A Rule of 40 heatmap by quarter from Q3 2023 to Q4 2025 for Formlabs, 3D Systems, and Stratasys. Formlabs climbs from negative scores into the green 25 to 49 percent range, while 3D Systems stays deeply negative and Stratasys hovers near zero.

Does the Rule of 40 Work for Hardware?

I've written about the Rule of 40 since 2015, and it's now gospel in SaaS. Does it mean anything for a company that makes physical things? Yes - but you have to read the curve, not the snapshot.

June 15, 2026 · 5 min · Brad Feld