Proto Labs, Inc.

It is now my pleasure to introduce your host, Ryan Johnsrud, Investor Relations. Thank you. Please go ahead.

Thank you, Donna. Good morning, everyone, and welcome to ProLabs' fourth quarter and full year 2025 earnings conference call. I am joined today by Suresh Krishna, President and Chief Executive Officer, and Dan Schumacher, Chief Financial Officer. This morning, ProLabs issued a press release announcing its financial results for the fourth quarter and full year ended December 31st, 2025. The release is available on the company's website. In addition, a 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 presentation at the Investor Relations section of our company website. for a complete reconciliation of gap to non-gap results. With that, I will now turn the call over to Suresh Krishna. Suresh?

Thanks, Ryan. Good morning, everyone, and thank you for joining our fourth quarter and full year earnings call. I am pleased to share our strong financial performance in 2025 and outline our strategic priorities as we move into 2026. Eight months into this role, I've spent significant time with customers, engineers, operators, and investors. What's become clear is that Protolabs has exceptional assets and market relevance, but in recent years, we haven't fully translated that into consistent execution. The results this quarter are an early indication of what's possible when we align execution around the right priorities. We finished the year with clear momentum delivering double-digit year-over-year growth and another record revenue quarter. In constant currencies, fourth-quarter revenue increased 11% and full-year revenue grew 6%, representing Protolab's strongest quarterly and annual organic growth rates since 2018. Revenues per customer grew 13% in 2025, demonstrating major success on a key priority. In addition, we delivered year-over-year growth in earnings and generated another strong cash flow, reinforcing the strength of our business model. This was fueled by exceptional demand for CNC machining and sheet metal, which both delivered double-digit growth in 2025. In fact, US CNC revenue grew 25% in 2025. I'd like to thank Mark Dursa, our Senior Director of CNC Operations, and his team for their exceptional execution in delivering on robust CNC demand. Innovation-driven industries like drones, space exploration, satellites, and robotics continue to rely on Protolabs as a critical partner. We also see strong momentum in data centers. another high-growth market where Protolabs enables faster execution for customers like Amphenol and CommScope, leaders in data center infrastructure solutions. These are well-funded and long-cycle markets where our digital manufacturing model creates a durable competitive advantage and has us well-positioned for 2026. Our financial results reflect Protolabs' progress in improving the customer experience strengthening customer relationships, and executing with speed, focus, and discipline. As a result of our strong finish in 2025, we've entered 2026 from a position of strength with clear momentum and growing confidence in the opportunities ahead. Now, shifting to our long-term strategy. We have clarified our strategy to serve customers across the entire lifecycle of a part, from prototype through production. This strategic direction is not new. However, what is new is the rigor, focus, and execution plan behind it. This approach reinforces our position as the world's fastest and most reliable provider of prototype parts, while deliberately building the capabilities required to be a trusted production supplier. Importantly, this strategy builds from our core strengths rather than shifting away from them. Excellence in prototyping and leadership in digital manufacturing are the foundations of our competitive advantage, and they are the capabilities that enable us to expand credibly into production. Execution of this strategy is anchored by four strategic pillars. Number one, elevate customer experience. Number two, accelerate innovation. Number three, expand production. And number four, drive operational efficiency. First, we are elevating the customer experience by removing friction, making it easier for customers to do business with Protolabs and more efficient for our teams to serve them. Our strategy centers on deepening customer relationships and driving higher conversion, retention, and revenue per customer, ultimately improving unit economics and operating leverage. One tangible example is improvements to our e-commerce customer experience. Today, multiple factory and network storefronts create unnecessary friction. A more unified experience will simplify the customer journey and allow our teams to support customers more consistently and efficiently. With our second strategic pillar, accelerate innovation, we intend to return Protolabs to its legacy of rapid, differentiated innovation, expanding offerings across our core manufacturing services to drive outsized growth. As one of the earliest and largest digital manufacturers, Protolabs has unique assets that differentiate us, including over 60 patents and more than 60 trade secrets, a robust and growing CAD dataset, and deep experience applying automation and AI at scale. We are now translating these assets into a faster, more consistent cadence of customer-facing product and service launches through 2026 and beyond. Innovation for us, means expanding manufacturing capabilities, improving speed and precision, enhancing coating and manufacturability feedback, and deploying smarter pricing and sourcing algorithms, always grounded in customer needs and clear return on investment. Next, expand production. While we currently offer production, our capabilities and customer engagement have historically been weighted towards prototyping. We are now strengthening the capabilities and certifications needed for true production work, opening access to a much larger market opportunity as we scale. For Protolabs, expanding production requires a more deliberate customer-led approach, prioritizing the right customers, applications, and capabilities to unlock this opportunity. In January, we achieved ISO 13485 certification for our U.S. factory injection molding operation, a critical requirement for medical device production programs. We already support prototyping work for all major medical device companies, and this certification opens a substantial opportunity to expand into production over the coming years. Moving forward, we will continue to add certifications and other capabilities required for production expansion. Our fourth strategic pillar, drive operational efficiency, enables profitable growth through improved productivity and cost discipline. This pillar is critical. It funds investments across the first three while acting as a force multiplier for profitability. This includes expanding factory and network gross margins, leveraging SG&A more effectively, simplifying how we operate and utilizing AI, and reallocating resources towards the highest priority initiatives. Each of our four strategic pillars reinforces the others, and collectively they drive a more customer-centric, innovative, efficient, and scalable Protolabs. While this strategy defines our organic priorities, selective inorganic opportunities can further advance our progress. We will continue to evaluate acquisitions that strengthen our capabilities and align closely with our strategic framework. We will remain disciplined and focused on opportunities that create durable long-term shareholder value. With our long-term strategy established, let's shift to 2026. We expect 2026 will be a year of transformation and growth focused on execution. We are making foundational, organizational, operational, and capability-building changes that position Protolabs for faster growth and improved profitability. The first change is getting the right talent in place and properly structured. Mark Kermish, our Chief Technology and AI Officer, is leading a reorganization of our technology group into a domain-focused organization structure, which better aligns how we build technology with how ProtoLabs creates value for customers. Our product management teams are now part of Mark's technology organization, helping remove silos and accelerate innovation. The second change is focused on continuous improvement and quality. We are expanding our business operating system, which we call ProtoExcellence, beyond our factory manufacturing operations and deploying it across the organization to drive productivity. We are also adding talent with significant manufacturing expertise to our quality team as we continue to build production capabilities. The third change for 2026 is the establishment of a Global Capability Center, or GCC, in India. Trotolabs India will be a strategic extension of our global operating model designed to scale innovation, strengthen delivery, and deepen our global engineering and digital capabilities. Protolabs India will serve as an integrated hub that complements our US and European teams, tapping into India's deep technical talent. Ashish Sharma has been appointed to lead this effort. Ashish has built and scaled GCCs for several large industrial companies, and we are excited to have him on board. Fourth, we are making important changes in Europe in 2026. Europe plays a critical role in Protolab's future, but revenues have declined over the past two years amid macro uncertainty as well as internal complexity that created friction for customers and employees. As a result, we are taking deliberate action to reset the business. We are implementing new go-to-market strategies and a renewed customer focus to re-accelerate revenue growth aligning our cost structure with current revenue levels and improving productivity. We believe our addressable market size in Europe is similar to the U.S. Europe is not a growth drag structurally. It is an execution opportunity. Our strategic reset actions in 2026 are designed to stabilize margins and reset the cost base, positioning the region for growth and profitability. While 2026 is a year of transformation, it is also a year of acceleration. Here are a few initiatives that we expect will drive growth in 2026. On elevating the customer experience in Q1, we plan to launch ProDesk, a customer-facing experience designed to improve customers engaged with Protolabs across ordering, collaboration, and service. ProDesk is an important first step in improving the e-commerce experience through better user experience and functionality while we continue to work towards a more fully unified platform over time. This initial launch is focused on removing friction today and setting the foundation for broader e-commerce simplification in the future. On accelerating innovation, we already released a few capability expansions late in 2025, advanced CNC machining and expanded metal 3D printing. The pace of releases will continue in 2026, including improvements to our coating experience and manufacturability software, expansions of our factory capabilities, additional secondary services, and more. As for expanding production, we will focus our efforts in 2026 on our largest and most strategic customers in aerospace and defense and medical, applying what we learned and scaling best practices across our customer base over time. We currently have two leading medical device customers in a pilot program, leveraging our new injection molding certifications and capabilities, including traceability, process validation, and automated inspection to support high precision production volumes. As you can see, we are making step changes in 2026 to achieve our four long-term strategic pillars. As a result of strong momentum exiting 2025, and the progress on key growth initiatives, we expect growth in 2026 to accelerate relative to 2025. Importantly, while 2026 reflects a year of transformation and measured acceleration, the structural changes we are making are designed to position Protolabs for a return to sustained double-digit revenue growth. Our path to double-digit growth is driven by three levers. First, improving conversion and retention through an improved customer experience and accelerated innovation. Second, growing revenue per customer in part by expanding in production. And third, continuing to accelerate penetration in high-growth verticals like aerospace, defense, medical, robotics, and data centers. Taken together, our long-term strategy and transformational work underway in 2026 positions ProtoLabs for sustained revenue growth and operating leverage over the long term, reinforcing our position as a leader in cash flow generation in our industry. We believe our strategic framework will translate into measurable financial progress over the next several years beginning in 2026. As outlined above, ProtoLabs has a credible path to a billion dollars in annual revenue over time while delivering meaningful operating margin expansion. I'm proud of what the team accomplished in 2025 and encouraged by the momentum we enter into 2026 and confident in our 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 to the financials. Dan?