3D Printing Financials: Protolabs Reports 3D Printing Dip, But Metal 3D Orders Grow

Protolabs (NYSE: PRLB) kicked off 2025 with a mixed but steady performance. Revenue remained close to expectations, profits dipped slightly from last year, and the company was profitable despite ongoing manufacturing headwinds. Although overall sales were nearly the same as in the first quarter of 2024, Protolabs saw growth in the part of its business focused on production. Even with lower profits, Protolabs kept putting money into its long-term strategy, growing its production services and making it easier to get parts to customers, whether through its own factories or its network of manufacturing partners.

Revenue Holds Up, But Margins Under Pressure

Protolabs brought in $126.2 million in revenue during the first quarter of 2025, just 1.3% below the same period last year. While the year-over-year dip is small, it reflects a bigger slowdown in manufacturing, where customers are being more cautious and demand has been harder to predict.

Net income was $3.6 million, down from $5.3 million in Q1 2024. Meanwhile, EBITDA came in at $13.6 million. Still, Protolabs managed to stay in the black. And in a manufacturing environment where many players are cutting costs or posting losses, that’s no small feat.

CFO Dan Schumacher called Protolabs’ profitability “industry-leading,” and pointed out that the company has strong free cash flow, zero debt, and $116 million in cash and investments.

“We generated $18.4 million in cash from operations during the first quarter and returned $20.9 million to shareholders through stock repurchases,” he told investors during an earnings call on May 2, 2025. “That’s 122% of free cash flow.”

Network Grows While Core Business Shifts

One highlight of the quarter was the growth of revenue through the Protolabs Network, its global group of vetted manufacturing partners. That segment posted a 10% increase year-over-year, reaching $26.3 million. The network remains key to the company’s shift from purely prototyping to production.

Protolabs isn’t just a 3D printing company; it also offers CNC machining, injection molding, and sheet metal services. In Q1, CNC machining revenue grew 6%, thanks to steady demand for high-precision parts. Sheet metal work was also up, rising 19% from last year. Meanwhile, 3D printing revenue dropped 6%, and injection molding declined 7% year-over-year, though it improved compared to the previous quarter.

While 3D printing revenue declined overall, CEO Rob Bodor noted that the company is seeing momentum in production-related metal 3D printing, particularly in high-demand sectors like aerospace. He added that most of the 3D printing business is still tied to prototyping, which has faced headwinds as customers delay new product launches.

“We’re seeing very nice growth in production pretty well across the board, including in the 3D printing segments tied to production,” Bodor said.

Company leadership attributed some of the “softness in revenue” to seasonal effects, including the loss of a leap-year ordering day and disruptions from the Chinese New Year in its Network operations.

Eyes on Production—Not Just Prototypes

Bodor highlighted that Protolabs is “evolving beyond prototyping and into production,” a shift that’s been in motion for several quarters. In Q1, the number of customers using the factory and Network grew by more than 45% year-over-year, and revenue per customer contact increased 2.5%.

The company’s marketing campaign, Prototype to Production, appears to be paying off. With over two million views, the campaign helped boost online searches for Protolabs by double digits in the first quarter of the year.

More importantly, this shift is translating into real business. Aerospace and defense customers, long-time users of Protolabs’ prototyping services, are now placing production orders. The company supplies major players like NASA and Lockheed Martin, as well as Blue Origin, where it’s contributing parts to the Blue Moon Mark 1 lunar lander, expected to deliver a payload to the Moon’s South Pole as early as this summer.

Flexibility Amid Tariff Talk

One big advantage for Protolabs is its flexibility. As tariff rules shift and supply chains remain unstable, the company’s ability to adapt quickly is a strong selling point. In fact, Bodor said that 90% of orders from US customers are already made and delivered within the country, helping protect the business from future tariff costs.

Because Protolabs uses smart software to manage orders, it can easily move production between its own factories and global partners, depending on what customers need and what’s happening in the market. Schumacher added that profit margins might dip slightly in Q2 as more orders go through the partner network, but the company is working to “keep profits healthy” across both sides of the business.

Protolabs expects second-quarter revenue to be between $124 million and $132 million, slightly above the midpoint of last year’s Q2 results. Meanwhile, adjusted earnings per share are projected to range between 30 and 38 cents.

What’s more, the company says it is not slowing down on investments. In Q1, Protolabs bought back more than $20 million worth of its own stock, more than the $18.4 million in cash it earned from running the business. Bodor said the company’s strong cash reserves make it possible to keep investing in areas like marketing, smoother operations, and better manufacturing tools.

Those investments include closing its German molding facility, part of a broader restructuring that started with its Japan exit in 2022. The idea is to better align global operations and focus on regions where customer demand and margins are strongest.

Overall, the quarter proved that Protolabs remained profitable, advanced its shift toward production, and continued serving key aerospace and defense customers while adapting to changing market conditions.