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.