Velo3D Stock Drops: What's Going On?

Velo3D Inc. (NASDAQ:VELO) shares are sliding Thursday. The company previewed third-quarter revenue that sits below the prior quarter’s total. Velo3D shares are retreating from recent levels. Why is VELO stock falling? Velo3D Previews Third-Quarter Revenue Velo3D released an early read on the quarter that ended September 30. The company said Thursday it expects sales of roughly $19.5 million to $20.5 million. That would be 43% to 51% above the $13.6 million it recorded in the same quarter a year ago. Velo3D stressed that the figures are provisional. Its outside accountants have not audited or reviewed them, and the books for the quarter are not yet closed. Management’s estimates reflect only information available on the announcement date. The company warned that final numbers could come in meaningfully different. Velo3D plans to publish final results the week of November 9. What Velo3D’s Preview Could Mean for Investors Investors may read the preview in several ways. First, it implies a step down from the second quarter, when revenue hit $20.66 million. Even the top of the new range falls below that figure, which puts third-quarter revenue roughly 1% to 6% lower. Second, the pace of expansion looks slower. Revenue grew 52.3% year over year in the second quarter, versus an implied 43% to 51% now. Third, Velo3D set a high bar last quarter. Its second-quarter revenue far exceeded the $13.52 million analyst estimate, according to Benzinga Pro, and management raised its 2026 revenue forecast to a range of $65 million to $75 million. The preview does not mention that forecast or analyst expectations. The final report in November may clarify whether the forecast still holds. Finally, other second-quarter markers could point to where demand heads. Velo3D won $29 million of new orders, carried a $31 million backlog out of the quarter and held $91.1 million in cash. It also projected positive EBITDA for the back half of 2026. Fresh readings on those measures may show whether demand backs the growth story. VELO Shares Are Slipping VELO Price Action: Velo3D shares were down 5.68% at $6.64 at the time of publication on Thursday, according to Benzinga Pro. Read Also: Stock Market Today: S&P 500, Nasdaq 100 Futures Fall As Chip Stock Sell-Off Intensifies — SKHY, TSM, RKLB in Focus Image: Michael Vi/Shutterstock