3-D products printer Proto Labs (PRLB +22.77%) stock exploded Friday, gaining 19% 10:20 a.m. ET after beating earnings in its Q4 report.
Analysts forecast Proto Labs would earn $0.34 per share, adjusted for one-time items, on sales of $129.1 million in Q4. Instead, Proto Labs earned $0.44 per share (adjusted) on sales of $136.5 million -- beating on both top and bottom lines.
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Proto Labs Q4 earnings
Proto Labs grew Q4 sales 12% year over year. Earnings as calculated according to generally accepted accounting principles (GAAP) were not quite as good as the $0.44 adjusted figure that analysts focused on. However, Proto Labs did earn $0.25 per share on a GAAP basis -- flipping from a year-ago loss to a profit today.
For the full year, sales grew 6%, and earnings were $0.88 per share -- 33% growth compared to the $0.66 Proto earned in 2024.
Really, the only disappointing number in the report was free cash flow. Proto Labs generated cash profit of only $59.7 million in 2025, a 13% decline from the $68.6 million generated in 2024.
NYSE: PRLB
Key Data Points
Is Proto Labs stock a buy?
2026 is probably going to look similar to 2025. Turning to guidance, Proto Labs forecasts sales growth between 6% and 8%. Q1 2026 sales are expected to range from $130 million to $138 million (similar to Q4 2025), with GAAP profit between $0.17 and $0.25 per share -- probably a bit less than in Q4.
What does this mean for investors, though? At a $62 share price, Proto Labs is a 70 P/E stock growing in the high single-digits at best, and with declining free cash flow. That's pretty expensive. If it were me, I'd probably be selling into today's rally.
