Xometry Q4 FY25 earnings call XMTR

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.

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.

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.

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.

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.

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.