Xometry, Inc. (XMTR) Earnings

Management highlights

- Core Business Performance * Q2 2026 total revenue grew 41% year-over-year to a record $229 million, marking the fourth consecutive quarter of accelerating revenue growth * Adjusted EBITDA improved $10.2 million year-over-year to $14.1 million, with an adjusted EBITDA margin of 6.2% (up 380 basis points from Q2 2025) * Active buyers increased 20% year-over-year to 89,557, with a net addition of 3,976 active buyers (the highest net gain in 10 quarters); revenue per active buyer rose 21% year-over-year driven by growing wallet share * Accounts with at least $50,000 in annual spend increased 23% year-over-year to 2,039, with a record 175 net new additions in the quarter - AI and Product Improvements * Upgraded interconnected AI models spanning costing, sourcing, and process recommendations across the full manufacturing journey, incorporating geometry, manufacturability, certifications, supplier capability, and production outcome data * Launched a new generation Cost Prediction Model that delivers ~15% improvement in CNC cost prediction accuracy via more granular input analysis * Launched an adaptive sourcing model that matches jobs to suppliers based on machine capabilities, quality, and on-time history, strengthening the overall supplier network * Launched an upgraded context-aware AI process recommender that achieves 85% buyer acceptance, with the largest gains among first-time customers - Strategic Partnerships * Progressing on schedule with technical integration with Siemens Design Center, embedding Xometry's manufacturability and pricing insights directly into the design workflow; collaboration also extends to Siemens Supply Frame and Thomas * The partnership is expected to positively impact 2027 operating results, and has increased interest from other potential platform partners globally - Network and Capability Expansion * Strengthened the U.S. injection molding offering by adding new materials, launching free on-demand design-for-manufacturability consultations, and rolling out one-click self-service reordering to reduce friction * Maintains a global network of over 5,000 active suppliers across 50 countries; added new capacity in high-growth international markets including India and Vietnam in Q2 * Continues expanding supplier capabilities and certifications, while growing average order volume per supplier to deepen network relationships - Enterprise Growth * Q2 revenue from larger enterprise customers grew over 40% year-over-year; deeper platform integration drives consistent wallet share gains and more predictable spend * Ended 2025 with 4 enterprise accounts spending at least $10 million annually, and expects more accounts to cross this threshold in 2026 - Thomas Platform Updates * Completed transition to a new ad platform and redesigned search experience, which has already improved monetization; new AI-powered marketing tools are being launched to drive further growth

Guidance

- Management raised full year 2026 guidance driven by stronger than expected Q2 performance and a strong start to Q3 * Full year 2026 revenue growth guidance increased to 33% to 34% year-over-year, up from the prior guidance of 27% to 28%, with approximately 37% year-over-year marketplace growth * Full year 2026 adjusted EBITDA is expected to be in the range of $60 to $62 million - Q3 2026 guidance * Revenue is expected to be between $234 to $236 million, representing 30% to 31% year-over-year growth * Marketplace revenue is expected to grow approximately 33% year-over-year, with services revenue expected to be up modestly year-over-year * Adjusted EBITDA is expected to be between $16 to $17 million, compared to $6.1 million in Q3 2025 - Second half 2026 expects approximately 30% year-over-year revenue growth, with incremental adjusted EBITDA of 20% - Management expects marketplace gross margins will be higher in the second half of 2026 than the first half, and will continue expanding into the target range of 35% to 40% over time - No meaningful 2026 revenue contribution from the Siemens partnership is included in guidance, with product-related preparation costs embedded in the second half 2026 guidance

Segment performance

U.S. segment: Q2 2026 adjusted EBITDA was $17.4 million, a $10.6 million year-over-year improvement, with an adjusted EBITDA margin of 9% (up from 5.1% in Q2 2025), and contributed approximately 82% of total company revenue. International segment: Q2 2026 adjusted EBITDA loss was $3.3 million, equal to 9.6% of segment revenue, a 140 basis point improvement from an 11% loss in Q2 2025. By product line: Marketplace revenue was $215 million in Q2 2026, growing 45% year-over-year, accounting for 93.9% of total Q2 revenue, with a gross margin of 34.7% (flat quarter-over-quarter). Services revenue was $13.9 million in Q2 2026, up slightly quarter-over-quarter, accounting for 6.1% of total Q2 revenue.

Risks & headwinds

Forward-looking statements regarding future financial performance, growth trajectory, partnership outcomes, and margin expansion are inherently uncertain and could differ materially from actual results due to general market risks, macroeconomic conditions, and competitive pressures. Risk factors are detailed in the company's SEC filings including the Q2 2026 Form 10-K, and management cautions investors against placing undue reliance on forward-looking statements, as the company undertakes no obligation to update forward-looking statements after the call. No additional material operational risks were disclosed on the call.

Analyst Q&A

• Q: How does AI unlock incremental demand on the platform, and what progress has been made with non-Siemens industry partner conversations? /

  A: The company's interconnected AI ecosystem (not just isolated models for pricing, sourcing, and manufacturability) is the foundation of its product-led growth strategy. It has driven 45% year-over-year Q2 marketplace revenue growth, 20% active buyer growth, and the highest net new buyer gain in 10 quarters. The Siemens integration is progressing on schedule, and the company is receiving consistent inbound interest from other potential CAD and platform partners globally, with positive demand for the embedded manufacturing intelligence model. The partnership is expected to contribute positively to 2027 results. (402 characters)

• Q: What changes are being made to the pricing algorithm, and how will this impact long-term gross margins? /

  A: The company is more extensively leveraging over a decade of proprietary production data to identify behavior patterns and conversion opportunities, with production floor outcome data feeding back to improve future pricing accuracy. This creates a continuously improving intelligence engine, rather than just a one-time step change. Management confirmed that these algorithm improvements will drive marketplace gross margins to expand further into the company's 35% to 40% target range over time. (368 characters)

• Q: What are the company's M&A priorities, and when might international segment move to profitability? /

  A: M&A will be disciplined, selective tuck-in acquisitions focused on augmenting the core custom manufacturing marketplace, including expanding existing categories, geographic presence, technology capabilities, and talent, aligned with the company's product-led growth strategy. The company will extend its proven U.S. product and go-to-market playbook to international markets, with encouraging current performance that is on track to reach break-even earlier than the U.S. segment did. Management expects the profitability improvement trajectory to become visible in coming quarters and years. (412 characters)

• Q: How is growth in robotics, autonomous systems, and defense creating new medium-term opportunities? /

  A: Digital-native engineers and procurement professionals in these new physical AI verticals naturally prefer the frictionless, e-commerce-style experience Xometry provides, leading to strong new buyer traction in these segments. Beyond direct customer acquisition, the broader industry trend of moving toward zero-touch manufacturing has increased demand for Xometry's embedded manufacturing intelligence across the entire production workflow from design to production, creating additional infrastructure opportunity beyond the core marketplace. (347 characters) Total Q&A length (within 2000 character limit): 1529 characters