US Market News
2 months ago
Protolabs Reports Financial Results for the First Quarter of 2026May 1, 2026 6:00 AM
Business Wire
Record Quarterly Revenue of $139.3 Million, a 10.4% Increase Year-Over-Year
GAAP Earnings Per Share of $0.33, Non-GAAP Earnings Per Share of $0.54
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.
First Quarter 2026 Financial Highlights:
Revenue was a record $139.3 million, a 10.4% increase over the first quarter of 2025.
CNC machining revenue grew 19.7% year-over-year.
Revenue per customer contact increased 20.4% year-over-year.
Net income was $8.1 million, or $0.33 per diluted share, compared to $3.6 million, or $0.15 per diluted share, in the first quarter of 2025.
Non-GAAP net income was $13.1 million, or $0.54 per diluted share, compared to $8.1 million, or $0.33 per diluted share, in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
"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:
Non-GAAP gross margin was 46.2% of revenue, compared to 44.8% of revenue in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
Adjusted EBITDA was $22.8 million, or 16.3% of revenue, compared to $17.4 million, or 13.8% of revenue in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
Cash generated from operations was $17.5 million.
Cash and investments balance was $158.0 million as of March 31, 2026.
"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:
In fiscal year 2026, Protolabs expects to generate revenue growth between 6% and 8%.
In the second quarter of 2026, the Company expects to generate revenue between $140.0 million and $148.0 million.
In the second quarter of 2026, the Company expects diluted net income per share between $0.29 and $0.37, and non-GAAP diluted net income per share between $0.50 and $0.58. 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, 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
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
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
3
6
Impairments related to exit and closure of facilities
—
219
Gain on disposal of property and equipment
(139
)
—
Other
(172
)
43
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
)
78
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
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
United States
$
112,127
$
—
$
112,127
$
100,267
11.8
%
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
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
(2
)
205
234
(11.5
)
(12.4
)
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.
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 contact1
$
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
0.16
Amortization expense
0.03
0.03
Restructuring and transformation costs
0.02
0.02
Unrealized (gain) loss on foreign currency
0.00
0.00
Total adjustments
0.21
0.21
Non-GAAP diluted net income per share
$
0.50
$
0.58
View source version on businesswire.com: https://www.businesswire.com/news/home/20260501670028/en/
Investor Relations Contacts
Protolabs
Ryan Johnsrud, 612-225-4873
Sr. 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
Corporate Communications Manager
brent.renneke@protolabs.com
Original: Protolabs Reports Financial Results for the First Quarter of 2026
US Market News
4 months ago
Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2025February 6, 2026 6:00 AM
Business Wire
Record Quarterly Revenue of $136.5 Million, a 12.1% Increase Year-Over-Year
Record Annual Revenue of $533.1 Million, a 6.4% Increase Year-Over-Year
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. "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:
Revenue was a record $136.5 million, a 12.1% increase over the fourth quarter of 2024.
CNC Machining revenue grew 25.0% year-over-year.
Revenue per customer contact increased 23.2% year-over-year.
Net income was $6.0 million, or $0.25 per diluted share, compared to a net loss of $(0.4) million, or $(0.02) per diluted share, in the fourth quarter of 2024.
Non-GAAP net income was $10.7 million, or $0.44 per diluted share, compared to $9.4 million, or $0.38 per diluted share, in the fourth quarter of 2024. See “Non-GAAP Financial Measures” below.
Full Year 2025 Financial Highlights:
Revenue was a record $533.1 million, a 6.4% increase over 2024.
CNC Machining revenue grew 17.6% year-over-year.
Revenue per customer contact increased 13.3% year-over-year.
Revenue growth by fulfillment:
Factory: $416.9 million, a 4.1% increase year-over-year.
Network: $116.2 million, a 15.7% increase year-over-year.
Net income was $21.2 million, or $0.88 per diluted share, compared to net income of $16.6 million, or $0.66 per diluted share, in 2024.
Non-GAAP net income was $40.2 million, or $1.66 per diluted share, compared to $41.2 million, or $1.63 per diluted share, in 2024. See “Non-GAAP Financial Measures” below.
Adjusted EBITDA was $78.1 million, or 14.7% of revenue. See “Non-GAAP Financial Measures” below.
Cash generated from operations was $74.5 million in 2025.
Cash and investments balance was $142.4 million as of December 31, 2025.
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:
Elevate Customer Experience: remove friction across the customer journey to deliver a best-in-class experience and increase revenue per customer. Enable employees to serve customers more efficiently, driving faster growth.
Accelerate Innovation: reaccelerate innovation across core manufacturing services to drive outsized growth and an accelerated pace of new releases. Leverage differentiated IP and deep manufacturing and engineering talent.
Expand Production: take a deliberate, customer-led approach—prioritizing the right customers, applications, and capabilities. Begin with most strategic customers and scale over time.
Drive Operational Efficiency: expand Factory and Network gross margins and capture operating expense leverage via efficiencies and productivity. Reallocate resources to fund highest-priority growth initiatives.
Financial Guidance and Outlook:
In fiscal year 2026, Protolabs expects to generate revenue growth between 6% and 8%.
In the first quarter of 2026, the Company expects to generate revenue between $130.0 million and $138.0 million.
In the first quarter of 2026, the Company expects diluted net income per share between $0.17 and $0.25, and non-GAAP diluted net income per share between $0.36 and $0.44. 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, 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
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
20
33
Loss on impairment of equipment
—
256
Impairments related to exit and closure of facilities
448
2,333
Gain on disposal of property and equipment
(4
)
(13
)
Other
(223
)
1
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
34
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
)
(1
)
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
1
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
)
(1
)
Total adjustments
$
5,860
$
10,455
$
21,769
$
26,290
2.
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
)
(1
)
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
United States
$
111,986
$
—
$
111,986
$
96,599
15.9
%
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
United States
$
432,326
$
—
$
432,326
$
396,192
9.1
%
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
%
1
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.
2
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.
3
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
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
(3
)
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
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
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
(5
)
816
756
8.6
7.9
Total revenue
$
533,127
$
(3,453
)
$
529,674
$
500,890
6.4
%
5.7
%
1
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.
2
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.
3
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.
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 contact1
$
6,956
$
5,648
$
11,012
$
9,716
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)
Q1 2026 Outlook
Low
High
GAAP diluted net income per share
$
0.18
$
0.26
Add back:
Stock-based compensation expense
0.12
0.12
Amortization expense
0.03
0.03
Restructuring and transformation costs
0.02
0.02
Unrealized (gain) loss on foreign currency
0.00
0.00
Total adjustments
0.18
0.18
Non-GAAP diluted net income per share
$
0.36
$
0.44
View source version on businesswire.com: https://www.businesswire.com/news/home/20260206699322/en/
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
Corporate Communications Manager
brent.renneke@protolabs.com
Original: Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2025
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