Why Proto Labs Stock Soared Today
Key Points
Proto Labs beat on top and bottom lines this morning.
Earnings grew a solid 33% year over year in 2025.
3-D products printer Proto Labs (NYSE: PRLB) 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.
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.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Proto Labs. The Motley Fool has a disclosure policy.