Protolabs Reports Financial Results for the Third Quarter of 2025

MINNEAPOLIS--( BUSINESS WIRE)--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:

“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:

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

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

—

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

Loss on impairment of equipment

—

256

Impairments related to exit and closure of facilities

448

—

Loss (gain) on disposal of property and equipment

(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

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

)

174

(316

)

323

CEO transition costs

—

1,376

—

Costs related to exit and disposal activities

—

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

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

—

151

—

Total operating expenses

3,886

4,267

13,875

13,084

Other income, net

)

174

(316

)

323

Total adjustments

4,665

5,258

15,909

15,835

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

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

—

1,376

—

Costs related to exit and disposal activities

—

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

)

174

(316

)

323

CEO transition costs

—

1,376

—

Costs related to exit and disposal activities

—

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

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

109,361

—

109,361

99,571

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

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

320,340

—

320,340

299,593

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

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.

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.

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

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

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

)

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

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

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

)

626

550

14.2

13.8

Total revenue

396,634

(2,055

)

394,579

379,140

4.6

4.1

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.

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 contact 1

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

Amortization expense

0.03

Unrealized (gain) loss on foreign currency

0.00

Total adjustments

0.18

Non-GAAP diluted net income per share

0.30

0.38