Proto Labs Beats Q1 Estimates but Faces Growth Hurdles

Proto Labs reported first-quarter 2025 revenue of $126.2 million, a 1.3% year-over-year decline but above analyst expectations, and non-GAAP EPS of $0.33, also beating most estimates despite a drop from $0.40 a year ago. The company has exceeded EPS estimates for four straight quarters, though its stock has fallen more than 8% year-to-date and faced negative revisions to EPS forecasts. Management highlighted a strong start to the year, increased revenue per customer, robust cash reserves with no debt, and ongoing stock buybacks. For the second quarter, Proto Labs expects revenue between $124 million and $132 million and EPS between $0.30 and $0.38, with both ranges exceeding consensus at the midpoint. Despite recent estimate beats, the company has experienced sluggish long-term growth, with flat revenues over the past two years and only modest annualized growth over five years. Leadership continues to focus on adapting to market conditions and expanding production capabilities.