Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2025
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 e...
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
MINNEAPOLIS: 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, |
| December 31, | ||
| (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 |
| Twelve Months Ended | |||||||||
|
| 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 |
|
|
|
|
|
|
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| |||||
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 |
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