10-K: Xometry Reports Strong Revenue Growth, Achieves Adjusted EBITDA Profitability

Xometry, Inc. announced a 26% revenue increase to $686.6 million in 2025, driven by marketplace expansion and a shift to Adjusted EBITDA profitability.

Summary

• Total revenue grew 26% year-over-year to $686.6 million in 2025, up from $545.5 million in 2024.
• Marketplace revenue increased 30% to $629.6 million in 2025, primarily due to increased buyer activity, especially from enterprise customers.
• Services revenue decreased 4% to $57.0 million in 2025, mainly due to reductions in Thomas advertising and marketing services, partially offset by growth in financial services.
• Gross profit rose 25% to $268.8 million in 2025, with marketplace gross margin improving to 34.7% from 33.5% in 2024.
• The company achieved Adjusted EBITDA of $18.5 million in 2025, a significant improvement from a loss of $(9.7) million in 2024, representing a 2.7% Adjusted EBITDA margin.
• Non-GAAP Net Income was $20.8 million in 2025, compared to a Non-GAAP Net Loss of $(2.1) million in 2024.
• Net loss attributable to common stockholders increased to $(61.7) million in 2025 from $(50.4) million in 2024, largely due to a $16.4 million loss on debt extinguishment.
• Active Buyers increased 20% to 81,821, and Active Suppliers grew 17% to 4,996 in 2025.
• Accounts with last twelve-month spend of at least $50,000 increased 18% to 1,760, and those with at least $500,000 grew to over 140 in 2025.
• International revenue increased 27% to $113 million in 2025, representing 18% of total marketplace revenue.
• Xometry issued $250.0 million in 0.75% Convertible Senior Notes due 2030 and used a portion of the proceeds to repurchase $201.7 million of 1.00% Convertible Senior Notes due 2027.
• A workforce reduction of approximately 5% was implemented in 2025, incurring $1.3 million in employee termination costs.
• Cash and cash equivalents and marketable securities totaled $219.1 million as of December 31, 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, highlighting strong operational growth and a significant turnaround in Adjusted EBITDA and Non-GAAP Net Income, despite an increased GAAP net loss primarily due to non-recurring debt extinguishment costs. The continued expansion of buyer and supplier networks, coupled with international growth, indicates a healthy underlying business trajectory.

Positives

• Strong revenue growth of 26% year-over-year, reaching $686.6 million in 2025.
• Significant improvement in Adjusted EBITDA, turning profitable at $18.5 million in 2025 from a loss of $(9.7) million in 2024.
• Achieved Non-GAAP Net Income of $20.8 million in 2025, up from a loss of $(2.1) million in 2024.
• Robust growth in Active Buyers (up 20% to 81,821) and Active Suppliers (up 17% to 4,996), indicating strong network effects.
• Increased engagement from enterprise customers, with accounts spending over $50,000 growing 18% to 1,760, and those spending over $500,000 increasing to over 140.
• International revenue grew 27% to $113 million, demonstrating successful global expansion.
• Marketplace gross margin improved to 34.7% in 2025 from 33.5% in 2024, attributed to AI-driven platform optimization.
• Maintained a strong balance sheet with $219.1 million in cash and marketable securities.
• Effective internal control over financial reporting as of December 31, 2025.

Negatives

• Net loss attributable to common stockholders increased to $(61.7) million in 2025 from $(50.4) million in 2024.
• Services revenue decreased by 4% in 2025, primarily due to reductions in Thomas advertising and marketing services.
• Total gross margin slightly decreased to 39.1% in 2025 from 39.5% in 2024, driven by a mix shift towards lower-margin marketplace revenue.
• Incurred a $16.4 million loss on debt extinguishment related to the partial repurchase of 2027 Notes.
• Interest and dividend income decreased by $2.2 million, or 21%, due to lower investment in money market accounts.
• The company has an accumulated deficit of $432.0 million as of December 31, 2025, and expects to incur net losses in the future.
• A 5% workforce reduction was implemented in 2025, incurring $1.3 million in employee termination costs.

Risks

• Incurred net losses in the past and expects to incur net losses in the future, with no assurance of achieving or sustaining profitability.
• Growth rate may not continue at historical pace, potentially affected by slowing demand, insufficient buyer/supplier growth, increasing competition, or market maturation.
• Inability to effectively manage anticipated business growth could adversely affect future revenue and operating results.
• Operating results may fluctuate quarter-to-quarter due to various unpredictable factors, making future results difficult to predict.
• Reliance on attracting and retaining a large community of buyers and suppliers; loss or failure to attract could materially affect business.
• Dependence on delivering products and manufacturing processes that meet buyer demand and adapting to technological changes, including advances in AI.
• Failure to maintain and improve platform quality, customer support, and ancillary services could hinder buyer and supplier attraction/retention.
• Provides quality assurance to buyers, potentially incurring liability for poor quality parts manufactured by suppliers.
• Business model involves agreeing to pricing with buyers in advance of sourcing to suppliers, risking that the buyer price may be less than the supplier cost.
• Risk of security breaches or compromises of information technology systems or data, including confidential buyer information, leading to regulatory actions, litigation, and reputational harm.
• Failure to effectively deal with bad actors on the marketplace could harm the business and lead to penalties.
• Potential for disputes between buyers and suppliers on the platform, which could involve the company in formal proceedings.
• Reliance on a third-party payment processor (Stripe) exposes the company to payment-related risks, including service termination, errors, fraud, and regulatory compliance.
• Reliance on third parties for order fulfillment, exposing the company to shipping delays, increased costs, and negative buyer experiences.
• Faces significant and increasing competition from various manufacturing and digital service companies.
• Challenges and risks associated with international expansion, including regulatory compliance, intellectual property protection, political/economic instability, and currency fluctuations.
• Unstable market and economic conditions, including recessionary factors, inflation, and geopolitical uncertainties (e.g., Ukraine-Russia conflict, Middle East conflict), could adversely impact business.
• Changes in U.S. and international trade policies, including tariffs, could increase costs, reduce demand, and disrupt supply chains.
• Subject to stringent and evolving data privacy and protection laws globally, with non-compliance risking significant penalties and reputational damage.
• Intellectual property and proprietary rights are valuable, and inability to obtain, maintain, protect, or enforce them could substantially harm the business.
• Risk of incurring substantial costs from claims of infringement, misappropriation, or other violations of third-party intellectual property rights.
• Reliance on Amazon Web Services (AWS) for platform operation; any disruption or material change to this arrangement could adversely affect the business.
• Failure to maintain an effective system of disclosure controls and internal control over financial reporting could impair ability to produce timely and accurate financial statements.
• Stock price may be volatile and decline due to various factors, including financial performance, market conditions, and analyst expectations.
• Issuance of additional capital stock in the future will dilute existing stockholders.
• May require additional capital to support business growth, which might not be available on acceptable terms.
• Dual-class stock structure allows co-founder and CEO Randolph Altschuler to significantly influence matters requiring stockholder approval.
• Anti-takeover provisions in charter documents and Delaware law could make company acquisition more difficult.
• Exclusive forum provisions in charter documents restrict stockholders' ability to choose judicial forum for disputes.
• Servicing convertible notes requires significant cash flow, and insufficient cash flow could lead to debt refinancing difficulties or dilution.
• Capped Call Transactions may affect the market price of 2030 Notes and Class A common stock.
• Subject to counterparty risk with respect to Capped Call Transactions.
• Dependence on talented employees; inability to retain and motivate personnel could harm growth.
• Exposure to complex tax issues and potential changes in tax laws, which could affect tax obligations and effective tax rate.
• Ability to use net operating loss carryforwards and other tax attributes may be limited.
• Risk of impairment charges for goodwill and intangible assets.
• Use of open source software could adversely affect ability to offer services and lead to litigation.

Future Outlook

Xometry expects to continue investing in technology, tools, features, and products to provide targeted solutions for buyers and suppliers, focusing on improving AI and machine learning for pricing and placement. The company aims to expand its international operations and enhance its services offerings, including Thomasnet advertising and financial products, to drive profitable growth and increase Adjusted EBITDA margins. Management anticipates continued growth in active buyers and suppliers, and deeper enterprise engagement, while managing costs and maintaining a strong balance sheet.

Management Comments

• Our financial performance demonstrates the success of our purposefully built marketplace model in the large and highly fragmented custom manufacturing market.
• We aim to continue to drive strong growth and expanding Adjusted EBITDA margins (a non-GAAP measure) by consistent execution across our key growth initiatives.
• We are committed to delivering long-term shareholder value through disciplined execution on organic growth and a rigorous capital and resource allocation.
• We are focused on driving strong free cash flow conversion given our asset light model, with capital expenditures that are predominately capitalized software costs.
• With the size and complexity of the custom manufacturing industry, we believe there is an opportunity for selected, targeted, tuck-in acquisitions to expand our offerings and geographies including technology and talent.

Industry Context

StockSavvy.ai notes that Xometry operates in a global manufacturing industry undergoing significant digital transformation, driven by the urgent need for resilient, localized, and compliant supply chains, and the increasing adoption of AI-driven automation. The industry is highly fragmented and regionalized, with a large component of small-to-medium-sized manufacturers. Xometry's AI-native marketplace and services like Thomasnet and Workcenter position it to capitalize on these trends by providing efficiency, transparency, and access to global capacity, addressing the complex and costly sourcing processes traditionally faced by buyers and suppliers. The increasing focus on environmental and sustainability issues also presents an opportunity for Xometry's carbon-reducing solutions.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results for a direct numerical assessment against global industry benchmarks. StockSavvy.ai notes that Xometry's reported growth in active buyers (20%) and suppliers (17%) and its shift to positive Adjusted EBITDA (2.7% margin) indicate strong operational execution within the fragmented custom manufacturing sector. The improvement in marketplace gross margin (34.7%) suggests increasing efficiency from its AI-driven platform, which is a key differentiator in this competitive landscape.

Management Changes

Corporate Governance

Legal Proceedings

• The company is not a party to any legal proceedings that are individually or in the aggregate reasonably expected to have a material adverse effect on its consolidated results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution could have a material adverse effect.

Related Party Transactions

• The information regarding related party dealings is incorporated by reference to the definitive Proxy Statement for the 2026 Annual Meeting of Stockholders, to be filed within 120 days after December 31, 2025. No specific transactions were detailed in this filing.

Stakeholder Impact

• Shareholders: Potential for dilution from future equity issuances and convertible notes conversions; stock price volatility risk; dual-class structure limits influence for Class A holders.
• Employees: Workforce reduction of approximately 5% in 2025 due to restructuring; continued investment in learning and development; compensation philosophy promotes pay-for-performance.
• Customers (Buyers): Benefit from instant quoting, ease of purchase, access to a growing global supplier network, broad industry-specific solutions, reliability, quality assurance, and production flexibility.
• Suppliers: Benefit from cost-efficient new business generation, repeat high-quality customers, operational excellence via Workcenter, financial stability (Instant Pay), advertising/marketing solutions (Thomasnet), and increased machine utilization.
• Creditors: Convertible notes represent significant debt obligations ($335.8 million outstanding principal), requiring substantial cash for servicing.
• Community/Environment: Commitment to reducing carbon emissions through carbon credits and promoting green technologies; funding non-profit entities through a donor-advised fund (Pledge 1% of equity).

Next Steps

• Enhance customer segmentation efforts in 2026, leveraging AI capabilities in advertising technology stack for increased marketing efficiency.
• Continue to rapidly expand the global network of active suppliers.
• Continue investment in AI and infrastructure to optimize dynamic pricing, manufacturability, supplier routing, and fulfillment.
• Further embed Xometry's technology into enterprise workflows through tools like Teamspace and ERP integrations.
• Continue to invest and grow the International business, primarily driven by expansion in Europe, China, and Turkey.
• Invest to restore Thomasnet advertising growth by improving underlying platform technology.
• Consider selected, targeted, tuck-in acquisitions to expand offerings and geographies, including technology and talent.
• File definitive proxy statement for 2026 annual meeting of stockholders within 120 days after December 31, 2025.

Key Dates

Recommendation

Xometry demonstrates strong operational momentum with significant revenue growth and a positive shift in Adjusted EBITDA and Non-GAAP Net Income, indicating improved underlying business efficiency. The expansion of its buyer and supplier networks and international presence are positive indicators. However, the increased GAAP net loss, primarily due to a non-recurring debt extinguishment charge, and the inherent risks associated with a rapidly evolving, competitive industry, macroeconomic uncertainties, and the dual-class stock structure, suggest a 'hold' recommendation. Investors should monitor the company's ability to sustain profitability, manage its debt obligations, and navigate competitive and regulatory landscapes before considering a stronger position.

Keywords

Xometry, XMTR, Manufacturing Marketplace, AI-native, Custom Manufacturing, Thomasnet, Industrial Sourcing, 3D Printing, CNC Machining, Injection Molding, Sheet Metal, Supply Chain, Digital Manufacturing, Financial Services, Workcenter, SEC Filing, 10-K, Financial Results, Adjusted EBITDA, Revenue Growth, Active Buyers, Active Suppliers, Convertible Notes, Corporate Governance, Risk Factors, Technology Platform, Artificial Intelligence, Machine Learning