Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc demonstrated a robust financial performance with a 10% year-over-year increase in non-GAAP EPS, reaching $0.41, which surpassed both consensus and internal estimates. The company's revenue from the Proto Labs Network rose by 18.6% year-over-year to $29.3 million, while digital factory revenue increased by 4.8% year-over-year to $105.8 million, showcasing solid growth across its service offerings. Additionally, the significant 45% year-over-year growth in customers utilizing the combined factory and network offerings, along with an 11% uptick in revenue per customer, underscores the company's strengthening market position and operational efficiency.

Proto Labs Inc. has experienced a slight decrease in gross margins, falling to 45.3% in 3Q25 from 45.6% the prior year, although this remains the highest quarterly figure of the year. Despite a projected revenue increase of 5% for the full year 2025, concerns about short-term margin pressures stemming from changing tariff and trade policies contribute to a negative outlook on the company's financial performance. Additionally, while management's guidance for 4Q25 estimates revenue of $130.2 million and non-GAAP earnings of $0.36 per share aligns with the upper range of expectations, the broader economic context raises caution regarding profitability and sustained growth.