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what it is
Proto Labs helps engineers upload a design and get custom parts made fast through automated digital manufacturing.
how it gets paid
Last year Proto Labs made $533M in revenue. Injection Molding was the main engine at $196M, or 37% of sales.
why it's growing
Revenue grew 6.4% last year. Gross margin at 44.6% matters most because better revenue without margin repair just gives you more busy work.
what just happened
Revenue hit $397M and EPS reached $0.63, with profit landing well above the $0.44 prior quarter run rate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
40.7x trailing p/e — you're paying up for this one
8.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Proto Labs helps engineers upload a design and get custom parts made fast through automated digital manufacturing.
Speed is the product. You upload a CAD file, get pricing fast, and skip the usual back-and-forth with a machine shop. That matters when a delayed prototype can stall your whole launch. The company runs four core manufacturing lines and generated $533 million in annual revenue, which gives you a broader one-stop option than a single-process shop.
How they make money
$533M
annual revenue · their business grew +6.4% last year
Injection Molding
$196M
+4.0%
CNC Machining
$170M
+5.0%
3D Printing
$112M
+9.0%
Sheet Metal
$55M
+3.0%
The products that matter
custom plastic parts
Injection Molding
$266M · roughly half of revenue
It generated an estimated $266M. In plain English: this is still the core business, so any growth story has to work here too.
largest segment
precision metal parts
CNC Machining
$160M · roughly 30% of revenue
It contributed an estimated $160M. That's big enough that stable machining demand can smooth the swings coming from newer additive investments.
scale business
rapid prototyping and additive manufacturing
3D Printing
$107M · roughly 20% of revenue
It brought in an estimated $107M, and management just added four large-format metal printers to push this segment harder. Smaller today, but this is where the current expansion story lives.
growth bet
Key numbers
$600M
2027 sales est
That is the 2027 revenue target versus $533 million in annual revenue today, so the bull case needs about $67 million of added sales.
40.7x
trailing p/e
P/E → price-to-earnings → how expensive the stock is versus profit. So what: you are paying up before margins have recovered.
4.7%
operating margin
Operating margin → profit after running the business → how much the factory keeps before taxes and interest. So what: the cushion is thin.
8.0%
return on capital
Return on capital → profit from each dollar invested → how efficiently management turns money into earnings. So what: this is decent, not elite.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- net profit margin 10.0% — keeps 10 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PRLB 3 years ago → it's now worth $19,730.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $397M and EPS reached $0.63, with profit landing well above the $0.44 prior quarter run rate.
The company also posted a last reported earnings beat, with $0.44 actual versus $0.34 estimated, a 29.41% surprise. Gross margin came in at 44.6%, which matters because margin recovery is the whole argument here.
$397M
revenue
$0.63
eps
44.6%
gross margin
the number that mattered
Gross margin at 44.6% matters most because better revenue without margin repair just gives you more busy work, not much more profit.
-
proto labs’ top line is on a stable growth trajectory.revenues have improved, thanks to a jump in average order value for the company’s larger united states customers. proto labs has expanded its u.s. manufacturing capacity in response to growing domestic demand for metal 3d-printed parts. the business recently launched four large-format, dual-laser colibrium additive m2 metal printers to allow for more metal 3d printing capacity. this technology can produce complex, lightweight structures, making it an ideal fit for the medical device, aerospace, and defense industries.
-
these sectors often tap into advanced metal 3d printing for end-use production applications.the new printers were installed at a recently opened raleigh, north carolina facility dedicated to direct metal laser sintering (dmls) printing.
-
dmls printing is an established additive manufacturing process for metal components.one of the largest in the nation, the 120,000 square foot factory features nearly 40 dmls printers, with production capacity of more than 8,000 parts monthly.
-
despite facing obstacles, earnings per share ought to advance.
-
cost of revenue has risen because of elevated contract labor, overtime, and medical expenses.
source: company earnings report, 2026
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What could go wrong
the #1 risk is 6%–8% growth guidance proving too optimistic for a 40.7x stock.
med
Guidance miss
The thesis now leans on management delivering 2026 growth in the guided 6%–8% range. If revenue slips below the $130M–$138M quarterly target, the stock loses the main argument for its premium multiple.
At 40.7x trailing earnings, you are not paying for a flat story.
med
New metal capacity goes underused
Raleigh can produce more than 8,000 metal parts a month and now includes nearly 40 DMLS printers. If demand does not fill that footprint, fixed costs rise faster than revenue.
That would pressure margins just as the market is expecting operating leverage.
med
Labor and medical costs stay elevated
Proto Labs already pointed to higher contract labor, overtime, and medical expenses in cost of revenue. With a 10.0% net margin, there is not a huge cushion for recurring cost creep.
Even a stable top line can disappoint if the cost base keeps drifting up.
A company with $600M in revenue, 10.0% net margin, and 40.7x earnings has room for progress. It does not have much room for excuses.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next quarter
first real test of the 2026 guide
Watch whether quarterly revenue lands inside the $130M–$138M range. That is the cleanest read on whether the 6%–8% growth target is grounded or optimistic.
margin
gross margin holding near 44.6%
If new business arrives at weaker pricing or labor pressure lingers, this number will tell you first.
capacity
raleigh utilization commentary
Nearly 40 DMLS printers and 8,000-plus parts of monthly capacity only help if demand keeps ramping. Listen for fill rates, backlog tone, and large-customer order trends.
ownership
whether institutions keep selling
Three straight quarters of net selling is not a disaster, but it is a vote of caution. You want to see that pressure stop before calling this a clean rerating story.
Analyst rankings
earnings predictability
60 / 100
This sits in the middle of the pack. In human-speak, analysts think the business is understandable, but not smooth enough to trust every quarter blindly.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 94 buyers vs. 96 sellers in 3q2025. total institutional holdings: 21.8M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$27
$88
$68
current price
$58
target midpoint · 14% from current · 3-5yr high: $85 (+25% · 6% ann'l return)
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