What does Proto Labs do and what are its main business segments?

What were the key takeaways from Proto Labs’s earnings call?

What factors drove the changes in Proto Labs's revenue and profit?

What were the key takeaways from Proto Labs's earnings call?

What is the market's earnings forecast for Proto Labs next quarter?

What guidance did Proto Labs's management provide for the next earnings period?

What is Proto Labs's gross profit margin?

What is Proto Labs's latest dividend and current dividend yield?

- **Revenue Record**: Q3 2025 revenue of $135.4M (+7.8% YoY) driven by 18.2% YoY CNC machining growth, with U.S. demand leading.
- **Customer Deepening**: 15% YoY increase in revenue per customer, 35% YoY rise in cross-sell of factory/network services.
- **Margin Expansion**: 45.9% non-GAAP gross margin (+110bps QoQ), supported by network tariff mitigation and European factory efficiency.
- **Strategic Investments**: $12.8M returned to shareholders; AI/automation leader appointed to drive operational efficiency.
- **Q4 Outlook**: 6% YoY revenue growth expected, with focus on maintaining gross margin momentum.
- **CNC Expansion**: Capacity being added via equipment purchases, with advanced capabilities now fully automated via e-commerce.
- **Tariff Resilience**: Network gross margin improved 80bps QoQ despite ongoing tariff pressures.


**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 2025 revenue reached $135.4 million, up 7.8% YoY, driven by strong demand in CNC machining (+18.2% YoY) and U.S. go-to-market execution. Key end markets include aerospace & defense (drones, satellites), industrial machinery (robotics), and semiconductors.
- **Customer Engagement**: Revenue per customer increased 15% YoY, with 35% growth in customers using both factory and network fulfillment. Advanced CNC machining capabilities (tighter tolerances, finishes, quality docs) launched via e-commerce platform to reduce customer friction.
- **Strategic Initiatives**: 
  - $138.4M cash on hand with no debt; $12.8M returned to shareholders via buybacks.
  - Appointment of Chief Technology & AI Officer to embed AI/automation in operations.
  - Strategic planning underway for 2026, focusing on removing friction and expanding offerings.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: 45.9% non-GAAP gross margin (+110bps QoQ), driven by sequential improvements in factory (Europe efficiency) and network (tariff mitigation, pricing algorithms).
- **Operating Efficiency**: SG&A at 35.9% of revenue (-30bps QoQ), with variable expenses tied to growth (incentives, commissions).
- **Q4 2025 Guidance**: 
  - Revenue: $125-133M (6% YoY midpoint)
  - Non-GAAP EPS: $0.30-0.38
  - Foreign exchange: $1.5M favorable impact

**【Q&A Key Highlights】**
- **Growth Strategy**: CEO emphasizes share of wallet expansion (35% YoY increase in cross-sell) over new customer acquisition. CNC machining capacity expansion via equipment purchases, not facilities.
- **Tariff Management**: Network gross margin improved 80bps QoQ through pricing and sourcing adjustments, despite ongoing tariff challenges.
- **Injection Molding**: Flat growth due to reduced prototyping demand, but focus on network fulfillment and 5-10 day lead times for competitive pricing.
- **Automation & AI**: Advanced CNC capabilities fully automated via e-commerce, with application engineers available for complex queries.
- **Customer Base**: 50,000+ annual customers, with 35% YoY increase in factory/network cross-sell. Focus on serving innovators across industries, not reliant on any single market.


Proto Labs, Inc. (PRLB) Q3 2025 Earnings Call Transcript

**【CEO Summary Section】**
- **Record Q2 Revenue**: $135.1 million, up 6.5% YoY in constant currencies, driven by strong CNC machining growth (20% YoY) and production demand from Aerospace & Defense (A&D) customers.
- **Customer Engagement**: Customers using combined factory/network services grew 44% YoY, with revenue per customer up 11% YoY, reflecting expanded wallet share.
- **Strategic Focus**: Emphasized improving customer and employee experiences, including AI-driven pricing to absorb tariff risks, and optimizing production fulfillment channels.
- **Accolades**: Received 2025 Future of Manufacturing Award and ISO 13485 certification for metal 3D printing, enabling medical device growth.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: CNC machining ($135.1M total) grew 20% YoY, U.S. CNC up 30%; Injection Molding (-4% YoY), 3D Printing (-1% YoY), Sheet Metal (+9%). U.S. revenue +12% YoY, Europe -15%.
- **Gross Margins**: Consolidated Non-GAAP gross margin 44.8%, flat QoQ, with U.S. network margins impacted by tariffs but restored by June.
- **Operating Expenses**: +6% YoY to $45.3M, driven by variable costs (incentives, commissions).
- **Cash Flow**: $10.6M cash from ops, $3.1M share buybacks, $123.2M cash on hand.
- **Q3 Guidance**: Revenue $130-138M (6% YoY midpoint), Non-GAAP EPS $0.35-0.43.

**【Q&A Highlights】**
- **CNC Strength**: 30% U.S. factory growth, driven by A&D production orders; 44% YoY growth in multi-service customers.
- **Tariff Impact**: Adjusted pricing to absorb $400K/Q3 tariff costs, network margins restored to pre-tariff levels by June.
- **Injection Molding Challenges**: Weakness in medical sector offset by innovation; network accounts for <10% of IM revenue.
- **Q4 Outlook**: Expect seasonal decline from Q3, but long-term focus on production growth and customer experience.
- **A&D Mix**: >20% of revenue, with A&D customers using both factory and network services doubling YoY.


Proto Labs, Inc. (PRLB) Q2 2025 Earnings Call Transcript

- **Strong Q1 Results**: Revenue $126M (near guidance), EPS $0.33, 14% free cash flow as a % of revenue. Sequential gross margin expansion to 44.8%.
- **Production Growth Driver**: Aerospace/defense customers (e.g., Blue Origin) place orders for AS9100-certified parts, driving production revenue growth.
- **Network Resilience**: 90% U.S. revenue fulfilled domestically; adaptable network mitigates tariff risks. Q2 guidance reflects higher network mix but cash flow strength persists.
- **Strategic Investments**: Marketing campaign views +2M, double-digit search growth YoY. Operational efficiency improvements from global footprint optimization.

**【CEO Summary Section】**
- **Q1 2025 Performance**: Revenue of $126 million (near upper end of guidance), EPS of $0.33, and sequential gross margin expansion. Free cash flow represented 14% of revenue.
- **Strategic Priorities**: 
  - Hybrid model success: Customers using combined prototyping/production offer grew 45% YoY, with 3% YoY revenue per customer increase.
  - Marketing investments: Production messaging campaign achieved 2M views, double-digit search growth YoY.
  - Production growth: Aerospace/defense customers (e.g., Blue Origin, NASA) placed orders for AS9100-certified parts, driving production revenue growth.
  - Operational efficiency: Closure of German molding facility streamlined global footprint, aligning with 2022 Japan operations closure strategy.
- **Tariff Resilience**: 90% of U.S. revenue fulfilled domestically; adaptable network and AI-driven routing mitigate tariff risks.

**【CFO Financial Commentary】**
- **Q1 Financials**: 
  - Revenue: $126.2M (-1% YoY in constant currency), with 4% sequential growth.
  - Service Performance: 
    - CNC Machining +6% YoY (production/high-requirement parts), Sheet Metal +19% YoY.
    - 3D Printing -6% YoY (lagging demand), Injection Molding -7% YoY (nonrecurring 2024 orders).
  - Margins: Non-GAAP gross margin 44.8% (+140bps sequentially), driven by factory volume. Network margins down Q/Q due to sourcing challenges.
  - Expenses: Operating expenses +$3.6M Q/Q (incentive comp, demand gen), offset by lower headcount.
  - Cash Flow: $18.4M from operations, $20.9M returned to shareholders (122% of free cash flow).
- **Q2 Guidance**: 
  - Revenue: $124-132M (2% YoY midpoint), with $300K favorable FX impact.
  - EPS: $0.30-0.38 (25-27% tax rate).

**【Q&A Key Highlights】**
- **Gross Margin Sustainability**: Q1 factory margin improvement due to volume; Q2 guidance reflects higher network mix. Long-term margin expansion depends on factory utilization and network margin improvements.
- **Network Resilience**: Network adaptable to tariffs, with 90% U.S. revenue fulfilled domestically. April orders show sequential improvement, but network revenue growth may lag factory.
- **Production Strategy**: Both factory and network fulfill production orders, with quality control across partners. Aerospace/defense customers qualifying production solutions drive growth.
- **3D Printing Challenges**: Prototyping demand疲软 due to macroeconomic contraction, but production applications (e.g., lightweight parts) show promise.
- **Seasonality**: Typical Q3 growth/Q4 decline due to holidays, but tariffs may mitigate seasonality in 2025.

Proto Labs (PRLB)-2 May 25-2025 Q1 Earnings call transcript

- **2024 success**: $500.9M revenue, 50% growth in production customers, and $77.8M cash flow. 
- **2025 growth plan**: $10M+ marketing, sales enablement tools, and production expansion to target 5%+ customer penetration.
- **Financial strength**: 45.2% gross margin, $100M buyback, and stable 26.5-27.5% tax rate.
- **Key risks**: Near-term macro weakness in prototyping, but production margins offsetting lower volumes.
- **Outlook**: Q1 flat YoY, with second-half growth driven by new organizational structure and production adoption.

**【CEO Summary Section】**
- **Strong 2024 performance**: Revenue of $500.9M (down 1% YoY), $77.8M cash from operations, and $1.63 EPS (up 3% YoY). Production use cases outgrew prototyping, with customers using combined offers growing 50%.
- **Strategic reorganization**: Global Operations team optimized manufacturing footprint (e.g., Germany facility closure), and new Revenue Operations team led by Greg Forsberg to enhance customer experience.
- **2025 growth plan**: 
  1. **Marketing investment**: $10M+ campaign to promote production capabilities, targeting production buyers.
  2. **Sales enablement**: Tools and resources to better serve production needs, with 5% of customers now using both prototyping and production services.
  3. **Production expansion**: Streamlined quoting, certifications, and automation (e.g., robotics) to capture higher-margin production work.
- **Customer value**: End-to-end manufacturing partner for low-to-mid-volume production in aerospace, medical devices, and other regulated industries.

**【CFO Financial Commentary】**
- **Q4 2024 results**: Revenue $121.8M (down 3.1% YoY), non-GAAP EPS $0.38 (above guidance due to lower tax rate). Network revenue $26.5M (up 17.7% YoY), factory gross margin 48.3% (up 90bps YoY).
- **Full year highlights**: 
  - Consolidated gross margin 45.2% (up 50bps YoY), driven by factory automation and network pricing improvements.
  - Operating expenses up $5.4M YoY (severance, licenses), but cash returned to shareholders at 88% of free cash flow.
  - $100M share buyback program announced in Q1 2025.
- **Q1 2025 guidance**: Revenue $120-128M (down 3% YoY), non-GAAP EPS $0.26-0.34 (reflecting $2.5M OpEx increase vs. Q4 2024).

**【Q&A Key Highlights】**
- **Marketing spend**: Q1 OpEx up $2.5M vs. Q4, with focus on production campaigns and sales tools. Margins expected to improve as production volumes grow.
- **Production mix**: 1/3 of revenue from production (vs. 2/3 prototyping), with higher margins than low-volume commodity manufacturing.
- **Injection molding**: Sequential decline due to macro weakness in prototyping, but production use cases offsetting some volume loss.
- **Tax rate**: 26.5-27.5% for 2025, stable after favorable Q4 resolution.
- **Growth outlook**: 2025 focus on production adoption, with 5%+ customer penetration target. Second-half growth expected as investments bear fruit.

PRLB

PRLB fundamentals

Earnings Call

You can ask Aime