Proto Labs(US:PRLB) The Motley Fool·2026-02-06 15:36Core Insights - Proto Labs has transitioned from a loss to profitability, reporting earnings of $0.44 per share in Q4, surpassing analyst expectations of $0.34 per share [1][3] - The company achieved Q4 sales of $136.5 million, a 12% increase year over year, and full-year sales growth of 6% [3] - Despite the positive earnings report, free cash flow declined by 13% to $59.7 million in 2025 compared to $68.6 million in 2024 [4] Financial Performance - Q4 earnings per share (GAAP) were $0.25, marking a significant turnaround from a loss in the previous year [3] - For the full year, earnings per share reached $0.88, reflecting a 33% increase from $0.66 in 2024 [3] - The gross margin for Proto Labs stands at 44.12% [6] Future Outlook - Proto Labs forecasts sales growth between 6% and 8% for 2026, with Q1 2026 sales expected to range from $130 million to $138 million [6] - Projected GAAP profit for Q1 2026 is estimated to be between $0.17 and $0.25 per share, likely lower than Q4 2025 [6] Market Position - Proto Labs' current stock price is $62.45, with a market capitalization of $1.2 billion [6] - The stock is trading at a P/E ratio of 70, which may be considered expensive given the company's growth rate and declining free cash flow [7]