Xometry, Inc. (XMTR) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance with significant improvements in EBITDA and cash flow. The Siemens partnership is a major positive catalyst, expected to boost active buyers and profitability. While full-year guidance is cautious, the absence of Siemens' impact suggests potential upside. The Q&A section highlights strong market positioning and potential future partnerships. Despite some lack of clarity in management's responses, the overall sentiment is positive due to strategic partnerships and financial improvements, likely resulting in a positive stock price movement.
Key Financial Performance
Q1 Revenue $205 million, a 36% year-over-year increase, driven by 40% Marketplace growth through expanding networks of buyers and suppliers and increasing wallet share.
Q1 Marketplace Revenue $191 million, a 40% year-over-year increase, driven by strong execution and expansion of buyer and supplier networks.
Q1 Services Revenue $13.8 million, roughly flat quarter-over-quarter, as the core advertising business stabilizes.
Q1 Active Buyers 85,581, a 20% year-over-year increase, with a net addition of 3,760 active buyers, the highest in 9 quarters, driven by product-led growth strategy and efficient corporate marketing initiatives.
Q1 Marketplace Revenue Per Active Buyer 17% year-over-year increase, primarily due to increasing wallet share.
Q1 Gross Profit $78.5 million, a 39% year-over-year increase, with Marketplace gross profit dollars growing 53% year-over-year.
Q1 Marketplace Gross Margin 34.7%, an increase of 290 basis points year-over-year.
Q1 Adjusted EBITDA $10.5 million, an improvement of $10.4 million year-over-year, driven by strong growth in revenue, gross profit, and operating efficiencies.
Q1 U.S. Segment Adjusted EBITDA $13.3 million, a $10.3 million improvement year-over-year, with a margin of 7.7% compared to 2.4% a year ago, driven by expanding gross profit and strong operating expense leverage.
Q1 International Segment Adjusted EBITDA Loss $2.8 million, 8% of revenue, a 400 basis point improvement from a loss of 12% in Q1 2025.
Operating Cash Flow $14.6 million in Q1 2026, driven by strong operating leverage and working capital efficiency.
Free Cash Flow $4.8 million in Q1 2026, driven by strong operating leverage and working capital efficiency.
Cash and Cash Equivalents and Marketable Securities $224 million at the end of Q1 2026.
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Operating Highlights
AI-native marketplace: Accelerating growth and record Q1 results in the custom manufacturing market. Revenue growth of 36% year-over-year, driven by 40% Marketplace growth.
Injection molding offering: Improved U.S. offering with 6 new materials and 3 additional finishes, increasing instant coding of injection molding parts by over 15%.
Dynamic pricing models: Enhanced personalization of customer pricing, driving higher conversions and growth.
Strategic partnership with Siemens: Siemens invested $50 million in Xometry and integrated Xometry's AI capabilities into Siemens Xcelerator, expanding reach to Siemens' global customer base.
Global supplier network: Expanded to approximately 5,000 suppliers across 50 countries, supporting speed, capacity, and resilience.
AI-driven operational efficiencies: Improved lead time prediction accuracy and operational throughput, enabling 1-day lead times for a growing catalog of materials.
Supplier experience enhancements: Introduced on-platform communications in Workcenter, improving visibility and reducing friction for suppliers.
Product-led strategy: Validated by strong Q1 results, focusing on proprietary AI models and e-commerce marketplace experience.
Enterprise growth strategy: Increased accounts with $50,000+ spend by 21% year-over-year, focusing on large accounts with $10 million+ potential annual revenue.
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Risk or Challenges
Market Conditions: The company is operating in a massive, complex, and highly fragmented custom manufacturing market, which could pose challenges in terms of market penetration and competition.
Strategic Execution Risks: The integration of Xometry's AI capabilities into Siemens' ecosystem is a significant strategic move. However, the success of this partnership depends on effective execution and integration, which could pose risks if not managed properly.
Supply Chain Disruptions: The company's global supply network of approximately 5,000 suppliers is a strategic advantage, but it also poses a risk of supply chain disruptions, especially given the need for specialized certifications and materials.
Economic Uncertainties: The company is focused on improving cash flow conversion and operating leverage, which indicates a need to manage economic uncertainties and financial stability.
Regulatory Hurdles: The need for specialized certifications for suppliers indicates potential regulatory challenges that could impact operations.
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Guidance & Outlook
Revenue Growth: For Q2 2026, revenue is expected to be in the range of $214 million to $216 million, representing 32% to 33% growth year-over-year. For the full year 2026, revenue growth outlook has been raised to at least 27% to 28%, driven by approximately 30% Marketplace growth.
Marketplace Growth: Q2 2026 Marketplace growth is projected to be approximately 35% to 36% year-over-year. Full-year 2026 Marketplace gross margins are expected to be higher than 2025, with incremental technological advancements fueling margin performance.
Services Revenue: Services revenue is expected to remain largely flat quarter-over-quarter in Q2 2026 and approximately flat year-over-year for the full year 2026, with modest growth anticipated in the second half of the year.
Adjusted EBITDA: Q2 2026 adjusted EBITDA is expected to be in the range of $11 million to $12 million, compared to $3.9 million in Q2 2025. For the full year 2026, incremental adjusted EBITDA margins are projected to be at least 20%.
International Segment: Continued improvement in International segment operating leverage is expected in 2026.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Can you explain the significance of the Siemens partnership and its impact on KPIs like active buyers?
A:The Siemens partnership is significant as Siemens is a leading global industrial software company with millions of users, compared to Xometry's 85,000 active buyers. This partnership embeds Xometry's services directly into Siemens' PLM and CAD software, extending Xometry's reach globally and across various industries. It is expected to significantly boost active buyer count and improve profitability by reducing sales and marketing expenses.
Q:How will the Siemens partnership affect margins and profitability?
A:The gross margins from the Siemens partnership are expected to be similar to current levels, with revenue recognition also remaining consistent. However, operational expenses will be lower, making the incremental margins from this revenue more profitable.
Q:Can you discuss recent performance across different end markets and the impact of global supply chain disruptions?
A:Growth was broad-based across various industries, supported by improving macroeconomic conditions and manufacturing data. Xometry continues to gain market share, driven by the need for resilient and flexible digital supply chains, which has been emphasized by global disruptions since COVID.
Q:Are there plans for additional partnerships beyond Siemens?
A:Yes, while the Siemens partnership is unique and special, Xometry is hopeful for more partnerships in the future. The Siemens partnership validates Xometry's product-led growth strategy and highlights the potential for further collaborations.
Q:What drove the strong net adds in active buyers, and how does AI integration enhance the Instant Quote engine?
A:The strong net adds in active buyers were driven by advancements in technology, personalization, and marketing efforts. Partnerships like Siemens also contribute to this growth. AI integration in the Instant Quote engine has improved pricing accuracy, expanded material options, and enhanced predictive intelligence, benefiting enterprise customers with diverse needs.
Q:What is the background and mutual benefit of the Siemens partnership?
A:The partnership allows Siemens users to access Xometry's pricing and sourcing data natively within Siemens' platform, enhancing user experience and differentiating Siemens from competitors. For Xometry, it provides access to Siemens' large global user base, accelerating international growth.
Q:Why does the full-year guidance imply a deceleration in growth despite strong Q1 and Q2 performance?
A:The full-year guidance does not include any impact from the Siemens partnership. While guidance for Q2 and the second half of the year has been raised, the company is being cautious and will update guidance as the year progresses. Current trends remain strong.
Q:Is there exclusivity in the Siemens partnership, and can similar partnerships be formed with other companies?
A:The Siemens partnership is unique and proprietary, but Xometry is open to working with other companies like Autodesk and SolidWorks.
Q:What is the status of the $50 million investment mentioned?
A:The $50 million investment occurred after the quarter closed and will be reported as a subsequent event in the Q.
Q:What revenue level is needed for EBITDA breakeven in the international business?
A:While specific segment guidance is not provided, Xometry is globally EBITDA breakeven and free cash flow positive. The company is nearing a sustainable level at $225 million in quarterly revenue, with international margins expected to improve over the year.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the revenue level needed for EBITDA breakeven in the international business, stating only that they are globally EBITDA breakeven and free cash flow positive. Additionally, the full-year guidance does not account for the Siemens partnership, and management did not provide clarity on how this might impact future numbers.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI model
BB
Design Center
Siemens Design
Siemens design
buying
certification
commerce marketplace
commerce playbook
core AI
curve
day
decade
delivery
design decision
engineer
expansion intelligence
feedback
injection
integration
intelligence capability
journey commerce
lead time
life
loop
manufacturability pricing
margin outcome
marketplace experience
material
model expansion
network Siemens
option
part
path trajectory
platform feature
playbook custom
pricing intelligence
pricing model
procurement
thread
XMTR Transcript
Xometry, Inc. (XMTR) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
Neutral5-19
Xometry, Inc. (XMTR) Q1 2026 Earnings Call Transcript
Positive5-8
The earnings call reveals strong financial performance with significant improvements in EBITDA and cash flow. The Siemens partnership is a major positive catalyst, expected to boost active buyers and profitability. While full-year guidance is cautious, the absence of Siemens' impact suggests potential upside. The Q&A section highlights strong market positioning and potential future partnerships. Despite some lack of clarity in management's responses, the overall sentiment is positive due to strategic partnerships and financial improvements, likely resulting in a positive stock price movement.
Xometry, Inc. (XMTR) Q4 2025 Earnings Call Transcript
Positive2-24
The earnings call reflects strong financial performance with increased revenue and EBITDA guidance. Management's optimism about international growth, customer expansion, and technological advancements adds to the positive sentiment. The Q&A section highlights potential growth drivers, although some concerns about guidance deceleration were not fully addressed. Overall, the strategic updates and positive financial outlook suggest a positive stock price reaction.
Xometry, Inc. (XMTR) Q3 2025 Earnings Call Transcript
Positive11-4
The earnings call indicates strong financial performance with improved EBITDA and cash flow, despite increased international losses due to expansion. Raised full-year growth guidance and positive Q&A insights, including AI-driven product advancements and increased buyer growth, suggest a positive outlook. However, the lack of specific future growth details tempers enthusiasm slightly. Overall, the company's strategic initiatives and market expansion efforts are well-received, leading to a positive stock price prediction.
XMTR Slides
XMTR Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
