Q4 & FY 2025 Q4 2025 Financial Highlights February 6, 2026 Forward-looking Statements and Non-GAAP Measures 2 • These slides may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or imp ...

Group 1 - The event "Vocational Integration: Building Dreams for the Future" was organized by the Nanning Youth Activity Center, allowing 35 parent-child families to experience vocational education hands-on at Guangxi Nanning Technician College [1] - Participants visited various practical sites including electric vehicle inspection and maintenance workshops, and engaged in activities that highlighted the application of subjects like mathematics and physics [1] - Interactive technology sessions included operations with smart connected vehicles, VR experiences, 3D printing, and film production, enhancing children's understanding of digital technology and sparking interest in future careers [1] Group 2 - The event exemplified the collaborative practice of the "Teaching Alliance" by integrating vocational school resources with external platforms, effectively bridging the gap between vocational and general education [2] - A cooperation agreement was signed between the Nanning Youth Activity Center and Guangxi Nanning Technician College to enrich future vocational integration activities and provide quality extracurricular educational resources [2] - The initiative aims to connect schools, enterprises, and communities to create a comprehensive and multi-layered educational system for the growth of youth [2]

Core Insights - 3D printing technology is essential for meeting the design and construction needs of new configurations in the aerospace sector, although it faces technical challenges such as anisotropy, material limitations, and production efficiency [1][2][3] Market Overview - The global additive manufacturing market is projected to reach $21.9 billion (approximately 158.8 billion RMB) in 2024, reflecting a year-on-year growth of 9.1% [3] - The 3D printing rocket market is expected to have a compound annual growth rate (CAGR) of 22.84%, with revenues reaching approximately $2.9 billion by 2032 [3] Technology and Applications - Metal additive manufacturing technologies have developed various processes, including Selective Laser Melting (SLM), Laser Metal Deposition (LMD), Electron Beam Melting (EBM), and Wire Arc Additive Manufacturing (WAAM), among others [1] - The use of additive manufacturing can reduce the costs of complex components like rocket engines by 20% to 33%, achieved through improved material utilization, design optimization, and integrated components [2] Industry Participation - Both domestic and international 3D printing technologies are deeply involved in aerospace design and construction, with companies like Plitec providing critical component manufacturing services for multiple rocket launch missions [3] - The advanced metal 3D printing process used in engines like Raptor3 has resulted in a 7% weight reduction and a 21% increase in thrust compared to Raptor2, showcasing the technology's impact on performance [3] Investment Opportunities - Companies to watch in the 3D printing services and components sector include Plitec, Yinbang Co., Feiwo Technology, Jiangshun Technology, and Nanfeng Co. [4] - In the 3D printing equipment sales sector, notable companies include Huazhu High-Tech and Aisikai, while material suppliers include Yuyuan Powder Materials, Srey New Materials, and Kaisheng New Materials [4]

Financial Data and Key Metrics Changes - Revenue for the third quarter of 2025 reached a record $135.4 million, representing a year-over-year growth of 7.8% [5][12] - Non-GAAP earnings per share increased to $0.47, up $0.06 sequentially, primarily driven by gross margin expansion [15] - Third quarter consolidated non-GAAP gross margin improved to 45.9%, up 110 basis points sequentially [14] Business Line Data and Key Metrics Changes - CNC machining revenue grew 18.2% year-over-year, with a notable 24% increase in the U.S. market [12][14] - Injection molding revenue increased by 2% year-over-year, while 3D printing revenue declined by 6.3% due to weak demand in Europe [13][14] - Sheet metal revenue grew 13.9% year-over-year, with U.S. revenue increasing by 10% [14] Market Data and Key Metrics Changes - Revenue fulfilled through Proto Labs' network was $30.1 million, up 16.2% in constant currencies [12] - The company experienced strong demand in aerospace and defense, particularly in drones and space exploration [6][12] - European revenue showed a decline of 5% in constant currencies, reflecting continued contraction in manufacturing activity [14] Company Strategy and Development Direction - The company is focused on removing friction, expanding offerings, and deepening customer relationships, with a strategic plan to be shared in 2026 [5][11] - Investment in expanding CNC machining capacity is underway, indicating confidence in future growth [8][9] - The appointment of a Chief Technology and AI Officer aims to strengthen leadership in digital transformation and AI strategy [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute with speed and innovation, highlighting significant momentum heading into year-end [11] - The company is focused on accelerating profitable growth and improving customer experiences [11] - Management acknowledged the challenges in the injection molding business but emphasized ongoing efforts to drive growth across all service lines [39] Other Important Information - The company generated $29.1 million in cash from operations during the third quarter, maintaining a strong cash position with $138.4 million in cash and investments and zero debt [15] - The outlook for the fourth quarter of 2025 anticipates revenue between $125 million and $133 million, implying a 6% year-over-year growth [16] Q&A Session Summary Question: What is the potential growth rate for the company longer term? - Management emphasized a focus on driving growth and indicated confidence in future growth based on current initiatives [18] Question: Are you seeing growth from company-specific initiatives or just benefiting from end market growth? - Management noted growth across several industries, not limited to aerospace and defense, and highlighted the importance of customer feedback in driving initiatives [20][21] Question: Can you discuss the CapEx requirement for CNC expansion? - The expansion involves adding mills rather than facility changes, allowing for quick scalability [23] Question: What are the challenges in bringing advanced CNC machining capabilities online? - Management highlighted the automation of processes and the removal of friction through digital solutions [34] Question: What are the medium-term prospects for the injection molding business? - Management acknowledged reduced prototyping activity affecting growth but reaffirmed commitment to driving growth in all service lines [39] Question: What contributed to the gross margin performance in the quarter? - Improvements in both factory and network margins contributed to the overall gross margin increase [42][43] Question: Where are the biggest benefits in revenue per customer coming from? - Growth is being seen from both new and existing customers, with a focus on increasing share of wallet across diverse industries [44][45]

Industry Overview - 3D Printing, or additive manufacturing, has revolutionized product design and manufacturing since its introduction in the 1980s, allowing for unprecedented precision, customization, and efficiency [1] - The technology has evolved from a prototyping tool to a comprehensive manufacturing solution, capable of producing complex shapes that traditional methods cannot achieve [2] - Compared to subtractive manufacturing, additive manufacturing generates less waste, enhances product customization, and introduces novel design features [2] Market Dynamics - Businesses are increasingly adopting 3D Printing for rapid prototyping and on-demand production due to its advantages in cost, customization, precision, and sustainability [3] - Localized production reduces supply chain complexities and transportation costs, while on-demand manufacturing minimizes the need for large inventories, benefiting industries with seasonal demand [3] - North America leads the 3D Printing market with over 35% share, driven by strong R&D investment and advanced manufacturing infrastructure, while the Asia-Pacific region, particularly China and India, is rapidly advancing in this space [5] Key Players - Leading companies in the 3D Printing sector include Xometry, Proto Labs, Stratasys, AMETEK, Carpenter Technology, ATI Inc., and 3D Systems, all of which are driving innovation and growth [3][6] - AMETEK specializes in high-performance metal powders for additive manufacturing and has recently acquired Faro Technologies for $920 million, enhancing its 3D metrology portfolio [9][10] - Carpenter Technology has developed its Carpenter Additive business unit, focusing on producing specialty metal powders and has opened an Emerging Technology Center for additive manufacturing [11][12] - ATI offers a comprehensive range of capabilities in the additive supply chain and has commissioned a state-of-the-art facility for large-format metal additive manufacturing [15] - 3D Systems is a global leader in additive manufacturing, providing advanced technologies and materials across various high-value industries, including healthcare and aerospace [16] Recent Developments - 3D Systems has secured a $7.65 million contract with the U.S. Air Force for a Large-format Metal 3D Printer, indicating strong growth in its Aerospace & Defense segment [18] - The company has also made significant advancements in healthcare, including the release of the NextDent Jetted Denture Solution and FDA approval for a bioabsorbable medical device for nerve repair [20][21]

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]

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]

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]

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 impacting manufacturing processes since the 1980s [2] - The technology offers advantages over traditional manufacturing, including cost efficiency, customization, precision, and sustainability [2][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% [7] - The healthcare 3D Printing market is anticipated to grow from $1.66 billion in 2024 to $1.96 billion in 2025, potentially exceeding $8.71 billion by 2034, reflecting a CAGR of 18% [6] Regional Insights - North America currently leads the 3D Printing market with over 35% share, followed closely by Asia Pacific at 30% [8] - The U.S. 3D printing market is expected to grow at a CAGR of 19.18% from 2025 to 2034 [8] Key Players - Leading companies in the 3D Printing space include Xometry, Proto Labs Inc., and Stratasys, which are embracing the technology for rapid prototyping and on-demand production [3] - Carpenter Technology, ATI Inc., GE Aerospace, and L3Harris Technologies are highlighted as promising stocks in the 3D Printing sector, each with unique capabilities and market positions [9][11][14][17][20] Sector Applications - 3D Printing is gaining traction in various sectors, including healthcare, aerospace, automotive, and consumer goods, enabling the production of lightweight components, personalized medical tools, and complex designs [5][4] - In aerospace, 3D Printing is used for manufacturing durable aircraft components, while in automotive, it aids in producing prototypes and customized parts [5] Technological Advancements - The technology allows for the use of lighter and stronger materials, minimizes waste, and enables faster production cycles, which traditional methods cannot achieve [4] - Companies like GE Aerospace have integrated 3D Printing into their production processes, resulting in significant improvements in fuel efficiency for jet engines [18][19]

Financial Performance - Revenue for Q1 2025 was $126.2 million, a decrease of 10% year-over-year[18, 19] - Non-GAAP EPS for Q1 2025 was $033, a decrease of $007 year-over-year, driven by lower volume and increased OpEx[21, 22] - Revenue fulfilled through the Protolabs Network was $263 million, up 115% year-over-year in constant currencies[23] - Q1 2025 revenue increased 4% sequentially[23] - Non-GAAP Gross Margin decreased by 80 bps year-over-year to 448%[31, 49] - Non-GAAP Operating Margin decreased by 210 bps year-over-year to 74%[31, 50] Revenue by Service - Injection Molding revenue decreased by 7% year-over-year to $487 million in constant currencies[25] - 3D Printing revenue decreased by 6% year-over-year to $202 million in constant currencies[26] - Sheet Metal revenue increased by 19% year-over-year to $42 million in constant currencies[27] - CNC Machining revenue increased to $528 million from $499 million year-over-year[29] Cash Flow and Balance Sheet - Operating Cash Flow for Q1 2025 was $184 million[32] - Capital Expenditures for Q1 2025 were $13 million[32] - Share Repurchases for Q1 2025 were $209 million[32] - Cash and Investments totaled $1163 million[32] - Debt remained at $0[32] Q2 2025 Outlook - Revenue is projected to be between $124 million and $132 million[35] - Non-GAAP EPS is projected to be between $030 and $038[35] - Foreign currency is expected to have an approximately $03 million favorable impact on Q2 2025 revenue[37]