Protolabs reported its highest-ever quarterly revenue in its fiscal Q2 2025, driven by strong gains in CNC machining and continued expansion of its digital manufacturing network.

The results mark an early win for new CEO Suresh Krishna, who took over leadership of the company just over two months ago. In his first earnings call since stepping into the role, Krishna described the quarter as “a strong step forward.” He emphasized his focus on improving customer experience and positioning the company for long-term growth.

“Proto Labs’ next chapter is going to be an extraordinary one, and I’m thrilled to be leading this talented team,” Krishna told analysts. “We have a very innovative and resilient culture and a pervasive mindset for continuous improvement.”

Protolabs revenue in Q2

Protolabs revenue rose to $135.1 million in its fiscal Q2, which ended June 30. That’s a 7% sequential increase and the highest in the company’s history.

The company’s network business — which fulfills orders through a vetted set of third-party manufacturing partners — climbed 16%, reflecting strong demand for flexibility and scale beyond Protolabs’ in-house production capabilities. CNC machining revenue was another standout. It jumped 20% globally and 30% in the United States, on the back of increased activity from aerospace and defense customers.

While sales in 3D printing and injection molding dipped slightly, Krishna said customer engagement is deepening across Protolabs’ hybrid manufacturing model. More clients are now using both the company’s internal factories and its external network. Over the past year, the number of customers using both fulfillment methods rose 44%. Additionally, revenue per customer grew 11% year over year in Q2. Krishna called the platform’s integrated approach a key differentiator as manufacturers look for speed, scale, and design freedom across the product lifecycle.

Krishna pointed to aerospace and defense as major growth drivers. The company counts Boeing, Raytheon, Lockheed Martin, and even NASA and Blue Origin among its customers.

“We are seeing increased awareness and interest across target industries, especially aerospace and defense,” he said, noting the complex and often urgent nature of sourcing in those sectors.

Certification at Protolabs facility

In a related move, Protolabs announced that its metal 3D printing facility in Raleigh, North Carolina, had received ISO 13485 certification. That marks a critical step in expanding into the medical device market. The standard governs quality management for medical manufacturing and opens the door to producing 3D-printed implants and other non-active medical components.

“This certification will help accelerate our growth in medical,” Krishna said. “It’s a really important step forward, and I want to recognize the hard work of our team in Raleigh.”

Since joining the company, Krishna has been on what he described as a “listen and learn tour.” He has met with employees, customers, and partners to better understand both challenges and opportunities. While it’s still early in his tenure, he’s already emphasizing operational execution, improved retention, and reducing friction in customer experience.

“I believe in this company. I have personally seen the value Protolabs delivers to its customers,” Krishna said. “Done right, better customer and employee experience can unlock meaningful long-term growth.”

Macroeconomic pressures

The company also responded swiftly to recent changes in U.S. trade policy and tariffs, particularly those impacting products sourced through its network. Chief financial officer Dan Schumacher explained that while these changes briefly pressured margins, Protolabs was able to adapt quickly through its AI-based pricing and fulfillment systems.

“Our team made rapid pricing adjustments, and we saw margins normalize by June,” Schumacher said.

Krishna added that the company’s digital infrastructure gave it an edge during the disruption.

“We reduce friction for customers, even when policies change quickly,” he said.

Not all regions delivered growth. Protolabs revenue in Europe declined 15% in Q2 on a constant currency basis due to continued weakness in the region’s manufacturing sector. Protolabs recently reorganized its European commercial team and is looking to reset its go-to-market approach across the continent. Despite the challenges, Krishna remains confident in the company’s ability to adapt.

“Speed and agility are central to our operations — those trends are especially critical in today’s environment,” he said.

Looking ahead, Protolabs expects revenue in Q3 to fall between $130 million and $138 million.

Check back for more earnings reports. Here’s last quarter’s update on Proto Labs sales and revenue.

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