Proto Labs Inc (PRLB)
NYSE:PRLB
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Proto Labs
(NYSE:PRLB)
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Rating:72Outperform
Price Target:
$64.00
▲(10.78% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by strong financial resilience (near-zero leverage and solid cash generation). Technicals support the uptrend, but an overbought RSI increases near-term risk. Valuation is the largest constraint due to the very high P/E and no dividend support, while earnings-call guidance and commentary are constructive but tempered by Europe weakness, margin pressure in the network business, and ongoing transformation costs.
Positive Factors
Very low leverage / strong balance sheet
Proto Labs' near-zero leverage provides durable financial flexibility: it can fund capex, transformation, certifications, buybacks and withstand demand cycles without refinancing risk. This balance-sheet strength supports long-term strategic investments and downside protection.
Negative Factors
Modest revenue growth and below-peak margins
Revenue growth has been slow and operating/EBITDA margins remain under pre-2022 peaks, limiting operating leverage. Without sustained top-line acceleration or productivity gains, returns on capital may remain subdued and the company may struggle to convert strategic initiatives into materially higher profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Proto Labs' near-zero leverage provides durable financial flexibility: it can fund capex, transformation, certifications, buybacks and withstand demand cycles without refinancing risk. This balance-sheet strength supports long-term strategic investments and downside protection.
Read all positive factors
Proto Labs (PRLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)166.00K
Price to Earnings (P/E)50.1
Beta (1Y)1.19
Revenue Growth2.82%
EPS Growth-34.29%
CountryUS
Employees2,357
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.44
Shares Outstanding23,775,160
10 Day Avg. Volume164,960
30 Day Avg. Volume165,999
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)1.80
Price to Sales (P/S)2.27
P/FCF Ratio20.29
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda19.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.68
Revenue Forecast (FY)$552.97M
Proto Labs Business Overview & Revenue Model
Company Description
Proto Labs, Inc., together with its subsidiaries, operates as an e-commerce driven digital manufacturer of custom prototypes and on-demand production parts in the worldwide. The company offers injection molding; computer numerical control machinin...
How the Company Makes Money
Proto Labs makes money primarily by charging customers for the manufacturing of custom parts and related services. Revenue is generated on a per-order basis when customers upload CAD files, receive pricing/lead-time quotes, and place orders for pa...
Proto Labs Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Proto Labs is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Proto Labs is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyProto Labs Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a broadly positive outlook driven by record quarterly and annual revenue, strong CNC and factory margin performance, improved revenue per customer, solid cash generation, and concrete strategic moves (ISO 13485, India GCC, product and e‑commerce initiatives). However, the company faces notable near-term challenges — a material decline in Europe, pressure on network margins (tariffs/inefficiencies), declines in injection molding and 3D printing prototyping demand, and short-term operating and transformation costs. Management framed 2026 as a year of transformation intended to drive sustained, higher growth and margin expansion, and provided modest 6–8% revenue guidance while investing to scale long-term initiatives.Positive Updates
Record Quarterly and Annual Revenue
Fourth quarter revenue was a company record of $136.5M, up 11% year over year in constant currencies; full year 2025 revenue was $533.1M, up 5.7% year over year in constant currencies.
Negative Updates
Decline in Europe Revenue
Europe revenue declined 8.1% in Q4 (constant currencies) and 7% for the full year, prompting a regional reset with go-to-market changes and cost structure realignment to address underperformance.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Fourth quarter revenue was a company record of $136.5M, up 11% year over year in constant currencies; full year 2025 revenue was $533.1M, up 5.7% year over year in constant currencies.
Read all positive updates
Company Guidance
Proto Labs guided full-year 2026 GAAP revenue growth of 6–8% and gave Q1 2026 revenue guidance of $130–$138 million (midpoint implying roughly 6% year‑over‑year growth), with a ~$2.1 million favorable foreign‑currency impact versus 2025; they expect Q1 non‑GAAP EPS of $0.36–$0.44 and disclosed full‑year non‑GAAP assumptions including stock‑based compensation ≈ $3.6M, amortization ≈ $0.9M, transformation and restructuring costs ≈ $0.7M, and a non‑GAAP effective tax rate of 24–25%.Proto Labs Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 533.13M | 500.89M | 503.88M | 488.40M | 488.10M |
| Gross Profit | 237.14M | 223.20M | 221.99M | 215.47M | 222.69M |
| EBITDA | 64.88M | 60.68M | 66.58M | -58.45M | 80.67M |
| Net Income | 21.24M | 16.59M | 17.22M | -103.46M | 33.37M |
Balance Sheet | |||||
| Total Assets | 760.36M | 743.51M | 772.35M | 802.17M | 928.58M |
| Cash, Cash Equivalents and Short-Term Investments | 128.12M | 103.09M | 102.80M | 80.13M | 77.51M |
| Total Debt | 4.65M | 3.52M | 5.48M | 21.35M | 7.44M |
| Total Liabilities | 89.48M | 73.36M | 77.06M | 104.52M | 100.09M |
| Stockholders Equity | 670.87M | 670.15M | 695.29M | 697.65M | 828.49M |
Cash Flow | |||||
| Free Cash Flow | 59.66M | 68.66M | 45.16M | 40.39M | 21.03M |
| Operating Cash Flow | 74.50M | 77.83M | 73.27M | 62.08M | 55.24M |
| Investing Cash Flow | -13.41M | -13.58M | -4.55M | -43.09M | -94.66M |
| Financing Cash Flow | -40.37M | -58.55M | -41.86M | -27.92M | -22.20M |
Proto Labs Technical Analysis
Positive
57.77
Price Trends
59.06
Negative
55.33
Positive
51.07
Positive
Market Momentum
-0.58
Negative
48.91
Neutral
50.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRLB, the sentiment is Positive. The current price of 57.77 is above the 20-day moving average (MA) of 57.05, below the 50-day MA of 59.06, and above the 200-day MA of 51.07, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRLB.
Proto Labs Risk Analysis
Proto Labs disclosed 35 risk factors in its most recent earnings report. Proto Labs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Proto Labs Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $762.87M | 16.91 | 9.20% | ― | 7.61% | 25.35% | |
72 Outperform | $1.37B | 50.09 | 3.20% | ― | 2.82% | -34.29% | |
68 Neutral | $655.79M | 20.81 | 13.31% | 3.49% | 22.39% | 112.75% | |
64 Neutral | $282.57M | 10.47 | 16.65% | ― | -3.42% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $370.00M | -47.25 | -3.30% | ― | -12.38% | -0.71% |
* Industrials Sector Average
PRLB
Proto Labs
57.77
26.00
81.84%
IIIN
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33.81
10.78
46.78%
NWPX
Northwest Pipe Company
79.68
40.25
102.08%
TG
Tredegar
8.13
1.32
19.38%
MEC
Mayville Engineering Company
18.21
5.86
47.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.