Xometry, Inc. Q2 FY2025 earnings call

• Q2 was a strong quarter with record revenue, gross margin, and adjusted EBITDA. Revenue increased 23% YOY to $163 million.
• Marketplace growth was robust at 26% YOY, driven by expanding buyer and supplier networks and enterprise engagement. Marketplace gross margin reached a record 35.4%.
• AI-powered initiatives are central to improving buyer and supplier experience, with product rollouts including enhanced instant quoting, Teamspace launch in Europe, mobile app testing for suppliers, and AI-driven technical drawing extraction.
• Land-and-expand strategy is powered by technology, with enterprise accounts showing strong revenue growth, and accounts with over $50,000 spend increasing by 15% YOY.

In Q2 2025, Xometry's revenue was $163 million, a 23% year-over-year increase. Marketplace revenue was $148 million, accounting for a significant portion, and increased 26% year-over-year. Supplier services revenue was $14.3 million, declining approximately 2% quarter-over-quarter. Marketplace gross margin reached a record 35.4%, up 190 basis points year-over-year, contributing to the overall company gross margin of 40.1%. Supplier services gross margin remained strong at 88.7%.

• Q3 revenue expected to be in the range of $167 million to $169 million (18%-19% growth YOY).
• Q3 adjusted EBITDA expected to be $4 million to $5 million.
• Full-year 2025 revenue growth outlook raised to 20%+, with marketplace growth revised to 23%-24% from previous 22%.
• Full-year 2025 adjusted EBITDA margin expected to be approximately 21%.

• Macro environment uncertainty, as manufacturing indices suggest some buyers remain cautious, which could impact business growth if not managed properly.

Q: Cory Carpenter asked about product initiatives and financial impact of manufacturing reading slowdown.

A: Sanjiv Singh Sahani discussed AI-driven product rollouts and Randy Altschuler mentioned raising full-year marketplace growth outlook and focus on growth initiatives despite macro caution.

Q: Brian Drab asked about gross margin dynamics and potential growth acceleration.

A: James Miln discussed gross margin improvement driven by AI and Randy Altschuler noted potential tailwind from macro improvement if it occurs.

Q: Ronald Josey asked about instant quoting and pricing.

A: Randolph Brody Altschuler and Sanjiv Singh Sahani discussed focus on expanding instant quoting scope and James Miln talked about pricing reflecting tariffs and international fulfillment changes.

Q: Andrew Boone asked about sales and marketing step-up and $500,000 accounts.

A: James Miln discussed sales and marketing leverage and Shawn Christopher Milne tied it to strong net adds in $50,000 spend accounts.

Q: Matt Swanson asked about Teamspace adjacencies and supply chain resiliency.

A: Randolph Brody Altschuler discussed enterprise share of wallet expansion and durable growth from marketplace model adoption.

Q: Eric Sheridan asked about domestic sourcing and mobile experience.

A: Randolph Brody Altschuler talked about domestic supplier base expansion and Sanjiv Singh Sahani discussed supplier mobile app testing benefits.

Q: Greg Palm asked about Q2 guidance upside and end markets.

A: Shawn Christopher Milne discussed strong Q2 performance driven by growth initiatives and extensibility across verticals.