Protolabs Reports Financial Results for the First Quarter of 2026

Protolabs Reports Financial Results for the First 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 first quarter ended March 31, 2026.

"Protolabs started 2026 very strong, delivering another record revenue quarter. We achieved double‑digit revenue growth, gross margin expansion, and operating expense leverage."

First Quarter 2026 Financial Highlights:

"Protolabs started 2026 very strong, delivering another record revenue quarter. We achieved double‑digit revenue growth, gross margin expansion, and operating expense leverage. These results reflect strong demand for Protolabs' digital manufacturing services, and disciplined execution across the business," said President and Chief Executive Officer Suresh Krishna. "We’re making continued progress across our strategic pillars while strengthening the organization to support long‑term growth and scalability."

Additional First Quarter 2026 Financial Highlights:

"First quarter results reflect the strength of our operating model, delivering record revenue alongside improved profitability," said Dan Schumacher, Chief Financial Officer. "We generated strong cash flow and reported our highest non‑GAAP earnings per share in more than five years, while continuing to invest in our strategic pillars and transformational initiatives to support long‑term profitable growth."

Financial Guidance and Outlook:

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, restructuring and transformation costs, and benefits 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, restructuring and transformation costs, and benefits 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, restructuring and transformation costs, and benefits 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, restructuring and transformation costs, and benefits 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 first quarter 2026 financial results and second quarter 2026 outlook today, May 1, 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/9bgsjeh5/. 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)

March 31,

2026

December 31,

2025

(Unaudited)

Assets

Current assets

Cash and cash equivalents

123,973

110,826

Short-term marketable securities

12,307

17,297

Accounts receivable, net

85,553

78,962

Inventory

14,871

14,401

Prepaid expenses and other current assets

10,698

9,590

Income taxes receivable

1,175

2,465

Total current assets

248,577

233,541

Property and equipment, net

209,463

215,261

Goodwill

273,991

Other intangible assets, net

17,527

18,612

Long-term marketable securities

21,721

14,308

Operating lease assets

2,490

2,836

Finance lease assets

357

424

Other long-term assets

4,442

Total assets

778,568

763,415

Liabilities and shareholders' equity

Current liabilities

Accounts payable

19,625

15,104

Accrued compensation

17,258

23,674

Accrued liabilities and other

32,595

26,783

Current operating lease liabilities

1,037

1,155

Current finance lease liabilities

207

286

Total current liabilities

70,722

67,002

Long-term operating lease liabilities

1,377

1,606

Long-term deferred tax liabilities

18,949

16,598

Other long-term liabilities

4,394

4,277

Shareholders' equity

683,126

673,932

Total liabilities and shareholders' equity

778,568

763,415

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Revenue

Injection Molding

51,068

48,723

CNC Machining

63,245

52,843

3D Printing

20,465

20,194

Sheet Metal

4,351

4,211

Other Revenue

207

234

Total Revenue

139,336

126,205

Cost of revenue

75,744

70,507

Gross profit

63,592

55,698

Operating expenses

Marketing and sales

24,780

23,749

Research and development

10,540

10,609

General and administrative

17,012

16,848

Restructuring and transformation costs

1,421

—

Benefits related to exit and disposal activities

—

(39

)

Total operating expenses

53,753

51,167

Income from operations

9,839

4,531

Other income, net

1,478

1,454

Income before income taxes

11,317

5,985

Provision for income taxes

3,206

2,386

Net income

8,111

3,599

Net income per share:

Basic

0.34

0.15

Diluted

0.33

0.15

Shares used to compute net income per share:

Basic

23,835,612

24,135,320

Diluted

24,287,260

24,435,844

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Operating activities

Net income

8,111

3,599

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

Depreciation and amortization

8,073

8,694

Stock-based compensation expense

3,219

3,992

Deferred taxes

2,390

(1,552

)

Interest on finance lease obligations

Impairments related to exit and closure of facilities

—

219

Gain on disposal of property and equipment

(139

)

—

Other

(172

)

Changes in operating assets and liabilities

(3,949

)

3,378

Net cash provided by operating activities

17,536

18,379

Investing activities

Purchases of property, equipment and other capital assets

(3,540

)

(1,262

)

Proceeds from sales of property, equipment and other capital assets

1,279

—

Purchases of marketable securities

(9,007

)

(6,552

)

Proceeds from maturities of marketable securities

6,500

4,905

Net cash used in investing activities

(4,768

)

(2,909

)

Financing activities

Proceeds from issuance of common stock from equity plans

3,608

287

Purchases of shares withheld for tax obligations

(2,871

)

(1,248

)

Repurchases of common stock

—

(20,890

)

Principal repayments of finance lease obligations

(79

)

(76

)

Net cash provided by (used in) financing activities

658

(21,927

)

Effect of exchange rate changes on cash and cash equivalents

(279

)

Net increase (decrease) in cash and cash equivalents

13,147

(6,379

)

Cash and cash equivalents, beginning of period

110,826

89,071

Cash and cash equivalents, end of period

123,973

82,692

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

March 31,

2026

2025

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

GAAP net income

8,111

3,599

Add back:

Stock-based compensation expense

3,219

3,992

Amortization expense

913

908

Unrealized (gain) loss on foreign currency

—

(135

)

Restructuring and transformation costs

1,421

—

Benefits related to exit and disposal activities

—

(39

)

Total adjustments 1

5,553

4,726

Income tax benefits on adjustments 2

(586

)

(242

)

Non-GAAP net income

13,078

8,083

Non-GAAP net income per share:

Basic

0.55

0.33

Diluted

0.54

0.33

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

Basic

23,835,612

24,135,320

Diluted

24,287,260

24,435,844

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

Three Months Ended

March 31,

2026

2025

Cost of revenue

736

802

Marketing and sales

705

778

Research and development

428

625

General and administrative

2,263

2,695

Restructuring and transformation costs

1,421

—

Benefits related to exit and disposal activities

—

(39

)

Total operating expenses

4,817

4,059

Other income, net

—

(135

)

Total adjustments

5,553

4,726

2 For the three months ended March 31, 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

March 31,

2026

2025

Revenue

139,336

126,205

Gross profit

63,592

55,698

GAAP gross margin

45.6

44.1

Add back:

Stock-based compensation expense

394

460

Amortization expense

342

Total adjustments

736

802

Non-GAAP gross profit

64,328

56,500

Non-GAAP gross margin

46.2

44.8

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Revenue

139,336

126,205

Income from operations

9,839

4,531

GAAP operating margin

7.1

3.6

Add back:

Stock-based compensation expense

3,219

3,992

Amortization expense

913

908

Restructuring and transformation costs

1,421

—

Benefits related to exit and disposal activities

—

(39

)

Total adjustments

5,553

4,861

Non-GAAP income from operations

15,392

9,392

Non-GAAP operating margin

11.0

7.4

Proto Labs, Inc.

Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Revenue

139,336

126,205

GAAP net income

8,111

3,599

GAAP net income margin

5.8

2.9

Add back:

Amortization expense

913

908

Depreciation expense

7,160

7,786

Interest income, net

(1,253

)

(1,108

)

Provision for income taxes

3,206

2,386

EBITDA

18,137

13,571

EBITDA Margin

13.0

10.8

Add back:

Stock-based compensation expense

3,219

3,992

Unrealized (gain) loss on foreign currency

—

(135

)

Restructuring and transformation costs

1,421

—

Benefits related to exit and disposal activities

—

(39

)

Total adjustments

4,640

3,818

Adjusted EBITDA

22,777

17,389

Adjusted EBITDA Margin

16.3

13.8

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)

Three Months Ended

March 31, 2026

Three Months Ended

March 31, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

112,127

—

112,127

100,267

11.8

Europe

27,209

(2,157

)

25,052

25,938

4.9

(3.4

)

Total revenue

139,336

(2,157

)

137,179

126,205

10.4

8.7

1 Revenue for the three months ended March 31, 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 months ended March 31, 2025 to GAAP revenue for the three months ended March 31, 2026.

3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2025 to non-GAAP revenue for the three months ended March 31, 2026 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2025) 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

March 31, 2026

Three Months Ended

March 31, 2025

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

Injection Molding

51,068

(631

)

50,437

48,723

4.8

3.5

CNC Machining

63,245

(1,114

)

62,131

52,843

19.7

17.6

3D Printing

20,465

(368

)

20,097

20,194

1.3

(0.5

)

Sheet Metal

4,351

(42

)

4,309

4,211

3.3

2.3

Other Revenue

207

)

205

234

(11.5

)

(12.4

)

Total revenue

139,336

(2,157

)

137,179

126,205

10.4

8.7

2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2025 to GAAP revenue for the three months ended March 31, 2026.

Proto Labs, Inc.

Customer Contact Information

(In thousands, except customer contacts and per customer contact amounts)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Revenue

139,336

126,205

Customer contacts

19,826

21,627

Revenue per customer contact 1

7,028

5,836

1 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)

Q2 2026 Outlook

Low

High

GAAP diluted net income per share

0.29

0.37

Add back:

Stock-based compensation expense

0.16

Amortization expense

0.03

Restructuring and transformation costs

0.02

Unrealized (gain) loss on foreign currency

0.00

Total adjustments

0.21

Non-GAAP diluted net income per share

0.50

0.58