Proto Labs (PRLB) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $139.3 million, up 10.4% year-over-year, driven by strong CNC machining and injection molding demand, especially in the U.S. and key sectors like aerospace and defense.

• Non-GAAP EPS reached $0.54, the highest in over five years, up 62.8% year-over-year, with net income rising 125.4% to $8.1 million.

• Revenue per customer contact increased 20.4% year-over-year, reflecting a focus on larger strategic customers, especially in aerospace, defense, and robotics.

• Operational improvements, strategic resets in Europe, and disciplined execution contributed to sequential growth and margin expansion.

• Strong demand for digital manufacturing services and continued investment in innovation and efficiency supported results.

Financial highlights

• Non-GAAP gross margin expanded to 46.2%, up 140 basis points year-over-year and sequentially; GAAP gross margin improved to 45.6%.

• Adjusted EBITDA was $22.8 million (16.3% of revenue), up from $17.4 million (13.8%) a year ago.

• Operating income more than doubled to $9.8 million; GAAP operating margin improved to 7.1%, non-GAAP to 11.0%.

• Cash generated from operations was $17.5 million; cash and investments totaled $158 million at quarter-end, with no debt.

• Capital expenditures were $3.5 million in Q1 2026.

Outlook and guidance

• Full-year 2026 revenue growth expected at 6%-8%; Q2 2026 revenue guidance of $140-$148 million, with non-GAAP EPS guidance of $0.50-$0.58.

• Q2 non-GAAP effective tax rate expected between 25%-26%; gross margin expected flat to slightly down quarter-over-quarter, but up for the full year.

• Management expects continued investment in technology, R&D, and personnel to support growth, with operating expenses anticipated to rise.

• Existing cash and cash equivalents, along with operating cash flow, are expected to be sufficient for at least the next 12 months.