Xometry, Inc. ((XMTR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Xometry, Inc.’s latest earnings call painted a predominantly positive picture, highlighting strong revenue growth, improved gross margins, and successful product and AI initiatives. Despite these achievements, the company acknowledged challenges such as a decline in supplier services revenue and ongoing macroeconomic uncertainties.
Record Revenue and Growth
Xometry reported a significant increase in Q2 revenue, which rose by 23% year-over-year to $163 million. This impressive growth was largely driven by a 26% expansion in their marketplace, fueled by the continuous expansion of their buyer and supplier networks.
Improved Gross Margin
The company achieved a record marketplace gross margin of 35.4%, marking an increase of 190 basis points from the previous year. This contributed to an overall company gross margin of 40.1%, showcasing Xometry’s effective cost management and operational efficiency.
Strong Adjusted EBITDA
Xometry’s Q2 adjusted EBITDA reached $3.9 million, reflecting a substantial improvement of $6.6 million year-over-year. The US segment alone reported an adjusted EBITDA of $6.9 million, underscoring the company’s robust financial health.
Enterprise Growth
The company saw a 15% year-over-year increase in accounts with a last 12-month spend of at least $50,000. Notably, there was significant growth in accounts spending over $500,000, indicating strong enterprise engagement and customer retention.
Successful Technology and AI Integration
Xometry made notable strides in technology and AI integration, with significant product releases and AI deployments in Q2 and early Q3. This includes enhanced quoting capabilities and the expansion of Teamspace in the EU, positioning the company as a leader in technological innovation.
Supplier Services Revenue Decline
Despite overall growth, Xometry experienced a 2% quarter-over-quarter decline in supplier services revenue. The company anticipates a 5% decline for the full year 2025, reflecting challenges in this segment.
Macroeconomic Uncertainty
Xometry expressed a cautious outlook due to ongoing macroeconomic uncertainties. Manufacturing indices suggest cautious buyer behavior, which could impact future performance.
International Segment Loss
The international segment reported an adjusted EBITDA loss of $2.9 million in Q2 2025, remaining roughly flat year-over-year. This highlights the challenges faced in expanding and stabilizing international operations.
Forward-Looking Guidance
Looking ahead, Xometry provided optimistic guidance for the upcoming periods. For Q3 2025, the company projects revenue between $167 million and $169 million, reflecting an 18% to 19% growth compared to the previous year. Adjusted EBITDA is expected to range from $4 million to $5 million. Furthermore, Xometry raised its full-year 2025 revenue growth outlook for its marketplace to 23% to 24%, up from previous guidance of at least 22%, driven by strong demand and execution.
In summary, Xometry’s earnings call highlighted a strong financial performance, with notable achievements in revenue growth, gross margin improvement, and technological advancements. While challenges remain, particularly in supplier services and international segments, the company’s forward-looking guidance suggests continued optimism and strategic growth in the coming quarters.