Xometry Earnings Call Highlights Growth, Siemens Deal

Xometry, Inc. ((XMTR)) has held its Q1 earnings call. Read on for the main highlights of the call.

Xometry’s latest earnings call struck an optimistic tone as management highlighted accelerating growth, expanding margins, and rising profitability, all underpinned by product and AI innovation. While international operations remain in the red and services growth is subdued, executives stressed that record results and a landmark Siemens deal leave the company better positioned than ever despite some transition risks.

Record Q1 Revenue and Accelerating Growth

Xometry posted record first-quarter revenue of $205 million, up 36% year over year and marking a 600-basis-point acceleration from the prior quarter’s growth pace. Marketplace revenue was the main engine at $191 million, jumping 40% and accelerating 700 basis points, signaling robust demand for the company’s digital manufacturing platform.

Strong Marketplace Profitability

Profitability in the core marketplace improved sharply, with gross profit rising 39% to $78.5 million as scale and pricing enhancements kicked in. Marketplace gross margin expanded to 34.7%, up 290 basis points from a year earlier, driving a 53% surge in marketplace gross profit dollars and underscoring the leverage in Xometry’s model.

Material Adjusted EBITDA Improvement

Adjusted EBITDA jumped to $10.5 million from essentially breakeven a year ago, reflecting better unit economics and cost control. The adjusted EBITDA margin climbed to 5.1%, up from 4.4% in the prior quarter, showing that profitability is improving even as Xometry invests in growth and technology.

User Growth and Increased Spend Per Buyer

Customer metrics remained a bright spot, with active buyers rising 20% year over year to 85,581 and net additions hitting their highest level in nine quarters. At the same time, marketplace revenue per active buyer increased 17%, and the number of accounts spending at least $50,000 over the past year grew 21%, signaling deeper engagement and wallet share.

Raised Near- and Full-Year Guidance

Management raised both near-term and full-year outlooks, guiding second-quarter revenue to $214–$216 million, up roughly 32–33%. For 2026, Xometry now expects at least 27–28% revenue growth, driven by about 30% marketplace growth and incremental adjusted EBITDA margins of at least 20%, pointing to continued top-line expansion and rising profitability.

Strategic Siemens Partnership and Investment

A centerpiece of the call was a new strategic partnership with Siemens, which will embed Xometry’s AI and marketplace into the Siemens Xcelerator and Design Center ecosystem. Siemens is also investing $50 million in Xometry stock, extending the platform’s reach to Siemens’ global user base and deepening its integration into digital design and sourcing workflows.

Product & AI Enhancements Driving Operating Leverage

Xometry showcased multiple product and AI-driven upgrades, including an enterprise machine lead-time model trained on a dataset four times larger, enabling shorter standard lead times and more one-day delivery options. New features like “Name Your Part,” enhanced personalized pricing, and expanded injection molding materials and finishes boosted instant quoting, improving conversion and efficiency.

Improving Operating Efficiency and Cash Position

Operating discipline was another theme, as non-GAAP operating expenses grew 21%, well below revenue growth, while sales and marketing fell to 14.2% of revenue. Marketplace advertising spend dropped to a record low 3.9% of marketplace revenue, and the company generated $14.6 million in operating cash flow, ending the quarter with $224 million in cash and marketable securities.

International Progress and Supplier Network Scale

Xometry continues to build scale beyond the U.S., with a global supplier network of about 5,000 partners across 50 countries supporting its marketplace. The international segment’s adjusted EBITDA loss narrowed to 8% of revenue from 12% a year earlier, indicating steady improvement even though the business remains unprofitable.

Services Revenue Stabilization and Transition

Services revenue held roughly flat quarter over quarter and is expected to stay about flat for 2026 as Xometry transitions its newly launched Thomas ad serving platform and search capabilities. Management framed this as a deliberate reset period, signaling limited near-term growth from services while the company focuses on platform upgrades and monetization.

International Segment Still Loss-Making

Despite progress, the international segment remains a drag on profitability, with a $2.8 million adjusted EBITDA loss in the quarter. Management reiterated that international is a long-term opportunity and that narrowing losses show the region is moving in the right direction, but investors will need patience before it becomes a meaningful earnings contributor.

Investor Concerns on Guidance Pace

Some investors questioned the full-year revenue guide of 27–28%, which implies slower growth in the back half of the year compared with the strong first-half trajectory. Management acknowledged this dynamic but stressed that the outlook remains conservative and does not include any upside from the Siemens partnership, leaving room for potential outperformance.

Transition-Related Uncertainties and Reliance on Partnerships

Executives also highlighted transition-related risks, particularly around services and the timing of benefits from strategic partnerships. While the Siemens collaboration and other potential alliances are seen as important growth drivers, management cautioned that their financial impact will take time to materialize as integrations advance.

Forward-Looking Guidance and Outlook

Looking ahead, Xometry is guiding second-quarter adjusted EBITDA of $11–$12 million, up sharply from the prior year, and expects marketplace gross margins to exceed 2025 levels. Services are projected to be roughly flat for the year, with modest growth in the back half, while the company targets at least 20% incremental adjusted EBITDA margins as it balances investment with profitability.

Xometry’s latest earnings call painted the picture of a platform gaining momentum, with accelerating growth, rising margins, and a stronger cash position anchoring its expansion plans. While international losses, services transitions, and guidance pacing drew some scrutiny, management’s message was that product innovation and the Siemens partnership provide substantial optionality for shareholders willing to ride out the near-term noise.