Proto Labs reported a modest year-over-year revenue decline in Q4 2024, with revenue of $121.75 million, down 2.6% from the prior year and down 3.1% quarter-over-quarter. While gross margin remained solid at approximately 42.7%, the quarter delivered a negative operating income of $1.50 million and a net loss of $0.40 million, resulting in an EPS of -$0.0165. The EBITDA performance remained positive at $12.91 million, supporting an EBITDA margin of about 10.6%, indicating ongoing operational efficiency even as the company absorbed higher operating costs and amortization charges.
Despite a softer top line and near-term profitability headwinds, Proto Labs generated healthy cash flows in Q4 2024. Operating cash flow was $17.29 million and free cash flow was $16.46 million, underpinning a strong liquidity position with cash and cash equivalents of $89.07 million and net debt of approximately -$85.56 million (net cash). The balance sheet remains asset-light with a large equity base (total stockholders’ equity of ~$670.15 million) and modest total debt (~$3.52 million). Management commentary specifics are not included in the provided data, but the quarterly results demonstrate a disciplined cash-generative profile that can support strategic investments or shareholder-friendly actions if profitability improves.
Looking ahead, the company’s leverage to digital manufacturing, prototyping, and on-demand production positions Proto Labs to benefit from ongoing adoption of e-commerce enabled manufacturing services. However, the current quarter’s negative earnings and elevated depreciation suggest that near-term profitability will depend on continued cost management, product mix optimization (balancing high-margin services with high-velocity prototyping), and the ability to scale EBITDA as depreciation normalizes. Investors should monitor sustainability of free cash flow, momentum in backlog (where available), and the trajectory of SG&A with respect to revenue trends.