Proto Labs, Inc. (NYSE: PRLB) shares jumped about 8% during the trading day. This rise followed their earnings release. Investors showed optimism because the company reported record quarterly revenue and better profits. For context, the stock stayed within its 52-week range of $25 to $41. Recently, it has trended upward. Why? Expectations grew for production-manufacturing expansion and margin recovery. Meanwhile, no analyst rating changes or price-target updates appeared right after the news.
Q4 2025 Delivers Record Results
In Q4 2025, Proto Labs posted revenue of $136.5 million. That’s up 12.1% from last year—a new quarterly high. Strong production programs and CNC machining demand drove this growth. Additionally, net income reached $6.0 million, or $0.25 per diluted share. This compares to a net loss of $0.4 million, or $0.02 per share, a year earlier.
On a non-GAAP basis, net income hit $10.7 million, or $0.44 per share. That’s an increase from $9.4 million, or $0.38 per share. Non-GAAP gross margin also improved to about 45%. It expanded by 140 basis points year over year.
By service line, CNC machining led the way with 25% growth. Injection molding saw modest gains. However, 3D printing dipped slightly. For example, revenue per customer contact rose over 23%. This signals deeper engagement in production work.
Full-Year 2025 Highlights Strong Growth
For the full year 2025, revenue reached a record $533.1 million, up 6.4% year over year. Net income came in at $21.2 million, or $0.88 per diluted share. That’s better than $16.6 million, or $0.66 per share, in 2024.
Non-GAAP net income totaled $40.2 million, or $1.66 per share. Adjusted EBITDA was $78.1 million, with a 14.7% margin. Revenue broke down by channel as follows: Factory at $416.9 million (up 4.1% YoY), and Network at $116.2 million (up 15.7% YoY). Operating cash flow stood at $74.5 million. Cash and investments ended the year at $142.4 million.
Key Trends in Margins and Operations
Profitability got a boost from scale benefits. A mix shift toward higher-value production work helped too. CNC machining continued as the fastest-growing area. Customer spending also intensified. Management noted that changes over the past year aim to speed up growth. They also target better long-term profits.
Overall Outlook Looks Positive
Overall, Proto Labs ended 2025 on a high note. Record revenue, wider margins, and solid earnings marked the year. Production demand and network growth provided support. Plus, the company keeps a debt-free balance sheet and strong cash flow.