Total Revenue of $126.2 Million

GAAP Earnings Per Share of $0.15, Non-GAAP Earnings Per Share of $0.33

MINNEAPOLIS, May 02, 2025--(BUSINESS WIRE)--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, 2025.

First Quarter 2025 Financial Highlights:

Revenue was $126.2 million, a 1.3% decrease compared to revenue of $127.9 million in the first quarter of 2024. Revenue fulfilled through the Protolabs Network was $26.3 million, a 10.0% increase compared to the first quarter of 2024. Net income was $3.6 million, or $0.15 per diluted share, compared to $5.3 million, or $0.20 per diluted share, in the first quarter of 2024. Non-GAAP net income was $8.1 million, or $0.33 per diluted share, compared to $10.4 million, or $0.40 per diluted share, in the first quarter of 2024. See "Non-GAAP Financial Measures" below.

"Protolabs started the year strong, with revenue and earnings per share near the top of our guidance range and increases in both the number of customers utilizing our combined factory and network offer and spend per customer," said Rob Bodor, President and Chief Executive Officer. "Our first quarter performance establishes a solid foundation for growth in 2025. We are continuing to evolve Protolabs beyond prototyping and into production by enhancing our manufacturing capabilities, unlocking value from our reorganized internal operating structure, and serving our customers more efficiently across the product lifecycle."

"As the tariff landscape evolves, we believe we are well positioned to continue serving our customers through our geographically diverse factory and network fulfillment model," continued Bodor. "Protolabs has a proven track record of adapting faster than anyone to support our customers in times of supply chain disruption, and we are prepared to capitalize on emerging opportunities as the global landscape continues to shift."

Dan Schumacher, Chief Financial Officer, commented: "Our industry-leading profitability and cash flow generation, combined with zero debt on our balance sheet, strongly position us to invest in growth and navigate periods of uncertainty. We continued to return capital to shareholders during the quarter by repurchasing $20.9 million of common stock."

Additional First Quarter 2025 Highlights:

Customer contact information

Protolabs served 21,627 customer contacts during the quarter. Revenue per customer contact increased 2.5% year-over-year to $5,836. EBITDA was $13.6 million. See "Non-GAAP Financial Measures" below. Adjusted EBITDA was $17.4 million, or 13.8% of revenue, compared to $20.2 million, or 15.8% of revenue, in 2024. See "Non-GAAP Financial Measures" below. Cash and investments balance was $116.3 million as of March 31, 2025.

Story Continues

Second Quarter 2025 Outlook

In the second quarter of 2025, the Company expects to generate revenue between $124.0 million and $132.0 million.

The Company expects second quarter 2025 diluted net income per share between $0.11 and $0.19, and non-GAAP diluted net income per share between $0.30 and $0.38. 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 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 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 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 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 2025 financial results and second quarter 2025 outlook today, May 2, 2025 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/ngihgh3z/. 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 fastest and most comprehensive manufacturing service from prototyping to production. Our digital factories produce low-volume parts in days while Protolabs Network unlocks advanced capabilities and volume pricing through its highly vetted manufacturing partners. The result? One digital manufacturing source for product developers, engineers, and supply chain teams across the globe. See what's next 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, 
2025  December 31, 
2024 (Unaudited)  Assets  Current assets  Cash and cash equivalents  $ 82,692  $ 89,071 Short-term marketable securities   14,154   14,019 Accounts receivable, net   73,904   66,504 Inventory   13,202   12,305 Income taxes receivable   864   2,906 Prepaid expenses and other current assets   9,594   10,049 Total current assets   194,410   194,854  Property and equipment, net   221,207   227,263 Goodwill   273,991   273,991 Other intangible assets, net   20,775   21,422 Long-term marketable securities   19,425   17,773 Operating lease assets   2,461   2,993 Finance lease assets   625   692 Other long-term assets   4,556   4,524 Total assets  $ 737,450  $ 743,512  Liabilities and shareholders' equity  Current liabilities  Accounts payable  $ 16,288  $ 15,504 Accrued compensation   18,554   16,550 Accrued liabilities and other   24,172   19,621 Current operating lease liabilities   1,132   1,287 Current finance lease liabilities   312   309 Income taxes payable   1,634   — Total current liabilities   62,092   53,271  Long-term operating lease liabilities   1,491   1,633 Long-term finance lease liabilities   207   287 Long-term deferred tax liabilities   12,062   13,565 Other long-term liabilities   4,797   4,605  Shareholders' equity   656,801   670,151 Total liabilities and shareholders' equity  $ 737,450  $ 743,512

Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited)   Three Months Ended 
March 31, 2025  2024 Revenue  Injection Molding  $ 48,723   $ 52,663 CNC Machining   52,843    49,932 3D Printing   20,194    21,582 Sheet Metal   4,211    3,553 Other Revenue   234    160 Total Revenue   126,205    127,890  Cost of revenue   70,507    70,423 Gross profit   55,698    57,467  Operating expenses  Marketing and sales   23,749    23,160 Research and development   10,609    11,167 General and administrative   16,848    16,313 Benefits related to exit and disposal activities   (39 )   — Total operating expenses   51,167    50,640 Income from operations   4,531    6,827 Other income, net   1,454    899 Income before income taxes   5,985    7,726 Provision for income taxes   2,386    2,458 Net income  $ 3,599   $ 5,268  Net income per share:  Basic  $ 0.15   $ 0.21 Diluted  $ 0.15   $ 0.20  Shares used to compute net income per share:  Basic   24,135,320    25,624,949 Diluted   24,435,844    25,784,987

Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)   Three Months Ended 
March 31, 2025  2024 Operating activities  Net income  $ 3,599   $ 5,268  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization   8,694    9,103  Stock-based compensation expense   3,992    4,276  Deferred taxes   (1,552 )   (2,247 ) Interest on finance lease obligations   6    10  Impairments related to exit and closure of facilities   219    —  Gain on disposal of property and equipment   —    (22 ) Other   43    63  Changes in operating assets and liabilities   3,378    4,887  Net cash provided by operating activities   18,379    21,338   Investing activities  Purchases of property, equipment and other capital assets   (1,262 )   (2,587 ) Proceeds from sales of property, equipment and other capital assets   —    22  Purchases of marketable securities   (6,552 )   —  Proceeds from call redemptions and maturities of marketable securities   4,905    6,984  Net cash (used in) provided by investing activities   (2,909 )   4,419   Financing activities  Proceeds from issuance of common stock from equity plans   287    —  Purchases of shares withheld for tax obligations   (1,248 )   (533 ) Repurchases of common stock   (20,890 )   (16,013 ) Principal repayments of finance lease obligations   (76 )   (73 ) Net cash used in financing activities   (21,927 )   (16,619 ) Effect of exchange rate changes on cash and cash equivalents   78    (124 ) Net (decrease) increase in cash and cash equivalents   (6,379 )   9,014  Cash and cash equivalents, beginning of period   89,071    83,790  Cash and cash equivalents, end of period  $ 82,692   $ 92,804

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, 2025  2024 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and benefits related to exit and disposal activities  GAAP net income  $ 3,599   $ 5,268  Add back:  Stock-based compensation expense   3,992    4,276  Amortization expense   908    987  Unrealized (gain) loss on foreign currency   (135 )   237  Benefit related to exit and disposal activities   (39 )   —  Total adjustments 1   4,726    5,500  Income tax benefits on adjustments 2   (242 )   (354 ) Non-GAAP net income  $ 8,083   $ 10,414    Non-GAAP net income per share:  Basic  $ 0.33   $ 0.41  Diluted  $ 0.33   $ 0.40   Shares used to compute non-GAAP net income per share:  Basic   24,135,320    25,624,949  Diluted   24,435,844    25,784,987

1  Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and benefits related to exit and disposal activities were included in the following GAAP consolidated statement of operations categories:

Three Months Ended 
March 31, 2025  2024  Cost of revenue  $ 802   $ 801  Marketing and sales   778    833 Research and development   625    692 General and administrative   2,695    2,937 Benefit related to exit and disposal activities   (39 )   — Total operating expenses   4,059    4,462  Other income (loss), net   (135 )   237 Total adjustments  $ 4,726   $ 5,500

2  For the three months ended March 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 quarter.

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited)   Three Months Ended 
March 31, 2025  2024 Revenue  $ 126,205   $ 127,890  Gross profit   55,698    57,467  GAAP gross margin   44.1 %   44.9 % Add back:  Stock-based compensation expense   460    459  Amortization expense   342    342  Total adjustments   802    801  Non-GAAP gross profit  $ 56,500   $ 58,268  Non-GAAP gross margin   44.8 %   45.6 %

Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited)   Three Months Ended 
March 31, 2025  2024 Revenue  $ 126,205   $ 127,890  Income from operations   4,531    6,827  GAAP operating margin   3.6 %   5.3 % Add back:  Stock-based compensation expense   3,992    4,276  Amortization expense   908    987  Benefit related to exit and disposal activities   (39 )   —  Total adjustments   4,861    5,263  Non-GAAP income from operations  $ 9,392   $ 12,090  Non-GAAP operating margin   7.4 %   9.5 %

Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited)   Three Months Ended 
March 31, 2025  2024 Revenue  $ 126,205   $ 127,890  GAAP net income   3,599    5,268  GAAP net income margin   2.9 %   4.1 % Add back:  Amortization expense  $ 908   $ 987  Depreciation expense   7,786    8,116  Interest income, net   (1,108 )   (1,112 ) Provision for income taxes   2,386    2,458  EBITDA   13,571    15,717  EBITDA Margin   10.8 %   12.3 % Add back:  Stock-based compensation expense   3,992    4,276  Unrealized (gain) loss on foreign currency   (135 )   237  Benefit related to exit and disposal activities   (39 )   —  Total adjustments   3,818    4,513  Adjusted EBITDA  $ 17,389   $ 20,230  Adjusted EBITDA Margin   13.8 %   15.8 %

Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited)   Three Months Ended 
March 31, 2025  Three Months Ended 
March 31, 2024  % Change2  % Change Organic3 GAAP  Foreign

Currency1  Non-GAAP  GAAP  Revenues  United States  $ 100,267  $ —  $ 100,267  $ 101,481  (1.2 %)  (1.2 %) Europe   25,938   463   26,401   26,409  (1.8 )  —  Total revenue  $ 126,205  $ 463  $ 126,668  $ 127,890  (1.3 %)  (1.0 %)

1  Revenue for the three months ended March 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 months ended March 31, 2024 to GAAP revenue for the three months ended March 31, 2025. 3  This column presents the percentage change from GAAP revenue for the three months ended March 31, 2024 to non-GAAP revenue for the three months ended March 31, 2025 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 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 
March 31, 2025  Three Months Ended 
March 31, 2024  % Change2  % Change Organic3 GAAP  Foreign Currency1  Non-GAAP  GAAP  Revenues  Injection Molding  $ 48,723  $ 81  $ 48,804  $ 52,663  (7.5 %)  (7.3 %) CNC Machining   52,843   305   53,148   49,932  5.8   6.4  3D Printing   20,194   64   20,258   21,582  (6.4 )  (6.1 ) Sheet Metal   4,211   10   4,221   3,553  18.5   18.8  Other Revenue   234   3   237   160  46.3   48.1  Total revenue  $ 126,205  $ 463  $ 126,668  $ 127,890  (1.3 %)  (1.0 %)

1  Revenue for the three months ended March 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 months ended March 31, 2024 to GAAP revenue for the three months ended March 31, 2025. 3  This column presents the percentage change from GAAP revenue for the three months ended March 31, 2024 to non-GAAP revenue for the three months ended March 31, 2025 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 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 
March 31, 2025  2024 Revenue  $ 126,205  $ 127,890 Customer contacts   21,627   22,466 Revenue per customer contact1  $ 5,836  $ 5,693

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 2025 Outlook Low  High GAAP diluted net income per share  $ 0.11  $ 0.19 Add back:  Stock-based compensation expense   0.16   0.16 Amortization expense   0.03   0.03 Unrealized (gain) loss on foreign currency   0.00   0.00 Total adjustments   0.19   0.19 Non-GAAP diluted net income per share  $ 0.30  $ 0.38

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Contacts

Investor Relations Contacts: 
Protolabs
Ryan Johnsrud, 612-225-4873
Manager – Investor Relations and FP&A
[email protected]

Gateway Group, Inc.
949-574-3860
[email protected]

Media Contact: 
Protolabs
Brent Renneke, 763-479-7704
Marketing Communications Manager
[email protected]

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