What were the key takeaways from Xometry's earnings call?

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What does Xometry do and what are its main business segments?

Did Xometry beat or miss consensus estimates last quarter?

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What is the revenue and EPS growth rate for Xometry year over year?

- **Record Q3 Growth**: Revenue up 28% YoY to $181 million, with marketplace revenue surging 31% YoY. Full-year guidance raised to $676-678 million.
- **Gross Margin Expansion**: Marketplace gross margin hits 35.7% (+210 bps YoY), driven by AI pricing and supplier network scale.
- **Enterprise Momentum**: $50k+ LTM spend accounts up 14% YoY to 1,724, with $500k+ accounts showing strong growth.
- **2026 Outlook**: 20%+ revenue growth expected, fueled by AI innovations (auto-quoting, Workcenter app) and international expansion.
- **Profitability**: Adjusted EBITDA improved $6.8 million YoY to $6.1 million; 20%+ incremental EBITDA margin target maintained.
- **Q4 Guidance**: Revenue $182-184 million (+23-24% YoY), with 25-27% marketplace growth despite macro uncertainty.


**【Management Opening Remarks】**
- Shawn Milne provided an overview of the call, highlighting the company's Q3 2025 financial results and guidance for Q4 and the full year. He emphasized the use of non-GAAP measures and reminded participants of forward-looking statement risks.

**【CEO Summary Section】**
- Q3 revenue reached $181 million, up 28% YoY, with marketplace revenue growing 31% YoY to $167 million. The company raised its full-year revenue guidance to $676-$678 million.
- Marketplace gross margin expanded 210 bps YoY to 35.7%, driven by AI-powered pricing algorithms and supplier network growth.
- Key initiatives included the launch of auto-quoting for injection molding in the U.S. and the Workcenter mobile app, which aims to enhance supplier engagement and data capture.
- Enterprise growth accelerated, with accounts of $50k+ LTM spend increasing 14% YoY to 1,724, and $500k+ LTM spend accounts showing strong revenue growth.
- Q4 started strongly, with 23-24% YoY revenue growth expected, despite macroeconomic challenges.

**【CFO Financial Commentary】**
- Q3 GAAP revenue: $181 million (+28% YoY). Non-GAAP operating expenses: $66.1 million (+17% YoY), with disciplined cost management (sales & marketing at 15.9% of revenue vs. 16.4% YoY).
- Adjusted EBITDA improved $6.8 million YoY to $6.1 million, driven by gross profit growth and expense leverage.
- Cash position: $225 million, with $5.8 million operating cash flow in Q3. CapEx for Q4 expected at $8-9 million.
- Full-year 2025 guidance: Revenue $676-678 million (+27-28% marketplace growth), adjusted EBITDA $16-17 million.

**【Q&A Highlights】**
- **2026 Growth Assumptions**: 20%+ revenue growth driven by enterprise adoption, AI innovation, and international expansion. No macro improvement assumed; growth fueled by market share gains.
- **Workcenter Mobile App**: Early success in simplifying supplier workflows, with potential to deepen engagement and improve buyer-supplier alignment.
- **International Expansion**: Europe injection molding launch and Teamspace adoption highlight 23% YoY international growth. Long-term target: 30-40% of revenue from international markets.
- **Margin Outlook**: 20%+ incremental EBITDA margin expected annually, with Q3 year-to-date at 21%.
- **Q4 Momentum**: Strong start with 23-24% YoY growth, despite cautious macro environment.


Xometry, Inc. (XMTR) Q3 2025 Earnings Call Transcript

- **Record Q2 Growth**: $163M revenue (+23% YoY), Marketplace gross margin 35.4% (up 190bps YoY), and $3.9M EBITDA (vs. -$2.6M YoY). 
- **AI-Driven Expansion**: New AI features (technical drawing extraction, Teamspace) boost enterprise engagement, with 108 new $500K+ accounts Q2. 
- **Guidance Uptick**: Full-year Marketplace growth raised to 23-24% (from 22%+), with >20% overall revenue growth. 
- **Balance Sheet Strength**: $226M cash and $250M refinanced debt with 75% conversion premium to minimize dilution.

**【CEO Summary Section】**
- Q2 2025 revenue reached $163 million, up 23% YoY, driven by 26% YoY growth in Marketplace revenue. Gross margin hit a record 40.1%, with Marketplace gross margin at 35.4% (up 190bps YoY). 
- Launched Teamspace in Europe, U.K., and Turkey, enabling enterprise collaboration. Introduced AI-powered technical drawing extraction and improved mobile app for suppliers. 
- Secured a $10+ million annual contract with a European aerospace company, exemplifying land-and-expand strategy. 
- Raised full-year Marketplace growth guidance to 23-24% from 22%+.

**【CFO Financial Commentary】**
- Q2 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (vs. $0.95 prior guidance). 
- Adjusted EBITDA: $3.9 million (vs. -$2.6 million YoY), with U.S. segment EBITDA margin at 5.1%. 
- Q3 revenue guidance: $167-169 million (18-19% YoY growth). Full-year revenue growth: >20% (vs. 18% in 2024). 
- Completed $250 million convertible notes refinancing with 75% conversion premium to minimize dilution.

**【Q&A Highlights】**
- **Product Impact**: 10%+ improvement in buyer engagement with new AI search on Thomasnet; Teamspace ERP integrations driving $10+ million annual contracts. 
- **Macro Trends**: Despite ISM manufacturing PMI below 50, Xometry benefits from supply chain resiliency and reshoring trends. Q3 off to strong start, but maintaining cautious outlook. 
- **Gross Margin Sustainability**: AI-driven pricing algorithms and expanding supplier network support 35-40% long-term gross margin target. 
- **Mobile App**: Testing Work Center mobile app to enhance supplier engagement and reduce order fulfillment friction.


Xometry, Inc. (XMTR) Q2 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q1 23% YoY to $151M, with US marketplace up 30% YoY.
- **Domestic Sourcing Surge**: 80%+ US demand fulfilled domestically; Q2 sees shift to domestic amid tariff uncertainty.
- **Profitability Improves**: Adjusted EBITDA turns positive ($0.1M vs. -$7.4M YoY); Q2 targets $1-2M.
- **AI-Driven Efficiency**: Dynamic pricing algorithms optimize global supplier network, mitigating cost increases.
- **Enterprise Expansion**: Teamspace adoption grows to 7,000 teams, driving 40% YoY growth in top accounts.


**【CEO Opening Remarks】**
- Q1 2025 revenue reached $151 million, up 23% YoY, with marketplace growth accelerating to 27% YoY.
- US marketplace revenue grew nearly 30% YoY, driven by enterprise adoption and domestic sourcing shifts.
- Global sourcing strategy investments include AI-driven dynamic pricing and supplier network expansion across 51 countries.
- Q2 demand remains robust, with 17-18% YoY revenue growth expected, supported by multi-sourcing strategies for resilient supply chains.

**【CFO Financial Review】**
- Q1 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (exceeded expectations).
- Marketplace gross profit grew 26% YoY, with gross margin at 31.8% (down 20bps YoY due to sourcing investments).
- Adjusted EBITDA turned positive at $0.1 million (vs. -$7.4 million YoY), driven by 27% incremental margin.
- Q2 guidance: Revenue $155-157 million (17-18% YoY), adjusted EBITDA $1-2 million.
- Full-year 2025 outlook: Marketplace growth ≥22% YoY, adjusted EBITDA positive with 20%+ incremental margin.

**【Q&A Key Highlights】**
- **Tariff Impact**: 50-70% of US demand fulfilled domestically; Q2 sees slight shift to domestic sourcing amid tariff volatility.
- **EBITDA Margin**: Q1 incremental margin 27%, targeting 20%+ annually; Q2 gross margin to rebound to Q2 2024 levels (~33.5%).
- **Supplier Services**: Q1 revenue down 6% YoY due to macro softness, but QoQ growth 4% from financial services adoption.
- **Production vs. Prototyping**: 80%+ US revenue fulfilled domestically; enterprise growth driven by production-scale technologies like injection molding.
- **Thomasnet Enhancements**: Testing AI-powered search and new ad server to boost monetization in 2025.


Xometry (XMTR)-6 May 25-2025 Q1 Earnings call transcript

- **Record Q4 Growth**: $149M revenue (+16% YoY), $135M marketplace revenue (+20% YoY), 23% active buyer growth, and 42% international revenue surge.
- **AI-Driven Efficiency**: 34.5% marketplace gross margin (up 320bps YoY) from AI-powered supplier matching and 28% active supplier growth.
- **Enterprise Momentum**: >40% YoY growth in large accounts (> $500k LTM spend), with 1,495 accounts exceeding $50k threshold.
- **2025 Outlook**: 20-21% YoY revenue growth, first adjusted EBITDA-positive quarter, and multimodal AI launch to expand enterprise adoption.
- **Global Resilience**: Investments in India, APAC, and Europe position for 30-40% long-term international revenue mix amid tariff volatility.


**【CEO Summary Section】**
- Q4 2024 revenue reached $149 million, up 16% YoY, with marketplace revenue growing 20% YoY to $135 million. Active buyers increased 23% YoY to 68,267, driven by 3,416 net additions in Q4.
- International revenue grew 42% YoY, reaching a $100 million annual run rate, with Europe and APAC leading expansion. Marketplace gross margin expanded 320bps YoY to 34.5%, fueled by AI-driven supplier matching and a 28% YoY increase in active suppliers to 4,375.
- Enterprise revenue from accounts with >$500k LTM spend grew >40% YoY, with 1,495 accounts exceeding $50k LTM spend. Q4 also marked the first adjusted EBITDA profit of $1 million, up $3.9 million YoY.
- 2025 outlook includes 20-21% YoY revenue growth (accelerating from Q4's 16%), with Q1 guidance of $147-149 million and 24-26% marketplace growth. Investments in global sourcing (e.g., India, APAC) may temporarily dampen Q1 gross margin but position for long-term scale.

**【CFO Financial Commentary】**
- Q4 GAAP net income was $420 million, with non-GAAP EPS of $1.08 exceeding expectations. Operating expenses grew 12% YoY to $58.2 million, below revenue growth, reflecting 480bps sales & marketing leverage from Q1 to Q4 2024.
- Q4 adjusted EBITDA improved $3.9 million YoY to $1 million (0.7% of revenue), driven by 20% incremental EBITDA margin. U.S. segment EBITDA was $4 million (3.3% of revenue), while international segment loss narrowed to $3 million.
- 2025 full-year guidance includes >20% revenue growth, adjusted EBITDA positivity, and 20%+ incremental EBITDA margin. Q1 2025 expects $147-149 million revenue (20-21% YoY) and $1.5 million adjusted EBITDA loss, with 22-24% incremental margin.

**【Q&A Highlights】**
- **International Strategy**: Europe's express manufacturing expansion and APAC ramping will drive 30-40% long-term international revenue mix. India and Turkey are key new supplier hubs.
- **AI & Multimodal Models**: 2025 launch of CAD-agnostic quoting via multimodal AI will reduce friction for non-3D CAD users, opening new enterprise use cases.
- **Tariff Impact**: Customers are diversifying supply chains (e.g., shifting from China to India), with Xometry's global supplier network enabling real-time tariff adjustments.
- **Thomas Integration**: New ad server tech aims to increase Thomas advertiser penetration from 1% to 85%+ gross margin opportunities. 2025 focus on improving supplier engagement and monetization.
- **Gross Margin Confidence**: Historical 10-point margin expansion over 3 years gives confidence in 2025 year-over-year margin growth despite Q1 temporary headwinds from new geography scaling.


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