Protolabs Reports Financial Results for the Fourth Quarter and Full Year 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 fourth quarter and full year ended December 31, 2025.

"Protolabs closed 2025 with strong momentum, delivering accelerated growth, record revenue, and solid earnings in the fourth quarter," said President and Chief Executive Officer Suresh Krishna.

"Protolabs closed 2025 with strong momentum, delivering accelerated growth, record revenue, and solid earnings in the fourth quarter," said President and Chief Executive Officer Suresh Krishna. "2026 is a pivotal year of transformation and acceleration as we establish the foundation to execute our long-term strategic pillars: elevating the customer experience, accelerating innovation, expanding production, and driving operational efficiency. We believe the organizational and operational changes underway position Protolabs for faster growth and improved profitability over time. I'm confident in our ability to execute with speed, discipline, and innovation as we deliver long-term value for customers and shareholders."

Fourth Quarter 2025 Financial Highlights:

Full Year 2025 Financial Highlights:

Dan Schumacher, Chief Financial Officer, added: "We delivered solid results in 2025 with record revenue and strong cash flow. As we move through 2026, we are implementing targeted changes to improve efficiency and build a more scalable operating model. These actions will support continued revenue growth and create a stronger foundation for long‑term financial performance."

Long-Term Strategic Pillars:

To support Protolabs' long-term strategy, we have aligned the organization around four strategic pillars:

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, CEO transition costs, restructuring and transformation 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, restructuring and transformation 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, restructuring and transformation 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, restructuring and transformation 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 (loss), non-GAAP net income (loss) 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 fourth quarter and full year 2025 financial results and outlook for 2026 today, February 6, 2026 at 8:30 a.m. EST. 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. EST 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/cbdwr5wf/. 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)

December 31,

2025

December 31,

2024

(Unaudited)

Assets

Current assets

Cash and cash equivalents

110,826

89,071

Short-term marketable securities

17,297

14,019

Accounts receivable, net

78,962

66,504

Inventory

14,401

12,305

Income taxes receivable

2,465

2,906

Prepaid expenses and other current assets

9,590

10,049

Total current assets

233,541

194,854

Property and equipment, net

212,201

227,263

Goodwill

273,991

Other intangible assets, net

18,612

21,422

Long-term marketable securities

14,308

17,773

Operating lease assets

2,836

2,993

Finance lease assets

424

692

Other long-term assets

4,442

4,524

Total assets

760,355

743,512

Liabilities and shareholders' equity

Current liabilities

Accounts payable

15,104

15,504

Accrued compensation

23,674

16,550

Accrued liabilities and other

26,783

19,621

Current operating lease liabilities

1,155

1,287

Current finance lease liabilities

286

309

Total current liabilities

67,002

53,271

Long-term operating lease liabilities

1,606

1,633

Long-term finance lease liabilities

—

287

Long-term deferred tax liabilities

16,598

13,565

Other long-term liabilities

4,277

4,605

Shareholders' equity

670,872

670,151

Total liabilities and shareholders' equity

760,355

743,512

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

Injection Molding

47,613

45,641

191,521

194,215

CNC Machining

65,496

52,389

243,327

206,887

3D Printing

18,807

19,467

80,298

83,767

Sheet Metal

4,384

4,047

17,160

15,265

Other Revenue

193

206

821

756

Total Revenue

136,493

121,750

533,127

500,890

Cost of revenue

76,121

69,793

295,990

277,690

Gross profit

60,372

51,957

237,137

223,200

Operating expenses

Marketing and sales

25,261

23,003

98,315

92,073

Research and development

10,321

9,698

42,808

41,298

General and administrative

17,050

15,166

69,813

64,333

Restructuring and transformation costs

749

—

749

—

Costs related to exit and disposal activities

191

5,585

342

5,585

Total operating expenses

53,572

53,452

212,027

203,289

Income (loss) from operations

6,800

(1,495

)

25,110

19,911

Other income, net

1,352

1,213

5,952

4,761

Income (loss) before income taxes

8,152

(282

)

31,062

24,672

Provision for income taxes

2,153

122

9,821

8,079

Net income (loss)

5,999

(404

)

21,241

16,593

Net income (loss) per share:

Basic

0.25

(0.02

)

0.89

0.66

Diluted

0.25

(0.02

)

0.88

0.66

Shares used to compute net income (loss) per share:

Basic

23,760,364

24,474,051

23,922,703

25,096,117

Diluted

24,168,052

24,474,051

24,245,199

25,212,178

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Twelve Months Ended

December 31,

2025

2024

Operating activities

Net income

21,241

16,593

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

Depreciation and amortization

33,814

35,808

Stock-based compensation expense

15,729

16,999

Deferred taxes

2,912

(5,153

)

Interest on finance lease obligations

Loss on impairment of equipment

—

256

Impairments related to exit and closure of facilities

448

2,333

Gain on disposal of property and equipment

)

(13

)

Other

(223

)

Changes in operating assets and liabilities

567

10,972

Net cash provided by operating activities

74,504

77,829

Investing activities

Purchases of property, equipment and other capital assets

(14,842

)

(9,169

)

Proceeds from sales of property, equipment and other capital assets

834

Purchases of marketable securities

(17,015

)

(25,070

)

Proceeds from call redemptions and maturities of marketable securities

17,613

19,209

Net cash used in investing activities

(13,410

)

(13,580

)

Financing activities

Proceeds from issuance of common stock from equity plans

6,340

4,019

Purchases of shares withheld for tax obligations

(3,434

)

(1,995

)

Repurchases of common stock

(42,963

)

(60,278

)

Principal repayments of finance lease obligations

(309

)

(296

)

Net cash used in financing activities

(40,366

)

(58,550

)

Effect of exchange rate changes on cash and cash equivalents

1,027

(418

)

Net increase in cash and cash equivalents

21,755

5,281

Cash and cash equivalents, beginning of period

89,071

83,790

Cash and cash equivalents, end of period

110,826

89,071

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Non-GAAP Net Income per Share

(In thousands, except share and per share amounts)

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

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

GAAP net income (loss)

5,999

(404

)

21,241

16,593

Add back:

Stock-based compensation expense

3,801

4,283

15,729

16,999

Amortization expense

933

911

3,703

3,707

Unrealized loss (gain) on foreign currency

186

(324

)

(130

)

CEO transition costs

—

1,376

—

Restructuring and transformation costs

749

—

749

—

Costs related to exit and disposal activities

191

5,585

342

5,585

Total adjustments 1

5,860

10,455

21,769

26,290

Income tax benefits on adjustments 2

(1,110

)

(649

)

(2,810

)

(1,715

)

Non-GAAP net income

10,749

9,402

40,200

41,168

Non-GAAP net income per share:

Basic

0.45

0.38

1.68

1.64

Diluted

0.44

0.38

1.66

1.63

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

Basic

23,760,364

24,474,051

23,922,703

25,096,117

Diluted

24,168,052

24,689,181

24,245,199

25,212,178

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

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Cost of revenue

812

876

3,162

3,304

Marketing and sales

894

734

3,317

3,112

Research and development

702

690

2,826

2,721

General and administrative

2,326

2,894

11,503

11,569

Restructuring and transformation costs

749

—

749

—

Costs related to exit and disposal activities

191

5,585

342

5,585

Total operating expenses

4,862

9,903

18,737

22,987

Other income, net

186

(324

)

(130

)

Total adjustments

5,860

10,455

21,769

26,290

For the three and twelve months ended December 31, 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

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

136,493

121,750

533,127

500,890

Gross profit

60,372

51,957

237,137

223,200

GAAP gross margin

44.2

42.7

44.5

44.6

Add back:

Stock-based compensation expense

469

534

1,792

1,935

Amortization expense

343

342

1,370

1,369

Total adjustments

812

876

3,162

3,304

Non-GAAP gross profit

61,184

52,833

240,299

226,504

Non-GAAP gross margin

44.8

43.4

45.1

45.2

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

136,493

121,750

533,127

500,890

Income (loss) from operations

6,800

(1,495

)

25,110

19,911

GAAP operating margin

5.0

(1.2

4.7

4.0

Add back:

Stock-based compensation expense

3,801

4,283

15,729

16,999

Amortization expense

933

911

3,703

3,707

CEO transition costs

—

1,376

—

Restructuring and transformation costs

749

—

749

—

Costs related to exit and disposal activities

191

5,585

342

5,585

Total adjustments

5,674

10,779

21,899

26,291

Non-GAAP income from operations

12,474

9,284

47,009

46,202

Non-GAAP operating margin

9.1

7.6

8.8

9.2

Proto Labs, Inc.

Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

136,493

121,750

533,127

500,890

GAAP net income (loss)

5,999

(404

)

21,241

16,593

GAAP net income (loss) margin

4.4

(0.3

4.0

3.3

Add back:

Amortization expense

933

911

3,703

3,707

Depreciation expense

7,188

7,913

30,111

32,101

Interest income, net

(1,261

)

(1,225

)

(4,793

)

(4,749

)

Provision for income taxes

2,153

122

9,821

8,079

EBITDA

15,012

7,317

60,083

55,731

EBITDA Margin

11.0

6.0

11.3

11.1

Add back:

Stock-based compensation expense

3,801

4,283

15,729

16,999

Unrealized loss (gain) on foreign currency

186

(324

)

(130

)

CEO transition costs

—

1,376

—

Restructuring and transformation costs

749

—

749

—

Costs related to exit and disposal activities

191

5,585

342

5,585

Total adjustments

4,927

9,544

18,066

22,583

Adjusted EBITDA

19,939

16,861

78,149

78,314

Adjusted EBITDA Margin

14.6

13.8

14.7

15.6

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)

Three Months Ended

December 31, 2025

Three Months Ended

December 31, 2024

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

111,986

—

111,986

96,599

15.9

Europe

24,507

(1,398

)

23,109

25,151

(2.6

)

(8.1

)

Total revenue

136,493

(1,398

)

135,095

121,750

12.1

11.0

Twelve Months Ended

December 31, 2025

Twelve Months Ended

December 31, 2024

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

United States

432,326

—

432,326

396,192

9.1

Europe

100,801

(3,453

)

97,348

104,698

(3.7

(7.0

Total revenue

533,127

(3,453

)

529,674

500,890

6.4

5.7

Revenue for the three and twelve months ended December 31, 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 twelve months ended December 31, 2024 to GAAP revenue for the three and twelve months ended December 31, 2025.

This column presents the percentage change from GAAP revenue for the three and twelve months ended December 31, 2024 to non-GAAP revenue for the three and twelve months ended December 31, 2025 (as recalculated using the foreign currency exchange rates in effect during the three and twelve months ended December 31, 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

December 31, 2025

Three Months Ended

December 31, 2024

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

Injection Molding

47,613

(333

)

47,280

45,641

4.3

3.6

CNC Machining

65,496

(857

)

64,639

52,389

25.0

23.4

3D Printing

18,807

(171

)

18,636

19,467

(3.4

)

(4.3

)

Sheet Metal

4,384

(34

)

4,350

4,047

8.3

7.5

Other Revenue

193

)

190

206

(6.3

)

(7.8

)

Total revenue

136,493

(1,398

)

135,095

121,750

12.1

11.0

Twelve Months Ended

December 31, 2025

Twelve Months Ended

December 31, 2024

Change 2

% Change

Organic 3

GAAP

Foreign

Currency 1

Non-GAAP

GAAP

Revenues

Injection Molding

191,521

(1,039

)

190,482

194,215

(1.4

(1.9

CNC Machining

243,327

(1,838

)

241,489

206,887

17.6

16.7

3D Printing

80,298

(507

)

79,791

83,767

(4.1

)

(4.7

)

Sheet Metal

17,160

(64

)

17,096

15,265

12.4

12.0

Other Revenue

821

)

816

756

8.6

7.9

Total revenue

533,127

(3,453

)

529,674

500,890

6.4

5.7

This column presents the percentage change from GAAP revenue for the three and twelve months ended December 31, 2024 to GAAP revenue for the three and twelve months ended December 31, 2025.

Proto Labs, Inc.

Customer Contact Information

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

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

136,493

121,750

533,127

500,890

Customer contacts

19,621

21,558

48,415

51,552

Revenue per customer contact 1

6,956

5,648

11,012

9,716

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)

Q1 2026 Outlook

Low

High

GAAP diluted net income per share

0.18

0.26

Add back:

Stock-based compensation expense

0.12

Amortization expense

0.03

Restructuring and transformation costs

0.02

Unrealized (gain) loss on foreign currency

0.00

Total adjustments

0.18

Non-GAAP diluted net income per share

0.36

0.44