Protolabs (NYSE: PRLB) had a strong second quarter, setting a new revenue record and showing steady growth across its services. 3D printing may have taken a slight hit this quarter, but it remains central to Protolabs’ hybrid manufacturing strategy, as the company grows both its own factories and its supplier network. Despite some uncertainty in the manufacturing world, Protolabs stuck to its digital strengths and managed to grow without hurting profits.
The Minnesota-based digital manufacturer reported Q2 2025 revenue of $135.1 million, a 7.5% increase over the same period last year and the highest in company history. This figure includes $105.8 million fulfilled through Protolabs’ digital factories and $29.3 million through its Protolabs Network of vetted third-party suppliers. Network revenue grew nearly 19% year-over-year, continuing to outpace the factory business in relative terms, while factory revenue still made up the bulk of total sales.
Earnings grew along with revenue. Net income for the quarter was $4.4 million, or 18 cents per share. Meanwhile, Protolabs reported EBITDA of $14.1 million for the quarter, or 10.4% of revenue, reflecting steady performance despite ongoing cost pressures.
“This was a strong quarter across the board,” said CEO Suresh Krishna. “We’re executing well on our strategy to grow the customer base, increase average order value, and deepen our production capabilities. The investments we’ve made are clearly beginning to deliver.”
Suresh Krishna, President and CEO, Protolabs. Image courtesy of Protolabs.
Protolabs said it served 21,775 customer contacts during the quarter, roughly the same as Q1, but revenue per customer contact jumped nearly 11% year-over-year to $6,203. That shows a push toward larger, higher-value orders and a customer base that’s beginning to tap Protolabs for more than just quick-turn prototyping.
“Our priorities remain as follows: drive growth in our key performance indicators, expand production capabilities, and reinforce our core prototyping offer. I am pleased with the progress our employees have made through the first half of the year, and I am confident we have the right foundation, team, and strategy in place to drive sustainable growth while maintaining industry-leading profitability and cash flow generation,” Krishna told investors during an earnings call.
CNC machining was the standout this quarter, with revenue jumping 20% to $61.9 million. Injection molding, still Protolabs’ biggest business, fell 4% to $47.4 million. 3D printing dropped slightly to $21.2 million, down about 1% from last year, while sheet metal grew 9% to $4.3 million. The company said strong demand from industrial and aerospace customers helped boost CNC, while the dip in injection molding was mostly due to seasonal trends and changes in customer orders.
Aerospace and defense remain a significant focus for Protolabs. This quarter, the company said it worked with every Fortune 500 company in the sector and called out new projects involving satellites, drones, and commercial aircraft. It also announced that its metal 3D printing is now certified for making medical devices, part of a bigger plan to grow in regulated industries like healthcare.
The company finished the quarter with $123 million in cash, no debt, and $10.6 million in cash flow. It spent $1.5 million on capital projects and bought back $3.1 million in shares, down from $20.9 million last quarter.
Protolabs provides rapid manufacturing of low-volume 3D printed parts. Image courtesy of Protolabs.
For the third quarter of the year, Protolabs expects revenue between $130 million and $138 million, about the same as this quarter. It’s forecasting adjusted earnings of 35 cents to 43 cents per share, with currency exchange adding a small boost. The company expects to have about 24 million shares next quarter, a lower number thanks to its ongoing stock buyback program.
Strategically, the quarter showed how Protolabs is shifting from being just a fast-turnaround manufacturer to a more flexible, hybrid production platform. The company now combines its digital factories with a growing network of outside suppliers, helping customers get complex parts faster and at scale. This model is especially appealing in industries like aerospace, medical devices, and industrial equipment, where supply chains are under pressure.
Margins are still a challenge, adjusted gross margin slipped to 44.8% from last year, and the Network side likely carries lower margins than factory work. Still, Protolabs is managing to stay profitable, even as the manufacturing world stays uncertain.
“Digital manufacturing is no longer just about speed,” CFO Dan Schumacher concluded. “It’s about precision, reliability, and being able to deliver at scale. We believe our platform is well-positioned to lead this next phase.”
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