Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc. demonstrated solid financial performance, with Non-GAAP EPS rising by approximately 10% year-over-year, reaching $0.41, which surpassed expectations. The company reported a significant increase in Proto Labs Network revenue by 18.6% year-over-year to $29.3 million and a 4.8% year-over-year growth in digital factory revenue to $105.8 million. Additionally, the number of customers using the combined offerings grew nearly 45% year-over-year, indicating a strong demand for their services and an increase in revenue per customer by 11% in the second quarter of 2025.

Proto Labs Inc. experienced a slight decline in gross margins in the third quarter of 2025, dropping to 45.3% from 45.6% year-over-year, despite being the highest margin for any quarter in that year, indicating potential underlying profitability challenges. The impact of changing tariff and trade policies is anticipated to create short-term margin pressures, which could adversely affect the company’s earnings prospects. Forecasts for full-year revenues project a modest increase to $526.8 million, but non-GAAP earnings are expected to fall slightly to $1.58 per share, down from $1.64 in the previous year, highlighting concerns regarding profitability amidst these pressures.