8-K: Xometry Reports Record Q1 2025 Revenue, Driven by Marketplace Growth

Xometry's Q1 2025 revenue reached a record $151 million, driven by a 23% year-over-year increase and robust marketplace expansion.

Summary

• Xometry, Inc. announced its first quarter 2025 financial results, reporting a record revenue of $151 million, a 23% increase year-over-year.
• Marketplace revenue grew by 27% to $136 million, driven by strong U.S. enterprise growth.
• Gross profit increased by 18% to $56.3 million, with marketplace gross profit up by 26%.
• Adjusted EBITDA improved by $7.5 million year-over-year, reaching $0.1 million.
• The company's growth initiatives for 2025 include expanding buyer and supplier networks, deepening enterprise engagement, further expanding the marketplace platform, growing internationally, and enhancing supplier services.
• Net loss attributable to common stockholders was $15.1 million, a decrease of $1.5 million year-over-year.
• Non-GAAP net income was $0.8 million, compared to a Non-GAAP net loss of $5.7 million in the first quarter of 2024.
• Cash, cash equivalents, and marketable securities totaled $231 million as of March 31, 2025.
• For Q2 2025, Xometry expects revenue between $155 and $157 million, representing 17-18% growth year-over-year, and Adjusted EBITDA between $1.0 and $2.0 million.
• For the full year 2025, the company raised its marketplace growth outlook to at least 22% and expects supplier services revenue to be down approximately 5% year-over-year.
• Xometry expects to be Adjusted EBITDA positive for the full year 2025.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with record revenue, strong marketplace growth, and improved profitability. While there are some negatives, the overall tone is optimistic and suggests a healthy trajectory for the company.

Positives

• Record revenue of $151 million in Q1 2025, a 23% increase year-over-year.
• Strong marketplace revenue growth of 27% year-over-year.
• Significant improvement in Adjusted EBITDA, reaching $0.1 million.
• Increase in Active Buyers by 22% and high-value accounts by 12%.
• Launch of Instant Quoting for Injection Molding in Xometry EU.
• Achievement of CMMC Level 2 certification.
• Introduction of Partner Success Score (PSS) 3.0.
• Raised marketplace growth outlook for full year 2025 to at least 22%.

Negatives

• Supplier services revenue decreased by 6% year-over-year.
• Net loss attributable to common stockholders was $15.1 million for Q1 2025.
• The company is still reporting a net loss, although it has decreased year-over-year.

Risks

• The company's financial outlook is based on assumptions that are subject to change and outside of its control.
• Competition in the manufacturing industry could impact Xometry's growth.
• Fluctuations in macroeconomic conditions, such as inflation and rising interest rates, could affect the company's performance.
• The company's limited operating history makes it challenging to forecast future performance.

Future Outlook

Xometry expects Q2 2025 revenue of $155-$157 million and Adjusted EBITDA of $1.0-$2.0 million; for the full year 2025, marketplace growth is expected to be at least 22%, supplier services revenue down approximately 5%, and the company expects to be Adjusted EBITDA positive.

Management Comments

• Randy Altschuler, Xometry's CEO, stated that the AI-powered marketplace continues to gain significant share, deliver record revenue, and strong enterprise growth.
• James Miln, Xometry's CFO, noted the strong marketplace revenue growth and positive Adjusted EBITDA, driven by increasing operating leverage.

Industry Context

Xometry's results reflect the ongoing digitization of the manufacturing industry and the increasing demand for resilient supply chains. The company's AI-powered marketplace positions it well to capitalize on these trends, offering sourcing options domestically and internationally.

Comparison to Industry Standards

• It is difficult to make a direct comparison to industry standards as Xometry's business model is unique, combining a marketplace with supplier services.
• However, companies like Proto Labs and Fathom also operate in the digital manufacturing space, but their focus is more on in-house manufacturing capabilities rather than a marketplace model.
• Xometry's growth rate of 23% in overall revenue and 27% in marketplace revenue is strong compared to the broader manufacturing industry, which has been facing headwinds from supply chain disruptions and economic uncertainty.

Stakeholder Impact

• Shareholders will likely react positively to the strong revenue growth and improved profitability.
• Suppliers benefit from increased access to buyers and enhanced services.
• Customers gain access to a wider range of manufacturing options and improved sourcing capabilities.
• Employees may experience increased job security and growth opportunities due to the company's positive performance.

Next Steps

• Expand buyer and supplier networks.
• Drive deeper enterprise engagement.
• Further expand the marketplace platform.
• Grow internationally.
• Enhance supplier services.

Key Dates

Keywords

Xometry, manufacturing, marketplace, revenue, Adjusted EBITDA, financial results, AI, digital manufacturing