A digital manufacturer that makes custom plastic and metal parts on demand, offering rapid prototyping and production through injection molding, CNC machining, 3D printing, and sheet metal — serving everyone from startups to aerospace and medical companies. It was founded in 1999 in a Minnesota garage by engineer Larry Lukis, who wrote over a million lines of software to automate the slow process of getting prototype parts. That garage coding habit became its secret sauce: the company still uses software to quote and route parts, shipping many in as little as one day.
Q2 2026 revenue rose 10.6% to $149.3M with gross margin at 46.4% and net income more than doubling to $9.2M
Proto Labs grew across both of its largest lines for the first time in several quarters. rose 10.6% to $149.3M and expanded to 46.4% as CNC Machining and Injection Molding each grew over 13%, while rose to $0.37 from $0.18 a year earlier. The company carries $127.9M cash, no debt, and a broadening base of growth.
Key takeaways
rose 10.6% to $149.3M, led by 13.6% growth in CNC Machining and 13.1% in Injection Molding, with 3D Printing down 2.6%.
expanded 2.1 points to 46.4% as the 10.6% increase outpaced a 6.3% rise in cost of revenue from higher personnel and material costs.
more than doubled to $9.2M and rose to $0.37, helped by a lower of 27.4% from tax benefits.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue grew 10.6% to $149.3M, driven by CNC Machining and Injection Molding in the U.S., with gross margin expanding to 46.4%.
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Total increased 10.6% to $149.3M, led by 13.6% growth in CNC Machining and 13.1% in Injection Molding, partially offset by a 2.6% decline in 3D Printing.
expanded 210 to 46.4% as growth outpaced a 6.3% increase in cost of revenue, which was driven by higher personnel and raw material costs.
Operating expenses rose 5.8% to $58.0M and included $0.9M in restructuring costs and $0.9M from a for a German facility closure.
Cash ended at $127.9M, up 41.5% , with of $33.0M for the first half; the company believes cash suffices for at least 12 months.
Sequential rose 7.2% from $139.3M in Q1 and rose 15.4% to $11.4M.
What changed
CNC Machining growth continued but decelerated to 13.6% from 19.7% in Q1 2026, below the 17.6% full-year 2025 pace.
reached 46.4%, above the 45.6% Q1 2026 level and the 44.2% Q4 2025 close, reversing the prior-year decline toward pre-Hubs 50%+ levels.
Injection Molding returned to growth at 13.1% after a 1.4% 2025 decline and a 7.5% Q1 2025 drop, answering the prior watch on line stabilization.
Protolabs Network remained undisclosed for a sixth consecutive quarter, last reported at $25.3M in Q3 2024.
German closures progressed with a $0.9M this quarter, following the 2025 Eschenlohe and Putzbrunn completions at $1.0M total cost.
Europe was not separately disclosed this quarter after a 3.7% 2025 decline and 10.1% Q2 2025 drop.
What to watch
CNC Machining growth rate in Q3 2026 after decelerating to 13.6% from 19.7% in Q1.
Whether Injection Molding growth above 13% holds or reverts after prior-year declines.
Resumption of Protolabs Network disclosure after six omitted quarters.
Europe trend once disclosed again after the Q2 2025 10.1% decline.
Operating expenses rose 5.8% to $58.0M, including $0.9M in restructuring costs and $0.9M from the of a for a German facility closure.
more than doubled to $9.2M, helped by a lower of 27.4% due to increased tax benefits from .
was $33.0M for the first half, and the company ended the quarter with $127.9M in cash, which it believes is sufficient for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Risk As a result of our foreign operations, we have revenue, expenses, assets and liabilities that are denominated in foreign currencies. We generate revenue and incur production and sourcing costs and operating expenses in British Pounds and Euros. Our operatin…
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Foreign Currency Risk
As a result of our foreign operations, we have revenue, expenses, assets and liabilities that are denominated in foreign currencies. We generate revenue and incur production and sourcing costs and operating expenses in British Pounds and Euros.
Our operating results and cash flows are adversely impacted when the United States Dollar appreciates relative to foreign currencies. Additionally, our operating results and cash flows are adversely impacted when the British Pound appreciates relative to the Euro. As we expand internationally, our results of operations and cash flows will become increasingly subject to changes in foreign currency exchange rates.
We have not used forward contracts or currency borrowings to hedge our exposure to foreign currency risk. Foreign currency risk can be assessed by estimating the change in results of operations or financial position resulting from a hypothetical 10% adverse change in foreign exchange rates. We believe such a change would generally not have a material impact on our financial position, but could have a material impact on our results of operations. We recognized foreign currency losses of $0.2 million and foreign currency gains of $0.5 million for the three months ended June 30, 2026 and 2025, respectively. We recognized foreign currency losses of $0.2 million and foreign currency gains of $0.5 million for the six months ended June 30, 2026 and 2025, respectively. The changes in foreign exchange rates had a favorable impact on consolidated revenue of $0.4 million for the three months ended June 30, 2026 and a favorable impact on consolidated revenue of $2.6 million for the six months ended June 30, 2026 compared to the same period in 2025.
From time to time, we are subject to various legal proceedings and claims that arise in the ordinary course of our business activities. Although the results of litigation and claims cannot be predicted with certainty, as of the date of these financial statements, we do not belie…
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From time to time, we are subject to various legal proceedings and claims that arise in the ordinary course of our business activities. Although the results of litigation and claims cannot be predicted with certainty, as of the date of these financial statements, we do not believe we are party to any litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business.
Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 includes a discussion of our risk factors. There have been no material changes from the risk factors described in our Annual Report on Form 10-K.
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Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 includes a discussion of our risk factors. There have been no material changes from the risk factors described in our Annual Report on Form 10-K.