Xometry Earnings Call Signals Profitable Growth Shift

Xometry, Inc. ((XMTR)) has held its Q4 earnings call. Read on for the main highlights of the call.

Xometry’s latest earnings call struck an upbeat tone as management detailed a sharp turn toward profitable growth. Executives pointed to record revenue, expanding marketplace margins, stronger enterprise adoption and improving cash generation, while acknowledging headwinds from loss-making international operations, flat services revenue and a sizable stock-based compensation charge in the near term.

Record Growth and a Swing to Profitability

Xometry reported Q4 revenue of more than $192 million, up 30% year over year, marking a strong finish to the year. Full-year 2025 revenue growth accelerated to 26%, while adjusted EBITDA swung from a $9.7 million loss in 2024 to an $18.5 million profit, including $8.4 million in Q4 alone.

Marketplace Expansion Drives Margin Gains

The company’s marketplace engine continued to power results, with Q4 marketplace revenue rising 33% to $178 million. Marketplace gross margin reached 35.3%, up 80 basis points year over year, and management highlighted a multi-year climb from roughly 25% margins four years ago to about 35% in 2025.

Enterprise Customers Deepen Their Spend

Enterprise penetration is strengthening as larger customers lean into the platform, with accounts spending at least $500,000 over the last year exceeding 140 and growing revenue more than 40% year over year. Xometry also now counts four customers each spending at least $10 million annually, while accounts with $50,000 or more in trailing 12-month spend rose 18% to 1,760.

User, Supplier, and Product Ecosystem Expands

Active buyers increased 20% year over year to 81,821, supported by a global supplier base of roughly 5,000 active suppliers across about 50 countries. Product innovation was front and center in 2025, including auto-quoting for injection molding in the U.S. and EU, AI-driven design-for-manufacturing tools, new additive materials, a CNC preferred subprocess, Teamspace adoption, a growing parts library, a Workcenter mobile app and upgraded ad and search capabilities on Thomas.

Operating Leverage and Cost Discipline Emerging

Non-GAAP operating expenses in Q4 rose 15% to $67 million, roughly half the pace of revenue growth and a clear sign of operating leverage. Sales and marketing fell to 15.6% of revenue, operations and support dropped to 8.1%, marketplace advertising spend eased to 5.2% of marketplace revenue, and Xometry delivered about 20% incremental adjusted EBITDA margins for 2025.

Balance Sheet Strength and Positive Cash Flow

The company ended the year with $219 million in cash, cash equivalents and marketable securities, giving it ample flexibility to invest. Xometry generated $6.1 million in operating cash flow for 2025, even as it spent $10.3 million on largely software-related capital expenditures in Q4 to support ongoing product and platform development.

Leadership Succession with Continuity

Xometry outlined a planned leadership transition, with founding CEO Randy Altschuler set to become executive chair on July 1, 2026, while President Sanjeev Sahni steps into the CEO role. Management emphasized the deliberate nature of the handoff and underscored that Altschuler will remain deeply involved as the company’s largest individual long-term shareholder.

International Operations Still in the Red

Despite overall strength, the international segment remains loss-making, posting a Q4 adjusted EBITDA loss of $2.4 million, though that marks a $0.5 million year-over-year improvement. Management signaled that the overseas business still needs additional scale and operating leverage, implying ongoing investment and a gradual path toward profitability outside the core markets.

Services and Thomas Platform Under Transition

Services revenue, driven by the Thomas platform, was a weak spot with a roughly 1% quarter-over-quarter decline in Q4 and expectations for flat performance in 2026. The company is rolling out a new Thomas ad-serving system and upgraded search, which is creating a temporary drag on monetization, but is positioned as a foundation for more effective revenue generation over time.

Conservative Guidance and Slower Implied Growth

Management’s guidance points to a more cautious growth profile despite strong recent trends, with Q1 2026 revenue projected at $187 million to $189 million, or 24% to 25% growth, and full-year 2026 revenue expected to increase at least 21%. That pace is below Q4’s 30% surge, reflecting macroeconomic uncertainty and a conservatively framed outlook even as Q1 has started on solid footing.

Stock-Based Compensation and Investment Requirements

Xometry expects about $11 million of stock-based compensation in Q1 2026, roughly 6% of revenue and a non-cash cost that will weigh on reported earnings metrics. Ongoing capital expenditures, including the $10.3 million spent in Q4 mainly on software, underscore the company’s commitment to product-led growth but also mean near-term cash conversion will be constrained until the platform scales further.

Customer Concentration Among Large Accounts

The rapid growth of large enterprise customers is a double-edged sword, with four accounts now spending $10 million or more annually representing a meaningful revenue base. While this concentration validates Xometry’s value proposition for major clients, it also introduces downside risk should any of these large customers reduce spending or shift volumes away from the platform.

Guidance and Outlook Point to Profitable Growth

For Q1 2026, Xometry forecasts $187 million to $189 million in revenue with marketplace growth of about 27% to 28%, flat services revenue and adjusted EBITDA of $6.5 million to $7.5 million alongside elevated stock-based compensation. For 2026 as a whole, the company is targeting at least 21% revenue growth, higher marketplace gross margins, flat but improving services in the second half and incremental adjusted EBITDA margins of at least 20%, reinforcing its commitment to balancing growth with profitability.

Xometry’s earnings call painted the picture of a marketplace business entering a more mature and profitable phase, supported by expanding margins, growing enterprise adoption and disciplined spending. While international losses, services softness, investment needs and customer concentration remain watch points, the overall trajectory suggests a company confident in its model and increasingly focused on scaling profitable growth.