Protolabs Reports Financial Results for the Third Quarter of 2026

Protolabs Reports Financial Results for the Third Quarter of 2026 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, 2026.

Third Quarter 2026 Financial Highlights:

"Protolabs delivered another record quarter, with double-digit revenue growth for the fourth consecutive quarter," said Suresh Krishna, President and Chief Executive Officer. "Our momentum reflects strong execution and growing demand from industries that value speed, quality, and manufacturing agility. As reindustrialization, advanced hardware innovation, and the need for resilient supply chains reshape manufacturing, our digital model enables customers to move quickly from idea to production — positioning us to deliver sustained profitable growth and long-term shareholder value."

Additional Third Quarter 2026 Financial Highlights:

"We delivered another quarter of strong financial performance, with broad-based revenue growth, meaningful operating leverage, and continued earnings growth," said Dan Schumacher, Chief Financial Officer. "We remain focused on balancing investments in our strategic priorities with disciplined cost management, while generating strong cash flow and positioning the business for sustained profitable growth."

Financial Guidance and Outlook:

Non-GAAP Financial Measures

The Company has included non-GAAP revenue growth by region and by product 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 metrics calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), 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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (“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, amortization expense and trade refunds and charges, net ("non-GAAP gross margin"), 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, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (“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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (“non-GAAP net income” and "non-GAAP net income per share", respectively), 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 product line, EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin to 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 the Company's 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 the Company's 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 2026 financial results and fourth quarter 2026 outlook today, October 29, 2026, 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/ec8fzrj2/. 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,

2026

December 31,

2025

(Unaudited)

Assets

Current assets

Cash and cash equivalents

133,780

110,826

Short-term marketable securities

17,366

17,297

Accounts receivable, net

99,256

78,962

Inventory

16,538

14,401

Prepaid expenses and other current assets

11,844

9,590

Income taxes receivable

744

2,465

Total current assets

279,528

233,541

Property and equipment, net

206,932

215,261

Goodwill

273,991

Other intangible assets, net

15,663

18,612

Long-term marketable securities

23,903

14,308

Operating lease assets

3,130

2,836

Finance lease assets

—

424

Other long-term assets

4,874

4,442

Total assets

808,021

763,415

Liabilities and shareholders' equity

Current liabilities

Accounts payable

18,991

15,104

Accrued compensation

24,632

23,674

Accrued liabilities and other

31,755

26,783

Current operating lease liabilities

1,239

1,155

Current finance lease liabilities

—

286

Total current liabilities

76,617

67,002

Long-term operating lease liabilities

2,664

1,606

Long-term deferred tax liabilities

22,269

16,598

Other long-term liabilities

4,667

4,277

Shareholders' equity

701,804

673,932

Total liabilities and shareholders' equity

808,021

763,415

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,

2026

2025

2026

2025

Revenue

Injection Molding

53,730

47,770

158,423

143,908

CNC Machining

73,359

63,043

206,964

177,831

3D Printing

22,364

20,082

63,496

61,491

Sheet Metal

4,063

4,262

12,876

12,776

Other Revenue

802

209

1,236

628

Total revenue

154,318

135,366

442,995

396,634

Cost of revenue

85,655

74,073

241,398

219,869

Gross profit

68,663

61,293

201,597

176,765

Operating expenses

Marketing and sales

24,528

24,574

74,990

73,054

Research and development

11,019

10,705

32,350

32,487

General and administrative

18,241

17,163

54,903

52,763

Restructuring and transformation costs

434

—

2,779

—

Costs related to exit and disposal activities

—

937

151

Total operating expenses

54,222

52,483

165,959

158,455

Income from operations

14,441

8,810

35,638

18,310

Other income, net

1,766

1,441

4,489

4,600

Income before income taxes

16,207

10,251

40,127

22,910

Provision for income taxes

4,445

3,035

11,102

7,668

Net income

11,762

7,216

29,025

15,242

Net income per share:

Basic

0.49

0.30

1.21

0.64

Diluted

0.48

0.30

1.19

0.63

Shares used to compute net income per share:

Basic

24,024,031

23,889,157

23,943,656

23,974,054

Diluted

24,438,800

24,191,039

24,398,409

24,249,669

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

September 30,

2026

2025

Operating activities

Net income

29,025

15,242

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

24,269

25,693

Stock-based compensation expense

10,658

11,928

Deferred taxes

5,563

2,355

Interest on finance lease obligations

Loss on impairment of equipment

186

—

Impairments related to exit and closure of facilities

937

448

Gain on disposal of property and equipment

(150

)

Other

(172

)

(179

)

Changes in operating assets and liabilities

(14,575

)

2,355

Net cash provided by operating activities

55,746

57,874

Investing activities

Purchases of property, equipment and other capital assets

(15,539

)

(6,792

)

Proceeds from sales of property, equipment and other capital assets

1,279

811

Purchases of marketable securities

(25,507

)

(13,553

)

Proceeds from maturities of marketable securities

15,475

11,730

Net cash used in investing activities

(24,292

)

(7,804

)

Financing activities

Proceeds from issuance of common stock from equity plans

8,011

4,195

Purchases of shares withheld for tax obligations

(6,083

)

(3,119

)

Repurchases of common stock

(10,038

)

(36,732

)

Principal repayments of finance lease obligations

(187

)

(231

)

Net cash used in financing activities

(8,297

)

(35,887

)

Effect of exchange rate changes on cash and cash equivalents

(203

)

989

Net increase in cash and cash equivalents

22,954

15,172

Cash and cash equivalents, beginning of period

110,826

89,071

Cash and cash equivalents, end of period

133,780

104,243

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,

2026

2025

2026

2025

Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs

GAAP net income

11,762

7,216

29,025

15,242

Add back:

Stock-based compensation expense

3,351

3,677

10,658

11,928

Amortization expense

902

935

2,720

2,770

Unrealized loss (gain) on foreign currency

129

)

266

(316

)

Trade refunds and charges, net

(709

)

—

(1,036

)

—

Restructuring and transformation costs

434

—

2,779

—

Costs related to exit and disposal activities

—

937

151

CEO transition costs

—

1,376

Total adjustments 1

4,107

4,665

16,324

15,909

Income tax benefits on adjustments 2

(531

)

(500

)

(2,228

)

(1,700

)

Non-GAAP net income

15,338

11,381

43,121

29,451

Non-GAAP net income per share:

Basic

0.64

0.48

1.80

1.23

Diluted

0.63

0.47

1.77

1.21

Shares used to compute non-GAAP net income per share:

Basic

24,024,031

23,889,157

23,943,656

23,974,054

Diluted

24,438,800

24,191,039

24,398,409

24,249,669

Three Months Ended

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

Cost of revenue

781

1,370

2,350

Marketing and sales

798

837

2,322

2,423

Research and development

629

764

1,698

2,124

General and administrative

2,032

2,244

6,952

9,177

Restructuring and transformation costs

434

—

2,779

—

Costs related to exit and disposal activities

—

937

151

Total operating expenses

3,893

3,886

14,688

13,875

Other income, net

129

)

266

(316

)

Total adjustments

4,107

4,665

16,324

15,909

2 For the three and nine months ended September 30, 2026 and 2025, 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,

2026

2025

2026

2025

Revenue

154,318

135,366

442,995

396,634

Gross profit

68,663

61,293

201,597

176,765

GAAP gross margin

44.5

45.3

45.5

44.6

Add back:

Stock-based compensation expense

451

439

1,379

1,323

Amortization expense

343

342

1,027

Trade refunds and charges, net

(709

)

—

(1,036

)

—

Total adjustments

781

1,370

2,350

Non-GAAP gross profit

68,748

62,074

202,967

179,115

Non-GAAP gross margin

44.5

45.9

45.8

45.2

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

Revenue

154,318

135,366

442,995

396,634

Income from operations

14,441

8,810

35,638

18,310

GAAP operating margin

9.4

6.5

8.0

4.6

Add back:

Stock-based compensation expense

3,351

3,677

10,658

11,928

Amortization expense

902

935

2,720

2,770

Trade refunds and charges, net

(709

)

—

(1,036

)

—

Restructuring and transformation costs

434

—

2,779

—

Costs related to exit and disposal activities

—

937

151

CEO transition costs

—

1,376

Total adjustments

3,978

4,667

16,058

16,225

Non-GAAP income from operations

18,419

13,477

51,696

34,535

Non-GAAP operating margin

11.9

10.0

11.7

8.7

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,

2026

2025

2026

2025

Revenue

154,318

135,366

442,995

396,634

GAAP net income

11,762

7,216

29,025

15,242

GAAP net income margin

7.6

5.3

6.6

3.8

Add back:

Amortization expense

902

935

2,720

2,770

Depreciation expense

7,206

7,494

21,549

22,923

Interest income, net

(1,355

)

(1,281

)

(3,939

)

(3,532

)

Provision for income taxes

4,445

3,035

11,102

7,668

EBITDA

22,960

17,399

60,457

45,071

EBITDA margin

14.9

12.9

13.6

11.4

Add back:

Stock-based compensation expense

3,351

3,677

10,658

11,928

Unrealized loss (gain) on foreign currency

129

)

266

(316

)

Trade refunds and charges, net

(709

)

—

(1,036

)

—

Restructuring and transformation costs

434

—

2,779

—

Costs related to exit and disposal activities

—

937

151

CEO transition costs

—

1,376

Total adjustments

3,205

3,730

13,604

13,139

Adjusted EBITDA

26,165

21,129

74,061

58,210

Adjusted EBITDA margin

17.0

15.6

16.7

14.7

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)

Three Months Ended

September 30, 2026

Three Months Ended

September 30, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

125,412

—

125,412

109,361

14.7

Europe

28,906

267

29,173

26,005

11.2

12.2

Total revenue

154,318

267

154,585

135,366

14.0

14.2

Nine Months Ended

September 30, 2026

Nine Months Ended

September 30, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

360,298

—

360,298

320,340

12.5

Europe

82,697

(2,337

)

80,360

76,294

8.4

5.3

Total revenue

442,995

(2,337

)

440,658

396,634

11.7

11.1

1 Revenue for the three and nine months ended September 30, 2026 has been recalculated using 2025 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, 2025 to GAAP revenue for the three and nine months ended September 30, 2026.

3 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to non-GAAP revenue for the three and nine months ended September 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and nine months ended September 30, 2025) in order to provide a constant-currency comparison.

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Product Line

(In thousands)

(Unaudited)

Three Months Ended

September 30, 2026

Three Months Ended

September 30, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

Injection Molding

53,730

53,776

47,770

12.5

12.6

CNC Machining

73,359

184

73,543

63,043

16.4

16.7

3D Printing

22,364

22,393

20,082

11.4

11.5

Sheet Metal

4,063

4,065

4,262

(4.7

)

(4.6

)

Other Revenue

802

808

209

283.7

286.6

Total revenue

154,318

267

154,585

135,366

14.0

14.2

Nine Months Ended

September 30, 2026

Nine Months Ended

September 30, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

Injection Molding

158,423

(674

)

157,749

143,908

10.1

9.6

CNC Machining

206,964

(1,248

)

205,716

177,831

16.4

15.7

3D Printing

63,496

(369

)

63,127

61,491

3.3

2.7

Sheet Metal

12,876

(48

)

12,828

12,776

0.8

0.4

Other Revenue

1,236

1,238

628

96.8

97.1

Total revenue

442,995

(2,337

)

440,658

396,634

11.7

11.1

2 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to GAAP revenue for the three and nine months ended September 30, 2026.

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,

2026

2025

2026

2025

Revenue

154,318

135,366

442,995

396,634

Customer contacts

20,777

21,252

40,129

41,873

Revenue per customer contact 1

7,427

6,370

11,039

9,472

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Guidance

(Unaudited)

Q4 2026 Outlook

Low

High

GAAP diluted net income per share

0.28

0.36

Add back:

Stock-based compensation expense

0.15

Amortization expense

0.03

Total adjustments

0.18

Non-GAAP diluted net income per share

0.46

0.54