Proto Labs(US:PRLB)2025-10-31 17:40Revenue and Income - Revenue for Q3 2025 reached $135.366 million, a 7% increase from $125.619 million in Q3 2024[11] - Net income for Q3 2025 was $7.216 million, slightly up from $7.189 million in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $15,242,000, compared to $16,997,000 for the same period in 2024, reflecting a decrease of approximately 10.3%[18] - The company reported a comprehensive income of $9,769,000 for the three months ended September 30, 2025, compared to $7,189,000 for the same period in 2024, an increase of approximately 36.0%[18] - The company reported an income from operations of $18.310 million for the nine months ended September 30, 2025, compared to $21.406 million in the same period of 2024[72][74] Expenses - Operating expenses for Q3 2025 totaled $52.483 million, up from $48.650 million in Q3 2024, marking an increase of 6%[11] - Research and development expenses rose to $10.705 million in Q3 2025, compared to $9.772 million in Q3 2024, reflecting a 9% increase[11] - Stock-based compensation expense for the nine months ended September 30, 2025, was $11,928,000, compared to $12,716,000 in 2024, showing a decrease of about 6.2%[18] - Stock-based compensation expense for the three months ended September 30, 2025, was $3.7 million, compared to $4.2 million for the same period in 2024[48] - The company reported a depreciation and amortization expense of $25,693,000 for the nine months ended September 30, 2025, down from $26,984,000 in 2024[18] Assets and Liabilities - Total current assets increased to $225.792 million as of September 30, 2025, up from $194.854 million at the end of 2024, representing a 16% growth[9] - Total assets as of September 30, 2025, were $756.855 million, compared to $743.512 million at the end of 2024, indicating a 2% increase[9] - Total liabilities increased to $92.136 million as of September 30, 2025, from $73.361 million at the end of 2024, a 25% rise[9] - Shareholders' equity as of September 30, 2025, was $664.719 million, down from $670.151 million at the end of 2024, a decrease of 1%[9] - Total long-lived assets decreased to $211,325,000 as of September 30, 2025, down from $227,263,000 as of December 31, 2024[9] Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $58,053,000, slightly down from $60,535,000 in 2024, indicating a decrease of about 4.1%[18] - Total cash and cash equivalents at the end of the period increased to $104,422,000 from $87,873,000, representing a growth of approximately 19.7%[18] - Net cash used in investing activities was $7,804,000 for the nine months ended September 30, 2025, compared to $10,683,000 in 2024, showing a decrease of about 27.3%[18] - Cash and cash equivalents rose to $104,422,000 as of September 30, 2025, compared to $89,071,000 as of December 31, 2024, showing improved liquidity[9] Stock and Compensation - The number of stock options outstanding as of September 30, 2025, was 395,334, with a weighted average exercise price of $52.18[49] - The company had 725,967 restricted stock units with a fair value of $38.49 per share, down from 763,261 units at the end of 2024[53] - The company granted 278,500 performance stock units (PSUs) during the nine months ended September 30, 2025, with a fair value of $59.71 per share[55] - The total number of PSUs increased to 231,812 as of September 30, 2025, with a weighted average fair value of $56.17 per share[55] - As of September 30, 2025, there was $3.3 million of unrecognized compensation expense related to unvested stock options, expected to be recognized over 2.9 years[51] Taxation - The company recorded an income tax provision of $7.7 million for the nine months ended September 30, 2025, compared to $8.0 million for the same period in 2024[60] - The effective income tax rate for the nine months ended September 30, 2025, was 33.5%, an increase from 31.9% in the prior year[60] - The Company recorded an income tax provision of $3.0 million for the three months ended September 30, 2025, compared to $2.7 million for the same period in 2024, reflecting an effective tax rate increase to 29.6% from 27.1%[59][60] Segment Performance - Revenue for the United States segment for the three months ended September 30, 2025, was $109.361 million, compared to $99.571 million in the same period of 2024, reflecting a growth of approximately 9%[68][70] - The company's total revenue for the nine months ended September 30, 2025, was $396.634 million, up from $379.140 million in the same period of 2024, representing an increase of about 4.6%[72][74] - CNC Machining revenue increased by 18% to $63,043,000 in Q3 2025 from $53,327,000 in Q3 2024[11] - The total income from operations for the three months ended September 30, 2025, was $8.810 million, compared to $8.580 million in the same period of 2024, indicating a slight increase[68][70] Management Changes - The company appointed Marc Kermisch as the new Chief Technology & AI Officer effective October 13, 2025, following the departure of the previous CTO[77]