Protolabs Reports Financial Results for the Second Quarter of 2026
Record Quarterly Revenue of $149.3 Million, a 10.6% Increase Year-Over-Year
GAAP Earnings Per Share of $0.37, Non-GAAP Earnings Per Share of $0.60
Raising Full Year 2026 Revenue Growth Guidance from 6% - 8% to 8% - 10%
MINNEAPOLIS – July 31, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
•Revenue was a record $149.3 million, a 10.6% increase over the second quarter of 2025.
◦Total revenue per customer contact increased 16.7% year-over-year.
•GAAP gross margin was 46.4%, up from 44.3% in the second quarter of 2025. Non-GAAP gross margin was 46.8%, up 200 bps from 44.8% in the second quarter of 2025.
•GAAP operating margin was 7.6%, up from 3.7% in the second quarter of 2025. Non-GAAP operating margin was 12.0%, up 340 bps from 8.6% in the second quarter of 2025.
•GAAP net income was $0.37 per diluted share, compared to $0.18 per diluted share in the second quarter of 2025. Non-GAAP net income was $0.60 per diluted share, compared to $0.41 per diluted share in the second quarter of 2025.
Note: See “Non-GAAP Financial Measures” below.
"We delivered another strong quarter with record revenue, double-digit revenue growth, and both gross and operating margin expansion. More importantly, we are seeing increasing evidence that our strategy is gaining traction across the business, with larger strategic customers expanding their relationships with Protolabs," said President and Chief Executive Officer Suresh Krishna. "Through the first half of 2026, we have demonstrated that Protolabs can deliver strong financial performance while simultaneously transforming the business for the future. We are encouraged by the momentum we are seeing across customers, services, and regions."
Additional Second Quarter 2026 Financial Highlights:
•Adjusted EBITDA was $25.1 million, or 16.8% of revenue, compared to $19.7 million, or 14.6% of revenue, in the second quarter of 2025. See “Non-GAAP Financial Measures” below.
•Cash generated from operations was $15.4 million.
•Cash and investments balance was $162.9 million as of June 30, 2026.
"Record revenue and meaningful margin expansion in the second quarter highlight the strength and scalability of our business model," said Chief Financial Officer Dan Schumacher. "We continue to generate strong cash flow while investing in strategic growth initiatives, and we remain focused on balancing profitable growth with disciplined execution to drive value for customers and shareholders."
Financial Guidance and Outlook:
•For full year 2026, Protolabs is raising its guidance and now expects to generate revenue growth between 8% and 10%.
•For the third quarter of 2026, the Company expects revenue between $145.0 million and $153.0 million.
•For the third quarter of 2026, the Company expects GAAP diluted net income per share between $0.34 and $0.42, and non-GAAP diluted net income per share between $0.56 and $0.64. 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 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 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 (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, amortization expense and trade refunds and charges, net, 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 (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 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, “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 product 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 second quarter 2026 financial results and third quarter 2026 outlook today, July 31, 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.
Investor Relations 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
Media Contact
Protolabs
Brent Renneke, 763-479-7704
Corporate Communications Manager
brent.renneke@protolabs.com
Proto Labs, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, 2026
December 31, 2025
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
127,918
$
110,826
Short-term marketable securities
14,858
17,297
Accounts receivable, net
95,074
78,962
Inventory
15,413
14,401
Prepaid expenses and other current assets
11,590
9,590
Income taxes receivable
1,390
2,465
Total current assets
266,243
233,541
Property and equipment, net
208,329
215,261
Goodwill
273,991
273,991
Other intangible assets, net
16,606
18,612
Long-term marketable securities
20,120
14,308
Operating lease assets
1,263
2,836
Finance lease assets
290
424
Other long-term assets
4,456
4,442
Total assets
$
791,298
$
763,415
Liabilities and shareholders' equity
Current liabilities
Accounts payable
$
21,542
$
15,104
Accrued compensation
18,830
23,674
Accrued liabilities and other
31,776
26,783
Current operating lease liabilities
929
1,155
Current finance lease liabilities
127
286
Total current liabilities
73,204
67,002
Long-term operating lease liabilities
1,185
1,606
Long-term deferred tax liabilities
20,625
16,598
Other long-term liabilities
4,551
4,277
Shareholders' equity
691,733
673,932
Total liabilities and shareholders' equity
$
791,298
$
763,415
Proto Labs, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
Injection Molding
$
53,625
$
47,415
$
104,693
$
96,138
CNC Machining
70,360
61,945
133,605
114,788
3D Printing
20,667
21,215
41,132
41,409
Sheet Metal
4,462
4,303
8,813
8,514
Other Revenue
227
185
434
419
Total revenue
149,341
135,063
288,677
261,268
Cost of revenue
79,999
75,289
155,743
145,796
Gross profit
69,342
59,774
132,934
115,472
Operating expenses
Marketing and sales
25,682
24,731
50,462
48,480
Research and development
10,791
11,173
21,331
21,782
General and administrative
19,650
18,752
36,662
35,600
Restructuring and transformation costs
924
—
2,345
—
Costs related to exit and disposal activities
937
149
937
110
Total operating expenses
57,984
54,805
111,737
105,972
Income from operations
11,358
4,969
21,197
9,500
Other income, net
1,245
1,705
2,723
3,159
Income before income taxes
12,603
6,674
23,920
12,659
Provision for income taxes
3,451
2,247
6,657
4,633
Net income
$
9,152
$
4,427
$
17,263
$
8,026
Net income per share:
Basic
$
0.38
$
0.19
$
0.72
$
0.33
Diluted
$
0.37
$
0.18
$
0.71
$
0.33
Shares used to compute net income per share:
Basic
23,969,254
23,900,390
23,902,802
24,018,119
Diluted
24,415,788
24,101,592
24,358,568
24,291,246
Proto Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2026
2025
Operating activities
Net income
$
17,263
$
8,026
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
16,161
17,264
Stock-based compensation expense
7,307
8,251
Deferred taxes
4,054
(3,985)
Interest on finance lease obligations
5
11
Loss on impairment of equipment
186
—
Impairments related to exit and closure of facilities
937
448
Gain on disposal of property and equipment
(120)
—
Other
(152)
(82)
Changes in operating assets and liabilities
(12,663)
(970)
Net cash provided by operating activities
32,978
28,963
Investing activities
Purchases of property, equipment and other capital assets
(9,743)
(2,730)
Proceeds from sales of property, equipment and other capital assets
1,279
—
Purchases of marketable securities
(16,007)
(11,052)
Proceeds from maturities of marketable securities
12,500
10,230
Net cash used in investing activities
(11,971)
(3,552)
Financing activities
Proceeds from issuance of common stock from equity plans
7,265
2,081
Purchases of shares withheld for tax obligations
(5,951)
(3,117)
Repurchases of common stock
(5,036)
(23,980)
Principal repayments of finance lease obligations
(160)
(153)
Net cash used in financing activities
(3,882)
(25,169)
Effect of exchange rate changes on cash and cash equivalents
(33)
1,069
Net increase in cash and cash equivalents
17,092
1,311
Cash and cash equivalents, beginning of period
110,826
89,071
Cash and cash equivalents, end of period
$
127,918
$
90,382
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 June 30,
Six Months Ended June 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
$
9,152
$
4,427
$
17,263
$
8,026
Add back:
Stock-based compensation expense
4,088
4,259
7,307
8,251
Amortization expense
905
927
1,818
1,835
Unrealized loss (gain) on foreign currency
137
(179)
137
(314)
Trade refunds and charges, net
(327)
—
(327)
—
Restructuring and transformation costs
924
—
2,345
—
Costs related to exit and disposal activities
937
149
937
110
CEO transition costs
—
1,362
—
1,362
Total adjustments 1
6,664
6,518
12,217
11,244
Income tax benefits on adjustments 2
(1,111)
(958)
(1,697)
(1,200)
Non-GAAP net income
$
14,705
$
9,987
$
27,783
$
18,070
Non-GAAP net income per share:
Basic
$
0.61
$
0.42
$
1.16
$
0.75
Diluted
$
0.60
$
0.41
$
1.14
$
0.74
Shares used to compute non-GAAP net income per share:
Basic
23,969,254
23,900,390
23,902,802
24,018,119
Diluted
24,415,788
24,101,592
24,358,568
24,291,246
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 June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Cost of revenue
$
549
$
767
$
1,285
$
1,569
Marketing and sales
819
808
1,524
1,586
Research and development
641
735
1,069
1,360
General and administrative
2,657
4,238
4,920
6,933
Restructuring and transformation costs
924
—
2,345
—
Costs related to exit and disposal activities
937
149
937
110
Total operating expenses
5,978
5,930
10,795
9,989
Other income, net
137
(179)
137
(314)
Total adjustments
$
6,664
$
6,518
$
12,217
$
11,244
2For the three and six months ended June 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 June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
149,341
$
135,063
$
288,677
$
261,268
Gross profit
69,342
59,774
132,934
115,472
GAAP gross margin
46.4
%
44.3
%
46.0
%
44.2
%
Add back:
Stock-based compensation expense
534
424
928
884
Amortization expense
342
343
684
685
Trade refunds and charges, net
(327)
—
(327)
—
Total adjustments
549
767
1,285
1,569
Non-GAAP gross profit
$
69,891
$
60,541
$
134,219
$
117,041
Non-GAAP gross margin
46.8
%
44.8
%
46.5
%
44.8
%
Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin
(In thousands)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
149,341
$
135,063
$
288,677
$
261,268
Income from operations
11,358
4,969
21,197
9,500
GAAP operating margin
7.6
%
3.7
%
7.3
%
3.6
%
Add back:
Stock-based compensation expense
4,088
4,259
7,307
8,251
Amortization expense
905
927
1,818
1,835
Trade refunds and charges, net
(327)
—
(327)
—
Restructuring and transformation costs
924
—
2,345
—
Costs related to exit and disposal activities
937
149
937
110
CEO transition costs
—
1,362
—
1,362
Total adjustments
6,527
6,697
12,080
11,558
Non-GAAP income from operations
$
17,885
$
11,666
$
33,277
$
21,058
Non-GAAP operating margin
12.0
%
8.6
%
11.5
%
8.1
%
Proto Labs, Inc.
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
149,341
$
135,063
$
288,677
$
261,268
GAAP net income
9,152
4,427
17,263
8,026
GAAP net income margin
6.1
%
3.3
%
6.0
%
3.1
%
Add back:
Amortization expense
$
905
$
927
$
1,818
$
1,835
Depreciation expense
7,183
7,643
14,343
15,429
Interest income, net
(1,331)
(1,143)
(2,584)
(2,251)
Provision for income taxes
3,451
2,247
6,657
4,633
EBITDA
19,360
14,101
37,497
27,672
EBITDA Margin
13.0
%
10.4
%
13.0
%
10.6
%
Add back:
Stock-based compensation expense
4,088
4,259
7,307
8,251
Unrealized loss (gain) on foreign currency
137
(179)
137
(314)
Trade refunds and charges, net
(327)
—
(327)
—
Restructuring and transformation costs
924
—
2,345
—
Costs related to exit and disposal activities
937
149
937
110
CEO transition costs
—
1,362
—
1,362
Total adjustments
5,759
5,591
10,399
9,409
Adjusted EBITDA
$
25,119
$
19,692
$
47,896
$
37,081
Adjusted EBITDA Margin
16.8
%
14.6
%
16.6
%
14.2
%
Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Region
(In thousands)
(Unaudited)
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
United States
$
122,759
$
—
$
122,759
$
110,712
10.9
%
10.9
%
Europe
26,582
(447)
26,135
24,351
9.2
7.3
Total revenue
$
149,341
$
(447)
$
148,894
$
135,063
10.6
%
10.2
%
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
United States
$
234,886
$
—
$
234,886
$
210,979
11.3
%
11.3
%
Europe
53,791
(2,604)
51,187
50,289
7.0
1.8
Total revenue
$
288,677
$
(2,604)
$
286,073
$
261,268
10.5
%
9.5
%
1Revenue for the three and six months ended June 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.
2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to GAAP revenue for the three and six months ended June 30, 2026.
3This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to non-GAAP revenue for the three and six months ended June 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and six months ended June 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 June 30, 2026
Three Months Ended June 30, 2025
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
Injection Molding
$
53,625
$
(89)
$
53,536
$
47,415
13.1
%
12.9
%
CNC Machining
70,360
(318)
70,042
61,945
13.6
13.1
3D Printing
20,667
(30)
20,637
21,215
(2.6)
(2.7)
Sheet Metal
4,462
(8)
4,454
4,303
3.7
3.5
Other Revenue
227
(2)
225
185
22.7
21.6
Total revenue
$
149,341
$
(447)
$
148,894
$
135,063
10.6
%
10.2
%
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
%
Change2
% Change
Organic3
GAAP
Foreign
Currency1
Non-GAAP
GAAP
Revenues
Injection Molding
$
104,693
$
(720)
$
103,973
$
96,138
8.9
%
8.1
%
CNC Machining
133,605
(1,432)
132,173
114,788
16.4
15.1
3D Printing
41,132
(398)
40,734
41,409
(0.7)
(1.6)
Sheet Metal
8,813
(50)
8,763
8,514
3.5
2.9
Other Revenue
434
(4)
430
419
3.6
2.6
Total revenue
$
288,677
$
(2,604)
$
286,073
$
261,268
10.5
%
9.5
%
1Revenue for the three and six months ended June 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.
2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to GAAP revenue for the three and six months ended June 30, 2026.
3This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2025 to non-GAAP revenue for the three and six months ended June 30, 2026 (as recalculated using the foreign currency exchange rates in effect during the three and six months ended June 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 June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
149,341
$
135,063
$
288,677
$
261,268
Customer contacts
20,630
21,775
31,069
33,136
Revenue per customer contact1
$
7,239
$
6,203
$
9,291
$
7,885
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.
