Protolabs Reports Financial Results for the Second Quarter of 2026

Record Quarterly Revenue of $149.3 Million, a 10.6% Increase Year-Over-Year

GAAP Earnings Per Share of $0.37, Non-GAAP Earnings Per Share of $0.60

Raising Full Year 2026 Revenue Growth Guidance from 6% - 8% to 8% - 10%

MINNEAPOLIS--(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 second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights:

• Revenue was a record $149.3 million, a 10.6% increase over the second quarter of 2025.
  • Total revenue per customer contact increased 16.7% year-over-year.
  • CNC machining revenue grew 13.6% year-over-year.
  • Injection molding revenue grew 13.1% year-over-year.
• GAAP gross margin was 46.4%, up from 44.3% in the second quarter of 2025. Non-GAAP gross margin was 46.8%, up 200 bps from 44.8% in the second quarter of 2025.
• GAAP operating margin was 7.6%, up from 3.7% in the second quarter of 2025. Non-GAAP operating margin was 12.0%, up 340 bps from 8.6% in the second quarter of 2025.
• GAAP net income was $0.37 per diluted share, compared to $0.18 per diluted share in the second quarter of 2025. Non-GAAP net income was $0.60 per diluted share, compared to $0.41 per diluted share in the second quarter of 2025.
  
  Note: See “Non-GAAP Financial Measures” below.

"We delivered another strong quarter with record revenue, double-digit revenue growth, and both gross and operating margin expansion. More importantly, we are seeing increasing evidence that our strategy is gaining traction across the business, with larger strategic customers expanding their relationships with Protolabs," said President and Chief Executive Officer Suresh Krishna. "Through the first half of 2026, we have demonstrated that Protolabs can deliver strong financial performance while simultaneously transforming the business for the future. We are encouraged by the momentum we are seeing across customers, services, and regions."

Additional Second Quarter 2026 Financial Highlights:

• Adjusted EBITDA was $25.1 million, or 16.8% of revenue, compared to $19.7 million, or 14.6% of revenue, in the second quarter of 2025. See “Non-GAAP Financial Measures” below.
• Cash generated from operations was $15.4 million.
• Cash and investments balance was $162.9 million as of June 30, 2026.

"Record revenue and meaningful margin expansion in the second quarter highlight the strength and scalability of our business model," said Chief Financial Officer Dan Schumacher. "We continue to generate strong cash flow while investing in strategic growth initiatives, and we remain focused on balancing profitable growth with disciplined execution to drive value for customers and shareholders."

Financial Guidance and Outlook:

• For full year 2026, Protolabs is raising its guidance and now expects to generate revenue growth between 8% and 10%.
• For the third quarter of 2026, the Company expects revenue between $145.0 million and $153.0 million.
• For the third quarter of 2026, the Company expects GAAP diluted net income per share between $0.34 and $0.42, and non-GAAP diluted net income per share between $0.56 and $0.64. See "Non-GAAP Financial Measures" below.

Non-GAAP Financial Measures

The Company has included non-GAAP revenue growth by region and by product 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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (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, amortization expense and trade refunds and charges, net, 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, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (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 loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs (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 product 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 second quarter 2026 financial results and third quarter 2026 outlook today, July 31, 2026, 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/9bgsjeh5/. 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)
	June 30, 2026		December 31, 2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	127,918	$	110,826
Short-term marketable securities		14,858		17,297
Accounts receivable, net		95,074		78,962
Inventory		15,413		14,401
Prepaid expenses and other current assets		11,590		9,590
Income taxes receivable		1,390		2,465
Total current assets		266,243		233,541
Property and equipment, net		208,329		215,261
Goodwill		273,991		273,991
Other intangible assets, net		16,606		18,612
Long-term marketable securities		20,120		14,308
Operating lease assets		1,263		2,836
Finance lease assets		290		424
Other long-term assets		4,456		4,442
Total assets	$	791,298	$	763,415
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	21,542	$	15,104
Accrued compensation		18,830		23,674
Accrued liabilities and other		31,776		26,783
Current operating lease liabilities		929		1,155
Current finance lease liabilities		127		286
Total current liabilities		73,204		67,002
Long-term operating lease liabilities		1,185		1,606
Long-term deferred tax liabilities		20,625		16,598
Other long-term liabilities		4,551		4,277
Shareholders' equity		691,733		673,932
Total liabilities and shareholders' equity	$	791,298	$	763,415

Proto Labs, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenue
Injection Molding	$	53,625	$	47,415	$	104,693	$	96,138
CNC Machining		70,360		61,945		133,605		114,788
3D Printing		20,667		21,215		41,132		41,409
Sheet Metal		4,462		4,303		8,813		8,514
Other Revenue		227		185		434		419
Total revenue		149,341		135,063		288,677		261,268
Cost of revenue		79,999		75,289		155,743		145,796
Gross profit		69,342		59,774		132,934		115,472
Operating expenses
Marketing and sales		25,682		24,731		50,462		48,480
Research and development		10,791		11,173		21,331		21,782
General and administrative		19,650		18,752		36,662		35,600
Restructuring and transformation costs		924		—		2,345		—
Costs related to exit and disposal activities		937		149		937		110
Total operating expenses		57,984		54,805		111,737		105,972
Income from operations		11,358		4,969		21,197		9,500
Other income, net		1,245		1,705		2,723		3,159
Income before income taxes		12,603		6,674		23,920		12,659
Provision for income taxes		3,451		2,247		6,657		4,633
Net income	$	9,152	$	4,427	$	17,263	$	8,026
Net income per share:
Basic	$	0.38	$	0.19	$	0.72	$	0.33
Diluted	$	0.37	$	0.18	$	0.71	$	0.33
Shares used to compute net income per share:
Basic		23,969,254		23,900,390		23,902,802		24,018,119
Diluted		24,415,788		24,101,592		24,358,568		24,291,246

Proto Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended June 30,
		2026			2025
Operating activities
Net income	$	17,263		$	8,026
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,161			17,264
Stock-based compensation expense		7,307			8,251
Deferred taxes		4,054			(3,985	)
Interest on finance lease obligations		5			11
Loss on impairment of equipment		186			—
Impairments related to exit and closure of facilities		937			448
Gain on disposal of property and equipment		(120	)		—
Other		(152	)		(82	)
Changes in operating assets and liabilities		(12,663	)		(970	)
Net cash provided by operating activities		32,978			28,963
Investing activities
Purchases of property, equipment and other capital assets		(9,743	)		(2,730	)
Proceeds from sales of property, equipment and other capital assets		1,279			—
Purchases of marketable securities		(16,007	)		(11,052	)
Proceeds from maturities of marketable securities		12,500			10,230
Net cash used in investing activities		(11,971	)		(3,552	)
Financing activities
Proceeds from issuance of common stock from equity plans		7,265			2,081
Purchases of shares withheld for tax obligations		(5,951	)		(3,117	)
Repurchases of common stock		(5,036	)		(23,980	)
Principal repayments of finance lease obligations		(160	)		(153	)
Net cash used in financing activities		(3,882	)		(25,169	)
Effect of exchange rate changes on cash and cash equivalents		(33	)		1,069
Net increase in cash and cash equivalents		17,092			1,311
Cash and cash equivalents, beginning of period		110,826			89,071
Cash and cash equivalents, end of period	$	127,918		$	90,382

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 June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs
GAAP net income	$	9,152		$	4,427		$	17,263		$	8,026
Add back:
Stock-based compensation expense		4,088			4,259			7,307			8,251
Amortization expense		905			927			1,818			1,835
Unrealized loss (gain) on foreign currency		137			(179	)		137			(314	)
Trade refunds and charges, net		(327	)		—			(327	)		—
Restructuring and transformation costs		924			—			2,345			—
Costs related to exit and disposal activities		937			149			937			110
CEO transition costs		—			1,362			—			1,362
Total adjustments ^1		6,664			6,518			12,217			11,244
Income tax benefits on adjustments ^2		(1,111	)		(958	)		(1,697	)		(1,200	)
Non-GAAP net income	$	14,705		$	9,987		$	27,783		$	18,070
Non-GAAP net income per share:
Basic	$	0.61		$	0.42		$	1.16		$	0.75
Diluted	$	0.60		$	0.41		$	1.14		$	0.74
Shares used to compute non-GAAP net income per share:
Basic		23,969,254			23,900,390			23,902,802			24,018,119
Diluted		24,415,788			24,101,592			24,358,568			24,291,246

^1Stock-based compensation expense, amortization expense, unrealized loss (gain) on foreign currency, trade refunds and charges, net, restructuring and transformation costs, costs related to exit and disposal activities and CEO transition costs were included in the following GAAP consolidated statement of operations categories:

	Three Months Ended June 30,					Six Months Ended June 30,
	2026			2025		2026			2025
Cost of revenue	$	549	$	767		$	1,285	$	1,569
Marketing and sales		819		808			1,524		1,586
Research and development		641		735			1,069		1,360
General and administrative		2,657		4,238			4,920		6,933
Restructuring and transformation costs		924		—			2,345		—
Costs related to exit and disposal activities		937		149			937		110
Total operating expenses		5,978		5,930			10,795		9,989
Other income, net		137		(179	)		137		(314	)
Total adjustments	$	6,664	$	6,518		$	12,217	$	11,244

^2For the three and six months ended June 30, 2026 and 2025, 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 respective period.

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Gross Margin
(In thousands)
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Revenue	$	149,341		$	135,063		$	288,677		$	261,268
Gross profit		69,342			59,774			132,934			115,472
GAAP gross margin		46.4	%		44.3	%		46.0	%		44.2	%
Add back:
Stock-based compensation expense		534			424			928			884
Amortization expense		342			343			684			685
Trade refunds and charges, net		(327	)		—			(327	)		—
Total adjustments		549			767			1,285			1,569
Non-GAAP gross profit	$	69,891		$	60,541		$	134,219		$	117,041
Non-GAAP gross margin		46.8	%		44.8	%		46.5	%		44.8	%

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin
(In thousands)
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Revenue	$	149,341		$	135,063		$	288,677		$	261,268
Income from operations		11,358			4,969			21,197			9,500
GAAP operating margin		7.6	%		3.7	%		7.3	%		3.6	%
Add back:
Stock-based compensation expense		4,088			4,259			7,307			8,251
Amortization expense		905			927			1,818			1,835
Trade refunds and charges, net		(327	)		—			(327	)		—
Restructuring and transformation costs		924			—			2,345			—
Costs related to exit and disposal activities		937			149			937			110
CEO transition costs		—			1,362			—			1,362
Total adjustments		6,527			6,697			12,080			11,558
Non-GAAP income from operations	$	17,885		$	11,666		$	33,277		$	21,058
Non-GAAP operating margin		12.0	%		8.6	%		11.5	%		8.1	%

Proto Labs, Inc.
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Revenue	$	149,341		$	135,063		$	288,677		$	261,268
GAAP net income		9,152			4,427			17,263			8,026
GAAP net income margin		6.1	%		3.3	%		6.0	%		3.1	%
Add back:
Amortization expense	$	905		$	927		$	1,818		$	1,835
Depreciation expense		7,183			7,643			14,343			15,429
Interest income, net		(1,331	)		(1,143	)		(2,584	)		(2,251	)
Provision for income taxes		3,451			2,247			6,657			4,633
EBITDA		19,360			14,101			37,497			27,672
EBITDA Margin		13.0	%		10.4	%		13.0	%		10.6	%
Add back:
Stock-based compensation expense		4,088			4,259			7,307			8,251
Unrealized loss (gain) on foreign currency		137			(179	)		137			(314	)
Trade refunds and charges, net		(327	)		—			(327	)		—
Restructuring and transformation costs		924			—			2,345			—
Costs related to exit and disposal activities		937			149			937			110
CEO transition costs		—			1,362			—			1,362
Total adjustments		5,759			5,591			10,399			9,409
Adjusted EBITDA	$	25,119		$	19,692		$	47,896		$	37,081
Adjusted EBITDA Margin		16.8	%		14.6	%		16.6	%		14.2	%

Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Region
(In thousands)
(Unaudited)
	Three Months Ended June 30, 2026							Three Months Ended June 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
United States	$	122,759	$	—		$	122,759	$	110,712	10.9	%	10.9	%
Europe		26,582		(447	)		26,135		24,351	9.2		7.3
Total revenue	$	149,341	$	(447	)	$	148,894	$	135,063	10.6	%	10.2	%
	Six Months Ended June 30, 2026							Six Months Ended June 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
United States	$	234,886	$	—		$	234,886	$	210,979	11.3	%	11.3	%
Europe		53,791		(2,604	)		51,187		50,289	7.0		1.8
Total revenue	$	288,677	$	(2,604	)	$	286,073	$	261,268	10.5	%	9.5	%

^1Revenue for the three and six months ended June 30, 2026 has been recalculated using 2025 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.

^2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to GAAP revenue for the three and six months ended June 30, 2026.

^3This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to non-GAAP revenue for the three and six months ended June 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and six months ended June 30, 2025) in order to provide a constant-currency comparison.

Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Product Line
(In thousands)
(Unaudited)
	Three Months Ended June 30, 2026							Three Months Ended June 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
Injection Molding	$	53,625	$	(89	)	$	53,536	$	47,415	13.1	%	12.9	%
CNC Machining		70,360		(318	)		70,042		61,945	13.6		13.1
3D Printing		20,667		(30	)		20,637		21,215	(2.6	)	(2.7	)
Sheet Metal		4,462		(8	)		4,454		4,303	3.7		3.5
Other Revenue		227		(2	)		225		185	22.7		21.6
Total revenue	$	149,341	$	(447	)	$	148,894	$	135,063	10.6	%	10.2	%
	Six Months Ended June 30, 2026							Six Months Ended June 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
Injection Molding	$	104,693	$	(720	)	$	103,973	$	96,138	8.9	%	8.1	%
CNC Machining		133,605		(1,432	)		132,173		114,788	16.4		15.1
3D Printing		41,132		(398	)		40,734		41,409	(0.7	)	(1.6	)
Sheet Metal		8,813		(50	)		8,763		8,514	3.5		2.9
Other Revenue		434		(4	)		430		419	3.6		2.6
Total revenue	$	288,677	$	(2,604	)	$	286,073	$	261,268	10.5	%	9.5	%

^1Revenue for the three and six months ended June 30, 2026 has been recalculated using 2025 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.

^2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to GAAP revenue for the three and six months ended June 30, 2026.

^3This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to non-GAAP revenue for the three and six months ended June 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and six months ended June 30, 2025) 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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenue	$	149,341	$	135,063	$	288,677	$	261,268
Customer contacts		20,630		21,775		31,069		33,136
Revenue per customer contact^1	$	7,239	$	6,203	$	9,291	$	7,885

^1Revenue 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)
	Q3 2026 Outlook
	Low		High
GAAP diluted net income per share	$	0.34	$	0.42
Add back:
Stock-based compensation expense		0.19		0.19
Amortization expense		0.03		0.03
Total adjustments		0.22		0.22
Non-GAAP diluted net income per share	$	0.56	$	0.64