Velo3D Shares Exhibit Sharp Swings Ahead of Earnings Report

Velo3D shares fell after a volatile week driven by an $11.5M defense contract. Investors await quarterly earnings and signs of progress toward 2026 profitability targets.

Velo3D shares closed a volatile trading week with modest declines, following a significant surge triggered by a major defense contract. The stock's performance highlighted investor uncertainty as the company approaches its quarterly earnings release, with market participants weighing recent operational progress against the path to sustained profitability.

Trading concluded on Friday with the equity down 3.3% at $9.05. This followed a session of extreme price fluctuations on Thursday, where the stock traded between $8.30 and $10.33. The primary catalyst for this volatility was an announcement on February 17 detailing a production contract worth $11.5 million with a U.S. defense contractor. This agreement represents a key strategic shift for Velo3D, marking its transition to series production for a national security program—a development viewed as a crucial step in securing more predictable future revenue streams.

Insider Holdings and Equity Awards

Recent SEC filings have shed light on the equity positions held by company executives. In mid-February, CEO Arun Jeldi was awarded 12,583 shares. It is important to note that these were not open-market purchases but rather the scheduled vesting of Restricted Stock Units (RSUs). This transaction increased his direct holdings to 37,746 shares. In a separate move during the fourth quarter of 2025, board member Jason Michael Lloyd acquired 7,000 shares. Such transactions are frequently interpreted by market observers as a signal of long-term confidence in the company's prospects.

Quarterly Results and the Profitability Path

The company faces its next significant test on February 26, when it is scheduled to report financial results for the latest quarter. Market experts, on average, anticipate a loss per share of $0.56, alongside revenue of $8.68 million.

Looking further ahead, management has set a target of achieving positive EBITDA for the full 2026 fiscal year. The upcoming report will be scrutinized for signs that Velo3D can exceed expectations and solidify its trajectory toward profitability. This journey continues within a broad 52-week trading range, with the stock having fluctuated between $2.81 and $23.84.