Proto Labs reported record third-quarter revenue of $154.3 million, up 14% from a year earlier, alongside higher earnings and wider operating margins. The digital manufacturing services company also raised its full-year 2026 revenue-growth outlook and provided fourth-quarter revenue and earnings ranges.
- Growth was broad-based. CNC machining revenue rose 16.4% year over year, injection molding revenue increased 12.5%, and 3D printing revenue grew 11.4%. Revenue per customer contact was up 16.6%. Proto Labs said this was its fourth consecutive quarter of double-digit revenue growth.
- Margins and earnings improved. GAAP operating margin increased to 9.4% from 6.5% a year earlier; non-GAAP operating margin rose to 11.9% from 10.0%. Net income was $11.8 million, or $0.48 per diluted share, compared with $7.2 million, or $0.30 per share, a year earlier. Non-GAAP earnings per share rose to $0.63 from $0.47.
- Adjusted EBITDA and cash flow also increased. Adjusted EBITDA was $26.2 million, or 17.0% of revenue, up from $21.1 million, or 15.6% of revenue. Cash generated from operations was $22.8 million. Cash and investments totaled $175 million at Sept. 30.
- Full-year revenue guidance is higher. Proto Labs now expects 2026 revenue growth of 10% to 11%, up from its previous range of 8% to 10%.
- Fourth-quarter outlook: The company expects revenue of $143 million to $151 million, GAAP diluted earnings per share of $0.28 to $0.36, and non-GAAP diluted earnings per share of $0.46 to $0.54.
What changes for investors: The higher annual growth range signals a stronger revenue outlook than the company previously anticipated. The quarter also showed improved profitability alongside sales growth, with both GAAP and non-GAAP operating margins higher than a year ago. Non-GAAP figures are company-adjusted measures and are not calculated on the same basis as GAAP results.