Proto Labs IncPRLB
Proto Labs Inc Segments Disclosure
Segment Reporting
The Company’s reportable segments are based on the internal reporting used by the Company’s CEO, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The CODM's primary profit measure for purposes of resource allocation and performance assessment is income (loss) from operations at the segment level. This measure is used to evaluate current-period performance, develop forecasts and budgets, and make decisions about capital and other resource allocations between segments. The Company’s reportable segments are based upon geographic region, consisting of the United States and Europe. The Corporate Unallocated category includes non-reportable segments, as well as research and development and general and administrative costs that are global in nature and that the Company does not allocate directly to its operating segments.
Revenue in the United States and Europe is derived primarily from Injection Molding, CNC Machining, 3D Printing and Sheet Metal product lines. Injection Molding revenue consists of sales of custom injection molds and injection-molded parts. CNC Machining revenue consists of sales of CNC-machined and lathe-turned customer parts. 3D Printing revenue consists of sales of 3D-printed parts. Sheet Metal revenue consists of sales of fabricated sheet metal parts.
The accounting policies of the reportable segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income (loss) from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not allocated to business segments.
The following table summarizes selected financial information by reportable segments:
| Year Ended December 31 2025, | |||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| United States | Europe | Corporate Unallocated | Total | ||||||||||||||||||||
| Revenue | $ | 432,326 | $ | 100,801 | $ | — | $ | 533,127 | |||||||||||||||
Segment expense1 | 321,681 | 117,568 | 67,677 | 506,926 | |||||||||||||||||||
| Restructuring and transformation costs | — | — | 749 | 749 | |||||||||||||||||||
| Costs related to disposal and exit activities | — | 342 | — | 342 | |||||||||||||||||||
| Income (loss) from operations | $ | 110,645 | $ | (17,109) | $ | (68,426) | $ | 25,110 | |||||||||||||||
| Year Ended December 31 2024, | |||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| United States | Europe | Corporate Unallocated | Total | ||||||||||||||||||||
| Revenue | $ | 396,192 | $ | 104,698 | $ | — | $ | 500,890 | |||||||||||||||
Segment expense1 | 297,902 | 114,654 | 62,838 | 475,394 | |||||||||||||||||||
| Costs related to disposal and exit activities | — | 5,585 | — | 5,585 | |||||||||||||||||||
| Income (loss) from operations | $ | 98,290 | $ | (15,541) | $ | (62,838) | $ | 19,911 | |||||||||||||||
| Year Ended December 31 2023, | |||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| United States | Europe | Corporate Unallocated and Japan | Total | ||||||||||||||||||||
| Revenue | $ | 396,821 | $ | 107,056 | $ | — | $ | 503,877 | |||||||||||||||
Segment expense1 | 302,139 | 119,584 | 53,772 | 475,495 | |||||||||||||||||||
| Costs related to disposal and exit activities | — | — | 215 | 215 | |||||||||||||||||||
| Income (loss) from operations | $ | 94,682 | $ | (12,528) | $ | (53,987) | $ | 28,167 | |||||||||||||||
1 Segment expenses consist primarily of raw materials, equipment depreciation, employee compensation including benefits, commissions and stock-based compensation, facilities costs and overhead allocations associated with the manufacturing process for molds and custom parts, marketing programs such as electronic, print and pay-per-click advertising and trade shows and other related costs for our United States and Europe reportable segments. Segment expenses for our Corporate Unallocated reportable segment consist primarily of personnel and outside service costs related to the development of new processes and product lines, enhancements of existing product lines, software developed for internal use, maintenance of internally developed software, quality assurance and testing and employee compensation including benefits, stock-based compensation, professional service fees related to accounting, tax and legal and other related overhead costs.
Total long-lived assets, expenditures for additions to long-lived assets and depreciation and amortization expense are as follows:
| December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Long-lived assets: | |||||||||||||||||
| United States | $ | 170,228 | $ | 181,291 | $ | 201,388 | |||||||||||
| Europe | 45,033 | 45,972 | 52,267 | ||||||||||||||
| Total long-lived assets | $ | 215,261 | $ | 227,263 | $ | 253,655 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Expenditures for additions to long-lived assets: | |||||||||||||||||
| United States | $ | 13,205 | $ | 6,372 | $ | 24,553 | |||||||||||
| Europe | 1,637 | 2,797 | 3,563 | ||||||||||||||
| Total expenditures for additions to long-lived assets | $ | 14,842 | $ | 9,169 | $ | 28,116 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and Amortization: | |||||||||||||||||
| United States | $ | 27,574 | $ | 28,767 | $ | 30,667 | |||||||||||
| Europe | 5,981 | 6,878 | 6,861 | ||||||||||||||
| Unallocated Corporate | 259 | 163 | — | ||||||||||||||
| Total depreciation and amortization | $ | 33,814 | $ | 35,808 | $ | 37,528 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.