Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc. demonstrated a robust financial performance, with Non-GAAP EPS increasing by approximately 10% year-over-year, reaching $0.41, which exceeded various estimates. The company’s revenue composition reflects growth in both Proto Labs Network, which saw an 18.6% year-over-year increase to $29.3 million, and Digital Factory revenues, which rose by 4.8% year-over-year to $105.8 million. Additionally, the expansion in customer engagement, with nearly 45% growth in clients utilizing the combined offerings, and an 11% year-over-year increase in revenue per customer further supports the positive outlook for Proto Labs's business trajectory.

Proto Labs Inc has experienced a slight decline in gross margins for the third quarter of fiscal 2025, dropping to 45.3% from 45.6% the previous year, which raises concerns about the company's short-term financial stability. Despite anticipating a 5% revenue increase to $526.8 million for the full year, non-GAAP earnings are projected to fall slightly to $1.58, down from $1.64 the prior year, indicating a potential downside in profitability. Additionally, ongoing changes in tariff and trade policy are exerting short-term margin pressures, contributing to an overall negative outlook for the company's financial performance.