Proto Labs, Inc. (PRLB) Q3 2025 Earnings Call Transcript
Revenue Revenue grew 7.8% year-over-year to a quarterly record of $135.4 million. This growth was driven by increased demand in U.S. CNC machining and sheet metal offerings, supported by strength in key end markets such as aerospace, defense, industrial, and commercial machinery.
Revenue fulfilled through Proto Labs Network Revenue fulfilled through Proto Labs Network was $30.1 million, up 16.2% in constant currencies. This increase reflects strong demand and improved execution.
CNC machining revenue CNC machining revenue grew 18.2% year-over-year or 17% in constant currencies. In the U.S., CNC machining revenue grew 24% year-over-year, driven by strong demand in key markets like drones, satellites, and space exploration.
Injection molding revenue Injection molding revenue grew 2% year-over-year or 1.2% in constant currencies. Growth in network fulfilled injection molding services was offset by weak prototyping demand.
3D printing revenue 3D printing revenue declined 6.3% year-over-year or 7.1% in constant currencies, primarily due to weak demand in Europe.
Sheet metal revenue Sheet metal revenue grew 13.9% year-over-year or 13.3% in constant currencies, fueled by solid growth in most end markets.
U.S. revenue Revenue in the U.S. grew 10% year-over-year, driven by strong performance in CNC machining and sheet metal offerings.
European revenue Revenue in Europe declined 5% in constant currencies, reflecting continued contraction in European manufacturing activity.
Non-GAAP gross margin Non-GAAP gross margin was 45.9%, up 110 basis points sequentially. This improvement was driven by better performance in both factory and network operations.
Non-GAAP operating expenses Non-GAAP operating expenses were $48.6 million or 35.9% of revenue, down 30 basis points sequentially. Year-over-year, SG&A expenses increased by $4.2 million, mainly due to variable expenses tied to revenue growth, including incentive compensation and commissions.
Adjusted EBITDA Adjusted EBITDA was $21.1 million or 15.6% of revenue. Sequential improvement was driven by gross margin expansion.
Non-GAAP earnings per share (EPS) Non-GAAP EPS was $0.47, up $0.06 sequentially. Compared to the third quarter of 2024, EPS was flat as increased volume was offset by higher incentive compensation and commissions expenses.
Cash from operations Cash from operations was $29.1 million, reflecting strong cash generation capabilities of the business model.
Shareholder returns $12.8 million was returned to shareholders in the form of repurchases.
Cash and investments On September 30, 2025, the company had $138.4 million of cash and investments and $0 debt.
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Protolabs (NYSE: PRLB) Schedules Q4 and Full Year 2025 Financial Results Release and Conference Call
- Earnings Release Schedule: Protolabs will issue its Q4 and full year 2025 financial results before market open on February 6, 2026, highlighting the company's ongoing growth potential in the rapid manufacturing services sector.
- Conference Call Timing: The company will host a conference call at 8:30 a.m. EST on the same day to discuss the financial results in depth, aiming to enhance transparency and bolster investor confidence.
- Webcast Availability: The call will be available via a simultaneous webcast on the investor relations section of the Protolabs website, ensuring global investors can access key information in real-time, thereby improving engagement with stakeholders.
- Replay Service: An audio replay will be available on the Protolabs website approximately two hours after the call ends, allowing investors who could not attend live to review the discussion, thus enhancing information accessibility and transparency.
Protolabs Substantially Increases Metal 3D Printing Capacity in the U.S.
Expansion of Manufacturing Capacity: Protolabs has significantly increased its U.S. manufacturing capacity for metal 3D printing in 2025, adding four large-format Colibrium Additive M2 printers to meet rising domestic demand, particularly in the medical, aerospace, and defense sectors.
New Facility and Certifications: The new printers are located in a 120,000 sq. ft. facility in Raleigh, N.C., which houses nearly 40 DMLS printers and has received ISO 13485 and AS9100D certifications to enhance its capabilities in producing high-quality metal components.
Industry Collaboration: Protolabs hosted an open house for leaders in the medical and aerospace industries to discuss how its advanced 3D printing technologies and engineering support can streamline product development and improve manufacturing processes.
Commitment to Innovation: Protolabs emphasizes its commitment to innovation by investing in new technologies and responding to customer needs, positioning itself as a preferred partner for rapid prototyping and final production in the evolving landscape of metal 3D printing.
