Xometry 2025 Q1 Earnings Revenue Surges 23% Amid Narrowing Losses

Xometry (XMTR) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded revenue expectations with a 23% year-over-year increase to $151 million. Xometry also raised its full-year marketplace growth outlook to at least 22%, signaling confidence in its performance trajectory. Despite a net loss of $15.1 million, Xometry achieved positive Adjusted EBITDA of $0.1 million, marking a significant $7.5 million improvement year-over-year.

Revenue

Xometry's total revenue climbed by 23.1% to $150.97 million in 2025 Q1, up from $122.69 million in 2024 Q1.

Earnings/Net Income

Xometry narrowed losses to $0.30 per share in 2025 Q1 from a loss of $0.34 per share in 2024 Q1, showing a steady improvement.

Price Action

The stock price of Xometry has climbed 6.66% during the latest trading day, surged 18.00% during the most recent full trading week, and surged 41.32% month-to-date.

Post-Earnings Price Action Review

Over the past five years, buying Xometry shares after a quarter-over-quarter revenue drop and holding for 30 days yielded a 4.09% return, underperforming the benchmark by 19.08%. The strategy showed a low Sharpe ratio of 0.06, indicating limited risk-adjusted returns, with a maximum drawdown of -14.65% and a volatility of 17.59%. The compound annual growth rate (CAGR) was 1.06%, suggesting modest growth over the period. This indicates that despite some positive returns, the strategy has not been effective in optimizing risk versus reward.

CEO Commentary

Randy Altschuler, Chief Executive Officer, stated that in Q1, Xometry achieved a record revenue of $151 million, marking a 23% year-over-year increase, driven by a 27% growth in marketplace activity fueled by enterprise adoption. He emphasized the importance of their marketplace model amidst the complex supply chain environment, highlighting investments in localized marketplaces and technology to enhance global sourcing. Altschuler expressed confidence in their long-term growth trajectory, citing the ongoing shift towards digital sourcing and the vast potential of the custom manufacturing market, reinforcing a proactive approach to customer needs and resilient supply chains.

Guidance

For Q2 2025, Xometry expects revenue between $155 million and $157 million, representing 17% to 18% year-over-year growth. The company anticipates marketplace growth of approximately 20% to 22%. For the full year, it has raised its marketplace growth outlook to at least 22%, while expecting adjusted EBITDA to be positive with incremental margins of about 20%. Supplier services revenue is projected to decline by 5% year-over-year.

Additional News

In recent developments, Xometry has seen several insider trading activities. COO Peter Goguen sold 3,000 shares at an average price of $35.57, reducing his position by 1.82%. CEO Randolph Altschuler sold 27,566 shares at an average price of $26.60, decreasing his ownership by 9.70%. These transactions highlight activity within the company's executive ranks, potentially reflecting personal financial strategies. Meanwhile, Xometry's stock reached a new 52-week low on May 2nd, following a downward revision of price targets by Royal Bank of Canada and other analysts, indicating mixed sentiments about the company's future prospects among financial experts.