8-K: Xometry Reports Record Q2 2025 Results, Raises Outlook

Xometry, Inc. announced record second quarter 2025 financial results, including a 23% year-over-year revenue increase and positive Adjusted EBITDA, while raising its full-year marketplace growth outlook.

Summary

• Consolidated revenue for Q2 2025 reached a record $163 million, marking a 23% increase year-over-year.
• Gross profit for Q2 2025 increased 23% year-over-year to a record $65.2 million, representing 40.1% of revenue.
• Adjusted EBITDA for Q2 2025 was a profit of $3.9 million, an improvement of $6.6 million year-over-year.
• Non-GAAP net income for Q2 2025 was $4.7 million, compared to a non-GAAP net loss of $0.6 million in Q2 2024.
• Marketplace revenue for Q2 2025 was $148 million, an increase of 26% year-over-year, with marketplace gross margin reaching a record 35.4%.
• Active Buyers increased 22% year-over-year to 74,777 as of June 30, 2025.
• Accounts with Last Twelve-Months Spend of at least $50,000 increased 15% year-over-year to 1,653 as of June 30, 2025.
• Net loss attributable to common stockholders for Q2 2025 was $26.4 million, which includes a $16.4 million non-recurring loss on debt extinguishment.
• Cash, cash equivalents, and marketable securities totaled $226 million as of June 30, 2025.
• Completed convertible debt refinancing, closing $250 million of new 0.75% convertible notes due 2030, addressing over $200 million principal amount of 2027 maturities.
• For Q3 2025, revenue is expected to be $167-$169 million, representing 18-19% growth year-over-year, and Adjusted EBITDA is projected to be $4.0-$5.0 million.
• The full-year 2025 marketplace growth outlook was raised from at least 22% to 23-24% growth.
• Supplier services revenue for the full year 2025 is expected to be down approximately 5% year-over-year.
• Incremental Adjusted EBITDA margin for FY 2025 is expected to be approximately 21% on a year-over-year basis.

Sentiment

Score: 8

Explanation: The company reported strong financial performance with record revenue and gross profit, achieved positive Adjusted EBITDA, and significantly improved non-GAAP net income. The successful refinancing of convertible debt provides long-term financial flexibility, and the raised full-year marketplace growth outlook indicates strong confidence in future performance. While a GAAP net loss was reported, it was largely due to a non-recurring item related to debt extinguishment, which is a one-off event.

Positives

• Achieved record consolidated revenue of $163 million in Q2 2025, up 23% year-over-year, demonstrating strong top-line growth.
• Reported a record gross profit of $65.2 million in Q2 2025, also up 23% year-over-year, with a healthy gross margin of 40.1%.
• Marketplace revenue grew robustly by 26% year-over-year to $148 million, indicating strong core business performance.
• Marketplace gross margin expanded to a record 35.4%, reflecting improved efficiency and pricing power within the core platform.
• Achieved positive Adjusted EBITDA of $3.9 million in Q2 2025, a significant $6.6 million improvement year-over-year from a loss, signaling progress towards profitability.
• Reported Non-GAAP net income of $4.7 million in Q2 2025, a substantial turnaround from a non-GAAP net loss of $0.6 million in the prior year period.
• Active Buyers increased by 22% to 74,777, and high-spend accounts (over $50,000 LTM) grew by 15% to 1,653, indicating expanding customer base and deeper engagement.
• Successfully completed a convertible debt refinancing of $250 million new notes due 2030, which addressed over $200 million of 2027 maturities, enhancing financial flexibility and reducing near-term debt obligations.
• Raised the full-year 2025 marketplace growth outlook to 23-24% from previous guidance of at least 22%, reflecting increased confidence in future performance.
• Introduced new platform features like Teamspace in Europe, UK, and Turkey, and AI-powered instant quoting for technical drawings, enhancing customer experience and operational efficiency.
• Thomasnet partnered with NSF, a global leader in certification, to offer certification opportunities for suppliers, potentially increasing platform value and trust.

Negatives

• Net loss attributable to common stockholders significantly increased by 93% year-over-year to $26.4 million in Q2 2025, primarily due to a $16.4 million non-recurring loss on debt extinguishment.
• Supplier services revenue decreased by 6% year-over-year to $14.3 million in Q2 2025.
• Supplier services gross profit decreased by 7% year-over-year to $12.7 million in Q2 2025.
• Full year 2025 supplier services revenue is expected to be down approximately 5% year-over-year, indicating continued challenges in this segment.

Risks

• Competition in the AI-powered manufacturing marketplace and industrial sourcing sectors.
• Challenges associated with managing rapid growth and scaling operations effectively.
• Variability in financial performance and the ability to accurately forecast future results due to limited operating history.
• Risks related to investments in new products, offerings, and platform capabilities.
• Ability to continuously attract and retain both buyers and sellers to the marketplace.
• Potential impacts from legal proceedings, regulatory matters, and evolving regulatory landscapes.
• Risks associated with any future changes to the business model or financial/operating structure.
• Maintaining and enhancing brand reputation in a competitive market.
• Impact of fluctuations in general macroeconomic conditions, including inflation and rising interest rates, on business operations and customer demand.

Future Outlook

For Q3 2025, Xometry expects revenue of $167-$169 million, representing 18-19% growth year-over-year, and Adjusted EBITDA of approximately $4.0-$5.0 million. For the full year 2025, the company is raising its marketplace growth outlook from at least 22% to 23-24% growth, while supplier services revenue is expected to be down approximately 5% year-over-year. Incremental Adjusted EBITDA margin for FY 2025 is expected to be approximately 21% on a year-over-year basis.

Management Comments

• "We delivered strong performance across the board this quarter. The record results reflect investments we've made in platform innovation, enterprise initiatives and network expansion – key drivers that position Xometry for sustainable, long-term growth. We expect continued growth momentum as we gain share in our large fragmented market." Randy Altschuler, CEO.
• "In Q2, we generated record revenue, significant marketplace gross margin expansion and strong operating leverage. Our Adjusted EBITDA improved by $6.6 million year-over-year to $3.9 million. As we scale to $1 billion of revenue, we expect to deliver improving profitability even as we continue to invest in our growth initiatives." James Miln, CFO.

Industry Context

Xometry operates an AI-powered marketplace that is actively digitizing the manufacturing industry by connecting buyers with suppliers of custom parts. This announcement reflects the company's strong position within the broader trend of industrial digitalization and e-commerce for custom manufacturing, aiming to capture a larger share of a highly fragmented market. The strategic focus on expanding enterprise engagement, international growth, and integrating AI features aligns with industry-wide efforts to streamline procurement processes, enhance efficiency, and improve supply chain resilience in manufacturing. The partnership between Thomasnet and NSF for supplier certification also highlights a move towards increasing trust and quality assurance within digital industrial sourcing platforms.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: Positive financial results, improved profitability, and raised guidance could lead to increased investor confidence and potential share price appreciation. The debt refinancing provides financial stability and reduces near-term debt obligations.
• Buyers: Enhanced platform features like Teamspace and streamlined procurement integrations improve efficiency and collaboration, making the platform more attractive and easier to use.
• Suppliers: The Thomasnet partnership with NSF offers opportunities for certification, potentially increasing their visibility and business opportunities. The new AI quoting feature could streamline their operations and improve accuracy.
• Employees: Continued growth and investment in initiatives suggest stability and potential for future opportunities, although restructuring charges mentioned in non-GAAP adjustments indicate some workforce adjustments occurred earlier in the year.
• Creditors: Successful debt refinancing improves the company's debt profile and financial flexibility, enhancing its creditworthiness.

Next Steps

• Host a conference call and webcast on August 5, 2025, at 8:30 a.m. ET to discuss the second quarter 2025 financial results.
• Release an earnings presentation on the investor website at investors.xometry.com.
• Continue investments in platform innovation, enterprise initiatives, and network expansion to drive sustainable, long-term growth.
• Scale towards $1 billion of revenue while delivering improving profitability.

Key Dates

Recommendation

The company delivered record revenue and gross profit, achieved positive Adjusted EBITDA, and significantly improved non-GAAP net income, demonstrating strong operational execution. The successful refinancing of convertible debt provides substantial long-term financial flexibility by extending maturities and reducing near-term obligations. Management's decision to raise the full-year marketplace growth outlook signals confidence in sustained momentum and market share gains in a fragmented industry. The strategic investments in AI, enterprise solutions, and international expansion are expected to drive continued growth and improving profitability, making this an attractive investment opportunity.

Keywords

Xometry, XMTR, manufacturing marketplace, AI-powered, industrial sourcing, financial results, Q2 2025, earnings, revenue growth, Adjusted EBITDA, convertible notes, Thomasnet, custom parts, enterprise solutions, digital manufacturing, supply chain, financial technology