Why does 2026 guidance imply deceleration despite strong Q4, and what is the path to profitability for the international segment?

Randy stated strong Q1 momentum and raised guidance for both Q1 and FY26, attributing conservatism to macro uncertainty. James added that Q4 acceleration reflects team progress and enterprise growth. For International, unit economics are similar to the U.S., with long-term growth potential to 30-40% of business and similar economics. The focus is on balancing profitability and growth. “I think we are mindful of the macro. So that's why -- but just to be clear, we also raised our guidance for the year as well. So as the year progresses and hopefully, as we keep the momentum, we'll continue to update.”

How is Xometry achieving success with large customers ($10M+ spend), specifically regarding integration into BOMs and ERP systems, and is the work primarily production-focused?

Randy emphasized technology integration (punch-outs, ERP integrations) and Teamspace as instrumental. He noted that the platform's extensibility across industries and processes, combined with a flight to reliability in an uncertain macro, drives larger customer engagement. The work for $10M+ customers is more heavily weighted towards production and being embedded in the Bill of Materials. “Our punch-outs, our integrations with their ERP and their purchasing systems are instrumental in that. So that just makes us part of what they're doing every day.”

How does Xometry balance brand awareness with sales & marketing spend, given the large TAM? How is management balancing incremental investments with EBITDA growth?

Randy acknowledged the large TAM and millions of buyers, balancing profitability with marketing efficiency. He highlighted technology integrations (punch-outs, embedded workflows) as key for 'free advertising' and awareness within large customer bases. Sanjeev added that AI-enabled optimization engines are becoming new organic channels for brand messaging. James reiterated the 20% incremental adjusted EBITDA margin target, emphasizing the asset-light model and strong cash flow conversion. “I think it is still very early. There's still a huge opportunity ahead. We're very focused on giving some guideposts here as we scale to $1 billion to continue to deliver at least 20% incremental adjusted EBITDA even as we continue to invest in those growth initiatives.”

XMTR

Xometry (XMTR) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Industrials· Feb 24, 2026

Source: earnings call transcript

Executive summary

Xometry Q4 FY25 — Record Revenue and Profitability Acceleration

Xometry concluded Q4 FY25 with record revenue and accelerated profitability, driven by its AI-native marketplace and product-led growth initiatives. The company is undergoing a planned CEO transition, with President Sanjeev Sahni set to take over, while the outgoing CEO will focus on strategic growth. Despite an uncertain macro environment, Xometry expects continued robust growth and profitability in 2026, fueled by expanding marketplace offerings and enterprise engagement.

Highlights

Q4 revenue grew 30% year-over-year to more than $192 million.
Marketplace revenue increased 33% year-over-year.
Q4 marketplace gross margin expanded 80 basis points year-over-year to 35.3%.
Revenue from marketplace accounts with last 12-month spend of at least $500,000 increased over 40% year-over-year.
Ended 2025 with 4 accounts with at least $10 million of spend.
Q4 adjusted EBITDA was $8.4 million, an increase of $7.3 million year-over-year.
Generated $6.1 million in operating cash flow in 2025.

Concerns

Services revenue declined approximately 1% quarter-over-quarter in Q4 FY25.
International segment adjusted EBITDA loss was $2.4 million in Q4 2025.
Mindful of the uncertain macro environment for 2026 guidance.

Guidance & targets

Category	Target	Timeline	Confidence
Q1 Revenue	$187 million to $189 million high materiality	Q1 · FY26	High
Q1 Marketplace growth	approximately 27% to 28% medium materiality	Q1 · FY26	High
Q1 Services revenue	largely flat low materiality	Q1 · FY26	Medium
Q1 Adjusted EBITDA	$6.5 million to $7.5 million high materiality	Q1 · FY26	High
Full year 2026 Revenue growth	at least 21% high materiality	FY26	High
Full year 2026 Marketplace gross margin	higher than 2025 medium materiality	FY26	High
Full year 2026 Services revenue	approximately flat low materiality	FY26	Medium
Full year 2026 Incremental adjusted EBITDA margins	at least 20% high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Marketplace Driven by strong execution, expansion of buyer and supplier networks, and growth with larger accounts. Robust across aerospace and defense, electronics and semiconductors, energy, and automotive verticals. Gross margin: 35.3%Gross margin increase YoY: 80 bpsGross profit dollars increase YoY: 36%	$178 million	33%	—	35.3%
Supplier Services Decline quarter-over-quarter as the company largely stabilized the core advertising business. Focus on improving engagement and monetization on the platform.	$13.9 million	—	declined approximately 1%	—
US Driven by expanding gross profit and strong operating expense leverage. Adjusted EBITDA margin: 6.8%Adjusted EBITDA improvement YoY: $6.8 million	—	—	—	$10.8 million
International Adjusted EBITDA loss improved by $0.5 million from a loss of $3 million in Q4 2024. Expect continued improvement in operating leverage in 2026. Adjusted EBITDA improvement YoY: $0.5 million	—	—	—	loss of $2.4 million

XMTR operating KPIs by quarter

XMTR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Active buyers	81.821K Q4 active buyers increased 20% year-over-year to 81,821 with a net addition of 3,539 active buyers, driven by efficient corporate marketing initiatives. Source: earnings call transcript	85.581K Q1 active buyers increased 20% year-over-year to 85,581 with a net addition of 3,760 active buyers, the highest number of net adds in 9 quarters. Source: earnings call transcript	89.557K Q2 active buyers increased 20% year-over-year to 89,557 with a net addition of 3,976 active buyers, the highest number of net adds in 10 quarters. Source: earnings call transcript	+4.6%
Active buyers net additions	3,539 Q4 active buyers increased 20% year-over-year to 81,821 with a net addition of 3,539 active buyers, driven by efficient corporate marketing initiatives. Source: earnings call transcript	3,760 Q1 active buyers increased 20% year-over-year to 85,581 with a net addition of 3,760 active buyers, the highest number of net adds in 9 quarters. Source: earnings call transcript	3,976 Q2 active buyers increased 20% year-over-year to 89,557 with a net addition of 3,976 active buyers, the highest number of net adds in 10 quarters. Source: earnings call transcript	+5.7%
Accounts with LTM spend of at least $50,000	1,760 In Q4, the number of accounts with last 12 months spend of at least $50,000 on our platform increased 18% year-over-year to 1,760. Source: earnings call transcript	1,864 In Q1, the number of accounts with last 12-month spend of at least $50,000 on our platform increased 21% year-over-year to 1,864 with a strong net adds of 104. Source: earnings call transcript	2,039 In Q2, the number of accounts with last 12-month spend of at least $50,000 on our platform increased 23% year-over-year to 2,039 with a record 175 quarterly net adds. Source: earnings call transcript	+9.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Auto quotes for injection molding services	launch	2025
AI-powered Design for Manufacturing (DFM)	update	2025
High-performance materials for additive manufacturing	expansion	Q4
Preferred subprocess feature for CNC machining	launch	Q4
Teamspace	expansion	2025
EU parts library	launch	2025
New dynamic ad serving model and Thomas Smart Search	launch	Q4
Workcenter mobile app	launch	2025

Risks & headwinds

Uncertain macro environment 2026

Mindful of the uncertain macro environment

Mitigation:Company is focused on what it can control, increasing outlook for Q1 and FY26.

Services revenue decline Q4 FY25

declined approximately 1% quarter-over-quarter

Mitigation:Focused on improving engagement and monetization on the platform; expect largely flat Q1 and flat YoY for FY26 with modest growth in H2.

What to watch in Q1 FY26

Marketplace revenue growth

Q1 FY26

Current 33% YoY in Q4 FY25

Target ~27-28% YoY in Q1 FY26

Why it matters

To verify if the strong growth momentum continues as guided, especially given macro uncertainties.

For the first quarter, we expect revenue in the range of $187 million to $189 million or 24% to 25% growth year-over-year. We expect Q1 marketplace growth to be approximately 27% to 28% year-over-year.

Find out whether XMTR delivers this. Inve re-checks your case every morning.

Q&A highlights

Why is now the right time for the CEO change, what will Randy focus on, and what product initiatives is Sanjeev most excited about for growth?

Randy explained the deliberate succession timing, driven by strong 2025 results and Sanjeev's impact. He will focus on strategic growth initiatives and corporate partnerships. Sanjeev highlighted expanding marketplace offerings, enterprise growth, and global supplier network as key drivers, emphasizing the inherent attractiveness of marketplace financial models and network effects.

“this transition is the result of a deliberate succession process. And as we undergo this transition, I think it's important to remember that even though we're changing the person in the seat, and I'm sitting right next to him right here, we're not changing the destination on the map.”

asked by Cory Carpenter · answered by Randolph Altschuler

2 min read 6 chapters

Detailed narrative

Leadership Transition

Randy Altschuler, co-founder and CEO, will transition to Executive Chair of the Board effective July 1, 2026. Sanjeev Singh Sahni, current President, will become Chief Executive Officer. This planned succession reflects a deliberate long-term process, with Randy remaining closely involved in strategic growth initiatives and key corporate partnerships as the largest individual long-term shareholder.

AI-Native Marketplace and Network Effects

Xometry's AI-native marketplace is successfully digitizing the fragmented custom manufacturing market. The growing networks of over 80,000 active buyers and approximately 5,000 active suppliers generate proprietary data, continuously training algorithms. This continuous improvement has driven substantial and steady growth in marketplace gross margins, from 25% four years ago to approximately 35% in 2025, demonstrating increasing network effects and a competitive moat.

Enterprise Growth and Penetration

The company achieved robust enterprise growth in Q4, with revenue from marketplace accounts spending at least $500,000 in the last 12 months increasing over 40% year-over-year. Xometry ended 2025 with 4 accounts spending at least $10 million annually, driven by strong sales execution, technology solutions, and acceleration in large multi-year production programs.

The strategy focuses on further penetration into these large accounts, leveraging ERP integrations and Teamspace.

Marketplace Offerings and Innovation

In 2025, Xometry accelerated innovation, launching auto quotes for injection molding in the U.S. and Europe, and enhancing AI-powered Design for Manufacturing (DFM) to include technical drawing interpretation. New high-performance materials for additive manufacturing were added to the U.S. marketplace, and a preferred subprocess feature for CNC machining was introduced.

Teamspace scaled to over 11,000 teams globally, and a parts library was launched in the EU to simplify customer part management.

Thomas Platform Modernization

Significant progress was made in 2025 to modernize the Thomas Industrial sourcing platform, including the launch of a new dynamic ad serving model and Thomas Smart Search in Q4. For 2026, the focus is on improving buyer-supplier interaction, enhancing search results and relevance, and strengthening the Thomas brand through a new marketing campaign to better access the extensive demand on the platform.

Global Supplier Network Expansion

Xometry's global network of approximately 5,000 active suppliers is a strategic advantage, offering unmatched speed, capacity, and resilience across 50 countries. The company expanded its U.S. supplier base with a focus on larger, certified partners and grew its international sourcing network in Europe, India, China, and Turkey. The new Workcenter mobile app was launched in 2025 to improve supplier experience, engagement, and job management.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.