MINNEAPOLIS--(BUSINESS WIRE)--Global digital manufacturing leader Protolabs (NYSE: PRLB) today announced Marc Kermisch as its new Chief Technology and AI Officer, effective Monday, Oct. 13, 2025. Kermisch will lead Protolabs' global technology organization and succeeds previous CTO, Oleg Ryaboy, who has departed the company. "I want to thank Oleg for his leadership and expertise over the past 3 years during our continued evolution as a digital manufacturer,†said Suresh Krishna, President and C. ...

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has O-I Glass (OI) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.O-I Glass is one of 189 individual stocks in the Industrial Products sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strengt ...

Industry Overview - 3D Printing, or additive manufacturing, is a transformative technology that creates physical objects from digital designs by layering materials with high precision, significantly changing product design and manufacturing since the 1980s [1] - The technology is gaining traction across various sectors, including healthcare, aerospace, automotive, and consumer goods, due to its ability to produce complex shapes and reduce supply chain costs [3][4] Market Growth - The global 3D Printing market is projected to grow from $24.61 billion in 2024 to $29.29 billion in 2025, and is expected to reach $134.6 billion by 2034, with a CAGR of 18.52% [6] - The healthcare 3D Printing market is anticipated to increase from $1.66 billion in 2024 to $1.96 billion by the end of the year, with projections to exceed $8.71 billion by 2034, reflecting a CAGR of 18% [5] Regional Insights - North America currently leads the 3D Printing market with over 35% share, followed closely by Asia Pacific at 30%, with strong growth expected in the U.S. market at a CAGR of 19.18% from 2025 to 2034 [7] Key Players - Xometry, Proto Labs Inc., and Stratasys, Ltd. are recognized as leaders in the 3D Printing space, capitalizing on the technology's advantages in cost, customization, precision, and sustainability [2] - GE Aerospace has made significant investments in additive manufacturing, enhancing fuel efficiency in its engines by 10% to 15% through 3D-printed components [11][12][13] - PTC's Creo software is designed to optimize product development in 3D printing, offering advanced capabilities for manufacturers [15][16] - Carpenter Technology has developed its additive manufacturing capabilities through strategic acquisitions and is recognized for its versatile metal powder production [17][18][19] - Proto Labs is noted for its rapid prototyping and on-demand production capabilities, generating approximately $84 million in revenue from its 3D Printing services in 2024 [22] - 3D Systems provides a wide range of 3D printing solutions and has made strides in digital dentistry and bioprinting, collaborating on projects with NASA [23][24][25][26]

Group 1 - The digital manufacturing market, particularly companies like Proto Labs (NYSE: PRLB), has faced significant challenges over the past five years, with Proto Labs underperforming compared to the SPY and XLI indices, which both saw returns exceeding 50% [1] - The article highlights the author's background in equity analysis and investment, emphasizing a focus on value investing and the utilization of data analytics to identify promising investment opportunities [1] Group 2 - No relevant content regarding company or industry disclosures is present in the provided documents [2][3]

Group 1 - Proto Labs (NYSE: PRLB) has seen a stock increase of approximately 16% due to improved cash flows and growth, although its current capital expenditures (CapEx) are unsustainably low [1] - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations and believes in achieving excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - The investment strategy of Narweena is driven by the belief that an aging population with low growth and stagnating productivity will create new investment opportunities, while many industries may face stagnation or secular decline, potentially improving business performance due to reduced competition [1] Group 2 - The current economic landscape is characterized by a shift towards asset-light businesses, leading to a declining need for infrastructure investments, which results in a large pool of capital chasing limited investment opportunities, thereby driving up asset prices and compressing risk premia [1] - Richard Durant holds undergraduate degrees in engineering and finance and an MBA, and has passed the CFA exams, indicating a strong educational background in finance and investment [1]

Core Insights - Proto Labs reported record GAAP revenue of $135.1 million for Q2 2025, exceeding analyst expectations of $128.0 million, with non-GAAP earnings per share at $0.41, surpassing the estimate of $0.35 [1][2][5] Financial Performance - Revenue (GAAP) increased by 7.6% year-over-year from $125.6 million in Q2 2024 to $135.1 million in Q2 2025 [2] - Non-GAAP earnings per share rose by 7.9% from $0.38 in Q2 2024 to $0.41 in Q2 2025 [2] - Gross margin (Non-GAAP) decreased by 0.9 percentage points to 44.8%, while operating margin (Non-GAAP) fell slightly to 8.6% [2][7] - Adjusted EBITDA increased by 2.1% from $19.3 million in Q2 2024 to $19.7 million in Q2 2025 [2][7] Business Model and Strategy - Proto Labs operates a digital manufacturing platform that utilizes advanced software and automation to produce custom parts, fulfilling orders through in-house factories and a global partner network [3] - The company is focused on expanding its global manufacturing network, enhancing customer engagement, and adapting to trends like faster product cycles and e-commerce-driven sourcing [4] Segment Performance - CNC Machining services saw a significant growth of 20.9% year-over-year, while revenue from the Protolabs Network increased by 18.6% [5][10] - Injection Molding revenue declined by 3.4% year-over-year, attributed to nonrecurring large part orders in Q1 2024 [6] - Sheet Metal services experienced a revenue growth of 9.7% [6] Customer Engagement and Financial Health - Revenue per customer contact increased by 10.9% year-over-year, although the number of customer contacts decreased by 3% [8] - The company repurchased $24.0 million of common stock in the first half of 2025, with cash and investments rising to $123.2 million and no debt on the balance sheet [8] Regional Performance - U.S. revenue grew by 12.4% year-over-year, while European revenues declined by 10.1%, or 14.9% when adjusted for currency fluctuations [11] Cost Management and Operational Efficiency - Operating expenses increased due to higher spending on sales, marketing, and general administration, impacting the gap between GAAP and Non-GAAP earnings [12] - The closure of a German molding facility is part of a strategy to align capacity with market demand [12] Future Outlook - For Q3 2025, the company projects GAAP revenue between $130.0 million and $138.0 million, with non-GAAP earnings per share expected to range from $0.35 to $0.43 [14]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the Company's unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Proto Labs, Inc. for the periods ended June 30, 2025, and December 31, 2024, along with accompanying notes detailing accounting policies, recent pronouncements, and specific financial line items [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets provide a snapshot of the Company's financial position as of June 30, 2025, compared to December 31, 2024, showing slight decreases in total assets and shareholders' equity | Metric (in thousands) | June 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :------------------------ | :------------------ | | Total assets | $743,252 | $743,512 | | Total current assets | $205,506 | $194,854 | | Cash and cash equivalents | $90,382 | $89,071 | | Accounts receivable, net | $78,011 | $66,504 | | Inventory | $13,169 | $12,305 | | Total liabilities | $78,545 | $73,361 | | Total shareholders' equity | $664,707 | $670,151 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Consolidated Statements of Comprehensive Income show a revenue increase for both the three and six months ended June 30, 2025, compared to the prior year, but a decrease in net income for both periods | Metric (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $135,063 | $125,631 | $261,268 | $253,521 | | Gross profit | $59,774 | $56,546 | $115,472 | $114,013 | | Income from operations | $4,969 | $5,999 | $9,500 | $12,826 | | Net income | $4,427 | $4,540 | $8,026 | $9,808 | | Basic Net income per share | $0.19 | $0.18 | $0.33 | $0.39 | | Diluted Net income per share | $0.18 | $0.18 | $0.33 | $0.38 | | Comprehensive income | $6,755 | $3,953 | $11,447 | $8,389 | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) The Consolidated Statements of Shareholders' Equity detail changes in equity components, including common stock repurchases, stock-based compensation, and net income, for the six months ended June 30, 2025 and 2024 | Metric (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Balance at December 31, 2024 (2023) | $670,151 | $695,295 | | Stock-based compensation expense | $8,251 | $8,520 | | Repurchases of common stock and other | $(24,123) | $(27,142) | | Net income | $8,026 | $9,808 | | Foreign currency translation adjustment | $3,303 | $(1,603) | | Net unrealized gains on investments | $118 | $184 | | Balance at June 30, 2025 (2024) | $664,707 | $685,236 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows indicate a decrease in net cash provided by operating activities and a shift from cash provided to cash used in investing activities for the six months ended June 30, 2025, compared to the prior year | Metric (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $28,963 | $35,781 | | Net cash (used in) provided by investing activities | $(3,552) | $3,665 | | Net cash used in financing activities | $(25,169) | $(26,912) | | Net increase in cash and cash equivalents | $1,311 | $12,359 | | Cash and cash equivalents, end of period | $90,382 | $96,149 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the basis of financial statement presentation, recent accounting pronouncements, net income per share calculations, goodwill and intangible assets, fair value measurements, marketable securities, inventory, stock-based compensation, accumulated other comprehensive income, income taxes, and segment reporting [Note 1 – Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) The unaudited interim consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions, reflecting management's estimates and assumptions - The financial statements are **unaudited** and prepared in accordance with **U.S. GAAP** for interim financial information and **Form 10-Q**, relying on **management's estimates and assumptions**[17](index=17&type=chunk)[18](index=18&type=chunk) [Note 2 – Recent Accounting Pronouncements](index=8&type=section&id=Note%202%20%E2%80%93%20Recent%20Accounting%20Pronouncements) The Company is evaluating the impact of new FASB ASUs on income tax disclosures (ASU 2023-09, effective Dec 2025) and expense disaggregation (ASU 2024-03, effective Dec 2026), with no material impact from recently adopted pronouncements - The Company is evaluating the impact of **ASU No. 2023-09 (Income Taxes)** and **ASU No. 2024-03 (Expense Disaggregation)** on its disclosures, with **no material impact** from recently adopted pronouncements[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Note 3 – Net Income per Common Share](index=8&type=section&id=Note%203%20%E2%80%93%20Net%20Income%20per%20Common%20Share) Basic and diluted net income per share are calculated based on weighted-average shares outstanding, with adjustments for potentially dilutive securities like stock options and other stock-based awards | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (in thousands) | $4,427 | $4,540 | $8,026 | $9,808 | | Basic - weighted-average shares outstanding | 23,900,390 | 25,313,036 | 24,018,119 | 25,473,937 | | Diluted - weighted-average shares outstanding | 24,101,592 | 25,372,972 | 24,291,246 | 25,573,344 | | Basic Net income per share | $0.19 | $0.18 | $0.33 | $0.39 | | Diluted Net income per share | $0.18 | $0.18 | $0.33 | $0.38 | - Anti-dilutive options excluded from diluted EPS calculation were **459,386** and **452,239** for the three months ended June 30, 2025 and 2024, respectively, and **446,174** and **371,313** for the six months ended June 30, 2025 and 2024, respectively[23](index=23&type=chunk) [Note 4 – Goodwill and Other Intangible Assets](index=9&type=section&id=Note%204%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill remained unchanged, while other intangible assets, primarily software platforms and technology, saw a slight net decrease due to amortization. Amortization expense was consistent year-over-year for the three-month period - There were **no changes** in the carrying amount of goodwill during the three and six months ended June 30, 2025[25](index=25&type=chunk) | Intangible Asset (in thousands) | June 30, 2025 Net (in thousands) | December 31, 2024 Net (in thousands) | Weighted Average Remaining Useful Life (in years) | | :------------------------------ | :---------------- | :-------------------- | :------------------------------------------------ | | Non-compete agreement | $65 | $116 | 0.4 | | Software technology | $3,421 | $4,106 | 2.5 | | Software platform | $17,014 | $17,200 | 7.6 | | Total intangible assets | $20,500 | $21,422 | | - Amortization expense for intangible assets was **$0.9 million** for each of the three months ended June 30, 2025 and 2024, and **$1.8 million** and **$1.9 million** for the six months ended June 30, 2025 and 2024, respectively[25](index=25&type=chunk) [Note 5 – Fair Value Measurements](index=10&type=section&id=Note%205%20%E2%80%93%20Fair%20Value%20Measurements) The Company measures financial assets like cash, money market mutual funds, and marketable securities at fair value, primarily using Level 1 (quoted prices in active markets) and Level 2 (observable inputs other than Level 1 prices) inputs - The Company's financial assets measured at fair value on a recurring basis include **cash**, **cash equivalents (money market mutual funds)**, and **marketable securities**[29](index=29&type=chunk) | Financial Assets (in thousands) | June 30, 2025 (Level 1) (in thousands) | June 30, 2025 (Level 2) (in thousands) | December 31, 2024 (Level 1) (in thousands) | December 31, 2024 (Level 2) (in thousands) | | :------------------------------ | :---------------------- | :---------------------- | :-------------------------- | :-------------------------- | | Cash | $82,748 | — | $86,366 | — | | Money market mutual fund | $7,634 | — | $2,705 | — | | Marketable securities | $16,270 | $16,571 | $17,261 | $14,531 | | Total | $106,652 | $16,571 | $106,332 | $14,531 | [Note 6 – Marketable Securities](index=11&type=section&id=Note%206%20%E2%80%93%20Marketable%20Securities) The Company's marketable securities, categorized as available-for-sale, consist of various debt securities with a total fair value of $32.8 million as of June 30, 2025, and maturities primarily within one to five years | Marketable Securities (in thousands) | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | | :----------------------------------- | :----------------------- | :--------------------------- | | U.S. government agency securities | $1,003 | $8,301 | | Corporate debt securities | $15,889 | $15,770 | | U.S. municipal securities | $8,963 | $6,724 | | U.S. treasury bonds | $6,986 | $997 | | Total marketable securities | $32,841 | $31,792 | | Contractual Maturity (in thousands) | June 30, 2025 Fair Value (in thousands) | | :---------------------------------- | :----------------------- | | Due in one year or less | $12,804 | | Due after one year through five years | $20,037 | | Total marketable securities | $32,841 | [Note 7 – Inventory](index=11&type=section&id=Note%207%20%E2%80%93%20Inventory) Inventory, primarily raw materials, is recorded at the lower of cost and net realizable value using the standard cost method (approximating FIFO), with an allowance for obsolescence of $0.7 million as of June 30, 2025 - Inventory consists primarily of **raw materials**, recorded at the **lower of cost and net realizable value** using the **standard cost method**, which approximates **FIFO cost**[34](index=34&type=chunk) | Inventory (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------- | :------------ | :---------------- | | Total inventory | $13,886 | $12,989 | | Allowance for obsolescence | $(717) | $(684) | | Inventory, net of allowance | $13,169 | $12,305 | [Note 8 – Stock-Based Compensation](index=12&type=section&id=Note%208%20%E2%80%93%20Stock-Based%20Compensation) The Company's stock-based compensation plans, including the 2022 Long-Term Incentive Plan and ESPP, saw an increase in shares available for issuance and the granting of inducement awards to the new CEO. Total stock-based compensation expense was $4.3 million for the three months ended June 30, 2025, and $8.3 million for the six months ended June 30, 2025 - The 2022 Long-Term Incentive Plan was amended to increase shares available by **296,000**, and **one-time inducement awards** were granted to the **incoming CEO**[36](index=36&type=chunk)[38](index=38&type=chunk) | Stock-Based Compensation Expense (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options, RSUs and PSUs | $3,939 | $3,938 | $7,600 | $7,893 | | Employee stock purchase plan | $320 | $306 | $651 | $627 | | Total stock-based compensation expense | $4,259 | $4,244 | $8,251 | $8,520 | - As of June 30, 2025, unrecognized compensation expense was **$3.9 million** for stock options (over **3.1 years**), **$21.7 million** for restricted stock units (over **2.9 years**), and **$8.6 million** for performance stock units (over **2.3 years**)[43](index=43&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) [Note 9 – Accumulated Other Comprehensive Income (Loss)](index=16&type=section&id=Note%209%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive income (loss) is primarily influenced by foreign currency translation adjustments and net unrealized gains on investments in securities, showing a positive change for the three and six months ended June 30, 2025 | Component (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $(26,891) | $(28,845) | $(27,984) | $(28,013) | | Foreign currency translation adjustments | $2,300 | $(678) | $3,303 | $(1,603) | | Net unrealized gains on investments | $28 | $91 | $118 | $184 | | Balance at end of period | $(24,563) | $(29,432) | $(24,563) | $(29,432) | [Note 10 – Income Taxes](index=16&type=section&id=Note%2010%20%E2%80%93%20Income%20Taxes) The income tax provision decreased for both the three and six months ended June 30, 2025. The effective tax rate decreased for the three-month period due to lower tax expense from equity vesting but increased for the six-month period due to losses in jurisdictions without tax benefits. The Company is evaluating the impact of the recently enacted OBBBA tax legislation | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax provision | $2,247 | $2,820 | $4,633 | $5,278 | | Effective income tax rate | 33.7% | 38.3% | 36.6% | 35.0% | - The effective tax rate **decreased by 4.6%** for the three months ended June 30, 2025, primarily due to a decrease in tax expense from the vesting of restricted stock units and the exercise of stock options[51](index=51&type=chunk) - The effective tax rate **increased by 1.6%** for the six months ended June 30, 2025, primarily due to an increase in losses in jurisdictions that are not eligible for tax benefits due to valuation allowances[51](index=51&type=chunk) - The Company had unrecognized tax benefits totaling **$3.7 million** as of June 30, 2025, and is evaluating the impact of the recently enacted **H.R. 1 (OBBBA)** on deferred tax liabilities and income tax payable[53](index=53&type=chunk)[54](index=54&type=chunk) [Note 11 – Segment Reporting](index=17&type=section&id=Note%2011%20%E2%80%93%20Segment%20Reporting) The Company reports financial information by geographic segments (United States and Europe) and product lines. For the three months ended June 30, 2025, US revenue increased while Europe revenue decreased. CNC Machining and Sheet Metal revenue grew significantly, offsetting declines in Injection Molding and 3D Printing - The Company's reportable segments are based on geographic region: **United States** and **Europe**. The **Corporate Unallocated** category includes R&D and G&A costs not allocated to segments[55](index=55&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Revenue by Segment:** | | | | | | United States | $110,712 | $98,541 | $210,979 | $200,022 | | Europe | $24,351 | $27,090 | $50,289 | $53,499 | | Total Revenue | $135,063 | $125,631 | $261,268 | $253,521 | | **Income (Loss) from Operations by Segment:** | | | | | | United States | $27,687 | $24,241 | $53,184 | $50,573 | | Europe | $(4,968) | $(1,732) | $(8,791) | $(4,176) | | Corporate Unallocated | $(17,750) | $(16,510) | $(34,893) | $(33,571) | | Total Income from Operations | $4,969 | $5,999 | $9,500 | $12,826 | | **Revenue by Product Line:** | | | | | | Injection Molding | $47,415 | $49,080 | $96,138 | $101,743 | | CNC Machining | $61,945 | $51,239 | $114,788 | $101,171 | | 3D Printing | $21,215 | $21,281 | $41,409 | $42,863 | | Sheet Metal | $4,303 | $3,922 | $8,514 | $7,475 | | Other Revenue | $185 | $109 | $419 | $269 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, including an overview of its business, key financial measures and trends, detailed results of operations for the three and six months ended June 30, 2025, and an analysis of liquidity and capital resources [Forward-Looking Statements](index=20&type=section&id=Forward-Looking%20Statements) This section includes a standard disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially - Statements in this report that are not historical facts are **forward-looking** and involve known and unknown **risks, uncertainties, and other factors** that may cause **material differences** in results[62](index=62&type=chunk) [Overview](index=20&type=section&id=Overview) Proto Labs, Inc. is a leading digital manufacturer of custom parts, aiming to accelerate innovation through its factory and global network of manufacturing partners. The Company recently approved a plan to close its prototype injection molding facility and discontinue Direct Metal Laser Sintering 3D printing services in Germany - Proto Labs is a **leading digital manufacturer** of custom parts, utilizing both **owned manufacturing factories** and a **worldwide network of premium manufacturing partners**[63](index=63&type=chunk)[66](index=66&type=chunk) - The Company approved a plan to **close its prototype injection molding facility** in Eschenlohe, Germany, and **discontinue Direct Metal Laser Sintering 3D printing services** in Putzbrunn, **Germany**, expected to be substantially complete during **fiscal year 2025**[65](index=65&type=chunk) [President and Chief Executive Officer Transition](index=20&type=section&id=President%20and%20Chief%20Executive%20Officer%20Transition) Suresh Krishna was appointed President and Chief Executive Officer, effective May 20, 2025, succeeding Robert Bodor - **Suresh Krishna** was appointed **President and Chief Executive Officer**, effective **May 20, 2025**, succeeding **Robert Bodor**[67](index=67&type=chunk)[68](index=68&type=chunk) [Key Financial Measures and Trends](index=21&type=section&id=Key%20Financial%20Measures%20and%20Trends) This section outlines the Company's revenue sources, cost of revenue, gross profit, operating expenses, other income, and provision for income taxes, along with factors influencing these financial measures [Revenue](index=21&type=section&id=Revenue) Revenue is generated from sales of custom parts across product lines (Injection Molding, CNC Machining, 3D Printing, Sheet Metal) in the United States and Europe. The Company focuses on increasing revenue by gaining new customers and expanding sales to existing ones, resulting in increased revenue per customer contact despite a decrease in total customer contacts - Revenue is derived from sales of parts fulfilled through **owned manufacturing factories** and a **worldwide network of premium manufacturing partners**, across product lines including **Injection Molding, CNC Machining, 3D Printing, and Sheet Metal**[70](index=70&type=chunk) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue (in thousands) | $135,063 | $125,631 | $261,268 | $253,521 | | Customer contacts | 21,775 | 22,456 | 33,136 | 34,338 | | Revenue per customer contact | $6,203 | $5,595 | $7,885 | $7,383 | [Cost of Revenue, Gross Profit and Gross Margin](index=21&type=section&id=Cost%20of%20Revenue,%20Gross%20Profit%20and%20Gross%20Margin) Cost of revenue includes raw materials, depreciation, employee compensation, and costs for outsourced parts. Gross profit is revenue less cost of revenue, and gross margin is gross profit as a percentage of revenue, both influenced by factors like revenue mix, pricing, and manufacturing costs - Cost of revenue primarily consists of **raw materials**, equipment depreciation, employee compensation, facilities costs, overhead, and costs to procure parts through manufacturing partners[72](index=72&type=chunk)[73](index=73&type=chunk) - Gross profit and gross margin are affected by **revenue mix** (internal vs. outsourced), **pricing**, **sales volume**, **manufacturing costs**, **production capacity increases**, **domestic/foreign revenue mix**, **product line mix**, and **foreign currency exchange rates**[74](index=74&type=chunk) [Operating Expenses](index=22&type=section&id=Operating%20Expenses) Operating expenses comprise marketing and sales, research and development, general and administrative, and costs related to exit and disposal activities. Personnel-related costs are the most significant component, and the Company anticipates continued investments in technology and personnel - Operating expenses consist of **marketing and sales**, research and development, general and administrative, and costs related to exit and disposal activities, with **personnel-related costs** being the most significant component[75](index=75&type=chunk) - The Company expects continued **substantial investments in technology and personnel**, leading to **increased operating expenses** in the future[76](index=76&type=chunk) - Costs related to **disposal and exit activities** are driven by the decision to close certain manufacturing facilities in **Germany**, primarily consisting of **operating expenses**, **employee severance**, **fixed asset write-downs**, and **facility-related charges**[80](index=80&type=chunk) [Other Income, net](index=22&type=section&id=Other%20Income,%20net) Other income, net, primarily consists of foreign currency-related gains and losses and interest income on cash balances and investments, which fluctuate based on exchange rates and interest rate levels - Other income, net, primarily consists of **foreign currency-related gains and losses** and **interest income** on cash balances and investments, varying with **foreign currency exchange rates** and **interest rates**[81](index=81&type=chunk) [Provision for Income Taxes](index=22&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes includes federal, state, local, and foreign taxes. The effective tax rate may differ from historical rates due to increased losses in foreign operations not eligible for tax benefits and future tax law changes - The provision for income taxes is comprised of **federal, state, local, and foreign taxes**. The effective tax rate may differ from historical rates due to increases in **losses in foreign operations** not eligible for tax benefits and future tax law changes[82](index=82&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of the Company's financial performance for the three and six months ended June 30, 2025, versus 2024, highlighting changes in revenue, gross profit, operating expenses, and net income | Metric (in thousands) | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change ($) (in thousands) | Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change ($) (in thousands) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $135,063 | $125,631 | $9,432 | 7.5% | $261,268 | $253,521 | $7,747 | 3.1% | | Gross profit | $59,774 | $56,546 | $3,228 | 5.7% | $115,472 | $114,013 | $1,459 | 1.3% | | Income from operations | $4,969 | $5,999 | $(1,030) | (17.2)% | $9,500 | $12,826 | $(3,326) | (25.9)% | | Net income | $4,427 | $4,540 | $(113) | (2.5)% | $8,026 | $9,808 | $(1,782) | (18.2)% | [Comparison of Three Months Ended June 30, 2025 and 2024](index=24&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) For the three months ended June 30, 2025, revenue increased by 7.5% driven by a 12.4% increase in the United States, while Europe revenue decreased by 10.1%. CNC Machining revenue grew significantly by 20.9%, offsetting a 3.4% decrease in Injection Molding. Gross margin slightly decreased to 44.3%, and operating expenses rose due to personnel costs and CEO transition expenses. Net income saw a slight decrease | Metric (in thousands) | 2025 (in thousands) | 2024 (in thousands) | Change ($) (in thousands) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | **Revenue:** | | | | | | United States | $110,712 | $98,541 | $12,171 | 12.4% | | Europe | $24,351 | $27,090 | $(2,739) | (10.1)% | | Total Revenue | $135,063 | $125,631 | $9,432 | 7.5% | | **Revenue by Product Line:** | | | | | | Injection Molding | $47,415 | $49,080 | $(1,665) | (3.4)% | | CNC Machining | $61,945 | $51,239 | $10,706 | 20.9% | | 3D Printing | $21,215 | $21,281 | $(66) | (0.3)% | | Sheet Metal | $4,303 | $3,922 | $381 | 9.7% | | Other Revenue | $185 | $109 | $76 | 69.7% | - Customer contacts **decreased by 3.0%** to **21,775**, but revenue per customer contact **grew by 10.9%** due to a strategic focus on larger orders[87](index=87&type=chunk) - Gross margin **decreased from 45.0% to 44.3%**. Marketing and sales expenses increased by **$1.4 million** due to personnel costs. General and administrative expenses increased by **$2.2 million**, primarily due to **CEO transition costs**[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) [Comparison of Six Months Ended June 30, 2025 and 2024](index=26&type=section&id=Comparison%20of%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) For the six months ended June 30, 2025, total revenue increased by 3.1%, with US revenue up 5.5% and Europe revenue down 6.0%. CNC Machining revenue increased by 13.5%, while Injection Molding decreased by 5.5%. Gross margin slightly declined to 44.2%. Operating expenses increased, notably in general and administrative due to CEO transition costs. The effective tax rate increased to 36.6% due to losses in jurisdictions without tax benefits | Metric (in thousands) | 2025 (in thousands) | 2024 (in thousands) | Change ($) (in thousands) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | **Revenue:** | | | | | | United States | $210,979 | $200,022 | $10,957 | 5.5% | | Europe | $50,289 | $53,499 | $(3,210) | (6.0)% | | Total Revenue | $261,268 | $253,521 | $7,747 | 3.1% | | **Revenue by Product Line:** | | | | | | Injection Molding | $96,138 | $101,743 | $(5,605) | (5.5)% | | CNC Machining | $114,788 | $101,171 | $13,617 | 13.5% | | 3D Printing | $41,409 | $42,863 | $(1,454) | (3.4)% | | Sheet Metal | $8,514 | $7,475 | $1,039 | 13.9% | | Other Revenue | $419 | $269 | $150 | 55.8% | - Customer contacts **decreased by 3.5%** to **33,136**, but revenue per customer contact **grew by 6.8%** due to a strategic focus on larger orders[99](index=99&type=chunk) - Gross margin **decreased from 45.0% to 44.2%**. General and administrative expenses increased by **$2.7 million**, primarily due to **CEO transition costs**[103](index=103&type=chunk)[106](index=106&type=chunk) - The effective tax rate **increased by 1.6% to 36.6%** primarily due to an increase in losses in jurisdictions not eligible for tax benefits due to valuation allowances[109](index=109&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The Company's liquidity is primarily driven by cash flow from operations. Cash and cash equivalents increased slightly to $90.4 million as of June 30, 2025. Operating cash flow decreased, while investing activities shifted to a net cash outflow, and financing activities continued to be a net cash outflow, largely due to common stock repurchases [Cash Flows](index=28&type=section&id=Cash%20Flows) Cash flows from operating activities decreased, while investing activities shifted from providing to using cash, and financing activities continued to use cash for the six months ended June 30, 2025, compared to 2024 | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $28,963 | $35,781 | | Net cash (used in) provided by investing activities | $(3,552) | $3,665 | | Net cash used in financing activities | $(25,169) | $(26,912) | | Net increase in cash and cash equivalents | $1,311 | $12,359 | [Sources of Liquidity](index=28&type=section&id=Sources%20of%20Liquidity) The Company primarily finances operations and capital expenditures through cash flow from operations. Cash and cash equivalents increased to $90.4 million as of June 30, 2025, and management believes existing cash and operating cash flow will be sufficient for the next 12 months - The Company primarily finances operations and capital expenditures through **cash flow from operations**[112](index=112&type=chunk) | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $90.4 million | $89.1 million | - Management believes **existing cash and cash equivalents**, along with **cash generated from operations**, will be sufficient to meet working capital and capital expenditure requirements for at least the **next 12 months**[113](index=113&type=chunk) [Cash Flows from Operating Activities](index=28&type=section&id=Cash%20Flows%20from%20Operating%20Activities) Net cash provided by operating activities decreased by $6.8 million to $29.0 million for the six months ended June 30, 2025, primarily due to changes in operating assets and liabilities, lower net income, and decreases in depreciation, amortization, and stock-based compensation | Metric (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $28,963 | $35,781 | | Net income | $8,026 | $9,808 | | Depreciation and amortization | $17,264 | $18,075 | | Stock-based compensation expense | $8,251 | $8,520 | | Deferred taxes | $(3,985) | $(4,144) | | Impairments related to exit and closure of facilities | $448 | — | | Changes in operating assets and liabilities | $(9,487) (Accounts receivable), $(983) (Inventories), $7,980 (Accrued liabilities and other) | $113 (Accounts receivable), $1,263 (Inventories), $1,551 (Accrued liabilities and other) | - Cash flows from operating activities **decreased by $6.8 million** during the six months ended June 30, 2025, compared to the same period in 2024, primarily due to **changes in operating assets and liabilities** and decreases in **lower net income**, **depreciation, amortization, and stock-based compensation**[115](index=115&type=chunk) [Cash Flows from Investing Activities](index=28&type=section&id=Cash%20Flows%20from%20Investing%20Activities) The Company used $3.6 million in investing activities for the six months ended June 30, 2025, primarily for purchases of property, equipment, and marketable securities, a shift from providing $3.7 million in the prior year | Investing Activity (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Purchases of property, equipment and other capital assets | $(2,730) | $(6,784) | | Purchases of marketable securities | $(11,052) | — | | Proceeds from call redemptions and maturities of marketable securities | $10,230 | $10,419 | | Net cash (used in) provided by investing activities | $(3,552) | $3,665 | [Cash Flows from Financing Activities](index=29&type=section&id=Cash%20Flows%20from%20Financing%20Activities) Net cash used in financing activities was $25.2 million for the six months ended June 30, 2025, primarily driven by common stock repurchases and purchases of shares withheld for tax obligations, partially offset by proceeds from equity plans | Financing Activity (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Repurchases of common stock | $(23,980) | $(26,940) | | Purchases of shares withheld for tax obligations | $(3,117) | $(1,920) | | Proceeds from issuance of common stock from equity plans | $2,081 | $2,094 | | Principal repayments of finance lease obligations | $(153) | $(146) | | Net cash used in financing activities | $(25,169) | $(26,912) | [Critical Accounting Estimates](index=29&type=section&id=Critical%20Accounting%20Estimates) There were no material changes to the Company's critical accounting policies and estimates during the six months ended June 30, 2025 - There were **no material changes** to the Company's critical accounting policies and estimates during the six months ended June 30, 2025[120](index=120&type=chunk) [Recent Accounting Pronouncements](index=29&type=section&id=Recent%20Accounting%20Pronouncements) For information on recent accounting pronouncements, refer to Note 2 to the Consolidated Financial Statements - Information on recent accounting pronouncements is provided in **Note 2** to the Consolidated Financial Statements[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily foreign currency risk, due to its international operations. It highlights the impact of exchange rate fluctuations on operating results and cash flows [Foreign Currency Risk](index=29&type=section&id=Foreign%20Currency%20Risk) The Company is exposed to foreign currency risk from operations denominated in British Pounds and Euros. USD appreciation adversely impacts results, and a hypothetical 10% adverse change in exchange rates could materially impact operating results. Foreign currency movements had a favorable impact on consolidated revenue for both the three and six months ended June 30, 2025 - The Company has revenue, expenses, assets, and liabilities denominated in **British Pounds and Euros**, making its operating results and cash flows susceptible to adverse impacts from **USD appreciation**[122](index=122&type=chunk)[123](index=123&type=chunk) - A hypothetical **10% adverse change** in foreign exchange rates could have a **material impact** on operating results, though not generally on financial position[124](index=124&type=chunk) - Foreign currency movements **favorably impacted** consolidated revenue by **$1.3 million** for the three months and **$0.8 million** for the six months ended June 30, 2025, compared to the same periods in 2024[124](index=124&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=29&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for accurate and timely financial reporting - Management, with CEO and CFO participation, evaluated and concluded that the Company's disclosure controls and procedures are **effective** as of **June 30, 2025**[125](index=125&type=chunk)[126](index=126&type=chunk) [Changes in Internal Control over Financial Reporting](index=30&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) There have been no material changes in the Company's internal control over financial reporting during the period covered by this report - There have been **no material changes** in the Company's internal control over financial reporting during the period covered by this report[127](index=127&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The Company is subject to various legal proceedings in the ordinary course of business but does not believe any would have a material adverse effect on its operations - The Company is subject to various legal proceedings and claims in the ordinary course of business, but does not believe any would individually or in aggregate have a **material adverse effect**[128](index=128&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been **no material changes** from the risk factors described in the Company's most recent Annual Report on Form 10-K[129](index=129&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The board of directors authorized a $100 million share repurchase program in February 2025, with $76.0 million remaining. During the three months ended June 30, 2025, the Company repurchased 75,432 shares for $3.1 million - The board authorized a **$100 million** **share repurchase program** in February 2025, with **$76.0 million** remaining under authorization[130](index=130&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) | | :-------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------ | | May 1, 2025 through May 31, 2025 | 75,432 | $40.97 | $76,035 | | Total (3 months ended June 30, 2025) | 75,432 | $40.97 | $76,035 | [Item 3. Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There are no matters to disclose regarding defaults upon senior securities - **No matters to disclose**[132](index=132&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There are no matters to disclose regarding mine safety - **No matters to disclose**[133](index=133&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - **No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements** during the three months ended June 30, 2025[134](index=134&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all documents filed or furnished as exhibits to this Quarterly Report on Form 10-Q, including corporate governance documents, employment agreements, incentive plans, and certifications - Exhibits include **Third Amended and Restated Articles of Incorporation and By-Laws**, **Executive Employment Agreement for Suresh Krishna**, **Consulting Agreements for Robert Bodor**, **Amended and Restated 2022 Long-Term Incentive Plan**, and various **certifications (302, 906, XBRL)**[135](index=135&type=chunk)

Financial Data and Key Metrics Changes - Second quarter revenue reached a record of $135.1 million, representing a 6.5% year-over-year increase in constant currencies and a 7% sequential increase [21] - Non-GAAP earnings per share (EPS) were $0.41, exceeding guidance and up $0.08 sequentially, with a year-over-year increase of $0.03 [25] - Non-GAAP gross margin was flat sequentially at 44.8%, but down 90 basis points year-over-year due to higher growth in network revenue and lower US network margin from changing tariffs [24] Business Line Data and Key Metrics Changes - CNC machining revenue grew 20% year-over-year, with a 30% increase in the US, driven by strong demand from aerospace and defense customers [22] - Injection molding revenue declined 4% year-over-year, impacted by weaker demand in the medical sector [22] - 3D printing revenue decreased by 1% year-over-year, reflecting ongoing weakness in prototyping [22] - Sheet metal revenue grew by 9%, supported by improved offerings and marketing efforts [22] Market Data and Key Metrics Changes - Revenue in the US grew 12% year-over-year, while European revenue declined by 15% in constant currencies, indicating a contraction in manufacturing activity in Europe [23] - Customers utilizing the combined offer grew by 44% over the trailing twelve months, and revenue per customer increased by 11% year-over-year [12] Company Strategy and Development Direction - The company aims to sharpen execution in customer and employee experience to unlock long-term growth [8] - There will be no radical shifts in strategy in the near term, with a focus on listening and engaging with teams and customers to identify high-impact opportunities [9] - The company continues to invest in marketing and sales enablement tools to enhance customer engagement and streamline operations [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing trade policies and tariffs, viewing them as a long-term tailwind for American manufacturing innovation [16] - The company is focused on generating healthy cash flows to invest in growth and innovation while maintaining resilience amid market uncertainties [18] - Management anticipates continued strength in CNC machining and overall business performance into the third quarter [34] Other Important Information - The company received a 2025 Future of Manufacturing Project Award, validating its progress as a technology-focused manufacturer [10] - The metal 3D printing service in Raleigh, North Carolina, received ISO 13485 certification, enhancing its capabilities in medical device manufacturing [11] Q&A Session Summary Question: Strength in CNC and its impact on growth - Management noted similar growth in both factory and network segments, with a significant contribution from larger accounts [31][32] Question: Insights on injection molding performance - The injection molding business faced headwinds from last year's larger orders and current weakness in the medical sector, but innovation efforts are ongoing [35][36] Question: Impact of tariffs on gross margins - Tariffs on aluminum and steel impacted margins, but adjustments in pricing restored network margins to normal levels by June [46][49] Question: Production initiatives and their success - The company reported an 11% increase in revenue per customer contact and a 44% year-over-year growth in customers utilizing combined offers, indicating successful production initiatives [60]

Financial Performance - Q2 2025 - Revenue reached $135.1 million, a 6.5% increase year-over-year (YoY)[16, 17] - Non-GAAP EPS increased to $0.41, a 10.3% rise YoY[19, 20] - Revenue fulfilled through the Protolabs Network increased by 16% YoY in constant currencies, reaching $29.3 million[21] - Revenue increased 7% sequentially from Q1 2025[21] Revenue by Service - Q2 2025 (YoY in constant currencies) - Injection Molding revenue decreased by 4% to $47.4 million[23] - 3D Printing revenue decreased by 1% to $21.2 million[24] - Sheet Metal revenue increased by 9% to $4.3 million[25] - CNC Machining revenue increased by 20% to $61.9 million[27] Q3 2025 Outlook - Revenue is projected to be between $130 million and $138 million[33] - Non-GAAP EPS is expected to be in the range of $0.35 to $0.43[33] - Foreign currency is expected to have an approximately $0.4 million favorable impact on Q3 2025 revenue[35] Additional Metrics - Customer contacts using combined offer in LTM up nearly 45% YoY[5] - Revenue per customer contact in Q2 2025 grew 11% YoY[5] - 100% of Fortune 500 Companies Served in Aerospace + Defense[9]

Core Insights - Proto Labs (PRLB) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.38 per share a year ago, resulting in an earnings surprise of +24.24% [1] - The company achieved revenues of $135.06 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.35% and up from $125.63 million year-over-year [2] - Proto Labs has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Future Outlook - The immediate price movement of Proto Labs' stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $127.77 million, and for the current fiscal year, it is $1.34 on revenues of $506.12 million [7] - The Zacks Rank for Proto Labs is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Rubber - Plastics industry, to which Proto Labs belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Proto Labs' stock performance [5]