Xometry's Q2 2025 Earnings: AI-Driven Growth and Improved Profitability in On-Demand Manufacturing

Xometry Reports Strong Q2 2025 Results

Xometry (NASDAQ: XMTR), the AI-powered marketplace for on-demand manufacturing, has announced its second-quarter 2025 earnings, showcasing robust growth and improved profitability. The company reported GAAP revenue of $162.5 million, surpassing analyst expectations of $156.5 million, and non-GAAP diluted earnings per share of $0.09, significantly higher than the projected $0.04 1

1

AI-Driven Marketplace Performance

Source: Motley Fool

At the core of Xometry's success is its AI-powered digital marketplace, which connects buyers of custom manufactured parts with a global network of suppliers. The platform's AI capabilities provide instant pricing, lead time estimates, and design feedback, streamlining the process for industries requiring custom, on-demand manufacturing 1

1

The marketplace segment demonstrated strong performance:

• Marketplace revenue grew 26% year-over-year
• Active buyers increased by 22% to 74,777
• Accounts with last twelve-months spend of at least $50,000 increased 15% to 1,653
• 98% of revenue came from existing accounts, indicating strong customer loyalty

Notably, the marketplace gross margin reached a record 35.4%, up 190 basis points year-over-year, powered by AI-driven pricing and selection improvements 2

2

Financial Highlights and Profitability

Xometry's financial performance showed significant improvements:

• Adjusted EBITDA turned positive at $3.9 million, a $6.6 million improvement from the previous year
• U.S. segment Adjusted EBITDA contribution rose from $0.25 million to $6.88 million
• Cash and investments totaled $226 million as of June 30, 2025

However, the company reported a wider GAAP net loss of $26.4 million, primarily due to a $16.4 million non-recurring charge related to debt refinancing 1

1

Related Stories

Amkor Technology Reports Strong Q2 2025 Results, Driven by AI and Advanced Packaging Demand

Figma's First Post-IPO Earnings Report Disappoints Investors Despite Revenue Growth

CXApp Inc. Reports Strong Q2 2025 Results, Showcasing AI-Driven Workplace Transformation

Autodesk Reports Strong Q2 Results, Boosted by AI Integration and Data Center Demand

Technological Advancements and Platform Expansion

During Q2, Xometry launched several new features and expanded its platform:

• Introduced an AI-driven instant drawing quote tool for the North American marketplace
• Expanded Teamspace, a collaboration software for buyer purchasing teams, into new European geographies
• Rolled out new procurement integrations
• Partnered with NSF to expand supplier certification options on Thomasnet
• Added new ad and search features to support monetization 1

  1

Future Outlook and Growth Initiatives

Xometry provided guidance for Q3 2025 and raised its full-year outlook:

• Q3 2025 revenue projected between $167 million and $169 million (18-19% YoY growth)
• Adjusted EBITDA expected in the $4.0 million to $5.0 million range for Q3
• FY2025 marketplace revenue growth outlook raised to 23-24%
• Incremental adjusted EBITDA margin for FY2025 expected near 21%

The company is focusing on several key growth initiatives:

1. Expanding networks of buyers and suppliers, with active suppliers growing 28% YoY in 2024
2. Driving enterprise engagement, with accounts spending over $500,000 growing revenue by more than 40% YoY
3. International expansion, particularly in Europe and Asia Pacific, driving 31% YoY growth
4. Modernizing the Thomas advertising model to improve monetization and advertiser penetration 2

   2

As Xometry continues to leverage AI and expand its platform, investors will be closely watching the company's progress in enterprise wins, marketplace gross margin improvements, and international expansion efforts.