Proto Labs, Inc. (PRLB) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Should l Buy PRLB?
Source: SeekingAlpha
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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Analyst Views on PRLB
Wall Street analysts forecast PRLB stock price to fall
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 66.450
Low
55.00
Averages
55.00
High
55.00
Current: 66.450
Low
55.00
Averages
55.00
High
55.00
About PRLB
Proto Labs, Inc. provides comprehensive manufacturing service from prototyping to production. Its digital factories produce low-volume parts in days while Protolabs Network provides advanced capabilities and volume pricing through its manufacturing partners. Its services include injection molding, computer numerical control (CNC) machining, three-dimensional (3D) printing and sheet metal fabrication. Its injection molding services include plastic injection molding, liquid silicone rubber molding, and over molding and insert molding. Its CNC machining services include CNC milling, CNC turning, precision machining, threading options and finishing options. Its 3D printing services include metal 3D printing, multi jet fusion and advanced photopolymers. Its sheet metal fabrication services include laser cutting, punching, fabricated assemblies, and prototyping. It serves various industries, including medical, robotics, aerospace, automotive, consumer electronics and industrial equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant CNC Growth: U.S. CNC revenue grew by 25% in 2025 and 35% in Q4, demonstrating the company's strong execution and demand in key markets, further solidifying its leadership position in prototyping.
- Strategic Transformation Plan: Management outlined four strategic pillars aimed at enhancing customer experience, accelerating innovation, expanding production capabilities, and driving operational efficiency, with the recent ISO 13485 certification for medical device production enabling entry into new markets.
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See More
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- Declining Free Cash Flow: Despite strong earnings, Proto Labs generated only $59.7 million in free cash flow, a 13% decline from the previous year, which may impact investor confidence and highlight challenges in cash generation capabilities moving forward.
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See More
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See More
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