Proto Labs (PRLB) investor relations material

Executive summary

• Record Q3 revenue was $154.3M, up 14.0% YoY reported and 14.2% in constant currency; fourth consecutive quarter of double-digit growth.

• GAAP net income rose to $11.8M from $7.2M; non-GAAP diluted EPS increased 33.4% to $0.63.

• FY26 revenue growth guidance increased to 10%–11% from 8%–10%.

Financial highlights

• GAAP gross profit rose 12.0% to $68.7M; operating income increased 63.9% to $14.4M, and diluted GAAP EPS was $0.48 versus $0.30.

• Non-GAAP operating margin was 11.9%, up 190 bps YoY; non-GAAP diluted EPS was $0.63 versus $0.47.

• Adjusted EBITDA was $26.2M, or 17.0% of revenue, versus $21.1M and 15.6% a year earlier; YTD adjusted EBITDA increased 27.2%.

• 9M revenue was $443.0M versus $396.6M; operating income was $35.6M versus $18.3M, and net income was $29.0M versus $15.2M.

Outlook and guidance

• Q4 revenue guidance is $143M–$151M; non-GAAP diluted EPS guidance is $0.46–$0.54 and GAAP diluted EPS guidance is $0.28–$0.36.

• Q4 foreign-exchange impact on revenue is expected to be negligible; non-GAAP tax rate is expected at 19%–21%, with diluted shares of ~24M.

• Q4 outlook includes holiday-related softness and gross margin flat to slightly down sequentially; SG&A as a share of revenue is expected closer to Q1–Q2 levels.

• Existing cash and expected operating cash generation are considered sufficient for working capital and capital expenditures for at least 12 months; 2027 gross margin percentage is expected to hold as opex growth moves closer to revenue growth.