Open the filing on EDGARProtolabs Reports Financial Results for the First Quarter of 2026
Record Quarterly Revenue of $139.3 Million, a 10.4% Increase Year-Over-Year
GAAP Earnings Per Share of $0.33, Non-GAAP Earnings Per Share of $0.54
MINNEAPOLIS - May 1, 2026 - Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights:
- Revenue was a record $139.3 million, a 10.4% increase over the first quarter of 2025.
- CNC machining revenue grew 19.7% year-over-year.
- Revenue per customer contact increased 20.4% year-over-year.
- Net income was $8.1 million, or $0.33 per diluted share, compared to $3.6 million, or $0.15 per diluted share, in the first quarter of 2025.
- Non-GAAP net income was $13.1 million, or $0.54 per diluted share, compared to $8.1 million, or $0.33 per diluted share, in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
"Protolabs started 2026 very strong, delivering another record revenue quarter. We achieved double‑digit revenue growth, gross margin expansion, and operating expense leverage. These results reflect strong demand for Protolabs' digital manufacturing services, and disciplined execution across the business," said President and Chief Executive Officer Suresh Krishna. "We’re making continued progress across our strategic pillars while strengthening the organization to support long‑term growth and scalability."
Additional First Quarter 2026 Financial Highlights:
- Non-GAAP gross margin was 46.2% of revenue, compared to 44.8% of revenue in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
- Adjusted EBITDA was $22.8 million, or 16.3% of revenue, compared to $17.4 million, or 13.8% of revenue in the first quarter of 2025. See “Non-GAAP Financial Measures” below.
- Cash generated from operations was $17.5 million.
- Cash and investments balance was $158.0 million as of March 31, 2026.
"First quarter results reflect the strength of our operating model, delivering record revenue alongside improved profitability," said Dan Schumacher, Chief Financial Officer. "We generated strong cash flow and reported our highest non‑GAAP earnings per share in more than five years, while continuing to invest in our strategic pillars and transformational initiatives to support long‑term profitable growth."
Financial Guidance and Outlook:
- In fiscal year 2026, Protolabs expects to generate revenue growth between 6% and 8%.
- In the second quarter of 2026, the Company expects to generate revenue between $140.0 million and $148.0 million.
- In the second quarter of 2026, the Company expects diluted net income per share between $0.29 and $0.37, and non-GAAP diluted net income per share between $0.50 and $0.58. See "Non-GAAP Financial Measures" below.
Non-GAAP Financial Measures
The Company has included non-GAAP revenue growth by region and by service 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 (gain) loss on foreign currency, restructuring and transformation costs, and benefits related to exit and disposal activities (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 (gain) loss on foreign currency, restructuring and transformation costs, and benefits related to exit and disposal activities (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 and amortization expense, 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, restructuring and transformation costs, and benefits related to exit and disposal activities (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 (gain) loss on foreign currency, restructuring and transformation costs, and benefits related to exit and disposal activities (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 service 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 first quarter 2026 financial results and second quarter 2026 outlook today, May 1, 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.
Source: Proto Labs, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
| March 31, 2026 | December 31, 2025 |
|---|
| (Unaudited) | |
|---|
| Assets | | |
| Current assets | | |
| Cash and cash equivalents | $123,973 | $110,826 |
| Short-term marketable securities | 12,307 | 17,297 |
| Accounts receivable, net | 85,553 | 78,962 |
| Inventory | 14,871 | 14,401 |
| Prepaid expenses and other current assets | 10,698 | 9,590 |
| Income taxes receivable | 1,175 | 2,465 |
| Total current assets | 248,577 | 233,541 |
| Property and equipment, net | 209,463 | 215,261 |
| Goodwill | 273,991 | 273,991 |
| Other intangible assets, net | 17,527 | 18,612 |
| Long-term marketable securities | 21,721 | 14,308 |
| Operating lease assets | 2,490 | 2,836 |
| Finance lease assets | 357 | 424 |
| Other long-term assets | 4,442 | 4,442 |
| Total assets | $778,568 | $763,415 |
| Liabilities and shareholders' equity | | |
| Current liabilities | | |
| Accounts payable | $19,625 | $15,104 |
| Accrued compensation | 17,258 | 23,674 |
| Accrued liabilities and other | 32,595 | 26,783 |
| Current operating lease liabilities | 1,037 | 1,155 |
| Current finance lease liabilities | 207 | 286 |
| Total current liabilities | 70,722 | 67,002 |
| Long-term operating lease liabilities | 1,377 | 1,606 |
| Long-term deferred tax liabilities | 18,949 | 16,598 |
| Other long-term liabilities | 4,394 | 4,277 |
| Shareholders' equity | 683,126 | 673,932 |
| Total liabilities and shareholders' equity | $778,568 | $763,415 |
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | | |
| Injection Molding | $51,068 | | $48,723 | |
| CNC Machining | 63,245 | | 52,843 | |
| 3D Printing | 20,465 | | 20,194 | |
| Sheet Metal | 4,351 | | 4,211 | |
| Other Revenue | 207 | | 234 | |
| Total Revenue | 139,336 | | 126,205 | |
| Cost of revenue | 75,744 | | 70,507 | |
| Gross profit | 63,592 | | 55,698 | |
| Operating expenses | | |
| Marketing and sales | 24,780 | | 23,749 | |
| Research and development | 10,540 | | 10,609 | |
| General and administrative | 17,012 | | 16,848 | |
| Restructuring and transformation costs | 1,421 | | - | |
| Benefits related to exit and disposal activities | - | | (39) | |
| Total operating expenses | 53,753 | | 51,167 | |
| Income from operations | 9,839 | | 4,531 | |
| Other income, net | 1,478 | | 1,454 | |
| Income before income taxes | 11,317 | | 5,985 | |
| Provision for income taxes | 3,206 | | 2,386 | |
| Net income | $8,111 | | $3,599 | |
| Net income per share: | | |
| Basic | $0.34 | | $0.15 | |
| Diluted | $0.33 | | $0.15 | |
| Shares used to compute net income per share: | | |
| Basic | | 23,835,612 | | 24,135,320 |
| Diluted | | 24,287,260 | | 24,435,844 |
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Operating activities | | |
| Net income | $8,111 | | $3,599 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 8,073 | | 8,694 | |
| Stock-based compensation expense | 3,219 | | 3,992 | |
| Deferred taxes | 2,390 | | (1,552) | |
| Interest on finance lease obligations | 3 | | 6 | |
| Impairments related to exit and closure of facilities | - | | 219 | |
| Gain on disposal of property and equipment | (139) | | - | |
| Other | (172) | | 43 | |
| Changes in operating assets and liabilities | (3,949) | | 3,378 | |
| Net cash provided by operating activities | 17,536 | | 18,379 | |
| Investing activities | | |
| Purchases of property, equipment and other capital assets | (3,540) | | (1,262) | |
| Proceeds from sales of property, equipment and other capital assets | 1,279 | | - | |
| Purchases of marketable securities | (9,007) | | (6,552) | |
| Proceeds from maturities of marketable securities | 6,500 | | 4,905 | |
| Net cash used in investing activities | (4,768) | | (2,909) | |
| Financing activities | | |
| Proceeds from issuance of common stock from equity plans | 3,608 | | 287 | |
| Purchases of shares withheld for tax obligations | (2,871) | | (1,248) | |
| Repurchases of common stock | - | | (20,890) | |
| Principal repayments of finance lease obligations | (79) | | (76) | |
| Net cash provided by (used in) financing activities | 658 | | (21,927) | |
| Effect of exchange rate changes on cash and cash equivalents | (279) | | 78 | |
| Net increase (decrease) in cash and cash equivalents | 13,147 | | (6,379) | |
| Cash and cash equivalents, beginning of period | 110,826 | | 89,071 | |
| Cash and cash equivalents, end of period | $123,973 | | $82,692 | |
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 March 31, |
|---|
| 2026 | 2025 |
|---|
| Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, restructuring and transformation costs and benefits related to exit and disposal activities | | |
| GAAP net income | $8,111 | | $3,599 | |
| Add back: | | |
| Stock-based compensation expense | 3,219 | | 3,992 | |
| Amortization expense | 913 | | 908 | |
| Unrealized (gain) loss on foreign currency | - | | (135) | |
| Restructuring and transformation costs | 1,421 | | - | |
| Benefits related to exit and disposal activities | - | | (39) | |
| Total adjustments | 5,553 | | 4,726 | |
| Income tax benefits on adjustments | (586) | | (242) | |
| Non-GAAP net income | $13,078 | | $8,083 | |
| Non-GAAP net income per share: | | |
| Basic | $0.55 | | $0.33 | |
| Diluted | $0.54 | | $0.33 | |
| Shares used to compute non-GAAP net income per share: | | |
| Basic | | 23,835,612 | | 24,135,320 |
| Diluted | | 24,287,260 | | 24,435,844 |
Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, restructuring and transformation costs and benefits related to exit and disposal activities were included in the following GAAP consolidated statement of operations categories:
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Cost of revenue | $736 | | $802 | |
| Marketing and sales | 705 | | 778 | |
| Research and development | 428 | | 625 | |
| General and administrative | 2,263 | | 2,695 | |
| Restructuring and transformation costs | 1,421 | | - | |
| Benefits related to exit and disposal activities | - | | (39) | |
| Total operating expenses | 4,817 | | 4,059 | |
| Other income, net | - | | (135) | |
| Total adjustments | $5,553 | | $4,726 | |
2For the three months ended March 31, 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.
Reconciliation of GAAP to Non-GAAP Gross Margin
(In thousands)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | $139,336 | | $126,205 | |
| Gross profit | 63,592 | | 55,698 | |
| GAAP gross margin | 45.6% | | 44.1% | |
| Add back: | | |
| Stock-based compensation expense | 394 | | 460 | |
| Amortization expense | 342 | | 342 | |
| Total adjustments | 736 | | 802 | |
| Non-GAAP gross profit | $64,328 | | $56,500 | |
| Non-GAAP gross margin | 46.2% | | 44.8% | |
Reconciliation of GAAP to Non-GAAP Operating Margin
(In thousands)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | $139,336 | | $126,205 | |
| Income from operations | 9,839 | | 4,531 | |
| GAAP operating margin | 7.1% | | 3.6% | |
| Add back: | | |
| Stock-based compensation expense | 3,219 | | 3,992 | |
| Amortization expense | 913 | | 908 | |
| Restructuring and transformation costs | 1,421 | | - | |
| Benefits related to exit and disposal activities | - | | (39) | |
| Total adjustments | 5,553 | | 4,861 | |
| Non-GAAP income from operations | $15,392 | | $9,392 | |
| Non-GAAP operating margin | 11.0% | | 7.4% | |
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | $139,336 | | $126,205 | |
| GAAP net income | 8,111 | | 3,599 | |
| GAAP net income margin | 5.8% | | 2.9% | |
| Add back: | | |
| Amortization expense | $913 | | $908 | |
| Depreciation expense | 7,160 | | 7,786 | |
| Interest income, net | (1,253) | | (1,108) | |
| Provision for income taxes | 3,206 | | 2,386 | |
| EBITDA | 18,137 | | 13,571 | |
| EBITDA Margin | 13.0% | | 10.8% | |
| Add back: | | |
| Stock-based compensation expense | 3,219 | | 3,992 | |
| Unrealized (gain) loss on foreign currency | - | | (135) | |
| Restructuring and transformation costs | 1,421 | | - | |
| Benefits related to exit and disposal activities | - | | (39) | |
| Total adjustments | 4,640 | | 3,818 | |
| Adjusted EBITDA | $22,777 | | $17,389 | |
| Adjusted EBITDA Margin | 16.3% | | 13.8% | |
Comparison of GAAP to Non-GAAP Revenue Growth by Region
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | %Change | % ChangeOrganic |
|---|
| GAAP | ForeignCurrency | Non-GAAP | GAAP | | |
|---|
| Revenues | | | | | | |
| United States | $112,127 | $ - | $112,127 | $100,267 | 11.8% | 11.8% |
| Europe | 27,209 | (2,157) | 25,052 | 25,938 | 4.9 | (3.4) |
| Total revenue | $139,336 | $(2,157) | $137,179 | $126,205 | 10.4% | 8.7% |
1Revenue for the three months ended March 31, 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 months ended March 31, 2025 to GAAP revenue for the three months ended March 31, 2026.
3This column presents the percentage change from GAAP revenue for the three months ended March 31, 2025 to non-GAAP revenue for the three months ended March 31, 2026 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2025) in order to provide a constant-currency comparison.
Comparison of GAAP to Non-GAAP Revenue Growth by Service Line
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | %Change | % ChangeOrganic |
|---|
| GAAP | ForeignCurrency | Non-GAAP | GAAP | | |
|---|
| Revenues | | | | | | |
| Injection Molding | $51,068 | $(631) | $50,437 | $48,723 | 4.8% | 3.5% |
| CNC Machining | 63,245 | (1,114) | 62,131 | 52,843 | 19.7 | 17.6 |
| 3D Printing | 20,465 | (368) | 20,097 | 20,194 | 1.3 | (0.5) |
| Sheet Metal | 4,351 | (42) | 4,309 | 4,211 | 3.3 | 2.3 |
| Other Revenue | 207 | (2) | 205 | 234 | (11.5) | (12.4) |
| Total revenue | $139,336 | $(2,157) | $137,179 | $126,205 | 10.4% | 8.7% |
1Revenue for the three months ended March 31, 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 months ended March 31, 2025 to GAAP revenue for the three months ended March 31, 2026.
3This column presents the percentage change from GAAP revenue for the three months ended March 31, 2025 to non-GAAP revenue for the three months ended March 31, 2026 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2025) in order to provide a constant-currency comparison.
Customer Contact Information
(In thousands, except customer contacts and per customer contact amounts)
(Unaudited)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | $139,336 | | $126,205 | |
| Customer contacts | | 19,826 | | 21,627 |
| Revenue per customer contact | $7,028 | | $5,836 | |
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.
Reconciliation of GAAP to Non-GAAP Guidance
(Unaudited)
| Q2 2026 Outlook |
|---|
| Low | High |
|---|
| GAAP diluted net income per share | $0.29 | $0.37 |
| Add back: | | |
| Stock-based compensation expense | 0.16 | 0.16 |
| Amortization expense | 0.03 | 0.03 |
| Restructuring and transformation costs | 0.02 | 0.02 |
| Unrealized (gain) loss on foreign currency | 0.00 | 0.00 |
| Total adjustments | 0.21 | 0.21 |
| Non-GAAP diluted net income per share | $0.50 | $0.58 |
Contacts
Protolabs
Ryan Johnsrud, 612-225-4873
Sr. Manager - Investor Relations and Corporate Development ryan.johnsrud@protolabs.com
Gateway Group, Inc.
949-574-3860
PRLB@gateway-grp.com
Protolabs
Brent Renneke, 763-479-7704
Corporate Communications Manager brent.renneke@protolabs.com