Xometry 2025 Q2 Earnings Strong Performance as Revenue Surges 23%

Xometry reported results that exceeded expectations, with revenue growing 23% year-over-year to $162.55 million. The company also raised its full-year marketplace growth guidance to 23–24%, reflecting confidence in continued momentum. Despite wider-than-expected losses, strategic progress and strong market share gains underscored a positive earnings outlook.

Revenue
Xometry’s total revenue surged 22.6% year-over-year to $162.55 million in Q2 2025, driven by robust performance in its core Marketplace segment. The Marketplace segment generated $148.22 million, reflecting a 26% year-over-year increase, fueled by strong enterprise growth and expanding networks of buyers and suppliers. Meanwhile, the Supplier Services segment contributed $14.32 million, albeit a 6% decline compared to the prior year, due to strategic shifts in focus. The performance highlights the company’s ability to scale its digital manufacturing platform while refining its ancillary service offerings.

Earnings/Net Income
Xometry’s financial losses deepened in Q2 2025, with a net loss of $26.44 million, or $0.52 per share, reflecting a 93% increase in losses compared to the prior year. The company’s losses have persisted for six consecutive years, signaling ongoing financial challenges. Despite this, Adjusted EBITDA improved to $3.9 million, a $6.6 million year-over-year increase, driven by stronger operating leverage and gross margin expansion. The performance underscores the need for continued investment in growth initiatives to eventually offset losses.

Price Action
Following the earnings report, Xometry’s stock experienced a significant upward swing, with a 14.51% surge during the latest trading day and a 39.86% rally during the full trading week. The stock also advanced 28.39% month-to-date, reflecting strong investor confidence in the company’s strategic direction and market expansion.

Post-Earnings Price Action Review
The strategy of buying Xometry shares after its Q2 revenue growth and holding for 30 days historically delivered a 12.29% return over the past three years, outperforming the benchmark by the same margin. While the strategy was marked by high volatility (76.81%) and a Sharpe ratio of 0.05, the strong returns highlight the market’s positive reaction to the company’s performance and future potential.

CEO Commentary
CEO Randolph Brody Altschuler highlighted the company’s record Q2 revenue of $163 million, with a 23% year-over-year increase and a 190 basis point improvement in Marketplace gross margin to 35.4%. He emphasized growth drivers such as AI-powered pricing algorithms, enterprise adoption, and supply chain innovations. Altschuler expressed optimism about gaining market share amid macroeconomic uncertainty, while remaining cautious about potential headwinds.

Guidance
Xometry raised its full-year 2025 guidance, projecting Marketplace growth of 23–24% and overall revenue growth of at least 20%. Q3 revenue is expected to range between $167–$169 million, with Adjusted EBITDA anticipated at $4–$5 million. For the full year, the company expects an Adjusted EBITDA margin of approximately 21% and a full-year Marketplace gross margin of 35–40%. CapEx is expected to remain around $7 million per quarter, while Supplier Services revenue is projected to decline approximately 5% year-over-year.

Additional News
Xometry completed a $250 million refinancing of convertible debt, replacing 2027 maturities with new 0.75% notes due in 2030. This move provided financial flexibility to support growth initiatives and margin expansion. The company also launched Teamspace in Europe, the UK, and Turkey, enhancing collaboration tools for enterprise customers. In North America, Xometry introduced an AI feature for instant quoting of technical drawings, streamlining supplier selection. Additionally, Thomasnet partnered with NSF to offer certification services, boosting supplier credibility on its platform. These moves reinforce Xometry’s commitment to digital innovation and enterprise engagement.