Formlabs explores IPO with advisers as 3D printing company eyes public markets
In brief
- Formlabs discusses IPO preparations with advisers; no filing submitted yet.
- Company valued at $2 billion with $250M+ revenue and 10%+ free cash flow margin in 2025.
- Former Cognex CEO Rob Willett joined Formlabs board in February ahead of public markets entry.
- 3D printing peers Stratasys and Desktop Metal faced post-IPO stock declines, offering cautionary lessons.
A Maturing Hardware Business
Formlabs reported annual revenue exceeding $250 million for 2025 and a free cash flow margin above 10%, metrics that distinguish it from earlier-stage startups. The company's business model rests on three revenue streams: hardware, proprietary resins, and software. This mix creates recurring revenue that appeals to public market investors (something pure hardware manufacturers lack).
The 3D printing industry itself has matured well beyond prototyping. Professional 3D printing now serves end-use production across dental, healthcare, jewelry, and engineering applications. This expansion into real manufacturing use cases, not just design iteration, justifies higher valuations than the industry commanded a decade ago.
Strategic Moves Signal IPO Readiness
In February, Formlabs added Rob Willett to its board of directors. Willett previously served as CEO of Cognex Corporation, a publicly traded machine vision company. His appointment signals the company is preparing for public-market governance and strategy.
Then in June, Formlabs unveiled the Fuse X1, a large-format selective laser sintering printer designed for industrial production. New product launches ahead of an IPO roadshow are standard practice—they give investors a tangible story of growth momentum.
Formlabs has raised approximately $254 million across multiple funding rounds over its lifetime. The most significant came in May 2021, when the company closed a $150 million Series E led by SoftBank Vision Fund 2, which doubled its valuation to $2 billion.
The Cautionary Tale of 3D Printing IPOs
The industry's recent history offers both opportunity and warning. Companies like 3D Systems and Stratasys rode a wave of hype in the early 2010s, saw their stock prices surge, and then experienced years of painful declines as growth failed to match expectations. Desktop Metal went public via SPAC in 2021 and later merged with Stratasys after struggling as a standalone public company.
Formlabs' stronger unit economics and recurring revenue model differentiate it from those predecessors. But investor appetite for 3D printing stocks remains shaped by past disappointments.
Secondary-market transactions for Formlabs shares are already being facilitated for accredited investors, suggesting the company's valuation and growth trajectory are already being tested in private markets. Whether those valuations hold in a public offering remains to be seen.
