Whoa, folks, hold onto your hats because Velo3D (NASDAQ: VELO) is making waves in the market today, and it’s not just a ripple—it’s a tsunami! As of this writing, Velo3D’s stock is skyrocketing, with a pre-market surge of over 16% following a blockbuster announcement that’s got investors buzzing. The company just inked a $6 million deal with the U.S. Navy to develop and qualify a special copper-nickel alloy (CuNi) for its high-tech 3D printers. This isn’t just any contract—it’s a big step toward revolutionizing how the Navy builds and repairs ships, and it’s putting Velo3D front and center in the additive manufacturing world. Let’s break this down, talk about what it means for the stock, and explore the risks and rewards of jumping into this high-flying name. Plus, if you’re hungry for more market insights, you can get free daily stock alerts sent straight to your phone by tapping here.

Why Velo3D Is Making Headlines Today

So, what’s the big deal? Velo3D, a leader in metal 3D printing, just announced a partnership with the U.S. Navy’s Maritime Industrial Base Program to develop copper-nickel alloy parts for their Sapphire XC printers. This isn’t your run-of-the-mill 3D printing gig—CuNi is a tough material that’s perfect for naval applications because it resists corrosion from seawater like a champ. Traditionally, making these parts involves casting, which is slow, expensive, and often needs a ton of rework. Velo3D’s tech, though, can churn out these complex parts faster and with fewer headaches, potentially saving the Navy time and money while boosting shipbuilding efficiency.

This deal is a big win for Velo3D, not just for the $6 million contract but for what it signals: the company is carving out a niche in high-stakes industries like defense and aerospace. The Navy’s program is all about strengthening the U.S. maritime supply chain, and Velo3D’s ability to print mission-critical parts could make it a go-to player in this space. Add to that the fact that their Sapphire printers are built in the U.S. and meet strict Department of Defense cybersecurity standards, and you’ve got a company that’s aligning itself with national security priorities. That’s the kind of news that gets Wall Street excited.

The Numbers Behind the Surge

Let’s talk numbers, because that’s where the rubber meets the road. As of this writing, Velo3D’s stock is trading at $3.68 in pre-market action, up from yesterday’s close of $3.16—a juicy 16.46% jump. This comes on the heels of a volatile year, with the stock bouncing between a 52-week low of $0.00 and a high of $4.05. The company’s market cap is still modest, hovering around $4.24 million, which tells you this is a small-cap stock with big ambitions—and big risks.

Velo3D’s financials paint a mixed picture. In Q2 2025, the company reported revenue of $13.6 million, a solid 31% increase from the $10.3 million in Q2 2024. That growth was driven by their new Rapid Production Services (RPS) model, which lets customers use Velo3D’s tech without buying the printers outright—a smart move to expand their market. Gross margins are still negative at -11.7%, but that’s a big improvement from -28% last year, showing they’re tightening up operations. They also slashed non-GAAP operating expenses to $8.1 million from $13.4 million, a 40% cut that’s helping them inch toward profitability, which they’re targeting for 2026.

But here’s the kicker: Velo3D’s cash position is tight, with just $854,000 on hand as of June 30, 2025. That’s not a lot of runway, and it’s one reason the stock has been a rollercoaster. The Navy deal, though, could be a lifeline, signaling more government contracts and partnerships down the road.

The Risks: Volatility and Financial Challenges

Now, let’s pump the brakes for a second and talk risks, because trading stocks like Velo3D isn’t for the faint of heart. This is a small-cap stock in a cutting-edge industry, and that means volatility is part of the package. Over the past year, Velo3D’s stock has been a wild ride, dropping over 90% from its peak of $14 to a low of $1.39 as recently as August 15, 2024. Part of that slide came from a rough patch, including a delisting from the NYSE in March 2024 after their market cap fell below the required $50 million threshold. They’re now trading on the OTCQX market, which can be less liquid and more volatile than major exchanges.

The company’s also been burning cash and posting losses—$73.3 million in 2024 alone, though that’s down from the previous year. Their negative gross margins and low cash reserves raise red flags about their ability to scale without more funding. Plus, they’ve faced delays in government project funding, which hurt their revenue forecasts last year. If those delays keep happening, it could put a dent in the optimism driving today’s surge.

And let’s not forget the broader market. Small-cap stocks like Velo3D can get crushed when investor sentiment turns sour or when bigger economic factors—like interest rates or geopolitical tensions—take center stage. Trading in this space requires a strong stomach and a keen eye on the news.

The Rewards: A Bet on the Future of Manufacturing

On the flip side, the rewards could be huge for those willing to roll the dice. Velo3D’s tech is a game-changer in additive manufacturing, letting companies like SpaceX, Lockheed Martin, and now the U.S. Navy build complex metal parts that were once impossible to make without costly compromises. Their Sapphire printers, paired with software like Flow and Assure, give them an edge in precision and scalability, especially for high-value industries like aerospace, defense, and energy.

Today’s Navy deal is a proof point that Velo3D is gaining traction in the defense sector, where budgets are big and contracts can be long-term. Their RPS model is also a smart pivot, opening the door to recurring revenue streams—think of it like a subscription service for 3D printing. In Q2 2025, RPS bookings grew 79% quarter-over-quarter, with 87% of demand coming from space and defense. If they keep landing deals like this, Velo3D could become a cornerstone of the U.S.’s push for a stronger, homegrown supply chain.

The stock’s low price—under $4 as of this writing—makes it an intriguing play for speculative investors. If Velo3D can hit their revenue target of $50-$60 million this year and turn EBITDA positive by 2026, as they’re projecting, today’s price could look like a steal. Plus, their focus on domestic production and cybersecurity compliance positions them well for more government work, which could drive steady growth.

What This Means for Traders

For traders, Velo3D’s surge today is a textbook example of how news can move a stock. A single headline—like this Navy contract—can spark a rally, especially for a small-cap name with a low float. But here’s the deal: chasing these pops can be risky. The stock’s already up big in pre-market, and momentum traders might try to ride the wave, but you’ve got to watch for a pullback. Stocks like this often spike on news and then settle as profit-taking kicks in.

If you’re thinking longer-term, Velo3D’s story is compelling but requires patience. The 3D printing industry is still young, and Velo3D’s focus on high-value, mission-critical parts puts them in a sweet spot for growth. But with their cash reserves low, you’ll want to keep an eye on their balance sheet and any new funding announcements. Dilution from new share offerings could put pressure on the stock price, so stay sharp.

For those who love staying on top of the market’s twists and turns, getting real-time stock alerts can help you spot opportunities like this one. Tap here to sign up for free daily stock tips sent straight to your phone. It’s a great way to keep your finger on the pulse of the market without drowning in news.

The Bigger Picture: Why Velo3D Matters

Velo3D’s rise today isn’t just about one stock—it’s a glimpse into the future of manufacturing. The U.S. is pushing hard to bring critical supply chains back home, especially for defense and aerospace. Companies like Velo3D, with their ability to print complex parts on demand, are at the heart of that shift. This Navy deal could be the first of many, and if Velo3D plays its cards right, it could become a key player in a multi-billion-dollar industry.

But trading stocks like this is a balancing act. The potential for big gains comes with the risk of big losses, especially with a company still working to prove its profitability. Do your homework, watch the news, and consider your risk tolerance before diving in. Velo3D’s story is exciting, but it’s not a sure thing.