Protolabs Reports Financial Results for the Third Quarter of 2026

Record Quarterly Revenue of $154.3 Million, a 14.0% Increase Year-Over-Year

GAAP Earnings Per Share of $0.48, up 61% YoY; Non-GAAP Earnings Per Share of $0.63, up 33% YoY

Raising Full Year 2026 Revenue Growth Guidance from 8% - 10% to 10% - 11%

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 third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights:

• Revenue was a record $154.3 million, a 14.0% increase over the third quarter of 2025.
  • Total revenue per customer contact increased 16.6% year-over-year.
  • CNC machining revenue grew 16.4% year-over-year.
  • Injection molding revenue grew 12.5% year-over-year.
  • 3D printing revenue grew 11.4% year-over-year.
• GAAP operating margin was 9.4%, up from 6.5% in the third quarter of 2025. Non-GAAP operating margin was 11.9%, up from 10.0% in the third quarter of 2025.
• GAAP net income was $0.48 per diluted share, compared to $0.30 per diluted share in the third quarter of 2025. Non-GAAP net income was $0.63 per diluted share, compared to $0.47 per diluted share in the third quarter of 2025.
  
  Note: See “Non-GAAP Financial Measures” below.

"Protolabs delivered another record quarter, with double-digit revenue growth for the fourth consecutive quarter," said Suresh Krishna, President and Chief Executive Officer. "Our momentum reflects strong execution and growing demand from industries that value speed, quality, and manufacturing agility. As reindustrialization, advanced hardware innovation, and the need for resilient supply chains reshape manufacturing, our digital model enables customers to move quickly from idea to production — positioning us to deliver sustained profitable growth and long-term shareholder value."

Additional Third Quarter 2026 Financial Highlights:

• GAAP net income was $11.8 million, or 7.6% of revenue, up 63.0% compared to $7.2 million, or 5.3% of revenue in the third quarter of 2025.
• Adjusted EBITDA was $26.2 million, or 17.0% of revenue, up 23.8% compared to $21.1 million, or 15.6% of revenue, in the third quarter of 2025. See “Non-GAAP Financial Measures” below.
• Cash generated from operations was $22.8 million.
• Cash and investments balance was $175.0 million as of September 30, 2026.

"We delivered another quarter of strong financial performance, with broad-based revenue growth, meaningful operating leverage, and continued earnings growth," said Dan Schumacher, Chief Financial Officer. "We remain focused on balancing investments in our strategic priorities with disciplined cost management, while generating strong cash flow and positioning the business for sustained profitable growth."

Financial Guidance and Outlook:

• For full year 2026, Protolabs is raising its guidance and now expects revenue growth between 10% and 11%.
• For the fourth quarter of 2026, the Company expects revenue between $143.0 million and $151.0 million.
• For the fourth quarter of 2026, the Company expects GAAP diluted net income per share between $0.28 and $0.36, and non-GAAP diluted net income per share between $0.46 and $0.54. 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 metrics calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), 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 (“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 ("non-GAAP gross margin"), 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 (“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 (“non-GAAP net income” and "non-GAAP net income per share", respectively), 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, EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin to 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 the Company's 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 the Company's 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 third quarter 2026 financial results and fourth quarter 2026 outlook today, October 29, 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/ec8fzrj2/. 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)
	September 30, 2026		December 31, 2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	133,780	$	110,826
Short-term marketable securities		17,366		17,297
Accounts receivable, net		99,256		78,962
Inventory		16,538		14,401
Prepaid expenses and other current assets		11,844		9,590
Income taxes receivable		744		2,465
Total current assets		279,528		233,541
Property and equipment, net		206,932		215,261
Goodwill		273,991		273,991
Other intangible assets, net		15,663		18,612
Long-term marketable securities		23,903		14,308
Operating lease assets		3,130		2,836
Finance lease assets		—		424
Other long-term assets		4,874		4,442
Total assets	$	808,021	$	763,415
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	18,991	$	15,104
Accrued compensation		24,632		23,674
Accrued liabilities and other		31,755		26,783
Current operating lease liabilities		1,239		1,155
Current finance lease liabilities		—		286
Total current liabilities		76,617		67,002
Long-term operating lease liabilities		2,664		1,606
Long-term deferred tax liabilities		22,269		16,598
Other long-term liabilities		4,667		4,277
Shareholders' equity		701,804		673,932
Total liabilities and shareholders' equity	$	808,021	$	763,415

Proto Labs, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue
Injection Molding	$	53,730	$	47,770	$	158,423	$	143,908
CNC Machining		73,359		63,043		206,964		177,831
3D Printing		22,364		20,082		63,496		61,491
Sheet Metal		4,063		4,262		12,876		12,776
Other Revenue		802		209		1,236		628
Total revenue		154,318		135,366		442,995		396,634
Cost of revenue		85,655		74,073		241,398		219,869
Gross profit		68,663		61,293		201,597		176,765
Operating expenses
Marketing and sales		24,528		24,574		74,990		73,054
Research and development		11,019		10,705		32,350		32,487
General and administrative		18,241		17,163		54,903		52,763
Restructuring and transformation costs		434		—		2,779		—
Costs related to exit and disposal activities		—		41		937		151
Total operating expenses		54,222		52,483		165,959		158,455
Income from operations		14,441		8,810		35,638		18,310
Other income, net		1,766		1,441		4,489		4,600
Income before income taxes		16,207		10,251		40,127		22,910
Provision for income taxes		4,445		3,035		11,102		7,668
Net income	$	11,762	$	7,216	$	29,025	$	15,242
Net income per share:
Basic	$	0.49	$	0.30	$	1.21	$	0.64
Diluted	$	0.48	$	0.30	$	1.19	$	0.63
Shares used to compute net income per share:
Basic		24,024,031		23,889,157		23,943,656		23,974,054
Diluted		24,438,800		24,191,039		24,398,409		24,249,669

Proto Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Nine Months Ended September 30,
	2026			2025
Operating activities
Net income	$	29,025		$	15,242
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		24,269			25,693
Stock-based compensation expense		10,658			11,928
Deferred taxes		5,563			2,355
Interest on finance lease obligations		5			16
Loss on impairment of equipment		186			—
Impairments related to exit and closure of facilities		937			448
Gain on disposal of property and equipment		(150	)		16
Other		(172	)		(179	)
Changes in operating assets and liabilities		(14,575	)		2,355
Net cash provided by operating activities		55,746			57,874
Investing activities
Purchases of property, equipment and other capital assets		(15,539	)		(6,792	)
Proceeds from sales of property, equipment and other capital assets		1,279			811
Purchases of marketable securities		(25,507	)		(13,553	)
Proceeds from maturities of marketable securities		15,475			11,730
Net cash used in investing activities		(24,292	)		(7,804	)
Financing activities
Proceeds from issuance of common stock from equity plans		8,011			4,195
Purchases of shares withheld for tax obligations		(6,083	)		(3,119	)
Repurchases of common stock		(10,038	)		(36,732	)
Principal repayments of finance lease obligations		(187	)		(231	)
Net cash used in financing activities		(8,297	)		(35,887	)
Effect of exchange rate changes on cash and cash equivalents		(203	)		989
Net increase in cash and cash equivalents		22,954			15,172
Cash and cash equivalents, beginning of period		110,826			89,071
Cash and cash equivalents, end of period	$	133,780		$	104,243

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 September 30,						Nine Months Ended September 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	$	11,762		$	7,216		$	29,025		$	15,242
Add back:
Stock-based compensation expense		3,351			3,677			10,658			11,928
Amortization expense		902			935			2,720			2,770
Unrealized loss (gain) on foreign currency		129			(2	)		266			(316	)
Trade refunds and charges, net		(709	)		—			(1,036	)		—
Restructuring and transformation costs		434			—			2,779			—
Costs related to exit and disposal activities		—			41			937			151
CEO transition costs		—			14			—			1,376
Total adjustments ^1		4,107			4,665			16,324			15,909
Income tax benefits on adjustments ^2		(531	)		(500	)		(2,228	)		(1,700	)
Non-GAAP net income	$	15,338		$	11,381		$	43,121		$	29,451
Non-GAAP net income per share:
Basic	$	0.64		$	0.48		$	1.80		$	1.23
Diluted	$	0.63		$	0.47		$	1.77		$	1.21
Shares used to compute non-GAAP net income per share:
Basic		24,024,031			23,889,157			23,943,656			23,974,054
Diluted		24,438,800			24,191,039			24,398,409			24,249,669
^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 September 30,					Nine Months Ended September 30,
	2026		2025			2026		2025
Cost of revenue	$	85	$	781		$	1,370	$	2,350
Marketing and sales		798		837			2,322		2,423
Research and development		629		764			1,698		2,124
General and administrative		2,032		2,244			6,952		9,177
Restructuring and transformation costs		434		—			2,779		—
Costs related to exit and disposal activities		—		41			937		151
Total operating expenses		3,893		3,886			14,688		13,875
Other income, net		129		(2	)		266		(316	)
Total adjustments	$	4,107	$	4,665		$	16,324	$	15,909
^2 For the three and nine months ended September 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 September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Revenue	$	154,318		$	135,366		$	442,995		$	396,634
Gross profit		68,663			61,293			201,597			176,765
GAAP gross margin		44.5	%		45.3	%		45.5	%		44.6	%
Add back:
Stock-based compensation expense		451			439			1,379			1,323
Amortization expense		343			342			1,027			1,027
Trade refunds and charges, net		(709	)		—			(1,036	)		—
Total adjustments		85			781			1,370			2,350
Non-GAAP gross profit	$	68,748		$	62,074		$	202,967		$	179,115
Non-GAAP gross margin		44.5	%		45.9	%		45.8	%		45.2	%

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin
(In thousands)
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Revenue	$	154,318		$	135,366		$	442,995		$	396,634
Income from operations		14,441			8,810			35,638			18,310
GAAP operating margin		9.4	%		6.5	%		8.0	%		4.6	%
Add back:
Stock-based compensation expense		3,351			3,677			10,658			11,928
Amortization expense		902			935			2,720			2,770
Trade refunds and charges, net		(709	)		—			(1,036	)		—
Restructuring and transformation costs		434			—			2,779			—
Costs related to exit and disposal activities		—			41			937			151
CEO transition costs		—			14			—			1,376
Total adjustments		3,978			4,667			16,058			16,225
Non-GAAP income from operations	$	18,419		$	13,477		$	51,696		$	34,535
Non-GAAP operating margin		11.9	%		10.0	%		11.7	%		8.7	%

Proto Labs, Inc.
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Revenue	$	154,318		$	135,366		$	442,995		$	396,634
GAAP net income		11,762			7,216			29,025			15,242
GAAP net income margin		7.6	%		5.3	%		6.6	%		3.8	%
Add back:
Amortization expense	$	902		$	935		$	2,720		$	2,770
Depreciation expense		7,206			7,494			21,549			22,923
Interest income, net		(1,355	)		(1,281	)		(3,939	)		(3,532	)
Provision for income taxes		4,445			3,035			11,102			7,668
EBITDA		22,960			17,399			60,457			45,071
EBITDA margin		14.9	%		12.9	%		13.6	%		11.4	%
Add back:
Stock-based compensation expense		3,351			3,677			10,658			11,928
Unrealized loss (gain) on foreign currency		129			(2	)		266			(316	)
Trade refunds and charges, net		(709	)		—			(1,036	)		—
Restructuring and transformation costs		434			—			2,779			—
Costs related to exit and disposal activities		—			41			937			151
CEO transition costs		—			14			—			1,376
Total adjustments		3,205			3,730			13,604			13,139
Adjusted EBITDA	$	26,165		$	21,129		$	74,061		$	58,210
Adjusted EBITDA margin		17.0	%		15.6	%		16.7	%		14.7	%

Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Region
(In thousands)
(Unaudited)
	Three Months Ended September 30, 2026							Three Months Ended September 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
United States	$	125,412	$	—		$	125,412	$	109,361	14.7	%	14.7	%
Europe		28,906		267			29,173		26,005	11.2		12.2
Total revenue	$	154,318	$	267		$	154,585	$	135,366	14.0	%	14.2	%
	Nine Months Ended September 30, 2026							Nine Months Ended September 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
United States	$	360,298	$	—		$	360,298	$	320,340	12.5	%	12.5	%
Europe		82,697		(2,337	)		80,360		76,294	8.4		5.3
Total revenue	$	442,995	$	(2,337	)	$	440,658	$	396,634	11.7	%	11.1	%
^1 Revenue for the three and nine months ended September 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. ^2 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to GAAP revenue for the three and nine months ended September 30, 2026. ^3 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to non-GAAP revenue for the three and nine months ended September 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and nine months ended September 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 September 30, 2026							Three Months Ended September 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
Injection Molding	$	53,730	$	46		$	53,776	$	47,770	12.5	%	12.6	%
CNC Machining		73,359		184			73,543		63,043	16.4		16.7
3D Printing		22,364		29			22,393		20,082	11.4		11.5
Sheet Metal		4,063		2			4,065		4,262	(4.7	)	(4.6	)
Other Revenue		802		6			808		209	283.7		286.6
Total revenue	$	154,318	$	267		$	154,585	$	135,366	14.0	%	14.2	%
	Nine Months Ended September 30, 2026							Nine Months Ended September 30, 2025		% Change^2		% Change Organic^3
	GAAP		Foreign Currency^1			Non-GAAP		GAAP
Revenues
Injection Molding	$	158,423	$	(674	)	$	157,749	$	143,908	10.1	%	9.6	%
CNC Machining		206,964		(1,248	)		205,716		177,831	16.4		15.7
3D Printing		63,496		(369	)		63,127		61,491	3.3		2.7
Sheet Metal		12,876		(48	)		12,828		12,776	0.8		0.4
Other Revenue		1,236		2			1,238		628	96.8		97.1
Total revenue	$	442,995	$	(2,337	)	$	440,658	$	396,634	11.7	%	11.1	%
^1 Revenue for the three and nine months ended September 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. ^2 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to GAAP revenue for the three and nine months ended September 30, 2026. ^3 This column presents the percentage change from GAAP revenue for the three and nine months ended September 30, 2025 to non-GAAP revenue for the three and nine months ended September 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and nine months ended September 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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue	$	154,318	$	135,366	$	442,995	$	396,634
Customer contacts		20,777		21,252		40,129		41,873
Revenue per customer contact^1	$	7,427	$	6,370	$	11,039	$	9,472
^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)
	Q4 2026 Outlook
	Low		High
GAAP diluted net income per share	$	0.28	$	0.36
Add back:
Stock-based compensation expense		0.15		0.15
Amortization expense		0.03		0.03
Total adjustments		0.18		0.18
Non-GAAP diluted net income per share	$	0.46	$	0.54