Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc. demonstrated a positive financial performance, with a notable increase in non-GAAP earnings per share (EPS), rising by approximately 10% year-over-year to $0.41, surpassing analysts' expectations. The company also reported a significant growth in its revenues, with Proto Labs Network revenue increasing by 18.6% year-over-year to $29.3 million, and digital factory revenue growing by 4.8% year-over-year to $105.8 million. Furthermore, the expansion of its customer base utilizing the combined offerings of the factory and network rose nearly 45% year-over-year, indicating robust demand and an increase in revenue per customer by 11% in the second quarter of 2025.

Proto Labs Inc. is experiencing slight gross margin pressure, with margins dipping from 45.6% to 45.3% in 3Q25, indicative of broader market challenges despite being the highest for the year. Forecasts for 2025 project revenues at $526.8 million—a modest 5% increase over 2024—while non-GAAP earnings are expected to decline slightly to $1.58 from $1.64, reflecting underlying weaknesses. Additionally, ongoing changes in tariff and trade policies are anticipated to exert further short-term pressures on margins, contributing to a negative outlook for the company's financial performance.