Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc. demonstrated a strong financial performance with a notable year-over-year increase in Non-GAAP EPS, which rose by approximately 10% to $0.41, surpassing consensus estimates. Additionally, the company's revenue from its Proto Labs Network grew by 18.6% year-over-year to $29.3 million, while digital factory revenue saw a 4.8% increase to $105.8 million. Furthermore, the significant growth in customers utilizing the combined offerings of the factory and network, which increased by nearly 45% year-over-year, alongside an 11% rise in revenue per customer, underscores the company's robust market position and revenue-generating capabilities.

Proto Labs Inc experienced a slight decline in gross margins during the third quarter of 2025, falling to 45.3% from 45.6% the previous year, despite achieving the highest margins of the year within that quarter. Moreover, while revenue forecasts for the full year 2025 are projected to increase by 5% over 2024, non-GAAP earnings are anticipated to decrease to $1.58, which is lower than the $1.64 achieved in the prior year, indicating ongoing profitability challenges. Additionally, the company faces short-term margin pressures due to fluctuations in tariff policy, which could impact its financial performance and growth prospects in the near term.