Proto Labs, Inc.

Greetings and welcome to ProtoLab's third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ryan Johnsrud, Investor Relations Manager. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Protolabs' third quarter 2025 earnings conference call. I'm joined today by Suresh Krishna, President and Chief Executive Officer, and Dan Schumacher, Chief Financial Officer. This morning, Protolabs issued a press release announcing its financial results for the third quarter and it's September 30th, 2025. The press release is available on the company's website. In addition, the prepared slide presentation is available online at the web address provided in our press release. Our discussion today will include statements relating to future performance and expectations that are or may be considered forward-looking statements and subject to many risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K. for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. The results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release and the accompanying slide presentations at the investor relations section of our company website for a complete reconciliation of GAAP to non-GAAP results. Now, I will turn the call over to Suresh Krishna. Suresh?

Thanks, Ryan. Good morning, everyone. And thank you for joining our third quarter earnings call. I'm pleased to be with you today to discuss our strong results. We delivered record quarterly revenues and exceeded earnings expectations, highlighting the strength of our model and the power of focused execution. Before discussing our results in detail, I want to take a moment to share a few reflections from my first five months with Protolabs. Spending time in our facilities and with our customers and our partners has left me energized and confident in the opportunities ahead. We are focused on removing friction, expanding our offerings, and deepening customer relationships. While it's still early, My short time here has strengthened my confidence that our current strategy, delivering high quality custom parts throughout the product lifecycle from prototyping to production, is the right one. We are in the midst of a comprehensive strategic planning process to identify specific initiatives and projects to accelerate growth and improve our operations. We are refining the details on how to achieve full realization of our strategy, and I look forward to sharing more in 2026. Meanwhile, we are committed to delivering value with speed, clarity, and discipline, unlocking long-term growth. Together with our teams, I am focused on re-accelerating revenue growth and ultimately positioning Protolabs for long-term shareholder value creation. Now, on to our third quarter results. Revenue grew 7.8% year-over-year to a quarterly record of 135.4 million, and we had strong quarter of earnings that exceeded expectations. Our teams continue to execute with speed and focus, driving strong financial results. I'd like to specially commend our U.S. go-to-market teams whose continued commitment to customers and execution fueled another quarter of double-digit revenue growth in the U.S. Our record revenue was led by increased demand in our U.S. CNC machining and sheet metal offerings supported by strength across several key end markets. First, in aerospace and defense. We experience continued strong demand for mission-critical precision parts in innovative areas like drones, satellites, and space exploration. As you know by now, Protolabs works with the most prominent, innovative, and fastest-growing companies, Amazon being one of them. Our speed, precision, Quality and reliability allow us to be a trusted partner to Amazon in several of its critical business units, notably drones and robotics. We have also supported Blue Origin with parts for their single launch lunar cargo lander, among other projects. Blue Origin told us they continue to use Protolab services due to our impeccable customer service and levels of detail and accountability. The second area of note for us is industrial and commercial machinery. This segment also performed well with notable activity in robotics and semiconductors. In addition, overall Protolabs CNC machining revenue was driven by very strong network fulfilled growth. I want to acknowledge our Protolabs network teams for their excellent execution through periods of significant tariff uncertainty and implementation challenges. Our teams manage through uncertainty and increased demand while reducing customer friction and driving higher sequential network gross margins. These results demonstrate our ability to execute well and deliver strong performance across our target industries. Now, shifting to our two key performance indicators where we made significant improvements. Third quarter revenue per customer increased almost 15% year over year as we continue to drive increased share of wallet with our large and strategic customers. I am very encouraged by the traction we are seeing in deepening customer relationships, and I can tell you anecdotally that our large enterprise customers want to do even more with Protolabs. Adoption of our combined offer continue to expand in this quarter, with customers utilizing both factory and network fulfillment in the last 12 months up 35% versus the prior quarter. As we continue to serve more customers and remove customer friction, this is showing up in accelerated demand. In fact, due to strong demand, we are expanding CNC machining capacity in our factories, a signal of momentum and confidence. We expect this investment to generate meaningful return. I know we can do more for our customers. Over the past several months, we have worked to significantly expand our factory CNC machining service. You might have seen a press release announcing the launch of advanced CNC machining capabilities a few weeks ago. If you haven't, I'd encourage you to check it out. We listened to our customers and heard loud and clear that they require advanced manufacturing capabilities from Protolabs. These capabilities include tighter tolerances for added precision, diverse finishes to strengthen and cosmetically improve parts, and fast, comprehensive quality documentation. Further, these services are all now available via our protolabs.com e-commerce ordering platform. This is an example of our commitment to removing friction, and we will continue to invest in improvements like this to drive demand. Moving to a broader commentary about our business, as I noted in our last earnings call, I believe we have great talent and a great culture. I want to build on that culture by continuing to bring in and retain top talent. We are proud to be named one of America's best in state employers in the 2025 by Forbes, recognizing our strong workplace culture and commitment to our employees. In addition, in early October, we announced the appointment of Mark Kermish as our Chief Technology and AI Officer. This move helps strengthen our leadership team. Mark will lead our technology teams through ProtoLabs next chapter. He brings a strong track record in digital transformation and AI strategy, and his addition underscores our commitment to these areas. We've been using AI and machine language at Protolabs for a long time now as part of digital manufacturing. Mark will lead our tech teams as we further embed AI and automation across our operations, driving both efficiency and better customer outcomes both of which are central to our strategy. We will continue to strengthen organizational capabilities to support our growth initiatives. Before passing the call over to Dan, I'd like to make some closing remarks. As I mentioned earlier, we will provide more details on strategic initiatives in 2026, but sharpening our execution and improving the customer and employee experiences are essential. Our focus is clear, accelerate profitable growth. I am very encouraged by the progress we've made over the last two quarters. We have accelerated revenue growth and exceeded expectations on earnings. We have significant momentum into year end. I can feel it in our manufacturing facilities and in conversations with our sales teams across all of our offices. I could not be more confident in Protolab's ability to execute with speed, discipline, and innovation as we deliver long-term value to our customers and shareholders. With that, I'll turn it over to Dan to walk through the financials. Dan?