XMTR — Xometry, Inc.

Summary of Xometry Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Q1 2026 revenue reached $205 million, a 36% increase year-over-year, marking a 600 basis point acceleration from Q4 2025.
• Marketplace Revenue: $191 million, up 40% year-over-year.
• Active Buyers: Increased by 20% year-over-year to 85,581, with the highest net additions (3,760) in nine quarters.
• Adjusted EBITDA: Improved to $10.5 million from $0.1 million in Q1 2025, with an adjusted EBITDA margin of 5.1%.
• Gross Profit: $78.5 million, a 39% increase year-over-year, with Marketplace gross margins at 34.7%.
• Operating Cash Flow: Generated $14.6 million, with free cash flow of $4.8 million.
• Cash Position: Ended Q1 with $224 million in cash and marketable securities.

2. Strategic Updates and Business Highlights

• Siemens Partnership: Announced a strategic partnership with Siemens, which includes a $50 million investment and the integration of Xometry’s AI capabilities into Siemens’ software ecosystem. This partnership aims to enhance design-to-manufacturing workflows for engineers.
• Product Initiatives: Launched new features like "Name Your Part" to streamline the ordering process and improved pricing models to enhance customer experience.
• AI Integration: Enhanced predictive intelligence capabilities in the Instant Quoting Engine, leveraging a training dataset four times larger than its predecessor to improve pricing accuracy and operational throughput.

3. Forward Guidance and Outlook

• Q2 2026 Guidance: Anticipated revenue between $214 million and $216 million, representing 32% to 33% year-over-year growth. Marketplace growth expected at 35% to 36%.
• Full Year 2026 Guidance: Revenue growth outlook raised to at least 27% to 28%, driven by approximately 30% Marketplace growth. Adjusted EBITDA margins expected to increase by at least 20%.

4. Bad News, Challenges, or Points of Concern

• International Segment: Despite improvements, the international segment reported an adjusted EBITDA loss of $2.8 million (8% of revenue), although this was an improvement from the previous year.
• Market Conditions: There are concerns regarding potential deceleration in growth rates in the second half of the year, although management reassured that current trends remain strong.
• Competition: The partnership with Siemens is unique, but the potential for similar partnerships with competitors like Autodesk and SolidWorks could pose future competitive pressures.

5. Notable Q&A Insights

• Siemens Partnership Impact: Management emphasized the significant potential of the Siemens partnership to increase active buyers and profitability due to reduced sales and marketing expenses.
• Active Buyer Growth: The record net additions in active buyers were attributed to improved technology and marketing strategies, with expectations for continued growth.
• International Business: While the international segment is improving, there is no specific guidance on when it will reach EBITDA breakeven.
• Future Partnerships: Management expressed optimism about potential future partnerships, indicating that the Siemens deal could pave the way for more collaborations in the industry.

Overall, Xometry's Q1 2026 results reflect strong growth and operational improvements, driven by strategic initiatives and a significant partnership with Siemens, while also highlighting areas for continued focus and potential challenges ahead.