Proto Labs 2025 Q2 Earnings Revenue Climbs 7.5% Amid Net Income Decline

Proto Labs (PRLB) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The total revenue of Proto Labs increased by 7.5% to $135.06 million in 2025 Q2, up from $125.63 million in 2024 Q2. Proto Labs reported mixed results for Q2 2025, with revenue exceeding expectations at $135.06 million, a 7.5% increase from the previous year. However, net income fell to $4.43 million, down 2.5% year-over-year. The company maintained its guidance for Q3 2025 with expected revenue between $130 million and $138 million, and diluted EPS ranging from $0.17 to $0.25. The market reacted with cautious optimism, as shares showed volatility post-announcement.

Revenue

Earnings/Net Income
Proto Labs's EPS rose 5.6% to $0.19 in 2025 Q2 from $0.18 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's net income declined to $4.43 million in 2025 Q2, down 2.5% from $4.54 million reported in 2024 Q2. This suggests that while EPS shows a positive trend, the decline in net income indicates underlying challenges.

Post-Earnings Price Action Review
The strategy of investing in Proto Labs (PRLB) shares following a quarter-over-quarter revenue increase on the earnings report date, and holding for 30 days, significantly underperformed. The compound annual growth rate stood at -18.26%, with an excess return of -148.83%, substantially trailing the benchmark return of 85.57%. The strategy also exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.37, highlighting high risk and loss. These figures underscore the volatility and challenges associated with this investment approach, suggesting a need for reevaluation of the strategy's effectiveness in light of the company's recent financial performance.

CEO Commentary

Guidance

Additional News
Proto Labs recently appointed Suresh Krishna as its new President and CEO, marking a significant leadership change. This transition is expected to influence the company's strategic direction, particularly in addressing challenges in its European operations. In addition, the company announced a shift in capital allocation priorities, with a focus on returning capital to shareholders through share repurchases. Proto Labs has reduced its capital expenditures for long-lived assets by 60% to $2.7 million in the first half of 2025, while engaging in $24 million in share repurchases. This move aligns with the company's strategy to optimize asset utilization and leverage its partner network for capacity expansion, reflecting confidence in its long-term growth prospects.