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.

Revenue growth accelerated to 30% year-over-year in Q4, driven by a 33% expansion in the marketplace segment as digital transformation shifts custom manufacturing away from manual legacy processes. Marketplace gross margins expanded to 35.3%, a 10-point increase over four years, fueled by continuous training of AI algorithms with proprietary data from growing buyer and supplier interactions. Enterprise engagement deepened significantly, with revenue from accounts spending over $500,000 annually growin ...

Core Viewpoint - Xometry, Inc. announces a leadership transition with Sanjeev Singh Sahni succeeding Randy Altschuler as CEO effective July 1, 2026, while Altschuler will take on the role of Executive Chair of the Board [1][2]. Leadership Transition - Randy Altschuler, co-founder and current CEO, will transition to Executive Chair, emphasizing the company's strong position for leadership change [1][2]. - Sanjeev Singh Sahni, currently the President, has been instrumental in Xometry's revenue growth and profitability, making him a suitable successor [2][3]. Company Performance - Xometry reported record results in 2025, indicating significant progress in digitizing the global manufacturing market since its founding in 2013 [2]. - The company is on a clear and increasingly profitable trajectory, which supports the timing of the leadership transition [2]. Future Direction - Altschuler will focus on strategic growth initiatives and key corporate partnerships in his new role, maintaining a founder's perspective at the Board level [2]. - Sahni expressed excitement about leading the company during a pivotal moment, aiming to accelerate product-led growth and solidify Xometry's position in the custom manufacturing marketplace [3]. Company Overview - Xometry operates an AI-native marketplace and offers a suite of cloud-based services that are digitizing the manufacturing industry, providing critical resources for manufacturers and streamlining procurement processes for buyers [4].

Q4 & FY 2025 Q4 2025 Financial Highlights February 6, 2026 Forward-looking Statements and Non-GAAP Measures 2 • These slides may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or imp ...

Core Insights - Xometry, Inc. has announced several platform enhancements aimed at supporting engineers and procurement professionals in adapting to the rapid evolution of materials and manufacturing processes [1] Expanded High-Performance Materials - Xometry has expanded its additive manufacturing capabilities by introducing eight new materials for Fused Deposition Modeling (FDM) and Stereolithography (SLA) technologies, which are essential for advanced applications in aerospace, defense, medical devices, and automotive industries [3] - The new materials in the FDM catalog include PETG, Nylon 6 CF, Stratasys Antero 800NA, Antero 840CN03, PAEK VICTREX AM 200, ULTEM 1010 CG, and ABS-CF10, while the SLA offerings now feature Accura SL 5530, designed for high-temperature resistance [3] Enhanced Flexibility in Manufacturing Selection - Xometry is enabling buyers to choose how and where their parts are manufactured, reflecting the need for flexibility in global logistics [4] Recent Updates and Features - The latest updates build on previous enhancements, including the launch of Instant Quoting for Injection Molding in the U.S. and the global expansion of the Teamspace collaboration suite, reinforcing Xometry's role in supporting resilient supply chains [5] - A "Preferred Subprocess" feature has been launched to allow CNC customers to specify exact machining approaches while benefiting from instant pricing and lead times [9] - New "looser" tolerance options have been introduced, allowing for an average price reduction of 5% on applicable parts, facilitating easier scaling of production [9] - Xometry achieved CMMC Level 2 certification in early 2025, enhancing its support for aerospace and defense customers with stringent security requirements [9] - Upcoming features will expand sourcing controls, allowing buyers to designate permitted and restricted production regions based on compliance, risk, and cost considerations [9]

Summary of Xometry Conference Call Company Overview - **Company**: Xometry (NasdaqGS: XMTR) - **Industry**: Custom Manufacturing Marketplace - **Business Model**: AI-powered marketplace connecting buyers and suppliers in a fragmented industry Key Points and Arguments Marketplace Dynamics - Xometry operates an AI-powered marketplace for custom manufacturing, addressing a historically offline and fragmented industry with hundreds of thousands of small manufacturers and millions of buyers [2][3] - The platform provides buyers with instant pricing, visibility into manufacturing options, and resilient supply chains, significantly reducing the time to obtain quotes from days or weeks to seconds [3][4] - Suppliers can join the marketplace at no cost, gaining access to a broader customer base without the burden of sales and marketing [5] Growth and Market Trends - Despite macroeconomic headwinds, Xometry has experienced accelerated growth, gaining market share by offering better value propositions compared to traditional methods [9][10] - The enterprise segment has shown significant traction, with a focus on integrating with customers' procurement platforms and enhancing the sales strategy to target larger accounts [13][15][19] - In 2024, Xometry reported 1,700 accounts with over $50,000 spent, up from 100 accounts with over $500,000 spent the previous year, indicating strong growth in enterprise customers [16] Financial Performance - Xometry expects marketplace growth of 27-28% for the full year 2025, driven by success across all segments and product initiatives [23][26] - The company achieved a gross profit margin of 35.7%, with gross profit dollars growing 40% year-over-year, and an adjusted EBITDA margin of 21% year-to-date [36] International Expansion - Xometry's international business has grown from $3 million in 2020 to a $120 million run rate, outpacing U.S. growth [40][42] - The company aims for 30-40% of marketplace revenue to come from international markets, leveraging technology developed in the U.S. for global expansion [39][40] Product Innovation and Customer Experience - Xometry has invested in product innovation, including the launch of the Work Center Mobile app to enhance supplier communication and job visibility [31][34] - The company is focused on personalizing the customer experience through data science and machine learning, aiming to become the preferred marketplace for customized parts [30][31] Advertising and Cross-Pollination Opportunities - The acquisition of ThomasNet presents a unique opportunity for advertising and cross-pollination within the Xometry ecosystem, enhancing the customer experience and supplier visibility [49][51] Future Outlook - Xometry envisions becoming a $100 billion-plus company, positioning itself as the leader in custom manufacturing by leveraging data, networks, and product innovation [68] Additional Important Insights - The company emphasizes the importance of balancing growth and profitability, with a focus on disciplined capital expenditure and operational efficiency [36][38] - Xometry's marketplace model allows for flexible sourcing across global suppliers, which is particularly advantageous in the context of tariffs and supply chain disruptions [47][48]

Financial Data and Key Metrics Changes - Q3 revenue increased 28% year-over-year to $181 million, with marketplace revenue at $167 million and supplier services revenue at $14.1 million [15][16] - Q3 gross profit was $72 million, a 29% year-over-year increase, with a gross margin of 39.9% [17] - Adjusted EBITDA for Q3 was $6.1 million, compared to a loss of $0.6 million in Q3 2024, marking a significant improvement [18][19] - Cash and cash equivalents at the end of Q3 were $225 million, a decrease of approximately $1 million from Q2 2025 [19] Business Line Data and Key Metrics Changes - Marketplace revenue grew 31% year-over-year, driven by strong execution and expansion of buyer and supplier networks [15][16] - Supplier services revenue declined approximately 1% quarter-over-quarter, stabilizing the core advertising business [17] - Active buyers increased 21% year-over-year to 78,282, with a net addition of 3,505 active buyers [16] Market Data and Key Metrics Changes - Marketplace growth was robust across verticals including semiconductors, aerospace, and automotive [16] - International segment adjusted EBITDA loss was $4.2 million in Q3 2025, compared to $2 million in Q3 2024, indicating ongoing investments for global scale [19] Company Strategy and Development Direction - The company aims to become the de facto digital rails in custom manufacturing, focusing on marketplace dynamics and AI technology [5][8] - Investments in technology and product development are expected to drive future growth, with a focus on enhancing buyer and supplier experiences [8][12] - The company is raising its full-year marketplace growth outlook from 23%-24% to 27%-28% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth despite an uncertain macro environment, with expectations for 20% total revenue growth in 2026 [23] - The company is focused on balancing growth and profitability while investing in technology to scale the business [50] Other Important Information - The company launched auto-quoting for injection molding services in the U.S. and a new Workcenter mobile app to enhance supplier engagement [9][12] - The company expects Q4 revenue in the range of $182-$184 million, representing 23%-24% growth year-over-year [22] Q&A Session Summary Question: Can you unpack the 20% growth for 2026? - Management indicated that the growth is driven by marketplace growth initiatives and does not assume macroeconomic improvements [25][27] Question: What is the significance of the Work Center mobile app? - The app is designed to enhance customer and supplier experiences by simplifying data sharing and improving engagement [29][30] Question: Can you discuss team changes and talent acquisition? - The company is attracting top talent to enhance technology capabilities, which is crucial for achieving revenue goals [33][34] Question: What changed in guidance from Q2 to Q3? - Increased customer adoption of technology tools and strong performance across enterprise accounts contributed to the guidance change [47] Question: How is the international expansion performing? - International revenue grew 23% year-over-year, with expectations for it to become 30%-40% of marketplace revenue over time [44][45]

Core Insights - Xometry reported a record third quarter for 2025, with a 31% year-over-year growth in marketplace revenue, highlighting the increasing adoption of its supply chain solutions by enterprise customers [2][5][6] - The company achieved a gross margin of 35.7%, an increase of 210 basis points year-over-year, and an Adjusted EBITDA of $6.1 million, improving by $6.8 million compared to the previous year [2][5][6] - Xometry's revenue for Q3 2025 reached $181 million, a 28% increase from $142 million in Q3 2024, driven by strong marketplace growth and expanded buyer-supplier networks [5][7] Financial Highlights - Q3 2025 revenue was $181 million, up 28% year-over-year, with marketplace revenue specifically increasing by 31% to $167 million [5][6][7] - Gross profit for Q3 2025 was $72 million, a 29% increase from $56 million in Q3 2024, attributed to the record marketplace gross margin [5][7] - The net loss attributable to common stockholders for Q3 2025 was $11.6 million, compared to a loss of $10.2 million in Q3 2024 [6][7] Business Developments - Xometry launched the Workcenter mobile app, enhancing communication and operational management for suppliers within its network [4] - The company introduced auto-quotes for injection molding services in the U.S., streamlining the manufacturing process [9] - Xometry expanded its marketplace in the EU with new materials and faster lead times, including a parts library for easier management of part data [9] Key Operating Metrics - Active buyers increased by 21% year-over-year, from 64,851 to 78,282 [6][11] - Accounts with last twelve-months spend of at least $50,000 rose by 14%, from 1,506 to 1,724 [6][11] - The percentage of revenue from existing accounts was 98%, up from 97% [11] Financial Guidance - For Q4 2025, Xometry expects revenue between $182 million and $184 million, representing a year-over-year growth of 23-24% [12][16] - The full year 2025 revenue guidance has been raised to $676 million to $678 million, with Adjusted EBITDA guidance increased to $16 million to $17 million [12][16]

Financial Performance - Revenue for Q3 2025 reached $1354 million, a 68% increase year-over-year[12, 13] - Revenue fulfilled through the Protolabs Network increased by 16% year-over-year in constant currencies, reaching $301 million[14] - Non-GAAP EPS remained flat year-over-year at $047, but increased sequentially by $006 due to Gross Margin percentage expansion[16, 17, 18] - Non-GAAP Gross Margin was 459%, a decrease of (30) bps year-over-year[27] - Non-GAAP Operating Margin was 100%, a decrease of (90) bps year-over-year[27] - Operating Cash Flow for Q3 2025 was $291 million[28] Revenue by Service (YoY in constant currencies) - Injection Molding revenue increased by 1% to $478 million[20] - CNC Machining revenue increased by 17% to $630 million[23] - 3D Printing revenue decreased by (7)% to $201 million[21] - Sheet Metal revenue increased by 13% to $43 million[24] Q4 2025 Outlook - Revenue is projected to be between $125 million and $133 million[31] - Non-GAAP EPS is expected to be between $030 and $038[31]

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]