Xometry, Inc. ((XMTR)) has held its Q3 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Xometry, Inc.’s recent earnings call conveyed a positive sentiment, highlighting the company’s robust financial performance marked by record revenue growth and improved marketplace gross margins. The expansion of AI capabilities and successful product launches were pivotal in driving these results. Despite some challenges, such as a decline in supplier services revenue and losses in the international segment, the company’s positive financial metrics and increased revenue guidance suggest a promising business outlook.
Record Revenue Growth
Xometry reported a remarkable 28% year-over-year increase in Q3 2025 revenue, reaching $181 million. The marketplace revenue growth was particularly impressive, accelerating by 31% year-over-year, underscoring the strength of the company’s marketplace model.
Marketplace Gross Margin Improvement
The company’s marketplace gross margin saw a significant improvement, increasing by 210 basis points year-over-year to 35.7% in Q3. This improvement was largely driven by advancements in AI-powered pricing and selection algorithms, which have enhanced the company’s operational efficiency.
Strong Active Buyer Growth
Xometry experienced a 21% year-over-year increase in active buyers, totaling 78,282. Additionally, marketplace revenue per active buyer rose by 9% year-over-year, reflecting the company’s ability to attract and retain a growing customer base.
Positive Adjusted EBITDA
The company achieved a positive adjusted EBITDA of $6.1 million in Q3, marking an improvement of $6.8 million year-over-year. This demonstrates strong operating leverage and effective cost management strategies.
New Product Launches
Xometry introduced several new products, including auto-quoting for injection molding services in the U.S. and Europe, as well as a new Workcenter mobile app designed to enhance supplier engagement. These launches are expected to drive further growth and innovation.
Increased Revenue Guidance
The company raised its full-year 2025 revenue growth outlook, expecting strong secular growth to continue into 2026. This optimistic guidance reflects confidence in the company’s strategic direction and market position.
Supplier Services Revenue Decline
Despite the overall positive performance, Xometry faced a decline in supplier services revenue, which decreased approximately 1% quarter-over-quarter. The company anticipates a 4% year-over-year decrease in Q4, highlighting an area for potential improvement.
International Segment Loss
The international segment reported an adjusted EBITDA loss of $4.2 million in Q3 2025, compared to $2 million in Q3 2024. This increase in losses is attributed to investments aimed at achieving global scale, indicating a strategic focus on long-term growth.
Forward-Looking Guidance
Xometry’s forward-looking guidance remains optimistic, with expectations of reaching $676-$678 million in total revenue for 2025. The company anticipates continued strong growth into 2026, driven by expanding AI capabilities and a global marketplace network.
In conclusion, Xometry, Inc.’s earnings call painted a positive picture of the company’s financial health and strategic direction. With record revenue growth, improved margins, and a focus on innovation and expansion, Xometry is well-positioned for future success despite some challenges. Investors and stakeholders can look forward to continued growth and development in the coming years.