Xometry Q2 Earnings Call Highlights

• A Hidden Winner in Manufacturing and Energy Set for a Breakout

Xometry (NASDAQ:XMTR) reported record second-quarter results as marketplace revenue growth accelerated and adjusted EBITDA increased, prompting the company to raise its full-year revenue and profitability outlook.

Revenue for the second quarter of 2026 rose 41% year over year to $229 million. Marketplace revenue increased 45% to $215 million, while services revenue totaled $13.9 million. Chief Executive Officer Sanjeev Singh Sahni said the results reflected broad-based demand across verticals, improved conversion rates, adoption by new buyers and increased spending from existing customers.

“Q2 was a record quarter for Xometry across many fronts, including revenue, gross profit, and adjusted EBITDA,” Sahni said. He added that the company’s marketplace revenue growth had accelerated for four consecutive quarters.

Profitability and Buyer Growth

Gross profit increased 34% from a year earlier to $87.5 million. Marketplace gross profit dollars rose 42%, while marketplace gross margin was 34.7%, flat sequentially. Chief Financial Officer James Miln said Xometry expects marketplace gross margins to be higher in the second half than in the first half and to continue moving toward its 35% to 40% target range.

Adjusted EBITDA reached $14.1 million, compared with $3.9 million in the prior-year quarter. The resulting adjusted EBITDA margin was 6.2%, up 380 basis points from 2.4% a year earlier.

Non-GAAP operating expenses rose 19% year over year to $73.2 million, less than half of the company’s revenue growth rate. Operating costs as a percentage of revenue improved by 590 basis points. Sales and marketing expense declined 320 basis points as a percentage of revenue to 13.2%, while marketplace advertising spending fell to a record low of 3.4% of marketplace revenue.

Active buyers grew 20% year over year to 89,557, including 3,976 net additions during the quarter, the highest quarterly net-add figure in 10 quarters. Marketplace revenue per active buyer increased 21%, which Miln attributed primarily to expanding wallet share.

The number of accounts spending at least $50,000 over the prior 12 months increased 23% to 2,039, with a record 175 quarterly net additions. Sahni said revenue from larger customers increased more than 40% during the quarter. Xometry ended 2025 with four accounts spending at least $10 million annually and expects additional accounts to reach that threshold in 2026, according to management.

AI Product Updates and Marketplace Expansion

Sahni said Xometry made upgrades to its AI models for costing, sourcing and process recommendations during the quarter. The company introduced a new cost-prediction model that uses inputs including geometry, material, finish and whether a part is part of a larger job. Xometry said the model improved CNC cost-prediction accuracy by approximately 15%.

The company also launched an adaptive sourcing model designed to dynamically price jobs for suppliers. The model incorporates supplier machine capabilities, quality and on-time shipping history. An upgraded process recommender uses a part’s industry application, material and geometry to suggest manufacturing processes and requirements. Sahni said buyers accept those recommendations more than 85% of the time, with the largest gains among first-time customers.

Xometry’s supplier network included more than 5,000 active suppliers across 50 countries at quarter-end. The company added capacity in India and Vietnam and continued domestic expansion, while also adding suppliers with advanced capabilities and certifications.

In injection molding, Xometry added auto-quotable materials, made design-for-manufacturability consultations schedulable through the platform and launched one-click reordering. The reordering feature carries forward prior configurations, specifications and files and routes orders to the supplier holding the original tool.

Siemens Collaboration and Services Business

Management said it continued to make progress on its collaboration with Siemens, which is intended to bring Xometry’s manufacturability and pricing capabilities into Siemens Design Center. Sahni described the integration as a way to connect design intent with physical production and said Xometry expects the Siemens partnership to positively affect 2027 operating results.

The company also cited collaboration between Siemens Supplyframe and Thomas, Xometry’s industrial sourcing and marketing-services business. Thomas has a network of more than 500,000 suppliers in North America, according to Sahni.

Services revenue increased slightly from the first quarter as Xometry stabilized its core advertising business. Management said it completed a transition to a new advertising platform and redesigned the Thomas search experience. The company expects services revenue to return to year-over-year growth beginning in the third quarter and for the second half of 2026.

Cash Position and Raised Outlook

Xometry ended the second quarter with $517 million in cash, cash equivalents and marketable securities. That total included $248 million raised in a follow-on offering completed June 2 and a $50 million investment from Siemens announced May 7.

The company generated $17 million in operating cash flow during the first half and invested approximately $13 million in cash capital expenditures in the second quarter, almost entirely for software-related investments. Miln said Xometry would use its balance sheet to support organic growth initiatives and selective tuck-in acquisitions, while maintaining capital-allocation discipline.

• Third-quarter revenue outlook: $234 million to $236 million, representing 30% to 31% year-over-year growth.
• Third-quarter marketplace revenue growth outlook: Approximately 33% year over year.
• Third-quarter adjusted EBITDA outlook: $16 million to $17 million, compared with $6.1 million in the prior-year quarter.
• Full-year revenue growth outlook: 33% to 34%, raised from 27% to 28% previously.
• Full-year marketplace revenue growth outlook: Approximately 37%.
• Full-year adjusted EBITDA outlook: $60 million to $62 million.

Miln said the updated guidance reflects the second-quarter performance and what management described as a strong start to the third quarter. The company expects approximately 30% revenue growth in the second half of 2026 and incremental adjusted EBITDA of 20%.

About Xometry (NASDAQ:XMTR)

Xometry, Inc (NASDAQ: XMTR) operates a technology-driven marketplace that connects businesses with on-demand manufacturing capacity across a wide array of processes. Through its proprietary Instant Quoting Engine and Xometry Platform, the company streamlines sourcing for CNC machining, 3D printing, sheet metal fabrication, injection molding, urethane casting and other custom manufacturing services. By aggregating a network of thousands of vetted suppliers, Xometry offers rapid lead times, transparent pricing and real-time order tracking to customers in sectors ranging from automotive and aerospace to medical devices and industrial equipment.

Since its founding in 2013 and headquarters in Rockville, Maryland, Xometry has expanded its geographic reach to serve customers in North America, Europe and beyond.

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