Xometry Inc (NASDAQ:XMTR) is among the best 3D printing stocks to buy according to hedge funds. On March 9, equity research firm Citizens reaffirmed its Market Outperform rating on Xometry Inc (NASDAQ:XMTR) stock with a price target of $75. Citizens stated that although Xometry is undergoing a leadership transition, the company’s strategy should remain consistent. That strategy includes building an e-commerce experience that reduces friction for buyers and sellers. The firm also cited AI-driven expansion o ...

According to a Securities and Exchange Commission (SEC) filing dated Feb. 17,  G2 Investment Partners Management LLC reported a new stake in Xometry Xometry (NASDAQ:XMTR), acquiring 221,679 shares. New position in Xometry Post-trade stake: 221,679 shares valued at $13.2 million Position represents 3.1% of the fund’s AUM What else to know Top holdings after the filing: NASDAQ: DAVE: $29.4 million (7.0% of AUM) NYSE: PACK: $18.1 million (4.3% of AUM) NASDAQ: AEIS: $17.3 million (4.1% of AUM) ...

Core Insights - Xometry Inc. (NASDAQ:XMTR) is recognized as one of the top 10 trading and distribution stocks to buy, highlighting its strong market position and potential for growth [1] - The company launched a new Enterprise Machining Lead Time Prediction Model and enhanced dynamic pricing logic, aimed at improving manufacturing speed, pricing accuracy, and sourcing efficiency [1] - Despite reporting fourth-quarter revenue and adjusted EBITDA that exceeded expectations, the stock experienced a decline of over 20% [2] Group 1: Product and Technology Developments - The new model and pricing logic are designed to enhance the capabilities of Xometry's Instant Quoting Engine, reinforcing its AI-driven manufacturing marketplace [1] - Chief Product & Technology Officer Vaidy Raghavan emphasized that this release is a foundational shift in manufacturing speed and reliability, enabling the company to address complex sourcing challenges more effectively [1] Group 2: Market Performance and Analyst Ratings - Wedbush reduced its price target for Xometry from $70 to $60 while maintaining an Outperform rating, indicating a potential upside of nearly 37% [2] - The company operates as an AI-driven marketplace connecting buyers with a wide range of manufacturing services, including CNC machining, 3D printing, and injection molding [3]

Summary of Xometry Conference Call Company Overview - **Company**: Xometry - **Industry**: Custom Manufacturing Marketplace - **Market Size**: Potentially trillions of dollars in annual spend with millions of buyers and suppliers globally [2][4] Core Points and Arguments - **Growth and Market Position**: Xometry is the leading marketplace for custom manufacturing, experiencing over 26% growth last year and a 30% growth in Q4 [4][5] - **CEO Transition**: Randy Altschuler transitioned to Executive Chairman, with Sanjiv Singh taking over as CEO to focus on product-led growth and operational leadership [5][7] - **AI Integration**: Xometry has been AI-native since its inception, using AI for pricing, sourcing, and matching customers with manufacturers. The company has improved its AI capabilities by hiring talent from major tech firms [11][12] - **Enterprise Accounts Growth**: The number of accounts spending over $500,000 has increased from 100 to over 140, with potential for significant growth in larger accounts [18][19] - **Market Penetration Strategy**: Xometry aims to integrate into customers' procurement processes, making it easier for large organizations to transact with them [15][17] - **Revenue Goals**: The company aims for $1 billion in revenue, with aspirations to significantly exceed that in the coming years [32][38] Additional Important Insights - **Supplier Network**: Xometry has over 5,000 suppliers and is focused on maintaining quality while expanding its supplier base globally [39][40] - **Customer Experience**: The company emphasizes creating a frictionless user experience akin to B2C platforms, which is crucial for attracting new customers, especially younger generations [27][28] - **Injection Molding Expansion**: Xometry is expanding its capabilities in injection molding, a significant category for growth, and is investing in awareness and partnerships in this area [30][31] - **Profitability and Margins**: The company has improved its gross margins from 25% at IPO to 35% currently, with expectations for continued growth due to operational efficiencies and AI [49][52] - **Long-term Vision**: Xometry sees a massive total addressable market (TAM) and is committed to investing in growth while maintaining profitability [53] This summary encapsulates the key points discussed during the conference call, highlighting Xometry's strategic direction, growth metrics, and market opportunities.

Core Insights - Xometry, Inc. has launched its new Enterprise Machining Lead Time Prediction Model and enhanced dynamic pricing logic, which aim to improve prediction accuracy, operational efficiency, and rapid lead-time options for custom manufacturing [1][2] Group 1: New Model Features - The Enterprise Machining Lead Time Prediction Model leverages deep learning from real-world production and delivery data, enhancing the Instant Quoting Engine's capabilities [3][4] - The model provides superior prediction accuracy, achieving significant improvements in RMSLE compared to previous versions, and optimizes for 1-day lead times across a growing catalog of materials and geometries [8] - The updated model incorporates a training dataset four times larger than previous versions and factors in critical overhead requirements, including specialized certifications and advanced finishing options [8] Group 2: Operational Enhancements - Xometry's dynamic pricing logic analyzes unique geometric features and customer-specific historical data to create a price-response function for each quote, moving away from static pricing rules [5][4] - The new models are expected to improve the buyer and partner experience while increasing revenue per user, with broader deployment to U.S. customers planned for Q1 2026 [6] - The integration of pricing and sourcing models within live marketplace transactions creates a closed-loop learning system that enhances future predictions and operational throughput [9] Group 3: Strategic Implications - The advancements represent a fundamental shift in manufacturing speed and reliability, allowing Xometry to address complex sourcing challenges that traditional software cannot [7] - By embedding design-to-fulfillment intelligence into engineers' workflows, Xometry aims to reduce information asymmetry in manufacturing procurement, transforming the process into a scalable competitive advantage [10]

Company Overview - Xometry's share price fell significantly despite reporting solid Q4 2024 results, indicating a potentially stretched valuation and uncertainty surrounding leadership changes [1] Investment Strategy - Narweena, an asset management firm led by Richard Durant, focuses on identifying market dislocations due to misinterpretations of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with entry barriers [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, contrasting with past trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance as competition diminishes [1] - Conversely, some businesses may face rising costs and diseconomies of scale, while asset-light businesses are increasingly dominating economies, leading to a reduced need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, along with having passed the CFA exams [1]

Core Insights - The partnership between Thomas and Maryland MEP aims to enhance the Maryland supply chain and support local manufacturers' growth through digital tools and data intelligence [1][2]. Group 1: Partnership Objectives - The collaboration seeks to provide Maryland's industrial sector, including aerospace, life sciences, and emerging technologies, with necessary digital tools to thrive in a modern marketplace [1]. - The partnership will ensure Maryland suppliers are more discoverable and resilient, meeting the demands of global procurement professionals [2]. Group 2: Strategic Initiatives - Key initiatives include launching strategic programs and on-demand resources to help Maryland manufacturers gain visibility and market share [3]. - The partnership will provide a dedicated Maryland sourcing portal, connecting industrial buyers directly with local manufacturers [6]. Group 3: Educational Efforts - Thomas and Maryland MEP will host a joint webinar titled "Digital Marketing for Manufacturers" to help businesses improve their digital presence and sourcing capabilities [6]. Group 4: Organizational Background - Thomas connects buyers with over 500,000 vetted North American suppliers and is part of Xometry, which is digitizing the manufacturing industry [4]. - Maryland MEP is a nonprofit organization focused on strengthening Maryland's manufacturing sector by providing resources to improve operational efficiency and drive business growth [5].

Core Insights - Xometry, Inc. reported a GAAP EPS of -$0.17, indicating a net loss of $8.6 million, but achieved an adjusted non-GAAP EPS of $0.16, surpassing the consensus estimate of $0.12 [2][6] - The company generated revenue of $192 million, exceeding expectations of $186.8 million, and reflecting a 30% year-over-year increase driven by marketplace expansion [2][6] Financial Performance - In the fourth quarter of 2025, Xometry's adjusted earnings were $0.16 per share, significantly up from $0.06 per share in the same quarter last year, resulting in an earnings surprise of +33.33% [3] - The company's revenue of $192 million exceeded the Zacks Consensus Estimate by 4.94% [3] - Gross profit for the fourth quarter rose by 27% year-over-year to a record $75.2 million, attributed to strong marketplace expansion and improved gross margins [4] - Adjusted EBITDA increased by $7.4 million year-over-year to $8.4 million, driven by expanding marketplace gross margins and strong leverage on operating expenses [4] Valuation Metrics - Xometry's trailing twelve-month price-to-earnings (P/E) ratio is approximately -36.70 based on GAAP losses, indicating ongoing net losses [5] - The price-to-sales ratio stands at 4.16, suggesting investors are willing to pay $4.16 for every dollar of sales [5] - The enterprise value to sales ratio is 4.41, reflecting the company's valuation relative to sales [5] - A current ratio of approximately 3.76 indicates strong liquidity, demonstrating the company's ability to cover short-term liabilities with short-term assets [5]

Financial Performance - The company incurred a net loss of $61.7 million in 2025, resulting in an accumulated deficit of $432.0 million as of December 31, 2025[70]. - Revenue for the years ended December 31, 2025, 2024, and 2023 was $686.6 million, $545.5 million, and $463.4 million, respectively, indicating a growth trend but potential future fluctuations[71]. - The company expects revenue growth rates to fluctuate and may decline in the long term due to various market factors[71]. - Economic conditions, including inflation and potential recessions, may adversely impact the company's financial condition and share price[67]. - The company has approximately $291.3 million in net operating loss (NOL) carryforwards available for U.S. federal income tax purposes as of December 31, 2025[211]. - Changes in tax laws and regulations could adversely affect the company's tax obligations and overall profitability[207]. - The company may face limitations on using pre-change net operating losses (NOLs) due to ownership changes, potentially increasing future tax liabilities[212]. Competition and Market Risks - Significant competition is anticipated, which could adversely affect the company's operating results and market position[67]. - The company faces significant competition in the manufacturing market, which is highly fragmented, and competitors may have greater resources and capabilities[120]. - The company derives the majority of its revenue from parts and assemblies, making it vulnerable to supply chain disruptions and increased costs due to tariffs and trade restrictions[132]. - Rising inflation rates could increase costs, including labor and employee benefits, adversely affecting profitability and customer demand[129]. - The company faces serious adverse consequences due to unstable market and economic conditions, including potential recession impacts on financial condition and share price[129]. Operational and Compliance Risks - The company relies on third-party payment processors and fulfillment partners, which introduces additional operational risks[67]. - The company is subject to stringent data privacy laws, and any failure to comply could have serious consequences[67]. - The company must continually invest in technology and adapt to changes in buyer preferences to remain competitive[80]. - The company faces challenges in complying with non-standard contract terms from large customers, which could increase operational costs[91]. - Cybersecurity threats are a significant concern, with potential risks including data breaches and operational disruptions due to various attack vectors[93][94]. - The company relies on third-party service providers for critical business systems, which may expose it to security incidents and operational risks[97]. - The company has implemented security measures but cannot guarantee their effectiveness against all potential vulnerabilities[100]. - The company is subject to a variety of evolving laws and regulations, which may create conflicting obligations across jurisdictions[168]. Technology and Innovation - Significant resources are being invested in research and development for new supplier products and services, as well as enhancing platform functionality to meet evolving user demands[86]. - The company’s AI-enabled instant quoting engine is critical for pricing accuracy; any discrepancies could materially affect business operations[88]. - The company relies on generative AI technologies for operational efficiency, but potential regulatory changes could lead to increased compliance costs and competitive disadvantages[147]. Corporate Governance and Structure - Randolph Altschuler, the co-founder and CEO, holds Class B common stock representing approximately 37.2% of the voting power, allowing him significant influence over stockholder approvals[232]. - The dual-class structure of the company's common stock may limit stockholders' ability to influence corporate governance matters, including mergers and acquisitions[233]. - The company has anti-takeover provisions that could make acquisitions more difficult and limit stockholder attempts to replace management[236]. - The company’s exclusive-forum provisions may limit stockholders' ability to bring claims in favorable judicial forums, potentially discouraging lawsuits[241]. Human Resources and Culture - The company must maintain its corporate culture to ensure continued success, as challenges in this area could negatively impact its business and financial condition[166]. - The company faces challenges in retaining and attracting skilled employees, which is critical for its growth and operational success[204]. - The company faces challenges in providing high-quality support services as it scales, which could adversely affect its reputation and financial condition[167]. Legal and Regulatory Risks - The company is required to maintain effective internal controls over financial reporting, with significant resources allocated to ensure compliance[258]. - Past material weaknesses in internal controls have been remediated, but future weaknesses may still be identified[260]. - The company must comply with U.S. and foreign anti-corruption laws, and failure to do so could result in significant penalties and reputational harm[170]. - Increased regulatory scrutiny on technology companies may lead to new laws that could adversely impact the company's business operations[169]. Financial Position and Capital Structure - As of December 31, 2025, the company had $219.1 million in cash and cash equivalents and marketable securities, which is expected to meet anticipated cash needs for at least twelve months[231]. - The company may require additional capital to support growth, which may not be available on favorable terms, potentially harming business operations and financial condition[229]. - Future issuances of equity securities could dilute existing stockholders' interests and reduce the value of Class A common stock[230]. - The conversion of Convertible Notes may dilute stockholders' ownership interests and could depress the price of Class A common stock[243]. Market and Economic Conditions - Geopolitical instability, particularly due to the Ukraine-Russia conflict, poses risks to global economic conditions and could adversely affect the company's operations and stock price[126]. - Changes in U.S. and international trade policies, including tariffs, may significantly raise costs of raw materials and components, impacting overall business operations[132]. - Political and economic instability, including conflicts in Ukraine and the Middle East, may exacerbate unfavorable macroeconomic conditions, negatively impacting customer demand[131]. - Currency exchange rate fluctuations could materially affect financial results, as a portion of revenue and expenses are incurred in foreign currencies[222].

Core Viewpoint - Xometry reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing significant growth from $0.06 per share a year ago, indicating a positive earnings surprise of +33.33% [1] Financial Performance - The company achieved revenues of $192.4 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.94%, and up from $148.55 million in the same quarter last year [2] - Over the last four quarters, Xometry has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance and Outlook - Xometry shares have declined approximately 3.9% since the beginning of the year, contrasting with the S&P 500's slight decline of 0.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $184.13 million, and for the current fiscal year, it is $0.83 on revenues of $815.57 million [7] - The estimate revisions trend for Xometry was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Manufacturing - General Industrial industry, to which Xometry belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]