INVESTMENTS AND NOTE RECEIVABLE

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

NOTE 9 - INVESTMENTS AND NOTE RECEIVABLE

The Company holds various equity investments. The following table summarizes our investment balance, which are reported in Other assets on our consolidated balance sheets:


(in thousands)	December 31, 2025		December 31, 2024
Equity investments under the equity method of accounting	$	753	$	5,051
Equity investments without readily determinable fair values	21,712		20,696

Total equity investments	$	22,465	$	25,747

National Additive Manufacturing Innovation ("NAMI") Joint Venture

In February 2023, we became a shareholder in a joint venture formed with the Saudi Arabian Industrial Investments Company ("Dussur") for purposes of expanding the use of additive manufacturing within the Kingdom of Saudi Arabia and surrounding geographies, including the Middle East and North Africa. During April 2023, we deposited our initial investment commitment of approximately $6.5 million into a bank account of the joint venture for use in its operations. In May 2024, we made an incremental investment of $2.5 million. Additional future investments in the joint venture are contingent upon agreement by the parties to the joint venture to invest additional capital. As of both December 31, 2025 and December 31, 2024, the Company owned 49% of the joint venture's common stock.

The Company accounts for its investment in the joint venture under the equity method of accounting, requiring the Company to recognize its proportionate share of the joint venture's reported net income or loss, which the Company recognizes on a one quarter lag. For the years ended December 31, 2025 and December 31, 2024, the Company has reported a loss on equity method investment in its consolidated statements of operations. The carrying values of the Company's equity method investment at December 31, 2025 and 2024 are $0.4 million and $4.3 million, respectively.

The Company enters into related-party transactions with NAMI in the ordinary course of business. Reported revenue and cost of sales for the year ended December 31, 2025 attributable to NAMI were not material. The Company's reported revenue and cost of sales for the year ended December 31, 2024 attributable to NAMI of $3.8 million and $2.6 million, respectively. The Company's reported revenue and cost of sales for the year ended December 31, 2023 attributable to NAMI of $1.7 million and $1.0 million, respectively. As of December 31, 2025 and December 31, 2024, the outstanding related party receivable balances attributable to our sales to NAMI were not material.

In December 2024, the Company entered into a short-term, non-interest bearing related party note receivable agreement with NAMI whereby NAMI borrowed $2.0 million to finance its working capital and capital expenditures requirements. The note receivable originally matured on June 30, 2025. During the quarter ended September 30, 2025, the parties amended the note receivable agreement to extend the maturity date to June 30, 2026, and increase the note receivable to $4.4 million.

The note receivable is recorded at cost, which approximates fair value as of December 31, 2025. The carrying value of the note receivable was $4.4 million and $2.0 million as of December 31, 2025 and December 31, 2024, respectively. The note receivable is reported in Prepaid expenses and other current assets, on our consolidated balance sheets as of December 31, 2025 and December 31, 2024.

Theradaptive, Inc.

In June 2023, we made an $8.0 million investment in Theradaptive, Inc. ("Theradaptive"), via the purchase of Series A Preferred Stock. Theradaptive is currently developing a protein that encourages bone growth. This biotechnology could be applied to 3D printed metal splints for patients who otherwise may require amputation of a limb because the lost bone is too vast to replace with a splint. The Company has accounted for its investment in Theradaptive on a cost basis, subject to assessment for impairment, as (1) the fair value of Theradaptive's equity is not readily determinable and (2) the investment is not subject to the equity method of accounting due to the Company's lack of significant influence. The investment in Theradaptive is not expected to materially impact our future financial position, results of operations, or cash flows. No impairment charges were recognized with respect to this investment during the years ended December 31, 2025, 2024, or 2023.

Enhatch Inc.

In March 2022, the Company made a $10.0 million investment in Enhatch Inc. ("Enhatch"), the developer of the Intelligent Surgery Ecosystem, and received convertible preferred shares, a warrant to purchase additional shares of Enhatch, and the right to purchase in the future the remaining shares of Enhatch that 3D Systems does not own if certain revenue targets are achieved (the "call option").

As of December 31, 2025 and 2024, the reported carrying value of the Company's convertible preferred stock investment in Enhatch (i.e., inclusive of the call option) is $6.9 million, which is accounted for on a cost basis, subject to assessment for impairment, and is recorded in Other assets on our consolidated balance sheets. The investment in Enhatch is recorded on a cost basis, as (1) the fair value of Enhatch's equity is not readily determinable and (2) the investment is not subject to the equity method of accounting due to the Company's lack of significant influence. The investment in Enhatch is not expected to materially impact our future financial position, results of operations, or cash flows. This adjusted carrying value reflects the impact of a $2.8 million impairment charge that was recorded during the year ended December 31, 2022.

Additionally, the Company has an investment in Enhatch common shares which is accounted for under the equity method of accounting due to the Company's ability to exert significant influence over the financial and operating policies of Enhatch. During the years ended December 31, 2025 and 2024, the Company purchased $1.5 million and $0.6 million of shares, respectively. Accordingly, for purposes of its investment in Enhatch's common shares, the Company recognizes its proportionate share of Enhatch's reported net income or loss on a one quarter lag.

The carrying value of this equity method investment was $0.4 million as of December 31, 2025, and the Company owns approximately 79% of Enhatch's outstanding common stock and approximately 46% of Enhatch's outstanding voting stock.

The Company enters into related-party transactions with Enhatch in the ordinary course of business. During the years ended December 31, 2025 and 2024, the Company made purchases from Enhatch of $1.0 million and $0.7 million, respectively. As of December 31, 2025 and 2024, the outstanding related party payable balances attributable to our purchases from Enhatch were not material.

GenesisTissue Inc.

During the second quarter of 2025, the Company entered into an agreement with GenesisTissue Inc. ("GenesisTissue") to obtain shares of common stock in exchange for the sale of certain assets. As of December 31, 2025, the Company owns approximately 8% of GenesisTissue's outstanding common stock. The Company has accounted for its investment in GenesisTissue on a cost basis, subject to assessment for impairment, as (1) the fair value of GenesisTissue's equity is not readily determinable and (2) the investment is not subject to the equity method of accounting due to the Company's lack of significant influence. The carrying value of the equity investment without a readily determinable fair value is $1.0 million as of December 31, 2025.

Other Asset

In February 2025, the Company provided financing of $1.0 million to Hull Legacy Media Corporation, a production company co-owned by Charles W. Hull, EVP, Chief Technology Officer for the Company's Regenerative Medicine business and a related party of the Company. The financing is recorded in Other assets on our consolidated balance sheets as of December 31, 2025.

Variable Interest Entities ("VIEs")

The Company concluded that its investments in Theradaptive, Enhatch and NAMI are VIEs. These investments are not consolidated as we concluded that the Company is not the primary beneficiary. As of December 31, 2025, our maximum exposure to losses associated with the VIEs is limited to the $20.1 million carrying value of our investments in the VIEs, $4.4 million of which is included in Prepaid expenses and other current assets, with the remaining in Other assets on our consolidated balance sheets.