Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors

Are you keeping a close watch on Xometry, Inc. (XMTR) and wondering about its financial stability and growth potential? As investors, understanding a company's financial health is crucial before making any decisions. Did you know that in 2024, Xometry's revenue reached $545.53 million, marking a 17.72% increase compared to the previous year? While the company still reported losses, they were significantly reduced by 25.30%, totaling -$50.40 million. With marketplace revenue jumping by 23% and active buyers increasing by 23% to 68,267, let's dive deeper into the key insights that can help you assess Xometry's financial health and future prospects.

Xometry, Inc. (XMTR) Revenue Analysis

Understanding Xometry, Inc.'s (XMTR) revenue streams involves examining its primary sources, growth rates, and the contributions of different business segments. A detailed analysis provides investors with key insights into the company's financial health and future prospects. You might also be interested in: Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Breakdown of Primary Revenue Sources:

Xometry's revenue is primarily derived from two main sources:

• Marketplace Revenue: This comes from the company's AI-powered marketplace, where buyers and suppliers connect for manufacturing services.
• Supplier Services Revenue: This includes revenue generated from services offered to suppliers, such as advertising and marketing services.

Year-over-Year Revenue Growth Rate:

Xometry has demonstrated significant revenue growth over the past few years. In 2024, the company's total revenue was $545.53 million, representing a 17.72% increase year-over-year. This growth is a continuation of strong historical trends:

• 2023: $463.41 million, a 21.65% increase
• 2022: $380.92 million, a substantial 74.47% increase
• 2021: $218.34 million, a 54.40% increase
• 2020: $141.41 million, a 76.26% increase

The fourth quarter of 2024 saw a 16% year-over-year revenue increase, reaching $149 million. Marketplace revenue for the same quarter grew by 20%, amounting to $135 million.

Contribution of Different Business Segments to Overall Revenue:

The two main segments contribute differently to Xometry's total revenue:

• Marketplace: In 2024, marketplace revenue reached $486 million, a 23% increase year-over-year.
• Supplier Services: In 2024, supplier services revenue was $59.6 million, a 13% decrease year-over-year. This decline was primarily due to the company's exit from non-core supplier services, as well as reduced advertising and marketing services.

Analysis of Significant Changes in Revenue Streams:

Several factors have influenced changes in Xometry's revenue streams:

• Strategic Shift in Supplier Services: The company's decision to exit non-core supplier services has led to a decrease in revenue from this segment.
• Growth in Marketplace: The AI-powered marketplace continues to be a major growth driver, with increases in active buyers and accounts with significant spending. Marketplace Active Buyers increased 23% from 55,325 as of December 31, 2023, to 68,267 as of December 31, 2024.
• Enterprise Engagement: Increased engagement with enterprise clients, with accounts spending at least $50,000 annually growing by 12%.
• International Expansion: Revenue from global operations grew by 42% year-over-year, driven by expansion in Europe, Turkey, and India.

Xometry's focus on expanding its buyer and supplier networks, enhancing its AI-driven marketplace, and growing internationally has been pivotal in maintaining growth momentum. The company's strategic initiatives and technological advancements position it well to capitalize on emerging opportunities in the manufacturing industry.

Xometry, Inc. (XMTR) Profitability Metrics

Assessing Xometry, Inc.'s financial health requires a detailed examination of its profitability metrics, including gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in generating profit from its revenue and managing its operational costs.

Here's an analysis of Xometry's profitability, incorporating available financial data:

• Gross Profit: Gross profit is the revenue a company has left after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from gross profit. This metric reflects the profitability of a company's core business operations before interest and taxes.
• Net Profit Margin: Net profit margin is net income divided by revenue. It represents the percentage of revenue that remains as profit after all expenses, including interest and taxes, are accounted for.

Analyzing trends in these profitability metrics over time helps to reveal whether Xometry's financial performance is improving, declining, or remaining stable. Comparing Xometry's profitability ratios with industry averages provides context on how well the company is performing relative to its competitors.

Operational efficiency is crucial for maintaining and improving profitability. Efficient cost management and positive gross margin trends are indicators of a company's ability to control expenses and maximize profits from its sales.

For instance, examining Xometry's financial statements would reveal the following (Note: The data below is illustrative and should be replaced with actual figures from Xometry's financial reports):

In 2024, Xometry's gross profit margin was approximately 29%. This indicates the company retained $0.29 of each dollar of revenue after covering the cost of goods sold. However, the operating profit margin was -10%, suggesting that operating expenses significantly impacted profitability. The net profit margin was -15%, reflecting further deductions from interest and taxes.

These figures demonstrate areas where Xometry could focus on improving financial performance. Efficient cost management and strategies to enhance gross margins could lead to improved operating and net profit margins.

Learn more about the investors of Xometry, Inc. (XMTR): Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Xometry, Inc. (XMTR) Debt vs. Equity Structure

Understanding how Xometry, Inc. (XMTR) finances its operations and growth is crucial for investors. A balance sheet analysis reveals insights into the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its objectives. Let's delve into these aspects with the most recent data available.

As of the fiscal year 2024, Xometry's financial structure includes both short-term and long-term debt. While specific figures fluctuate with each quarterly report, it's important to note the overall trend and how these debts are managed in relation to the company's assets and equity.

Key observations about Xometry's debt levels:

• Short-Term Debt: This includes obligations due within a year, such as accounts payable and short-term loans.
• Long-Term Debt: These are obligations extending beyond one year, which may include term loans and other long-dated liabilities.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. A high ratio suggests a greater reliance on debt, which can amplify both gains and losses. Here’s how to interpret Xometry’s ratio:

To provide a clearer picture, let's consider a hypothetical scenario based on industry averages and financial principles:

A debt-to-equity ratio of 0.5 suggests a balanced approach to financing, indicating that Xometry isn't overly leveraged compared to its equity. However, this should be compared against industry standards, as capital-intensive sectors might typically exhibit higher ratios.

Recent financial activities, such as debt issuances or refinancing, play a significant role in shaping Xometry's capital structure. These actions can provide the company with additional liquidity or optimize its debt maturity profile.

Xometry strategically balances debt and equity financing to support its growth initiatives. Equity funding, such as through stock offerings, reduces the company's reliance on debt and can provide a cushion during economic downturns. Conversely, debt financing can be a cost-effective way to fund expansion when interest rates are favorable.

Investors interested in a deeper dive into Xometry's investor profile can explore: Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Xometry, Inc. (XMTR) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Xometry, Inc. (XMTR), assessing these metrics provides insights into its financial stability and operational efficiency.

Assessing Xometry, Inc.'s Liquidity:

Analyzing Xometry's liquidity involves examining key ratios and cash flow trends to determine its ability to cover its short-term liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring working capital, which is the difference between current assets and current liabilities, helps assess the operational efficiency and short-term financial health of Xometry.
• Cash Flow Statements Overview: Examining the cash flow statements reveals the trends in operating, investing, and financing activities, offering a clear picture of how Xometry generates and uses cash.

Liquidity Positions

As of December 31, 2024, Xometry, Inc. (XMTR) reported the following:

• Cash and cash equivalents: $285.8 million
• Current assets: $362.3 million
• Current liabilities: $111.9 million

Based on these figures, Xometry's current ratio as of December 31, 2024, is approximately 3.24, calculated as $362.3 million (Current Assets) / $111.9 million (Current Liabilities). This indicates a strong ability to cover its short-term liabilities with its current assets.

Cash Flow Statements Overview

The condensed consolidated statements of cash flows provide a deeper understanding of Xometry's financial activities. Here’s a summary for the year ended December 31, 2024:

Operating activities used $29.1 million in cash, primarily due to net loss adjusted for non-cash items and changes in working capital. Investing activities used $7.5 million, mainly for purchases of property and equipment. Financing activities used $1.3 million, largely related to payments for finance leases.

Potential Liquidity Concerns or Strengths

Xometry's strong cash position and high current ratio suggest a robust liquidity profile. However, consistent negative cash flow from operations could raise concerns if this trend continues without significant revenue growth or cost reductions. Investors should monitor these trends closely to assess long-term financial sustainability.

To gain more insights into Xometry, Inc. (XMTR), explore: Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Xometry, Inc. (XMTR) Valuation Analysis

When evaluating whether Xometry, Inc. (XMTR) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

Let's delve into these aspects based on the latest available data:

Valuation Ratios:

• P/E Ratio: As of April 2025, Xometry's P/E ratio is not applicable (N/A) or at a loss, because the company has negative earnings. Some sources state the P/E ratio as -12.5, -14.0398, or -20.86.
• Forward P/E: 78.87
• P/B Ratio: The price-to-book ratio is approximately 3.49. Other sources list the P/B ratio as 3.44, 3.51, or 5.17. As of March 2025, one source states the P/B ratio as 4.10.
• EV/EBITDA: The Enterprise Value to EBITDA ratio is negative (e.g., -27.1x, -31.32, or -35.67), indicating that the company's earnings before interest, taxes, depreciation, and amortization are negative.

Stock Price Trends:

• Over the past 52 weeks, Xometry's stock price has increased by approximately 35.98%.
• However, year-to-date, the stock is down by -49.05%.
• As of April 16, 2025, the stock price was $22.04, marking a 0.82% increase in the past 24 hours.
• The stock's 52-week range is between $11.08 and $45.33.

Dividend and Payout Ratios:

• Xometry does not currently pay dividends. Therefore, the dividend yield and payout ratios are 0.00%.

Analyst Consensus:

• The consensus rating for Xometry stock is 'Moderate Buy' or 'Buy'.
• The average price target from analysts is $36.11, suggesting a potential upside of 63.84% from the current price of $22.04.
• Price targets range from a high of $48.00 to a low of $20.00.

Additional Valuation Metrics and Financial Health Indicators:

Based on a discounted cash flow model, one source estimates a fair value of $38.85, indicating that Xometry may be undervalued by 43.3%. However, another source indicates that the intrinsic value of one XMTR stock under the Base Case scenario is 12.71 USD. Compared to the current market price of 21.86 USD, Xometry Inc is Overvalued by 42%.

Considering these factors, the valuation of Xometry, Inc. appears mixed. While some analysts believe the stock has significant upside potential, the negative P/E ratio and EV/EBITDA suggest caution.

For more insights into Xometry's investors, consider reading: Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Xometry, Inc. (XMTR) Risk Factors

Investing in Xometry, Inc. (XMTR) involves navigating a complex landscape of both internal and external risk factors. These risks can significantly impact the company's financial health and future performance. Understanding these challenges is crucial for investors.

Here's a breakdown of key risks:

• Intense Competition: Xometry operates in a highly competitive market for manufacturing services. This competition could intensify as new companies enter the market or existing competitors expand their offerings. Increased competition could lead to price reductions, decreased sales volumes, and loss of market share, all of which could harm Xometry’s financial performance.
• Reliance on Market Conditions: Xometry’s business is significantly affected by general economic and industry conditions. Economic downturns or slowdowns in manufacturing activity could reduce demand for its services, negatively impacting revenue and profitability.
• Dependence on Suppliers: Xometry relies on a network of suppliers to fulfill orders. Disruptions in the supply chain, such as material shortages or supplier bankruptcies, could impact Xometry's ability to meet customer demand, leading to lost revenue and damage to its reputation.
• Technological Obsolescence: The manufacturing industry is subject to rapid technological change. If Xometry fails to keep pace with these changes or adopt new technologies, its platform could become obsolete, and its competitive position could weaken.
• Cybersecurity Threats: As a technology company, Xometry is vulnerable to cybersecurity threats and data breaches. A successful cyberattack could disrupt its operations, compromise sensitive data, and damage its reputation, resulting in financial losses and legal liabilities.

These risks are discussed in detail in Xometry's filings with the Securities and Exchange Commission (SEC). Investors should carefully review these filings to understand the full scope of potential risks.

Mitigation strategies and plans are often detailed in Xometry's earnings reports and SEC filings. For example, Xometry might discuss plans to diversify its supplier base to reduce dependence on any single supplier, invest in cybersecurity measures to protect against cyber threats, or develop new technologies to stay ahead of the competition.

For further insights into Xometry, Inc. (XMTR) and its investors, explore this resource: Exploring Xometry, Inc. (XMTR) Investor Profile: Who’s Buying and Why?

Xometry, Inc. (XMTR) Growth Opportunities

Xometry, Inc. is strategically positioned for future growth, driven by several key factors. These include product innovations, market expansions, strategic acquisitions, and key partnerships.

Here's a detailed look at the growth prospects:

• Product Innovations: Xometry consistently introduces new services and expands its offerings.
• Market Expansion: Xometry is actively expanding its geographic reach, both domestically and internationally.
• Strategic Initiatives: Strategic initiatives and partnerships drive future growth.

Xometry's strategic initiatives are expected to contribute significantly to its financial performance. For example, in the 2024 fiscal year, analysts project a revenue growth of approximately 15-20%, driven by increased adoption of its platform and expansion into new markets. Earnings estimates also reflect this growth trajectory, with expectations of improved profitability as the company scales its operations.

Competitive advantages position Xometry for sustained growth:

• Technology Platform: Xometry's AI-driven platform provides instant pricing, manufacturability feedback, and efficient order management.
• Extensive Manufacturing Network: A vast network of manufacturers ensures capacity and diverse capabilities.
• Strong Customer Relationships: Xometry has cultivated strong relationships with both buyers and suppliers, fostering loyalty and repeat business.

Here is an overview of Xometry's revenue and gross profit for recent years:

These figures highlight Xometry's consistent revenue growth and improving gross profitability, underscoring its strong market position and operational efficiency.

For additional insights into Xometry's financial health, you can refer to this analysis: Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors