Proto Labs Reports 7.8% Revenue Growth to $135.4 Million in Q3 2025

Proto Labs, Inc. reported its financial results for the third quarter of 2025, revealing a revenue increase of 7.8% to $135.4 million compared to $125.6 million in the same period last year. For the nine months ending September 30, 2025, revenue rose 4.6% to $396.6 million from $379.1 million in 2024. The company’s net income for the third quarter was $7.2 million, slightly up from $7.2 million in the prior year, while net income for the nine-month period decreased to $15.2 million from $17.0 million in 2024. The diluted earnings per share for the third quarter remained stable at $0.30, consistent with the previous year.

The company experienced a notable increase in operating expenses, which rose by 7.9% to $52.5 million for the third quarter, driven primarily by higher marketing and sales costs, as well as increased research and development expenditures. The gross profit for the quarter was $61.3 million, reflecting a gross margin of 45.3%, down from 45.6% in the prior year. The increase in costs was attributed to higher raw material and production costs, as well as personnel-related expenses, including incentive compensation.

In terms of operational metrics, Proto Labs served 21,252 unique customer contacts in the third quarter, a decrease of 5.6% from the previous year. However, the revenue per customer contact increased by 14.1% to $6,370, indicating a strategic shift towards larger orders from existing customers. The company’s revenue growth was particularly strong in the CNC Machining segment, which saw an 18.2% increase, while Injection Molding revenue grew by 2.0%. Conversely, 3D Printing revenue declined by 6.3%.

On the strategic front, Proto Labs is undergoing significant organizational changes, including the planned closure of its prototype injection molding facility in Germany and the discontinuation of certain 3D printing services. These changes are expected to be completed by the end of fiscal year 2025. The company continues to focus on expanding its manufacturing capabilities and enhancing its product offerings through its global network of manufacturing partners.

Looking ahead, Proto Labs anticipates continued revenue growth driven by its focus on larger customer orders and the expansion of its product lines. The company expects to maintain its competitive edge through ongoing investments in technology and personnel, despite the challenges posed by rising operational costs and market conditions. The management remains optimistic about the company’s ability to meet its working capital and capital expenditure requirements over the next 12 months, supported by a cash balance of $104.4 million as of September 30, 2025.