Proto Labs Q3 2025 slides: Revenue hits record $135.4M as CNC machining surges

Introduction & Market Context

Proto Labs Inc. (NYSE:PRLB) presented its third quarter 2025 earnings results on October 31, revealing record revenue of $135.4 million and strategic expansion of its manufacturing capabilities. The digital manufacturing company’s stock rose 2.77% in pre-market trading to $54.5 following the announcement, as investors responded positively to results that exceeded analyst expectations.

The company’s performance comes amid strong demand in aerospace, defense, and consumer electronics sectors, with particular strength in the U.S. market offsetting some contraction in European manufacturing. Proto Labs continues to position itself as a leader in quick-turn manufacturing services, highlighted by its collaboration with major clients like Amazon’s Prime Air division.

As shown in the following slide featuring a high-profile client partnership:

Quarterly Performance Highlights

Proto Labs reported Q3 2025 revenue of $135.4 million, representing a 6.8% year-over-year increase in constant currencies. Non-GAAP earnings per share remained flat year-over-year at $0.47, though this exceeded market expectations of $0.39 per share. The company’s network fulfillment revenue reached $30.1 million, growing 16% compared to the same period last year.

The financial summary below illustrates the company’s year-over-year revenue growth and stable EPS performance:

CNC machining emerged as the standout performer among Proto Labs’ service offerings, with revenue increasing 17% year-over-year to $63.0 million. Injection molding saw modest growth of 1%, while sheet metal revenue increased by 13%. However, 3D printing revenue declined by 7% compared to Q3 2024.

The following breakdown shows the performance across all service lines:

Detailed Financial Analysis

Proto Labs’ financial results demonstrate sequential improvement in profitability metrics despite year-over-year pressure on margins. The company achieved a non-GAAP gross margin of 45.9% in Q3 2025, representing a 110 basis point improvement from the previous quarter, though slightly below the 46.2% reported in Q3 2024. Similarly, non-GAAP operating margin rose 140 basis points sequentially to 10.0%, but remained 90 basis points below the prior year’s figure.

The comprehensive financial comparison is presented in this table:

The company demonstrated strong cash generation capabilities, with operating cash flow of $29.1 million in Q3 2025, up from $10.6 million in the previous quarter and $24.8 million in the same period last year. Proto Labs maintains a solid balance sheet with $138.4 million in cash and investments and zero debt, providing financial flexibility for future investments and share repurchases. During the quarter, the company repurchased $12.8 million in shares, up significantly from $3.1 million in Q2 2025.

The cash flow and balance sheet summary shows the company’s strong financial position:

Strategic Initiatives

Proto Labs is executing on strategic priorities focused on increasing customer adoption of its combined service offerings and driving higher revenue per customer. The company reported a 35% year-over-year increase in customer contacts using combined offerings over the last twelve months, while revenue per customer contact grew 14% in Q3 2025 compared to the same period last year.

The following slide outlines these key strategic priorities:

The company also expanded its factory CNC machining capabilities during the quarter, enhancing its ability to accelerate rapid prototyping and product development. This expansion emphasizes Proto Labs’ stateside, ITAR-compliant manufacturing capabilities, which are particularly valuable for aerospace, defense, and other regulated industries. Additionally, Proto Labs was named to Forbes’ "America’s Best-In-State Employers 2025" List, highlighting its strong workplace culture.

These strategic developments are summarized in the following slide:

Forward-Looking Statements

Looking ahead to Q4 2025, Proto Labs provided revenue guidance of $125 million to $133 million and non-GAAP EPS guidance of $0.30 to $0.38. The company expects foreign currency to have an approximately $1.5 million favorable impact on Q4 revenue, with a projected non-GAAP effective tax rate between 23% and 24%.

The Q4 2025 outlook is detailed in the following guidance:

CEO Suresh Krishna emphasized the company’s strategic focus during the earnings call, stating, "We are the supplier of choice for anything that has to do with innovation," and "Our focus is clear: accelerate profitable growth." These statements align with Proto Labs’ demonstrated commitment to expanding capabilities and improving operational efficiencies.

While the Q4 guidance suggests a potential seasonal slowdown compared to Q3, the company’s strategic initiatives, expanded manufacturing capabilities, and strong financial position provide a solid foundation for continued growth. Proto Labs’ ability to exceed expectations in Q3 2025 demonstrates the effectiveness of its strategy in navigating market challenges while capitalizing on opportunities in high-growth sectors.

Full presentation:

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