Protolabs — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached a record $154.3 million, a 14.0% increase year-over-year compared to $135.4 million in Q3 2025.
• GAAP net income was $11.8 million ($0.48 per diluted share), up 63.0% from $7.2 million ($0.30 per diluted share) in Q3 2025.
• Non-GAAP net income was $15.3 million ($0.63 per diluted share), up 33.0% from $11.4 million ($0.47 per diluted share) in Q3 2025.
• GAAP operating margin improved to 9.4% from 6.5% in Q3 2025; Non-GAAP operating margin increased to 11.9% from 10.0% in Q3 2025.
• Adjusted EBITDA was $26.2 million (17.0% of revenue), up 23.8% from $21.1 million (15.6% of revenue) in Q3 2025.
• Cash generated from operations was $22.8 million.
• Cash and investments balance totaled $175.0 million as of September 30, 2026.
• Total revenue per customer contact increased 16.6% year-over-year.

Guidance and Future Outlook:

• Full year 2026 revenue growth guidance was raised from 8%-10% to 10%-11%.
• Fourth quarter 2026 revenue is expected to be between $143.0 million and $151.0 million.
• Fourth quarter 2026 GAAP diluted net income per share is expected to be between $0.28 and $0.36.
• Fourth quarter 2026 Non-GAAP diluted net income per share is expected to be between $0.46 and $0.54.

Business Segments and Product Lines:

• CNC machining revenue grew 16.4% year-over-year.
• Injection molding revenue grew 12.5% year-over-year.
• 3D printing revenue grew 11.4% year-over-year.
• Sheet metal revenue declined 4.7% year-over-year.
• Other revenue grew 283.7% year-over-year.
• Nine months ended September 30, 2026: Injection molding revenue grew 10.1%, CNC machining grew 16.4%, 3D printing grew 3.3%, and Sheet metal grew 0.8%.

Market and Competitive Landscape:

• Management cited reindustrialization, advanced hardware innovation, and the need for resilient supply chains as reshaping manufacturing trends.
• The company noted strong demand from industries valuing speed, quality, and manufacturing agility.
• Protolabs described itself as the world's leading provider of digital manufacturing services and the world's fastest manufacturing service.

Risks and Challenges:

• The press release references "Risk Factors" in SEC reports regarding known and unknown risks, uncertainties, and factors that could cause results to differ materially from forward-looking statements.
• Specific expenses impacting non-GAAP measures include restructuring and transformation costs, costs related to exit and disposal activities, and CEO transition costs.

Management Commentary and Tone:

• Suresh Krishna, President and CEO, stated the company delivered another record quarter with double-digit revenue growth for the fourth consecutive quarter, reflecting strong execution and growing demand.
• Dan Schumacher, CFO, highlighted broad-based revenue growth, meaningful operating leverage, continued earnings growth, and a focus on balancing strategic investments with disciplined cost management.
• Management expressed confidence in delivering sustained profitable growth and long-term shareholder value.

Other Key Points:

• A conference call to discuss results and outlook was scheduled for October 29, 2026, at 8:30 a.m. EDT.
• Nine months ended September 30, 2026: Net cash used in investing activities was $24.3 million, and net cash used in financing activities was $8.3 million.
• Nine months ended September 30, 2026: Repurchases of common stock totaled $10.0 million.
• Nine months ended September 30, 2026: Proceeds from issuance of common stock from equity plans were $8.0 million.
• Nine months ended September 30, 2026: Purchases of property, equipment, and other capital assets were $15.5 million.
• Nine months ended September 30, 2026: Restructuring and transformation costs were $2.8 million.
• Nine months ended September 30, 2026: Costs related to exit and disposal activities were $0.9 million.
• Nine months ended September 30, 2026: CEO transition costs were $0.
• Nine months ended September 30, 2025: CEO transition costs were $1.4 million.