Protolabs Reports Financial Results for the Third Quarter of 2025

October 31, 2025 at 06:00 AM EDT

Record Quarterly Revenue of $135.4 Million, a 7.8% increase Year-Over-Year

GAAP Earnings Per Share of $0.30, Non-GAAP Earnings Per Share of $0.47

Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights:

Revenue was a record $135.4 million, a 7.8% increase compared to revenue of $125.6 million in the third quarter of 2024.
Revenue fulfilled through digital factories was $105.3 million, a 4.9% increase year-over-year.
Revenue fulfilled through the Protolabs Network was $30.1 million, a 19.1% increase year-over-year.
Net income was $7.2 million, or $0.30 per diluted share, compared to $7.2 million, or $0.29 per diluted share, in the third quarter of 2024.
Non-GAAP net income was $11.4 million, or $0.47 per diluted share, compared to $11.8 million, or $0.47 per diluted share, in the third quarter of 2024. See “Non-GAAP Financial Measures” below.

“Protolabs generated another quarter of accelerated growth and record revenue, supported by strong performance in several key end markets, and a substantial increase in revenue per customer contact. I am very encouraged by the progress we’ve made over the last two quarters—we have significant momentum into year-end," commented President and Chief Executive Officer Suresh Krishna. "While it’s still early, my short time here has strengthened my confidence that our current strategy—delivering high-quality, custom parts throughout the product lifecycle, from prototyping to production—is the right one. Together with our teams, I am focused on accelerating profitable growth, and positioning Protolabs for long-term shareholder value creation."

Dan Schumacher, Chief Financial Officer, added: "Along with record revenue in the quarter, we continued to demonstrate the strength of our business model by expanding adjusted EBITDA as compared to the second quarter of 2025, continuing our best-in-class cash flow generation, and returning capital to shareholders via repurchases of common stock."

Additional Third Quarter 2025 Highlights:

Customer contact information
- Protolabs served 21,252 customer contacts during the quarter.
- Revenue per customer contact increased 14.1% year-over-year to $6,370.
EBITDA was $17.4 million. See “Non-GAAP Financial Measures” below.
Adjusted EBITDA was $21.1 million, or 15.6% of revenue. See "Non-GAAP Financial Measures" below.
We generated $29.1 million in cash from operations.
Cash and investments balance was $138.4 million as of September 30, 2025.

Fourth Quarter 2025 Outlook

In the fourth quarter of 2025, the Company expects to generate revenue between $125.0 million and $133.0 million.

The Company expects fourth quarter 2025 diluted net income per share between $0.12 and $0.20, and non-GAAP diluted net income per share between $0.30 and $0.38. See "Non-GAAP Financial Measures" below.

Non-GAAP Financial Measures

The Company has included non-GAAP revenue growth by region and by service line that excludes the impact of changes in foreign currency exchange rates (collectively, “non-GAAP revenue growth”). Management believes these metrics, when viewed in conjunction with the comparable GAAP metrics, are useful in evaluating the underlying business trends and ongoing operating performance of the Company.

The Company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, CEO transition costs and costs related to exit and disposal activities (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the Company’s financial results. The Company has also included earnings before interest, taxes, depreciation and amortization margin (“EBITDA margin”) and EBITDA margin, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, CEO transition costs and costs related to exit and disposal activities (collectively, “Adjusted EBITDA margin”), in this press release to provide investors with additional information regarding the Company’s financial results.

The Company has included non-GAAP gross margin, adjusted for stock-based compensation expense and amortization expense, in this press release to provide investors with additional information regarding the Company’s financial results.

The Company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, CEO transition costs and costs related to exit and disposal activities (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the Company’s financial results.

The Company has included non-GAAP net income and non-GAAP net income per share, in each case, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, CEO transition costs and costs related to exit and disposal activities (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the Company’s financial results.

The Company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating margin, non-GAAP revenue growth by region and by service line, and Adjusted EBITDA and Adjusted EBITDA margin, the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the Company’s management and board of directors to understand and evaluate operating performance and trends, provide useful measures for period-to-period comparisons of the Company’s business, and in determining executive and senior management incentive compensation. Accordingly, the Company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.

Conference Call

The Company has scheduled a conference call to discuss its third quarter 2025 financial results and fourth quarter 2025 outlook today, October 31, 2025 at 8:30 a.m. EDT. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EDT start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/mp2aa5du/. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website.

About Protolabs

Protolabs is the world’s fastest manufacturing service enabling companies across every industry to streamline production of quality parts throughout the entire product life cycle. From custom prototyping to end-use production, we support product developers, engineers, and supply chain teams along every phase of their manufacturing journey. Get started now at protolabs.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands)


	September 30, 2025		December 31, 2024
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	104,422	$	89,071
Short-term marketable securities		14,817		14,019
Accounts receivable, net		77,790		66,504
Inventory		14,073		12,305
Income taxes receivable		4,681		2,906
Prepaid expenses and other current assets		10,009		10,049
Total current assets		225,792		194,854

Property and equipment, net		211,325		227,263
Goodwill		273,991		273,991
Other intangible assets, net		19,539		21,422
Long-term marketable securities		19,149		17,773
Operating lease assets		2,015		2,993
Finance lease assets		491		692
Other long-term assets		4,553		4,524
Total assets	$	756,855	$	743,512

Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	17,388	$	15,504
Accrued compensation		23,268		16,550
Accrued liabilities and other		27,831		19,621
Current operating lease liabilities		890		1,287
Current finance lease liabilities		365		309
Total current liabilities		69,742		53,271

Long-term operating lease liabilities		1,188		1,633
Long-term finance lease liabilities		—		287
Long-term deferred tax liabilities		16,038		13,565
Other long-term liabilities		5,168		4,605

Shareholders' equity		664,719		670,151
Total liabilities and shareholders' equity	$	756,855	$	743,512

Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Revenue
Injection Molding	$	47,770	$	46,831	$	143,908	$	148,574
CNC Machining		63,043		53,327		177,831		154,498
3D Printing		20,082		21,437		61,491		64,300
Sheet Metal		4,262		3,743		12,776		11,218
Other Revenue		209		281		628		550
Total Revenue		135,366		125,619		396,634		379,140

Cost of revenue		74,073		68,389		219,869		207,897
Gross profit		61,293		57,230		176,765		171,243

Operating expenses
Marketing and sales		24,574		22,619		73,054		69,070
Research and development		10,705		9,772		32,487		31,600
General and administrative		17,163		16,259		52,763		49,167
Costs related to exit and disposal activities		41		—		151		—
Total operating expenses		52,483		48,650		158,455		149,837
Income from operations		8,810		8,580		18,310		21,406
Other income, net		1,441		1,288		4,600		3,548
Income before income taxes		10,251		9,868		22,910		24,954
Provision for income taxes		3,035		2,679		7,668		7,957
Net income	$	7,216	$	7,189	$	15,242	$	16,997

Net income per share:
Basic	$	0.30	$	0.29	$	0.64	$	0.67
Diluted	$	0.30	$	0.29	$	0.63	$	0.67

Shares used to compute net income per share:
Basic		23,889,157		24,980,536		23,974,054		25,304,985
Diluted		24,191,039		25,022,485		24,249,669		25,382,280

Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)


	Nine Months Ended September 30,
		2025			2024
Operating activities
Net income	$	15,242		$	16,997
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		25,693			26,984
Stock-based compensation expense		11,928			12,716
Deferred taxes		2,355			(6,140	)
Interest on finance lease obligations		16			26
Loss on impairment of equipment		—			256
Impairments related to exit and closure of facilities		448			—
Loss (gain) on disposal of property and equipment		16			(24	)
Other		(179	)		103
Changes in operating assets and liabilities		2,534			9,617
Net cash provided by operating activities		58,053			60,535

Investing activities
Purchases of property, equipment and other capital assets		(6,792	)		(8,339	)
Proceeds from sales of property, equipment and other capital assets		811			34
Purchases of marketable securities		(13,553	)		(18,087	)
Proceeds from call redemptions and maturities of marketable securities		11,730			15,709
Net cash used in investing activities		(7,804	)		(10,683	)

Financing activities
Proceeds from issuance of common stock from equity plans		4,195			2,094
Purchases of shares withheld for tax obligations		(3,119	)		(1,920	)
Repurchases of common stock		(36,732	)		(45,958	)
Principal repayments of finance lease obligations		(231	)		(220	)
Net cash used in financing activities		(35,887	)		(46,004	)
Effect of exchange rate changes on cash and cash equivalents		989			235
Net increase in cash and cash equivalents		15,351			4,083
Cash and cash equivalents, beginning of period		89,071			83,790
Cash and cash equivalents, end of period	$	104,422		$	87,873

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income and Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, CEO transition costs and costs related to exit and disposal activities
GAAP net income	$	7,216		$	7,189		$	15,242		$	16,997
Add back:
Stock-based compensation expense		3,677			4,196			11,928			12,716
Amortization expense		935			888			2,770			2,796
Unrealized (gain) loss on foreign currency		(2	)		174			(316	)		323
CEO transition costs		14			—			1,376			—
Costs related to exit and disposal activities		41			—			151			—
Total adjustments ¹		4,665			5,258			15,909			15,835
Income tax benefits on adjustments ²		(500	)		(627	)		(1,700	)		(1,066	)
Non-GAAP net income	$	11,381		$	11,820		$	29,451		$	31,766


Non-GAAP net income per share:
Basic	$	0.48		$	0.47		$	1.23		$	1.26
Diluted	$	0.47		$	0.47		$	1.21		$	1.25

Shares used to compute non-GAAP net income per share:
Basic		23,889,157			24,980,536			23,974,054			25,304,985
Diluted		24,191,039			25,022,485			24,249,669			25,382,280

Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, CEO transition costs and costs related to exit and disposal activities were included in the following GAAP consolidated statement of operations categories:

	Three Months Ended September 30,					Nine Months Ended September 30,
		2025			2024		2025			2024

Cost of revenue	$	781		$	817	$	2,350		$	2,428

Marketing and sales		837			727		2,423			2,378
Research and development		764			671		2,124			2,031
General and administrative		2,244			2,869		9,177			8,675
Costs related to exit and disposal activities		41			—		151			—
Total operating expenses		3,886			4,267		13,875			13,084

Other income, net		(2	)		174		(316	)		323
Total adjustments	$	4,665		$	5,258	$	15,909		$	15,835

²		For the three and nine months ended September 30, 2025 and 2024, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the respective period.

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Revenue	$	135,366		$	125,619		$	396,634		$	379,140
Gross profit		61,293			57,230			176,765			171,243
GAAP gross margin		45.3	%		45.6	%		44.6	%		45.2	%
Add back:
Stock-based compensation expense		439			474			1,323			1,401
Amortization expense		342			343			1,027			1,027
Total adjustments		781			817			2,350			2,428
Non-GAAP gross profit	$	62,074		$	58,047		$	179,115		$	173,671
Non-GAAP gross margin		45.9	%		46.2	%		45.2	%		45.8	%

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Revenue	$	135,366		$	125,619		$	396,634		$	379,140
Income from operations		8,810			8,580			18,310			21,406
GAAP operating margin		6.5	%		6.8	%		4.6	%		5.6	%
Add back:
Stock-based compensation expense		3,677			4,196			11,928			12,716
Amortization expense		935			888			2,770			2,796
CEO transition costs		14			—			1,376			—
Costs related to exit and disposal activities		41			—			151			—
Total adjustments		4,667			5,084			16,225			15,512
Non-GAAP income from operations	$	13,477		$	13,664		$	34,535		$	36,918
Non-GAAP operating margin		10.0	%		10.9	%		8.7	%		9.7	%

Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Revenue	$	135,366		$	125,619		$	396,634		$	379,140
GAAP net income		7,216			7,189			15,242			16,997
GAAP net income margin		5.3	%		5.7	%		3.8	%		4.5	%
Add back:
Amortization expense	$	935		$	888		$	2,770		$	2,796
Depreciation expense		7,494			8,021			22,923			24,188
Interest income, net		(1,281	)		(1,287	)		(3,532	)		(3,548	)
Provision for income taxes		3,035			2,679			7,668			7,957
EBITDA		17,399			17,490			45,071			48,390
EBITDA Margin		12.9	%		13.9	%		11.4	%		12.8	%
Add back:
Stock-based compensation expense		3,677			4,196			11,928			12,716
Unrealized (gain) loss on foreign currency		(2	)		174			(316	)		323
CEO transition costs		14			—			1,376			—
Costs related to exit and disposal activities		41			—			151			—
Total adjustments		3,730			4,370			13,139			13,039
Adjusted EBITDA	$	21,129		$	21,860		$	58,210		$	61,429
Adjusted EBITDA Margin		15.6	%		17.4	%		14.7	%		16.2	%

Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited)


	Three Months Ended September 30, 2025							Three Months Ended September 30, 2024		% Change²		% Change Organic³
	GAAP		Foreign Currency¹			Non-GAAP		GAAP		% Change²		% Change Organic³
Revenues
United States	$	109,361	$	—		$	109,361	$	99,571	9.8	%	9.8	%
Europe		26,005		(1,226	)		24,779		26,048	(0.2	)	(4.9	)
Total revenue	$	135,366	$	(1,226	)	$	134,140	$	125,619	7.8	%	6.8	%


	Nine Months Ended September 30, 2025							Nine Months Ended September 30, 2024		% Change²		% Change Organic³
	GAAP		Foreign Currency¹			Non-GAAP		GAAP		% Change²		% Change Organic³
Revenues
United States	$	320,340	$	—		$	320,340	$	299,593	6.9	%	6.9	%
Europe		76,294		(2,055	)		74,239		79,547	(4.1	%)	(6.7	%)
Total revenue	$	396,634	$	(2,055	)	$	394,579	$	379,140	4.6	%	4.1	%

1		Revenue for the three and nine months ended September 30, 2025 has been recalculated using 2024 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.
2		This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2024 to GAAP revenue for the three and nine months ended September 30, 2025.
3		This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2024 to non-GAAP revenue for the three and nine months ended September 30, 2025 (as recalculated using the foreign currency exchange rates in effect during the three and nine months ended September 30, 2024) in order to provide a constant-currency comparison.

Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited)


	Three Months Ended September 30, 2025							Three Months Ended September 30, 2024		% Change²		% Change Organic³
	GAAP		Foreign Currency¹			Non-GAAP		GAAP		% Change²		% Change Organic³
Revenues
Injection Molding	$	47,770	$	(358	)	$	47,412	$	46,831	2.0	%	1.2	%
CNC Machining		63,043		(667	)		62,376		53,327	18.2		17.0
3D Printing		20,082		(174	)		19,908		21,437	(6.3	)	(7.1	)
Sheet Metal		4,262		(23	)		4,239		3,743	13.9		13.3
Other Revenue		209		(4	)		205		281	(25.6	)	(27.0	)
Total revenue	$	135,366	$	(1,226	)	$	134,140	$	125,619	7.8	%	6.8	%




	Nine Months Ended September 30, 2025							Nine Months Ended September 30, 2024		% Change²		% Change Organic³
	GAAP		Foreign Currency¹			Non-GAAP		GAAP		% Change²		% Change Organic³
Revenues
Injection Molding	$	143,908	$	(706	)	$	143,202	$	148,574	(3.1	%)	(3.6	%)
CNC Machining		177,831		(981	)		176,850		154,498	15.1		14.5
3D Printing		61,491		(336	)		61,155		64,300	(4.4	)	(4.9	)
Sheet Metal		12,776		(30	)		12,746		11,218	13.9		13.6
Other Revenue		628		(2	)		626		550	14.2		13.8
Total revenue	$	396,634	$	(2,055	)	$	394,579	$	379,140	4.6	%	4.1	%

1		Revenue for the three and nine months ended September 30, 2025 has been recalculated using 2024 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.
2		This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2024 to GAAP revenue for the three and nine months ended September 30, 2025.
3		This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2024 to non-GAAP revenue for the three and nine months ended September 30, 2025 (as recalculated using the foreign currency exchange rates in effect during the three and nine months ended September 30, 2024) in order to provide a constant-currency comparison.

Proto Labs, Inc. Customer Contact Information (In thousands, except customer contacts and per customer contact amounts) (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Revenue	$	135,366	$	125,619	$	396,634	$	379,140
Customer contacts		21,252		22,511		41,873		43,671
Revenue per customer contact¹	$	6,370	$	5,580	$	9,472	$	8,682

Revenue per customer contact is calculated using the revenue recognized during the respective period divided by the actual number of customer contacts served during the same period. Customer contacts are product developers, engineers, procurement and supply chain professionals and other individuals who place an order, and that order is shipped and invoiced during the period. The Company believes revenue per customer contact is useful to investors in evaluating the underlying business trends and ongoing operating performance of the Company.

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (Unaudited)


	Q4 2025 Outlook
	Low		High
GAAP diluted net income per share	$	0.12	$	0.20
Add back:
Stock-based compensation expense		0.14		0.14
Amortization expense		0.03		0.03
Unrealized (gain) loss on foreign currency		0.00		0.00
Total adjustments		0.18		0.18
Non-GAAP diluted net income per share	$	0.30	$	0.38

View source version on businesswire.com: https://www.businesswire.com/news/home/20251031425232/en/

Contacts

Investor Relations Contacts:

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and Corporate Development

ryan.johnsrud@protolabs.com

Gateway Group, Inc.

949-574-3860

PRLB@gateway-grp.com

Media Contact:

Protolabs

Brent Renneke, 763-479-7704

Marketing Communications Manager

brent.renneke@protolabs.com

Protolabs Reports Financial Results for the Third Quarter of 2025

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