Xometry (NasdaqGS:XMTR) Q4 2025 Earnings call February 24, 2026 08:30 AM ET Company ParticipantsBrian Drab - Partner and Co-Group Head of IndustrialsEric Sheridan - Partner and Managing DirectorJames Miln - CFOMatt Swanson - Director, Equity ResearchRandy Altschuler - CEOSanjeev Singh Sahni - PresidentShawn Milne - VP of Investor RelationsConference Call ParticipantsAndrew Boone - Managing Director and Equity Research AnalystCory Carpenter - Executive Director and Senior Equity Research Analyst, Internet an ...

Financial Data and Key Metrics Changes - In Q4 2025, revenue grew 30% year-over-year to over $192 million, with marketplace revenue increasing 33% year-over-year to $178 million [41][15] - Full year 2025 revenue growth accelerated by 800 basis points to 26%, with adjusted EBITDA of $18.5 million compared to a loss of $9.7 million in 2024 [40][48] - Q4 gross profit was $75.2 million, a 27% increase year-over-year, with a gross margin of 39.1% [45][40] Business Line Data and Key Metrics Changes - Marketplace gross margin expanded by 80 basis points year-over-year to 35.3%, reflecting the economic value generated by the AI-native marketplace [16][45] - Revenue from marketplace accounts with last twelve-month spend of at least $500,000 increased by over 40% year-over-year [17] - The number of accounts with last twelve months spend of at least $50,000 increased 18% year-over-year to 1,760 [43] Market Data and Key Metrics Changes - Active buyers increased by 20% year-over-year to 81,821, with a net addition of 3,539 active buyers in Q4 [42] - Marketplace revenue per active buyer increased by 11% year-over-year, primarily due to strong enterprise growth [42] - Marketplace growth was robust across verticals including aerospace, defense, electronics, and automotive [41] Company Strategy and Development Direction - The company is focused on product-led growth, expanding marketplace offerings, and driving structural growth for enterprise accounts [20][21] - A leadership transition is planned, with Sanjiv Singh Sahni becoming CEO on July 1, 2026, to drive the next stage of innovation and profitable growth [8][12] - The company aims to enhance its technology solutions and deepen its global supplier network to meet increasing customer demands [21][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026, with expectations for robust growth despite a mindful approach to the uncertain macro environment [54][70] - The company anticipates continued improvements in profitability and growth, with a focus on maintaining at least 20% incremental adjusted EBITDA margins [56][122] - Management highlighted the importance of resilient supply chains and digital transformation in the manufacturing sector as key drivers for future growth [13][104] Other Important Information - The company invested $10.3 million in CapEx in Q4, primarily for technology-related initiatives [51] - Cash and cash equivalents at the end of Q4 were $219 million, with operating cash flow of $6.1 million generated in 2025 [50][52] - The company is enhancing its marketing capabilities, particularly through AI, to improve brand awareness and customer engagement [118][119] Q&A Session Summary Question: Why now for the CEO change? - The transition is a result of a deliberate succession process, reflecting the strength of the company's position and record results in 2025 [60][61] Question: What initiatives could have the most meaningful impact on growth this year? - Focus on expanding marketplace offerings and driving structural growth for enterprise accounts [66] Question: Can you elaborate on international profitability expectations? - The unit economics in international markets are similar to the U.S., with expectations for international growth to become a larger part of the business [78][79] Question: What are the biggest tailwinds to growth on an industry vertical standpoint? - The company is well diversified across multiple verticals, with a significant total addressable market (TAM) and a trend towards digitization [102][104] Question: How is the company balancing profitability and sales/marketing spend? - The company is optimizing for both growth and profitability, with a focus on becoming embedded in customer workflows to enhance brand awareness without excessive marketing spend [114][115]

Financial Data and Key Metrics Changes - Q4 revenue grew 30% year-over-year to over $192 million, with marketplace revenue at $178 million and supplier services revenue at $13.9 million [24] - Full year 2025 revenue growth accelerated by 800 basis points to 26%, with adjusted EBITDA of $18.5 million compared to a loss of $9.7 million in 2024 [23][24] - Q4 gross profit was $75.2 million, a 27% increase year-over-year, with a gross margin of 39.1% [26] Business Line Data and Key Metrics Changes - Marketplace revenue increased 33% year-over-year, driven by strong execution and expansion of buyer and supplier networks [24] - Revenue from marketplace accounts with last twelve-month spend of at least $500,000 increased by over 40% year-over-year [11] - Services revenue declined approximately 1% quarter-over-quarter, stabilizing the core advertising business [25] Market Data and Key Metrics Changes - Q4 active buyers increased 20% year-over-year to 81,821, with a net addition of 3,539 active buyers [24] - The number of accounts with last twelve months spend of at least $50,000 increased 18% year-over-year to 1,760 [25] - Enterprise growth remained robust, with over 140 accounts having last twelve months spend of at least $500,000 [25] Company Strategy and Development Direction - The company is focused on product-led growth, expanding marketplace offerings, and driving structural growth for enterprise accounts [13][18] - Xometry aims to enhance its AI-native marketplace by improving pricing intelligence and expanding its supplier network [9][18] - The transition in leadership is seen as a strategic move to align with the company's growth trajectory and future innovations [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026, despite being mindful of the uncertain macro environment [31] - The company anticipates robust growth to continue in 2026, with guidance for at least 21% revenue growth [32] - Management highlighted the importance of resilient supply chains and digital transformation as key drivers for the manufacturing industry [9] Other Important Information - The company ended 2025 with cash and cash equivalents of $219 million and generated $6.1 million in operating cash flow [29] - Significant investments in technology and product development were made, with $10.3 million in CapEx primarily for software-related initiatives [30] Q&A Session Summary Question: Why now for the CEO change? - The transition is a result of a deliberate succession process, reflecting the strength of the company's position and record results in 2025 [35] Question: What initiatives could have the most meaningful impact on growth this year? - Focus on expanding marketplace offerings and driving structural growth for enterprise accounts is expected to significantly impact growth [38] Question: Can you elaborate on the guidance for Q1 and 2026? - The company is mindful of the macro environment but has raised guidance for Q1 and expects strong momentum to continue throughout the year [42][43] Question: What are the expectations for international profitability? - The international segment is expected to grow into a larger part of the business, with similar unit economics to the U.S. [48] Question: How is brand awareness being built among buyers? - The company is balancing profitability and growth in marketing, with a focus on becoming embedded in customer workflows to enhance brand awareness [76][79]