Case Summary: Desktop Metal Chapter 11

Business Description

Headquartered in Burlington, MA, Desktop Metal, Inc., along with its Debtor⁽¹⁾ and non-Debtor affiliates (collectively, “Desktop Metal” or the “Company”), is a technology company focused on additive manufacturing, more commonly known as 3D printing. The Company pioneered what it termed “Additive Manufacturing 2.0,” a strategic shift from using 3D printing for prototyping to enabling the mass production of end-use parts.

• Desktop Metal developed a broad portfolio of 3D printing solutions spanning hardware, software, materials, and services, designed to provide end-to-end support for customers across the product lifecycle.
• Its diverse hardware lineup includes:
  • High-speed metal AM systems, featuring its proprietary binder-jetting technology (e.g., the Production System P-50).
  • Photopolymer printers for the dental and medical markets, acquired via EnvisionTEC.
  • Sand 3D printers used by foundries to create digital casting molds.
  • Advanced biofabrication systems for tissue engineering applications.
• The Company’s revenue model combines one-time equipment sales with recurring revenue from proprietary consumables (e.g. metal powders, photopolymer resins, and binding agents) and service contracts.

Desktop Metal serves a wide range of industries, including automotive, aerospace, heavy machinery, consumer products, healthcare, and dental. As of the Petition Date, the Company employed approximately 780 staff worldwide.

On July 28, 2025 (the “Petition Date”), Desktop Metal, Inc. and 15 of its U.S. affiliates filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. The Company’s eight foreign subsidiaries did not file for bankruptcy.

⁽¹⁾ For a complete list of debtor entities, see the organizational structure chart below.

Corporate History

Desktop Metal was founded in October 2015 by a team of entrepreneurs and prominent MIT professors, including CEO Ric Fulop. The Company quickly attracted significant venture capital, raising approximately $438 million by early 2019 and achieving a “unicorn” valuation of $1.5 billion based on its promise to make metal 3D printing more accessible.

Going Public and Aggressive Expansion

• In December 2020, Desktop Metal went public via a merger with Trine Acquisition Corp., a special-purpose acquisition company (SPAC). The transaction provided the Company with substantial capital for expansion, listing it on the NYSE under the ticker “DM” at an implied valuation of approximately $2.5 billion.
• Armed with fresh capital and a highly valued stock, the Company embarked on an aggressive acquisition spree in 2021 to broaden its technology portfolio and market reach. Key acquisitions included:
  • EnvisionTEC: A leader in photopolymer 3D printing, acquired for approximately $300 million. This deal formed the foundation of the Company’s Desktop Health division.
  • The ExOne Company: A pioneer in binder jet 3D printing, acquired in a $575 million transaction that consolidated the leading binder jet technologies under one roof.
  • Other Strategic Buys: The Company also acquired Adaptive3D (high-performance elastomers), Aerosint (multi-material printing technology), A.I.D.R.O. (AM for hydraulic components), and several dental labs to support its vertical integration strategy.

Operational Strain and Strategic Pivots

• By 2022, the rapid expansion, coupled with macroeconomic headwinds such as supply chain disruptions and inflation, created significant operational and financial strain. The Company struggled with a bloated cost structure from its many un-integrated acquisitions and consistently operated at a loss.
• In response, Desktop Metal initiated a series of cost-reduction plans, beginning in June 2022, which included multiple rounds of layoffs.
• In May 2023, Desktop Metal announced a merger with Stratasys Ltd. in an all-stock deal. However, the deal collapsed in September 2023 after Stratasys shareholders voted to reject it, dealing a significant blow to the Company and causing its stock price to fall below $1 per share.

The Nano Dimension Saga and Forced Acquisition

• In July 2024, Desktop Metal agreed to be acquired by Nano Dimension Ltd., an Israeli electronics 3D printing company, for approximately $183 million in cash.
• The merger encountered significant turbulence after an activist-led leadership change at Nano Dimension, whose new board became hostile to the deal. After Nano delayed the closing, Desktop Metal filed a lawsuit in the Delaware Court of Chancery in December 2024 to enforce the agreement.
• In March 2025, the court ruled in Desktop Metal’s favor, ordering Nano Dimension to complete the acquisition. The transaction closed in April 2025, and Desktop Metal became a wholly-owned subsidiary.
• Immediately following the merger, Nano Dimension provided a $12 million bridge loan but informed Desktop Metal that it would not provide any further funding. Nano installed a new independent board at Desktop Metal and hired restructuring advisors, effectively positioning the subsidiary for a sale or restructuring.

Corporate Organizational Structure

Operations Overview

Desktop Metal established a global operational footprint with facilities across North America, Europe, and Asia. The Company’s headquarters in Burlington, MA, serves as its corporate hub and houses R&D labs and pilot production.

Business Lines

Financial Performance

• For FY 2024, Desktop Metal reported preliminary unaudited revenue of $148.8 million, down ~22% YoY from $189.7 million, driven by merger-related disruption and ongoing litigation headwinds.
• GAAP gross margin contracted to (16.9%), reflecting non-cash charges tied to accelerated depreciation and amortization, while non-GAAP gross margin improved to 30%, up 300 bps YoY.
• Operating expenses declined materially to $185.7 million (vs. $313.1 million in FY 2023), reflecting strategic integration and cost-optimization initiatives initiated in 2022.
• GAAP net loss narrowed to $(219.5 million) (vs. $(323.3 million)), while adjusted EBITDA came in at $(49.4 million), an improvement from $(69.1 million) YoY.

Manufacturing and R&D

• The Company’s operations integrated research, product development, and manufacturing. It invested heavily in R&D, with expenditures reaching approximately $85.1 million in FY 2023 (FY 2024 figure not disclosed), to drive innovation in print speeds, new materials, and proprietary software, including advanced sintering simulation tools.
• This focus on innovation resulted in a substantial intellectual property portfolio comprising hundreds of patents across printer mechanics, materials science, and software.

Workforce and Governance

• As of the Petition Date, the Company employed approximately 780 individuals, including independent contractors, temporary workers, and international staff. No employees are unionized or covered by collective bargaining agreements.
• Following the acquisition by Nano Dimension, governance and leadership were restructured. Nano installed a new board with a majority of independent directors to oversee restructuring decisions. FTI Consulting’s Andrew Hinkelman was appointed Chief Restructuring Officer (CRO), taking charge of financial management and turnaround efforts while founder Ric Fulop stepped back from active management.

Prepetition Obligations

Top Unsecured Claims

Events Leading to Bankruptcy