statements as presented in the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 12, 2025. These revisions were originally disclosed in Note 2, Summary of Significant Accounting Policies—Revision of Previously Filed Financial Statements, in the Company's Form 10-K for the year ended December 31, 2025.

Revision of Previously Issued Interim Financial Statements

During the third quarter of 2026, the Company identified errors in its previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and the three and six months ended June 30, 2026 related to the accounting for excess and obsolete inventory reserve. Specifically, certain previously fully reserved inventory was expensed upon subsequent consumption in production or sale without consideration of the reserve previously recognized for those items. The Company also identified certain inventory acquired for research and development activities that should have been charged to research and development costs in the periods in which such inventory was acquired.

The Company evaluated the errors, both individually and in the aggregate, in accordance with ASC Topic 250, Accounting Changes and Error Corrections, and the guidance in SEC Staff Accounting Bulletin No. 99, Materiality, and concluded that the errors were not material to the previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2026 or the three and six months ended June 30, 2026. However, the Company determined that correcting the cumulative errors entirely within the three months ended September 30, 2026 would be material to the results of that period. Accordingly, the Company has revised the previously issued unaudited condensed consolidated financial statements for the affected periods. The revisions are reflected in the condensed consolidated statements of stockholders' equity presented herein and will be reflected in future filings that include these periods. The revisions had no effect on net cash used in operating activities.

The revisions resulted in a decrease in cost of revenue of $1.0 million and $1.1 million for the three months ended March 31, 2026 and June 30, 2026, respectively, and $2.1 million for the six months ended June 30, 2026. The revisions also resulted in an increase in research and development expense of $0.2 million and $0.3 million for the three months ended March 31, 2026 and June 30, 2026, respectively, and $0.5 million for the six months ended June 30, 2026. The resulting decrease in net loss was $0.7 million and $0.9 million for the three months ended March 31, 2026 and June 30, 2026, respectively, and $1.6 million for the six months ended June 30, 2026.