Protolabs (NYSE: PRLB) had one other robust quarter, setting a brand new income file and holding income regular. The digital manufacturing firm stated demand was strong throughout its key markets, with extra prospects ordering customized components by means of its on-line factories and associate community. However whereas many of the firm’s companies grew, 3D printing didn’t develop together with the remaining.
Within the third quarter, complete income reached $135.4 million, up almost 8% from a yr in the past. Web revenue got here in at $7.2 million, or 30 cents per share, about the identical as final yr. That’s additionally a step up from earlier in 2025, when Protolabs reported internet revenue of $3.6 million within the first quarter and $4.4 million in the second. The corporate’s development picked up all year long, with regular income alongside the way in which, although its 3D printing income fell about 6.3% year-over-year, from $21.4 million in Q3 2024 to $20.1 million in Q3 2025, primarily because of weak demand in Europe.
Rebounding After a Sluggish Begin
Protolabs’ first half of 2025 had been slower, with softer earnings and blended demand developments. The primary quarter noticed decrease income year-over-year, as prospects held off on orders amid broader manufacturing uncertainty. The second quarter introduced enchancment, pushing income to $135.1 million and displaying that the corporate was starting to get better. By Q3, Protolabs had regained momentum, marking its highest quarterly income in firm historical past and strengthening its revenue margins, thanks principally to CNC machining and sheet steel manufacturing, not 3D printing.
Whereas Protolabs’ general enterprise is rising, its 3D printing section tells a special story. CNC machining stays its largest section, accounting for roughly 40–45% of complete income and climbing almost 18% year-over-year, fueled by robust demand from aerospace, protection, and industrial prospects. Injection molding represents roughly 30–35%, and sheet steel provides one other 10–12%, rising about 14% this quarter. In the meantime, 3D printing (which makes up roughly 15% of the enterprise) was the one section to fall.
The decline was largely tied to weaker demand in Europe, the place manufacturing exercise has slowed. On the similar time, lots of Protolabs’ prospects who as soon as turned to 3D printing for fast prototypes are actually turning to CNC machining and molding for low-volume manufacturing runs, which have extra predictable costs. 3D printing stays a part of the corporate’s technique, however for now, it performs a smaller function than Protolabs’ extra conventional and faster-growing manufacturing companies.
CEO Suresh Krishna famous, “Protolabs generated one other quarter of accelerated development and file income, supported by robust efficiency in a number of key finish markets, and a considerable enhance in income per buyer contact. I’m very inspired by the progress we’ve made during the last two quarters—we have now important momentum into year-end. Whereas it’s nonetheless early, my quick time right here has strengthened my confidence that our present technique — delivering high-quality, customized components all through the product lifecycle, from prototyping to manufacturing — is the best one.”
Steel 3D printing. Picture courtesy of Protolabs.
Protolabs operates a hybrid mannequin that mixes its personal “digital factories” with a rising associate community of producers world wide. This double strategy lets prospects add CAD recordsdata on-line and obtain quotes and components in days, fairly than weeks.
In Q3, income generated by means of Protolabs’ personal digital factories was $105.3 million, representing a year-over-year enhance of roughly 5%. In the meantime, its Protolabs Community (which connects prospects to vetted exterior suppliers) rose even sooner, rising greater than 19% to $30.1 million. The corporate served over 21,000 prospects within the quarter, and income per buyer contact elevated 14% year-over-year to $6,370.
That enhance factors to the truth that prospects are spending extra per mission; it’s an excellent signal for the corporate’s long-term development, particularly as extra companies use Protolabs not only for prototypes however for low-volume manufacturing. Sadly, its 3D printing division continues to face headwinds.
Monetary Outlook
Protolabs ended the quarter with $138.4 million in money and investments, pointing to robust money movement and robust operations. The corporate generated $29.1 million in money from operations throughout Q3 and continued to purchase again shares, displaying confidence in its personal monetary place.
CFO Dan Schumacher added: “Together with file income within the quarter, we continued to exhibit the energy of our enterprise mannequin by increasing adjusted EBITDA as in comparison with the second quarter of 2025, persevering with our best-in-class money movement era, and returning capital to shareholders by way of repurchases of widespread inventory.”
Protolabs headquarters. Picture courtesy of Protolabs.
Trying forward, Protolabs expects fourth-quarter income between $125 million and $133 million, a slight slowdown that’s regular for the season. What’s extra, the corporate expects to earn between 12 and 20 cents per share within the fourth quarter, or 30 to 38 cents per share on an adjusted (non-GAAP) foundation.
Although the corporate expects a small slowdown, issues are nonetheless bettering. After a sluggish begin to the yr, Protolabs grew within the second and third quarters, holding income regular and reaching file gross sales.
3D printed Inconel 718 components made by Protolabs. Picture courtesy of Protolabs.
After a cautious 2024, buyers are seeing indicators of a comeback. In 2025, demand for quick, on-demand manufacturing has been rising, and Protolabs’ digital mannequin is assembly that demand.
Its capacity to mix automation, software program, and a distributed provider community positions it effectively in a market more and more outlined by velocity and suppleness. Nonetheless, the corporate’s problem shall be to revive its 3D printing enterprise, which has softened whilst its different companies surge.
As Krishna put it, the mission now’s to “speed up worthwhile development and place Protolabs for long-term shareholder worth creation.” That in all probability means persevering with to scale the community facet of the enterprise, holding margins robust, and discovering a approach to reignite development in 3D printing, which as soon as helped outline the corporate’s “digital manufacturing id.”
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