Proto Labs (NYSE:PRLB) reported record quarterly revenue of $135.4 million, driven by accelerating demand in U.S. CNC machining and network-fulfilled growth, particularly in aerospace, defense, and industrial machinery. The company achieved sequential improvement in non-GAAP gross margin and increased revenue per customer by nearly 15% year over year. Capital was returned to shareholders through stock repurchases, and strategic initiatives included expanding advanced CNC capabilities, increasing cross-sell activity between factory and network fulfillment, and strengthening the leadership team with a new Chief Technology and AI Officer.

CEO Suresh Krishna discussed the company’s comprehensive strategic planning process to identify initiatives for growth and operational improvement, with details to be shared in 2026. Third quarter revenue reached $135.4 million, up 7.8% year over year, with strong performance in U.S. CNC machining and sheet metal, supported by key end markets like aerospace, defense, robotics, and semiconductors. The company’s focus on customer engagement, cross-selling, and advanced CNC offerings contributed to revenue growth and increased share of wallet among large and strategic customers.

Revenue guidance for Q4 is projected between $125 million and $133 million, implying 6% year-over-year growth, with non-GAAP EPS guidance of $0.30 to $0.38. Proto Labs continues to invest in expanding CNC machining capacity, adding advanced capabilities, driving efficiency through automation and AI, and enhancing customer experience to accelerate profitable growth. The company maintains a debt-free balance sheet with $138.4 million in cash and investments as of September 30, 2025, reinforcing its commitment to long-term value creation for customers and shareholders.

Read more at Nasdaq, Inc.: Proto Labs (PRLB) Q3 2025 Earnings Call Transcript