Cantor Fitzgerald maintained an Overweight recommendation and a $10.00 price objective for Materialise NV (NASDAQ:MTLS) following the company's fourth-quarter 2025 financial report.
The 3D printing specialist delivered fourth-quarter results that largely aligned with consensus estimates, while the Medical segment produced a quarterly revenue record. At the time of the report, Materialise was trading at $5.68 per share, with a market capitalization of $348 million and a price-to-earnings ratio of 35.15.
Management issued initial revenue guidance for 2026 that was modestly below expectations and explicitly reflects differing growth trajectories across the company's operating segments. The Medical business is projected to deliver double-digit revenue expansion. The Software division is slated to complete its transition to a cloud-based subscription model during 2026 and will continue investing in an expanded additive manufacturing software ecosystem. By contrast, the Manufacturing segment is expected to face headwinds from macroeconomic pressures in industrial markets and a transition toward series production, even as it concentrates on key end markets such as aerospace and defense.
On the balance sheet, Materialise reported holding €134 million in cash and an improving net cash position, alongside positive operating and free cash flow generation. Data from InvestingPro cited in the filing indicate the company holds more cash than debt and maintains a robust current ratio of 2.43, with liquid assets exceeding short-term obligations. InvestingPro's Fair Value analysis, as referenced in the announcement, places the equity among stocks considered undervalued and on the platform's list of most undervalued names.
The company noted potential strategic options enabled by its financial position, including pursuing merger and acquisition activity, capturing emerging market opportunities organically, and repurchasing shares.
Market reaction to the quarterly disclosure and 2026 guidance was positive: shares of MTLS rose about 7% intraday, while the S&P 500 and Russell 2000 traded flat over the same period.
In earnings details, Materialise reported fourth-quarter 2025 earnings per share of €0.11, outperforming analyst expectations of €0.06. That EPS result represented an 83.33% improvement versus the consensus forecast. Despite the earnings outperformance, the company recorded a small revenue shortfall relative to analysts' estimates.
The combination of an EPS beat and a slight revenue miss has drawn attention from market participants and analysts, who are monitoring execution across the firm's distinct operating segments. The EPS result underscores operating efficiency, while the mixed top-line guidance highlights differences in demand and production dynamics across Medical, Software and Manufacturing.
Conclusion
Cantor Fitzgerald's continued Overweight stance and $10 price target reflect confidence in Materialise's segment-level momentum, particularly within Medical and the transition underway in Software. However, guidance that came in slightly under expectations and segment-specific headwinds in Manufacturing temper the outlook.
Key points
- Analyst action: Cantor Fitzgerald reaffirmed an Overweight rating and a $10.00 price target on Materialise NV after Q4 2025 results.
- Segment performance and outlook: Medical posted a quarterly revenue record and is forecast to grow at double-digit rates; Software will finish its cloud-based subscription transition in 2026; Manufacturing faces macroeconomic and series-production pressures, with focus on aerospace and defense.
- Balance sheet and valuation signals: Materialise holds €134 million in cash, shows positive operating and free cash flow, has a current ratio of 2.43, and is flagged by InvestingPro Fair Value analysis as undervalued.
Sectors impacted: Healthcare/medical devices, enterprise software, industrial manufacturing and aerospace/defense supply chains.
Risks and uncertainties
- Revenue guidance shortfall: Initial 2026 revenue guidance came in slightly below expectations, introducing near-term top-line uncertainty for investors in technology and industrial-facing segments.
- Manufacturing headwinds: Macroeconomic challenges in industrial markets and a shift to series production could constrain growth in the Manufacturing segment, affecting industrial and aerospace suppliers.
- Transition risk in Software: The Software segment's move to a cloud-based subscription model requires continued investment and successful execution to realize recurring-revenue benefits.
Market reaction and investor takeaways
The stock's intraday gain of approximately 7% following the earnings release suggests investor approval of the EPS beat and the Medical segment's momentum, even as revenue guidance trimmed expectations. The firm's cash position and improving liquidity metrics were highlighted as supportive of strategic flexibility, including potential M&A or share repurchases. Investors and analysts remain focused on how the company executes against differing growth rates across its businesses in 2026.