Proto Labs delivered a solid QQ3 2024 with revenue of $125.6 million, down 4% year-over-year and flat versus the prior quarter, as the company navigates a continued but uneven macro backdrop in manufacturing. Non-GAAP gross margins improved meaningfully to 46.2% for the quarter, driven by both Factory automation (49% gross margin) and Network pricing/sourcing leverage (35% gross margin). EBITDA and non-GAAP earnings per share advanced sequentially, with non-GAAP EPS at $0.47, up $0.09 quarter-over-quarter, while year-to-date adjusted EPS rests up over 10% on flat revenue. The company generated $24.8 million of cash from operations—the strongest quarterly level since 2020 prior to the 3D Hubs acquisition—and ended the period with a strong balance sheet: cash and investments of approximately $100.5 million and zero net debt. Management’s realignment aims to bolster growth and profitability by separating regional go-to-market execution from a global fulfillment organization, complemented by decisive European portfolio actions (closing the Eschenlohe facility and discontinuing DMLS in Europe) to streamline fulfillment and improve margins. Demand-side momentum includes a 35% year-over-year increase in customers utilizing the combined Factory and Network offer and a 5% year-to-date rise in revenue per customer, signaling meaningful cross-sell progress. The near-term outlook features seasonality-driven Q4 revenue guidance, with revenue projected at $115–$123 million and non-GAAP EPS guidance of $0.28–$0.36, supported by modest FX tailwinds (~$1 million) and non-GAAP add-backs. Investors should weigh the cash flow strength, margin discipline, and cross-sell potential against ongoing macro volatility and execution risk related to the organizational realignment.