Proto Labs Reports Q1 2025 Revenue of $126.2 Million, Net Income Declines

Proto Labs, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $126.2 million, a decrease of 1.3% from $127.9 million in the same period of 2024. The company's net income also fell significantly, dropping to $3.6 million, or $0.15 per diluted share, compared to $5.3 million, or $0.20 per diluted share, in the prior year. The decline in revenue was attributed to fewer operating days due to the leap year in 2024 and adverse foreign currency movements, particularly the weakening of the British Pound and Euro against the U.S. Dollar.

In terms of operational metrics, Proto Labs served 21,627 unique customer contacts during the quarter, a decrease of 3.7% from 22,466 in the previous year. Despite the drop in customer contacts, revenue per customer contact increased by 2.5%, reflecting the company's strategy to secure larger orders from existing customers. The product line performance showed a mixed picture, with Injection Molding revenue declining by 7.5% and 3D Printing revenue down by 6.4%. Conversely, CNC Machining revenue increased by 5.8%, and Sheet Metal revenue rose by 18.5%.

The company's operating expenses rose slightly to $51.2 million from $50.6 million year-over-year, driven primarily by increased marketing and sales costs. Research and development expenses decreased by 5%, while general and administrative expenses increased by 3.3%. The company also recognized a benefit related to exit and disposal activities of less than $0.1 million, stemming from its decision to close certain manufacturing facilities in Germany, which is expected to be completed during fiscal year 2025.

Proto Labs' cash and cash equivalents stood at $82.7 million as of March 31, 2025, down from $89.1 million at the end of 2024. The decrease was primarily due to significant stock repurchases totaling $20.9 million during the quarter. The company generated $18.4 million in cash from operating activities, although this was lower than the $21.3 million generated in the same quarter of the previous year. Looking ahead, Proto Labs anticipates continued investments in technology and personnel to enhance its manufacturing capabilities and expand its market presence, while also managing the impacts of foreign currency fluctuations on its operations.