Core Insights - Xometry reported Q2 2025 GAAP revenue of $162.5 million, exceeding the consensus estimate of $156.5 million, with non-GAAP diluted EPS of $0.09, surpassing the expected $0.04, indicating strong marketplace growth and improved operational efficiency despite a wider GAAP net loss due to a non-recurring charge [1][2][9] Financial Performance - Q2 2025 revenue increased by 23% year-over-year from $132.6 million in Q2 2024, with marketplace revenue growing 26% year-over-year [2][5] - Active buyers in the marketplace rose by 22% to 74,777, with accounts spending at least $50,000 increasing by 15% to 1,653, reflecting strong customer loyalty [5] - Adjusted EBITDA turned positive at $3.9 million, an improvement of $6.6 million from a loss in the previous year, driven by the U.S. segment [7] - Supplier services revenue declined by 6.4% year-over-year to $14.3 million, with management projecting a continued decline of around 5% for the year [2][6] Operational Highlights - Xometry's platform utilizes AI for instant pricing and design feedback, enhancing efficiency in custom manufacturing across various industries [3] - The company is focusing on technology expansion, AI integration, and growing its buyer and supplier networks, with notable innovations in AI capabilities and international expansion efforts [4] - New platform features launched include an AI-driven instant drawing quote tool and Teamspace for improved collaboration among buyer purchasing teams [8] Future Guidance - For Q3 2025, management projects revenue between $167 million and $169 million, representing 18-19% year-over-year growth, with adjusted EBITDA expected in the range of $4.0 million to $5.0 million [10] - For FY2025, Xometry raised its marketplace revenue growth outlook to 23-24%, while supplier services revenue is expected to remain down around 5% [10]

Financial Data and Key Metrics Changes - Q2 revenue increased 23% year over year to $163 million, driven by significant market share gains in the custom manufacturing market [7][21] - Marketplace gross margin reached a record 35.4%, up 190 basis points year over year, contributing to an overall company gross margin of 40.1% [8][24] - Adjusted EBITDA improved to $3.9 million, a $6.6 million increase year over year [9][27] - Cash and cash equivalents decreased to $226 million, down approximately $5 million from Q1 2025, primarily due to capital expenditures [28][29] Business Line Data and Key Metrics Changes - Q2 marketplace revenue was $148 million, a 26% year-over-year increase, while supplier services revenue was $14.3 million, down approximately 2% quarter over quarter [22][24] - Active buyers increased 22% year over year to 74,777, with a net addition of 3,323 active buyers [22] - Marketplace revenue per active buyer increased 4% year over year, primarily due to strong enterprise growth in the U.S. [22] Market Data and Key Metrics Changes - U.S. marketplace revenue increased 25% year over year, while international revenue growth accelerated to 31% year over year [22][23] - The number of accounts with at least $50,000 in last twelve months spend increased 15% year over year to 1,653 [23] Company Strategy and Development Direction - The company is focusing on embedding technology and AI across its operations to enhance its position in the custom manufacturing market [11][15] - The strategy includes expanding enterprise sales and marketing efforts, with a focus on large accounts that can generate significant annual revenue [15][20] - The company is raising its 2025 revenue growth outlook to at least 20%, driven by robust demand and strong execution [20][32] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macro environment but is optimistic about the company's growth trajectory due to strong marketplace performance [41][52] - The company expects Q3 revenue in the range of $167 to $169 million, representing 18% to 19% growth year over year [30][32] - For the full year 2025, the company expects incremental adjusted EBITDA margin of approximately 21% [33] Other Important Information - The company completed a convertible debt refinancing, raising $250 million in new convertible notes, which improves its balance sheet and financial flexibility [29] - The company is focused on improving working capital efficiency and cash flow conversion given its asset-light model [28] Q&A Session Summary Question: Impact of product initiatives on the business - Management highlighted the acceleration of technology and AI deployment to improve buyer and supplier experiences, with several product rollouts planned for the second half of the year [39] Question: Insights on manufacturing trends and guidance - Management acknowledged strong trends in Q2 but remained cautious about the macro environment, indicating that guidance reflects current market conditions [41][52] Question: Gross margin dynamics and future expectations - Management confirmed that Q2 gross margin was a record 35.4%, driven by AI improvements, and expects continued year-over-year improvements in Q3 [46][48] Question: Potential for growth in a better macro environment - Management indicated that while they are gaining market share, a macro turnaround could provide additional growth opportunities [51] Question: Pricing environment and adjustments - Management explained that pricing adjustments are made in response to changes in tariffs and costs, ensuring flexibility in sourcing options for customers [64] Question: Sales and marketing efficiency - Management noted a normalization in marketing spend and continued leverage in sales and marketing investments, contributing to strong account growth [71][73]

Financial Performance - Q2 2025 revenue reached a record of $163 million, driven by a 26% year-over-year increase in Marketplace revenue[16] - Gross profit for Q2 2025 was a record $65.2 million, a 23% year-over-year increase, fueled by a 34% year-over-year growth in Marketplace gross profit[16] - The Marketplace gross margin for Q2 2025 was 35.4%, a 190 basis point increase year-over-year, attributed to AI pricing and selection[16] - Adjusted EBITDA for Q2 2025 was $3.9 million, an increase of $6.6 million year-over-year[14, 16] - FY24 Total Revenue was $546 million, a 18% year-over-year increase[27] Growth Initiatives - Active Buyers increased by 22% year-over-year in Q2 2025, driven by increased enterprise penetration and Teamspace adoption[15, 17] - Active Suppliers increased by 28% year-over-year in 2024[15, 17] - International revenue grew by 31% year-over-year, representing 18% of Marketplace revenue in Q2[18, 37] Future Outlook - The company is targeting 20% incremental Adjusted EBITDA margins as it scales to $1 billion[19] - For Q3 2025, the company expects revenue of $167-169 million, representing 18-19% growth year-over-year[70] - For FY 2025, the company expects total revenue growth of at least 20%[70]

[Q2 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Xometry reported record Q2 2025 revenue of $163 million, a 23% increase, with Adjusted EBITDA reaching $3.9 million, despite a wider GAAP net loss Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $163 | - | +23% | | **Marketplace Revenue** | $148 | - | +26% | | **Gross Profit** | $65.2 | - | +23% | | **Adjusted EBITDA** | $3.9 | ($2.6) | +$6.6 | | **Net Loss** | ($26.4) | ($13.7) | +93% | | **Non-GAAP Net Income** | $4.7 | ($0.6) | +$5.3 | - Growth was driven by consistent execution across key initiatives: expanding buyer and supplier networks, deepening enterprise engagement, enhancing the marketplace platform, growing internationally, and improving supplier services[5](index=5&type=chunk) Key Operating Metrics (as of June 30, 2025) | Metric | As of June 30, 2025 | As of June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Active Buyers** | 74,777 | 61,530 | +22% | | **Accounts with >$50k LTM Spend** | 1,653 | 1,436 | +15% | [Business Highlights](index=2&type=section&id=Business%20highlights) Xometry refinanced debt with $250 million in new convertible notes, expanded platform features globally, introduced AI quoting in North America, and partnered for supplier certifications - Completed a convertible debt refinancing, issuing **$250 million** of new 0.75% convertible notes due 2030, addressing over **$200 million** of notes with 2027 maturities[7](index=7&type=chunk) - Expanded platform features internationally, launching 'Teamspace' in Europe, the UK, and Turkey, and introducing procurement integration capabilities for European enterprise customers[7](index=7&type=chunk) - Introduced a new AI feature in North America to automate information extraction from technical drawings, aiming to improve quoting accuracy and supplier selection[7](index=7&type=chunk) - Thomasnet partnered with NSF, a global certification leader, to offer certifications to suppliers on its platform[7](index=7&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Summary) Marketplace revenue grew 26% to $148.2 million with margin expansion, while Supplier Services declined 6% to $14.3 million, contributing to 23% consolidated revenue growth for H1 2025 Q2 2025 Consolidated Financials (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $162,547 | $132,595 | 23% | | **Gross Profit** | $65,176 | $52,877 | 23% | | **Net Loss** | ($26,434) | ($13,697) | (93)% | | **Adjusted EBITDA** | $3,926 | ($2,634) | 249% | | **Non-GAAP Net Income** | $4,681 | ($606) | 872% | Q2 2025 Segment Performance (in thousands) | Segment | Revenue (in thousands) | YoY Change | Gross Margin | | :--- | :--- | :--- | :--- | | **Marketplace** | $148,223 | +26% | 35.4% | | **Supplier Services** | $14,324 | -6% | 88.7% | [Financial Guidance and Outlook](index=3&type=section&id=Financial%20Guidance%20and%20Outlook) Xometry forecasts Q3 2025 revenue of $167-$169 million and Adjusted EBITDA of $4.0-$5.0 million, raising full-year marketplace growth outlook to 23-24% while expecting supplier services decline Q3 2025 Guidance | Metric | Low ($M) | High ($M) | | :--- | :--- | :--- | | **Revenue** | $167 | $169 | | **Adjusted EBITDA** | $4.0 | $5.0 | - Raised full-year 2025 marketplace growth outlook from at least **22%** to a new range of **23-24%**[16](index=16&type=chunk) - Expects full-year 2025 supplier services revenue to be down approximately **5%** year-over-year[16](index=16&type=chunk) [Detailed Financial Statements](index=7&type=section&id=Detailed%20Financial%20Statements) Detailed financials show $687.0 million in total assets, $225.8 million in cash, a narrowing operating loss, and improved cash flow from operations for H1 2025 Balance Sheet Summary (in thousands) | Account | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Cash & Marketable Securities** | $225,792 | $239,835 | | **Total Assets** | $687,041 | $680,129 | | **Total Liabilities** | $415,520 | $364,533 | | **Total Equity** | $271,521 | $315,596 | Statement of Operations Summary - Six Months Ended June 30 (in thousands) | Account | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $313,518 | $255,285 | | **Gross Profit** | $121,507 | $100,779 | | **Loss from Operations** | ($25,681) | ($33,146) | | **Net Loss Attributable to Common Stockholders** | ($41,512) | ($30,313) | Statement of Cash Flows Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | ($4,118) | ($20,835) | | **Net Cash Used in Investing Activities** | ($3,834) | ($12,140) | | **Net Cash Provided by Financing Activities** | $2,046 | $1,795 | [Reconciliations and Supplemental Information](index=10&type=section&id=Reconciliations%20and%20Supplemental%20Information) Reconciliation details Q2 2025 GAAP net loss adjustments to Adjusted EBITDA, highlighting the U.S. segment as the primary profit driver and ongoing international investment - Key adjustments to reconcile Q2 2025 Net Loss to Adjusted EBITDA include: Interest/other expenses (**$16.4M**), stock-based compensation (**$7.9M**), and depreciation & amortization (**$4.5M**)[37](index=37&type=chunk) Geographic Segment Adjusted EBITDA - Q2 (in thousands) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **U.S.** | $6,875 | $246 | | **International** | ($2,949) | ($2,880) | | **Total Adjusted EBITDA** | $3,926 | ($2,634) | - For the six months ended June 30, 2025, total stock-based compensation expense was **$17.0 million** and total restructuring charges were **$1.6 million**[44](index=44&type=chunk)

Core Insights - Xometry, Inc. reported strong financial performance for Q2 2025, achieving record revenue and significant marketplace gross margin expansion, indicating sustainable long-term growth potential [2][5][6] Financial Highlights - Q2 2025 revenue increased by 23% year-over-year to $163 million, driven by robust marketplace growth [5][7] - Marketplace revenue for Q2 2025 was $148 million, a 26% increase year-over-year [6][7] - Gross profit for Q2 2025 rose 23% year-over-year to $65.2 million, representing a gross margin of 40.1% [5][7] - Adjusted EBITDA improved by $6.6 million year-over-year to $3.9 million, reflecting strong operating leverage [5][6] - The net loss attributable to common stockholders for Q2 2025 was $26.4 million, which included a $16.4 million non-recurring loss on debt extinguishment [6][7] Business Developments - Active Buyers increased by 22% year-over-year, reaching 74,777 as of June 30, 2025 [6][11] - The number of Accounts with Last Twelve-Months Spend of at least $50,000 grew by 15% to 1,653 [6][11] - Xometry EU launched Teamspace, a cloud-based solution to enhance collaboration on projects and custom part orders [6][9] - New AI features were introduced to streamline quoting processes for technical drawings in North America [9] Financial Guidance - For Q3 2025, Xometry expects revenue between $167 million and $169 million, representing 18-19% year-over-year growth [12][16] - Adjusted EBITDA for Q3 2025 is projected to be approximately $4.0 to $5.0 million, an improvement from a loss of $0.6 million in Q3 2024 [12][16] - The full year 2025 marketplace growth outlook has been raised to 23-24% [16]

Core Points - Xometry, Inc. will report its second quarter 2025 financial results on August 5, 2025, before the market opens [1] - A conference call and webcast will be held at 8:30 a.m. ET on the same day to discuss the results [2] - An earnings presentation will accompany the financial results announcement and will be available on Xometry's investor website [2][4] Company Overview - Xometry operates an AI-powered marketplace that connects buyers with suppliers of manufacturing services, aiming to digitize the manufacturing industry [5] - The company provides critical resources for manufacturers and streamlines the procurement process for buyers through real-time pricing and lead time data [5]

Core Insights - Xometry, Inc. has launched its Teamspace solution in Europe, the UK, and Turkey, enhancing collaboration for customers on projects and custom part orders [1][2] - The Teamspace solution has already seen success in the US with over 7,000 teams created by Q1 2025, indicating strong enterprise engagement and potential for viral growth [2] - The expansion of Teamspace reflects a shift in customer needs towards more advanced, integrated solutions for manufacturing operations [3] Company Overview - Xometry operates an AI-powered marketplace that connects enterprise buyers with suppliers of manufacturing services, aiming to digitize the manufacturing industry [5] - The company provides critical resources for manufacturers and streamlines procurement processes through real-time pricing and lead time data [5] Teamspace Features - Teamspace offers real-time visibility and control over orders, allowing all team members to see shared quoting activity and order history, which enhances transparency and accountability [6] - The solution includes personalized user notifications for updates on quotes, order shipments, payments, and invoices, ensuring critical steps are not missed [6] - Designed to boost operational efficiency, Teamspace is particularly beneficial for distributed teams managing high-volume and complex custom part orders [6]

Core Viewpoint - Xometry, Inc. successfully closed a $250 million offering of 0.75% Convertible Senior Notes due 2030, enhancing its financial flexibility and supporting its growth initiatives in the manufacturing sector [1][2]. Transaction Overview - The offering included the full exercise of an option for an additional $25 million, aimed at qualified institutional buyers under Rule 144A of the Securities Act [1][3]. - The proceeds will be used to retire approximately $202 million of existing convertible notes due in 2027, effectively refinancing the company's debt at improved terms [4][5]. - The transaction lowers the coupon rate to 0.75% and minimizes potential future dilution for equity shareholders with a 75% conversion premium over the market price on the transaction date [2][4]. Financial Details - The Notes have an interest rate of 0.75% per annum, payable semiannually starting December 15, 2025 [5]. - The initial conversion rate is set at 21.2495 shares of Class A common stock per $1,000 principal amount of Notes, with a conversion price of approximately $47.06, representing a 30% premium to the last reported sale price [5]. - A capped call hedge was purchased with a cap price of $63.35, which is a 75% premium over the last reported sale price on June 9, 2025 [4][5]. Use of Proceeds - Approximately $216.7 million in cash was utilized to repurchase about $201.7 million of outstanding 1.00% Convertible Senior Notes due 2027 [5]. - Around $17.5 million of the net proceeds funded the cost of capped call transactions, and approximately $8 million was used to repurchase 220,994 shares of common stock [5]. Company Background - Xometry operates an AI-powered marketplace that is digitizing the manufacturing industry, providing critical resources for manufacturers and facilitating instant pricing and lead times for buyers [8].

Core Viewpoint - Xometry, Inc. has announced the pricing of $225 million in 0.75% Convertible Senior Notes due 2030, aimed at qualified institutional buyers, with expected net proceeds of approximately $217 million for various corporate purposes [1][4]. Group 1: Offering Details - The offering includes an option for initial purchasers to buy an additional $25 million in Notes within 13 days of issuance [2] - The Notes will accrue interest at a rate of 0.75% per year, payable semiannually, and will mature on June 15, 2030 [3] - The initial conversion rate is set at 21.2495 shares of Class A common stock per $1,000 principal amount of Notes, equating to a conversion price of approximately $47.06 per share, representing a 30% premium over the last reported sale price [5] Group 2: Use of Proceeds - Xometry plans to use the net proceeds to cover the cost of capped call transactions ($15.7 million), repurchase approximately $8 million of its Class A common stock, and repurchase about $201.7 million of its outstanding 1.00% Convertible Senior Notes due 2027 [4] - Additional proceeds, if the option is exercised, may be used for further capped call transactions, working capital, and potential acquisitions or strategic investments [4] Group 3: Redemption and Conversion Terms - The Notes cannot be redeemed before June 20, 2028, and can be redeemed under specific conditions related to the stock price [6] - In the event of a "fundamental change," noteholders may require Xometry to repurchase their Notes at 100% of the principal amount plus accrued interest [7] - The conversion rate may be adjusted in certain corporate events or upon redemption [8] Group 4: Capped Call Transactions - Xometry has entered into capped call transactions to mitigate potential dilution from the conversion of the Notes, with an initial cap price of $63.35, a 75% premium over the last reported sale price [9][10] - The capped call transactions are expected to reduce cash payments required upon conversion and are subject to customary adjustments [9] Group 5: Market Impact - The initial purchasers may engage in derivative transactions and stock purchases that could influence the market price of Xometry's Class A common stock and the Notes [11][12] - Concurrently with the offering, Xometry repurchased approximately $8 million of its Class A common stock, which may affect the market price [13] - Xometry also repurchased approximately $216.7 million of its 2027 notes, which could lead to further market activity affecting stock prices [14][15] Group 6: Regulatory Information - The Notes are offered only to qualified institutional buyers under Rule 144A and are not registered under the Securities Act [16] - This offering does not constitute an offer to sell or a solicitation of an offer to buy any securities [17] Group 7: Company Overview - Xometry operates an AI-powered marketplace that connects buyers with suppliers of manufacturing services, aiming to digitize the manufacturing industry [19]

Core Viewpoint - Xometry, Inc. plans to offer $225 million in Convertible Senior Notes due 2030, with an option for an additional $25 million, to qualified institutional buyers, aiming to enhance its financial flexibility and support various corporate activities [1][3]. Group 1: Offering Details - The offering consists of $225 million in Convertible Senior Notes, with a potential additional $25 million, aimed at qualified institutional buyers under Rule 144A [1]. - The Notes will be unsecured obligations of Xometry, accruing interest payable semiannually, with conversion options including cash, shares, or a combination [2]. - The interest rate and conversion terms will be determined at the time of pricing [2]. Group 2: Use of Proceeds - Xometry intends to use the net proceeds for capped call transactions, repurchasing up to $25 million of its Class A common stock, and repurchasing a portion of its outstanding 1.00% Convertible Senior Notes due 2027 [3][9]. - Additional proceeds from the offering may be allocated for working capital, strategic investments, or further repurchases of the 2027 notes, although no specific agreements are in place for acquisitions at this time [3]. Group 3: Capped Call Transactions - Xometry plans to enter capped call transactions to mitigate potential dilution from the conversion of the Notes, which will cover the shares underlying the Notes [4]. - These transactions are expected to reduce cash payments required upon conversion and are subject to customary adjustments [4]. Group 4: Market Impact - The initial purchasers may engage in derivative transactions or purchase shares of Xometry's Class A common stock, potentially influencing the market price of the stock and the Notes [5][6]. - Activities by hedged holders of the 2027 notes may also affect the market price of Xometry's Class A common stock, impacting the effective conversion price of the Notes [9].