Key Highlights

  • Record Revenue of USD 154.3 million rose from USD 135.4 million and topped the consensus estimate of USD 149.3 million.
  • Non-GAAP EPS of USD 0.63 beat the consensus estimate of USD 0.60, while GAAP diluted EPS was USD 0.48.
  • Adjusted EBITDA reached USD 26.2 million, or 17% of revenue, compared with 15.6% in the third quarter of 2025.
  • Full year growth guidance rose to 10% to 11%; fourth quarter revenue is guided to USD 143 to 151 million.

Proto Labs, Inc. (NYSE:PRLB) reported record third quarter 2026 revenue of USD 154.3 million, up from USD 135.4 million and above the consensus estimate of USD 149.3 million. Non-GAAP Earnings Per Share of USD 0.63 compared with a consensus estimate of USD 0.60, while GAAP Diluted Earnings per Share were USD 0.48 versus USD 0.30 a year earlier. Net Income rose to USD 11.8 million from USD 7.2 million.

Chief Executive Officer Suresh Krishna noted this was the fourth straight quarter of double digit revenue growth and double digit non-GAAP EPS growth, and said revenue per customer climbed 17% as larger strategic customers broadened their use of the company. The company served almost 21,000 customers in the quarter, a third straight sequential increase.

Service Line Mix and Margin Pressure

In constant currencies, the chief financial officer reported CNC Machining revenue up 16.7%, Injection Molding up 12.6% and 3D printing up 11.5%, while Sheet Metal declined 4.6%. U.S. revenue grew 14.7% and Europe grew 12.2%. CNC Machining saw very strong Demand in aerospace and defense, including space exploration, satellites and drones, as well as robotics. Mr. Krishna said Factory CNC Machining grew 22% and that U.S. factory revenue from HP Multi Jet Fusion printing is up more than 40% year to date.

GAAP Gross Profit rose to USD 68.7 million, a margin of 44.5%. Non-GAAP gross margin of 44.5% fell 140 basis points from a year earlier and 230 basis points sequentially, which management tied to higher raw material costs, machine upgrades and added labor and contractor support for volume. Non-GAAP operating expenses were USD 50.3 million, or 32.6% of revenue versus 35.9% a year earlier. GAAP income from operations rose to USD 14.4 million from USD 8.8 million.

Guidance and Balance Sheet

For the fourth quarter, the company guided to revenue of USD 143 million to USD 151 million, about 8% growth at the midpoint, and non-GAAP EPS of USD 0.46 to USD 0.54. Assumptions include stock-based compensation of about USD 4.1 million, amortization of USD 0.9 million and a non-GAAP tax rate of 19% to 21%. The chief financial officer said fourth quarter gross margin is assumed flat to slightly down, with holiday seasonality weighing on results.

Full year 2026 revenue growth guidance was raised to 10% to 11%, which management said would mark the first year of double digit organic growth since 2018. Operating Cash Flow was USD 22.8 million in the quarter, and the company repurchased USD 5 million of stock. At September 30 it held USD 175 million of cash and investments and no debt.

Quarter Markers to Follow

Several figures stand out for the next report. Fourth quarter revenue guidance of USD 143 million to USD 151 million and non-GAAP EPS guidance of USD 0.46 to USD 0.54 are the dated targets. Non-GAAP gross margin of 44.5% is the metric management tied to raw materials and machine upgrade costs, with a flat to slightly lower reading assumed.

Europe is described as a longer term effort to return to profitability despite its 12.2% growth. Capacity additions for HP Multi Jet Fusion and metal printing, the enterprise rollout of Amazon Quick running into 2027, and the new global capability center in India are other items management flagged.