Good day, and welcome to today's conference call to discuss Stratasys' second quarter 2026 financial results. My name is Rob, and I'm your operator for today's call. And now I'd like to hand the call over to Yonah Lloyd, Chief Communications Officer and Vice President of Investor Relations for Stratasys. Mr. Lloyd, please go ahead.

Good morning, everyone, and thank you for joining us to discuss our 2026 second quarter financial results. On the call with us today is our CEO, I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the Investor Relations section of our website. Please note that some of the information provided during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes, and other future financial performance, and our expectations for our business outlook. All statements that speak to future performance, events, expectations, or results are forward-looking statements. Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those described in forward-looking statements, please refer to the risk factors discussed or referenced in Stratas' annual report on Form 20F for the 2025 year. Please also refer to that annual report along with our reports filed with or furnished to the SEC throughout 2026 for additional operational and financial details. Reports on Form 6K that are furnished to the SEC on a quarterly basis and throughout the year, provide updated current information regarding the company's operating results and material developments concerning our company. Stratasys assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. As in previous quarters, today's call will include GAAP and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance. Non-GAAP to GAAP reconciliations are provided in tables in our slide presentation and today's press release. I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zayf. Yoav.

Thank you, Yonah. Good morning, everyone, and thank you for joining us. Our second quota result reflects a record-setting level of consumable sales. As we continue to effectively drive recurring revenue from materials that are specifically used for manufacturing and use parts. This growth in consumables is a great indicator of the high utilization of our systems and speaks directly to our strategy to increase the manufacturing portion of our business. Total revenue grew 3.7% sequentially. Once again, Stratasys Direct had a strong quarter, driven by aerospace and defense customers, reinforcing the trajectory of our production parts division. And our earnings results reflect continued focus on operational rigor and disciplined cost management. As we capitalize on the megatrends that are driving additive manufacturing adoption, aerospace and defense remains a clear proof point. Mission-critical performance requirements and accelerating supply chain resiliency mandates are translating into durable structural demand for our platforms. These reflect a fundamental shift for high-demand manufacturers as they seek localized, flexible, production-grade capabilities. Importantly, with both make-and-buy optionality, Stratasys is proving to be uniquely positioned to capture this potentially seismic shift. Independent industry estimates suggest the entity manufacturing opportunity could double by the end of the decade and double again within a few short years, reinforcing our conviction that we are still early in this transformation. We also took a significant step forward in strengthening that positioning with our pending acquisition of Markforged, which we expect to close later this year. Adding Markforged with its continuous carbon fiber technology, materials, and software platform will meaningfully augment our offering, particularly in aerospace, defense, and industrial production. Speaking of aerospace and defense, in the second quarter, we demonstrated strong momentum. AMD is our largest business by far and a strong ongoing example of our success in manufacturing, growing 17% relative to the second quarter last year. We estimate that we are the leading player in polymer additive manufacturing for AMD. Second quarter results were partially driven by expanding adoption across the U.S. Air Force for depot-level sustainment and spare parts production. Ongoing multiple system investments in our workhorse F-900 system certified by the air force for flight worthy production parts are propelling this growth these orders are not one time rather they are increasing in volume for location across their sustainment enterprise to support established programs of record turning into large ongoing programs once a part is qualified on our platforms, that relationship tend to be long-term, given the cost and complexity of re-qualifying another resource. This durability is a meaningful reason that we view this new demand quotient as structural rather than cyclical. During the quarter, we were proud to have enhanced a strategic relationship with QuickPulse, a Seattle-based international on-demand manufacturer with its purchase of 12 NIO 800-plus systems, in addition to its existing six units. This is a multi-year, multi-million dollar agreement across materials, software, and service. Importantly, the systems will be used for manufacturing production parts in key verticals such as aerospace, defense, advanced mobility, and energy. In addition to the systems going to Quick Park's Seattle Aerospace Center of Excellence in the U.S., this deal includes a geographical expansion with three of the units being placed across its facilities in Europe. And recently, Stratasys was awarded a two-year program totaling $7.8 million through the 2026 America MAKES OIB Modernization Challenge. America MAKES is the leading public-private partnership for 3D printing and additive manufacturing technology, managed by the National Center for Defense Manufacturing and Machining. The program's focus is to advance next-generation in-situation monitoring for hardware and software capabilities for both our F900 and a future technology refreshed solution with our F3300. This program indicates a long-term DOW strategy that integrates our production platforms. As the Executive Director of America MAKES noted, this project will create a stronger foundation for expanding additive manufacturing across production, sustainment, and supply chain applications throughout the defense enterprise. It further positions Stratasys as the trusted source for qualified manufacturing, enabling a new business model for reliable production of scalable, mission-critical components while supporting long-term parts and platform sustainment requirements across the defense industrial And our Stratasys Direct Parts Manufacturing business delivered 12.1% year-over-year growth in the second quarter of 2026, relative to the corresponding quarter in 2025. This was fueled primarily by increasing demand from defense technology companies for drone production, munitions manufacturing, and production applications across next-generation platforms. This emerging demand reinforces the growing role of additive manufacturing as a sustainable, strategic enabler of defense industrial-based modernization, resilient domestic supply chains, and scalable production. Turning to automotive, this quarter, FANUC, one of the world's leading industrial automation companies, adopted our industrial solution into its supply chain. This reflects another broader trend starting to emerge across manufacturing where automotive OEMs and their suppliers are aligning with common additive manufacturing platforms. That alignment means production tooling and replacement parts only have to be qualified once, and then they can be manufactured at any location around the globe. This improves consistency of quality and reduces lead times across their manufacturing ecosystem. Of particular note, the FANUC engagement came at a request of a major automotive OEM customer. to help standardize common tools and paths between them. This is another exciting next step in the automotive industry's move toward additive manufacturing at scale. And in another example of how our technology is penetrating the automotive production line, FAW Group, one of the largest Chinese auto OEMs, signed an agreement to purchase 12 F900 systems by year-end, with two shipped in the second quarter. On top of the five F900 and eight other Stratasys systems, they already operate. This reflects one of our competitive advantages in high-requirement industrial applications. relative to Chinese lower end options locally. Notably, these systems are being used primarily for production of interior end-use parts, such as armrests and panels. This is a great example of recurring business that emerges once our customers experience the extreme values Stratocys create on their production lines. Now, I will discuss Mark Forge in greater detail. This will be a $42.5 million cash purchase once the usual regulatory steps are clear. Legacy Mark Forge generated approximately $70 million of revenue in 2025. We continue our thorough evaluation and review of the business as we focus on ensuring we optimize the combined offering. We expect to realize a rapid return on our investment for new revenue streams and unlocking meaningful synergies which will result in a better margin and positive contribution to EBITDA within the first year after closing. We believe that building product capacity in target markets, such as aerospace and defense, along with production-grade manufacturing more broadly, makes great sense. Mark Forge's continuous carbon fiber technology addresses a growing opportunity for certain stronger, lighter parts that can replace metals. Additionally, their software platform provides excellent simulation and remote print management. We are confident that the MarkForge acquisition will enhance our growth in A&D. Beyond their technology, we will also be integrating their talent, partners, and reseller network, which opens up additional cross-sell opportunities. Put simply, Mark Ford will enable us to say yes to more new business faster, especially in aerospace, defense, and automotive. And finally, in June, we celebrated the grand opening of our America's regional corporate headquarters, or ARCH, a 200,000-square-foot facility in Minnetonka, Minnesota. ARCH brings together engineering, innovative research and development, applications expertise, strategies directs, and customer collaboration capabilities all under one roof. This larger, more advanced headquarters will support anticipated growing demand and reinforces our focus on production-scale additive manufacturing. We are proud to have received bipartisan congressional support at the opening event. A strong message validating the value lawmakers see in strategic technology and in our U.S. operations. And the feedback has been encouraging from those investors that have visited. Seeing our technology at work in real-world environments can greatly enhance the appreciation for our strategy. We look forward to hosting more of the investment community in the future. With that, I will turn the call to Eitan to review our financials. Eitan?

Thank you, Yoel, and good morning, everyone. Our second quarter results reflect continued execution on our manufacturing-focused strategy and deepen customer reliance on our solutions, as demonstrated by our highest ever quarterly revenue for consumables. and multiple repeat customer sales for aerospace, defense, and automotive customers. Let me get into the details. Second quarter consolidated revenue was $137.6 million, up 3.7% sequentially from $132.7 million in the first quarter, and roughly flat compared to $138.1 million in the same period last year. System revenue was $26.4 million, compared to $30.6 million in the same period last year. Consumer revenue reached a quarterly record $66.3 million, compared to $64.2 million in the same period last year, driven by increased sales of manufacturing material, consistent with our strategic focus on production applications. Service revenue, which includes Stratus' direct parts production, was $44.9 million, compared to $43.3 million in the same period last year. Within service revenue, customer support revenue was $29.9 million, dollars, roughly flat compared to the same period last year, while Stratasys Direct grew 12.1 percent year-over-year, continuing to contribute positively to our results. Turning to gross margins, gap gross margin was 42.3 percent for the quarter, compared to 43.1 percent in the same period last year. Non-GAAP gross margin was 47.2% for the quarter, compared to 47.7% in the same period last year, driven by the adverse impact of the strong Israeli shekel, in which many of our expenses are incurred, partially offset by the contribution of higher consumables revenue margins and an improvement from 46.3% last quarter. Gap operating expenses were $71.7 million, compared to $76.1 million during the same period last year. Non-gap operating expenses were $64.8 million, or 47.1% of revenue, roughly flat, compared to 46.9% of revenue in the same period last year, reflecting continued discipline expense management. Regarding our consolidated earnings, GAP operating loss for the Quartel was $13.5 million, compared to a loss of $16.6 million for the same period last year. Non-GAP operating income for the Quartel was $0.1 million, compared to $1.1 million for the same period last year. GAP net loss for the Quartel was $16.9 million, or $0.19 per diluted share compared to a net loss of $16.7 million or $0.20 per diluted share for the same period last year. Non-gap net income for the quarter was $2.3 million or $0.03 per diluted share compared to non-gap net income of $2.2 million or $0.03 per diluted share in the same period last year. Adjusted EBITDA was $5.3 million for the quarter, compared to $6.1 million in the same period last year, and an improvement from $2 million last quarter. Important to note that both non-GAAP operating income and EBITDA increased compared to the same period last year, after excluding the $2.9 million adverse impact of the strong Israeli shekel in the quarter. Turning to cash flow, we used $18.7 million in operating cash flow this quarter. The company historically generates positive operating cash flow as reflected in full years 2024, 2025, and in Q1, 2026. The cash usage this quarter was atypically high and was mainly driven by non-routine items, including legal expenses, to proactively protect our IP. Importantly, we expect operating cash flow in the second half of the year to be positive. We ended the quarter with $212.5 million in cash, cash equivalents, and short-term deposits, compared to $237.8 million at the end of the first quarter. Regarding our outlook for 2026, we are reaffirming our full-year guidance other than operating cash flow. We are energized by a strong pipeline of business and robust level of customer engagement and continue to expect sequential growth in revenue across all four quarters of the year. Even the first half operating cash flow results, we no longer expect full year 2026 operating cash flow to be positive. However, as I just mentioned, we expect the second half of the year to be positive. Our debt-free balance sheet and healthy cash position give us the added financial flexibility and position of strength to support technology and market development, both organically and inorganically, to spur further growth. With that, let me turn the call back over to Yoav for closing remarks. Yoav? Thank you, Eitan.

As we look ahead, we do so with confidence in our strategy and in the durability of the megatrend driving additive manufacturing adoption. We are successfully executing on our stated goal to transform our business as we shift the bulk of our business from prototyping to manufacturing. The annual growth of manufacturing-based revenue is supported by the metric we share when we report each year-end. We are making steady progress, and as demonstrated by the examples we have shared today, this focus on manufacturing will result in a significantly more robust company as we continue to become a larger part of our customers' critical production line infrastructure. The multi-unit, multi-year wins we describe with large global companies are the results of the increasing enthusiasm and usage of additive manufacturing in production. Customer engagement remains strong. Our pipeline of business is expanding. And while the magnitude of the commitments we are securing tends to carry long sales cycles and add viability quarter to quarter, the many opportunities emerging will generate a sales flywheel to propel increased growth in the coming years. Combined with a healthy balance sheet, the foundation and path forward for profitable growth is evident. Our continued momentum in aerospace, defense and automotive, the anticipated impact from our dental business and the ongoing contribution from strategies direct reinforce the structural demand we see across our key vertical as we look to build long-term value. With that, let's open it up for questions. Operator?

Thank you. We'll now be conducting the question and answer session. May I ask you to please limit yourself to one question and one follow-up? If you'd like to ask a question, you may press star 1 on your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you and one moment for our first question. The first question comes from the line of Greg Palm or Greg Allen. Please receive your questions.

Hi, this is Jackson Trader on for Greg Palm. Just wanted to touch on, for the last question, the acquisition, wanted to see, you know, we're seeing a lot of demand within AMD coming from metals, say, set of manufacturing. and with this new carbon fiber capability that you have here, one is to just see what your outlook is for that business and how it fits in strategically. And then also if you could touch on the $70 million in revenue, what the kind of revenue profile is on that, and if there's anything that you expect to kind of strategically trim or I guess what you're going to do with that business and how that kind of works in the portfolio. So thank you.

Thank you, Jackson, for the question. It's a very important one in terms of our position in aerospace and defense. So let me take a step back and share a few sentences on the deal rationale with Mark Forge. There are very clear five pillars while we have done it. Number one is the unique continuous carbon fiber technology that they developed over the year. It's by far the leading one. And we believe that together with strategies, long-term reliability, standards, and positioning in aerospace and defense, it's a win. This is the first pillar. The second one is about the use cases. They are completely in line with our use cases. In additive, it's all about application. And they are completely in line with ours. Our number one is aerospace and defense, and number two is tooling in the industrial space. They are focusing on the same. Complete alignment with huge synergies, technological synergies. So that's the second one, the use case. The third one is the go-to market. We have the leading network of partners in the market, and they are number two, and they are not in the same market because they are in different markets. We are in the more corporate I.N., and they are bringing us the shops and medium-level businesses, which is a clear synergy. Then we are talking about software. They developed a unique software, including simulation, but also the ability to manage distributed manufacturing. together with our leading GRUB card, it's another win. And add to it, this is the fifth pillar, the talent that we are receiving. Those are the best engineers in our industry, and they are joining strategies, and that will really strengthen our position in the high-end hire requirements. Now to your question. You mentioned metal. Continuous carbon fiber can replace metal. It's lighter. It's less expensive. It significantly requires less post-processing, which is a huge advantage. And just as a proof point, since we announced the deal and since we are interacting with many aerospace and defense players that now are coming to us, I received four requests from large corporates to collaborate with us on helping them adopting continuous carbon fiber and continuous carbon fiber standards, because Patasit knows how to do it, and the replacement for Meta. So I'm very positive about it, and it looks really promising.

And then can you just talk a little bit more about, you know, you mentioned dentals right at the end there, just what the outlook is on that market and how that's trending?

Dental, this is like the secret card that we have in a sense. We are very excited about the dental industry and about our solution. With all modesty, we are developing the most innovative solution for removables. And you will see it in the market. We have already, for the first version, FDA in Europe, European approvals. Long-term opportunities are coming every day. We hire the top talent in dental and probably, you know, in Chris Cabot. And it is transforming the way we are thinking about dental and the way we are going to the market. And most importantly, we get the recognition from the leading customers. So we're already working with labs like Clydewell and Affordable Dentures, which are two of the largest dental companies in the U.S. So it's a massive opportunity. Stay tuned. We will come back with what's going on with Delta.

I appreciate it all your time.

Thank you. Next question is from the line of Brian Drabb with William Blair. Please receive your question.

Hi. Good morning. I'll just say hello, and I don't know what time it is there exactly. Thanks for taking the question. I'm just, you know, I listened to the call, and there's a lot of momentum. There's a lot of exciting things going on. But then I just wanted to hear your thoughts on just the system sales, because it seems like the manufacturing environment is improving for a lot of companies, seeing some momentum building this year. But the system sales, I think, were down sequentially. And we still haven't turned the corner in terms of improved system sales. The system sales are down from last year for a second quarter, and they're even down from two years ago in the second quarter, and they're down sequentially from the first quarter, right, whereas historically Stratasys has seen at least a little bit of improvement, I think, in the second quarter from the first quarter. So I know there's a lot of positive things going on, but I'm just wondering when do you think that that system sales starts to inflect? Thanks.

Thank you, Brian, for the question. And, by the way, we are on the same time zone. We are in Minnesota, so we're free. Great question. So I think the most important thing to state now is that we are on track and we are keeping our guidance of sequential growth quota over quota. That's the most important thing. Now about system, this is part of what we are experiencing in the shift to manufacturing. We are coding to track, but we have a pipeline, a robust pipeline of large deals. And large deals, it's not something that is distributed across the quarter exactly as you want it. So we know our pipeline, it's robust, it's consistent of large deals, and it's better to measure our growth trend annually, given the fact that we are moving to large deals and to manufacturing. And as a proof, and you can see the two large deals that we have done this quarter with two leading players. So this is a change in the nature of the business. And when you look at the second half of the year, you will see a notable uptick in System Okay.

Thank you very much, and I didn't miss the nice increase sequentially in consumable sales, so that was very impressive. So I'll save the rest of my questions for later, but thank you very much.

Thank you. As a reminder, if you like to ask a question, you may press star 1. Thank you. At this time, showing no additional questions, I'll turn the floor back to Yoav for any further comments.

Maybe one comment before we are concluding. We are moving into manufacturing. We are on the right track in the shift from prototyping to manufacturing. We have many proof points for that, starting with our A&D set of success and demand. The A&D business is coming with large deals. We have a robust pipeline of those large deals. SDM is proving it because we have the highest backlog ever in SDM. And this is our way into this aerospace and defense because we are supplying also capacity. Consumables, it's another indicator. We are historically in a record high of consumables, mainly because of high-performance materials. Take only SDM, they produced over 12,000 parts for aerospace and defense, mainly drones. They are dealing with the 10 top drones players. And we are going to invest in this capacity and in penetration into aerospace and defense. and we have the financial stress. So we are there. We are moving to manufacturing. It will be a different company, and we are happy to share it with the investors. So thank you for joining us. We look forward to updating you again next quarter.

Thank you. This will conclude today's conference. We may now disconnect your lines at this time. We thank you for your participation.