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

You're looking at Xometry, Inc. (XMTR) because the market is buzzing about their shift toward profitability, but you need to know if the numbers back up the narrative. Honestly, the third quarter of 2025 results give us a clear answer: the platform model is defintely scaling, but it's not a clean win yet. The good news is the company raised its full-year 2025 revenue guidance to a range of $676 million to $678 million, which shows strong top-line confidence. Plus, they hit an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $6.1 million in Q3, a huge swing from a loss in the prior year, showing real operating leverage. The marketplace gross margin expanded to 35.7%, a 210 basis point jump, proving their AI-powered pricing is working. But here's the quick math on the risk: the GAAP net loss for Q3 still stood at $11.6 million, and while analysts have a consensus price target up to $75.00, that loss reminds us that growth investments are still eating into the bottom line. It's a classic growth-vs-profitability trade-off, and we need to break down exactly where that $16 million to $17 million full-year Adjusted EBITDA is coming from.

Revenue Analysis

You need to know where Xometry, Inc. (XMTR)'s growth is actually coming from, and the answer is simple: the core Marketplace is accelerating while the Supplier Services side is shrinking. The company has raised its full-year 2025 revenue guidance to between $676 million and $678 million, a strong signal of confidence in their primary business model.

Breaking Down Primary Revenue Streams

Xometry's revenue flows mainly through two distinct channels: Marketplace and Supplier Services. The Marketplace is the engine, covering the sale of on-demand parts and assemblies-think of it as the digital storefront for custom manufacturing. Supplier Services, on the other hand, includes sales of marketing, advertising, and other financial/SaaS-based solutions for the manufacturers on their platform.

For the first three quarters of 2025, the Marketplace has defintely dominated, and its share of the total pie is growing. That's where the network effect is kicking in. Here's the quick math on Q3 2025, which saw total revenue hit a record $181 million:

• Marketplace Revenue: $167 million.
• Supplier Services Revenue: $14.1 million.

Year-over-Year Revenue Growth and Segment Shifts

Overall, Xometry's growth is robust, with the full-year 2025 revenue guidance implying a year-over-year growth rate of roughly 24.1% from the 2024 annual revenue of $545.53 million. But the real story is the internal shift. The Marketplace revenue growth is accelerating, hitting a 31% year-over-year increase in Q3 2025.

The Marketplace is gaining significant share, driven by strong U.S. enterprise growth and an expanding network of buyers and suppliers. To be fair, this is a clear sign that the AI-powered core business model is working. The company even raised its full-year 2025 marketplace growth outlook to 27%-28%.

Still, you need to be aware of the drag from the other segment. Supplier Services revenue saw a decline of approximately 4% year-over-year in Q3 2025, continuing a trend from Q2 2025 where it decreased by 6% year-over-year. This decline is largely due to the strategic transition of the Thomas Ad serving platform. It's a purposeful trade-off: higher-margin Marketplace growth for a shrinking, lower-priority service line. For a deeper dive into the company's financial structure, check out Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors.

Profitability Metrics

If you're looking at Xometry, Inc. (XMTR), the takeaway is clear: the company is successfully converting its rapid top-line growth into operational leverage, but it's still navigating the path to sustained, generally accepted accounting principles (GAAP) profitability. The third quarter (Q3) of 2025 showed a critical inflection point in operational health, even though a GAAP net loss persists.

Let's start with the gross margin, which is the first measure of operational efficiency. For Q3 2025, Xometry, Inc. reported a total gross profit of $72.0 million on revenue of $180.7 million, which translates to a gross profit margin of approximately 39.9%. This is a strong figure, especially when you consider the marketplace segment's gross margin, which hit a record 35.7% in Q3 2025, up 210 basis points (bps) year-over-year. This margin expansion is defintely driven by the company's AI-powered pricing and supplier-matching algorithms, which are getting smarter at optimizing costs.

To put that 39.9% total gross margin in context, the broader manufacturing industry typically sees average gross margins in the 25% - 35% range in 2025. Xometry, Inc.'s asset-light marketplace model allows it to capture a higher margin than traditional, asset-heavy manufacturers. However, a direct competitor like Protolabs, which operates a hybrid model, reported a gross margin of 44.6% in 2024, suggesting a potential ceiling for the digital manufacturing space.

Here is a quick breakdown of the core profitability metrics for Q3 2025:

Moving down the income statement, the operating profit story is one of significant improvement. Xometry, Inc. achieved a positive Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a proxy for operational cash flow) of $6.1 million in Q3 2025. Here's the quick math: that's an Adjusted EBITDA margin of about 3.37%. This is a huge turnaround from prior periods and a stark contrast to the 11.3% average EBITDA margin for middle-market manufacturers in late 2024, showing the company is rapidly closing the gap, albeit from a lower base.

Still, the company reported a GAAP net loss of $11.6 million for the quarter. What this estimate hides is the heavy investment in sales, marketing, and technology-the cost of building out that AI-powered marketplace. The positive non-GAAP net income of $6.2 million for the quarter is a better indicator of core business profitability, stripping out things like stock-based compensation and amortization.

The trend is what matters most for investors here. Xometry, Inc. improved its Adjusted EBITDA from $3.9 million in Q2 2025 to $6.1 million in Q3 2025. Management is guiding for full-year 2025 Adjusted EBITDA to be between $16 million and $17 million, which signals confidence in continued operating leverage. The action for you as an investor is to focus on the incremental Adjusted EBITDA margin, which the company is targeting at 20% as it scales toward $1 billion in revenue. That's the real measure of whether the platform's economics are working.

For a deeper look at who is betting on this profitability trend, check out Exploring Xometry, Inc. (XMTR) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You want to know exactly how Xometry, Inc. (XMTR) is funding its aggressive growth, and the answer is a calculated mix of debt and equity that leans toward strategic, low-cost borrowing. The key takeaway for the 2025 fiscal year is that Xometry is using convertible debt to finance expansion while actively protecting shareholders from potential dilution.

As of late 2025, the company's primary long-term obligation is its newly refinanced debt. This isn't a typical bank loan; it's a strategic financing tool. In June 2025, Xometry completed an offering of $250 million in new 0.75% Convertible Senior Notes due in 2030. This move was smart because it extended the debt maturity profile by three years and lowered the annual interest rate from 1.00% to a very favorable 0.75%.

Here's the quick math on Xometry's leverage, which is a key metric for any financial analyst:

• Debt-to-Equity (D/E) Ratio: For the 2025 fiscal year, Xometry's D/E ratio is approximately 1.22.
• Industry Comparison: In the capital-intensive manufacturing and industrial sector, a D/E ratio of 1.22 is manageable. While a ratio below 1.0 is generally preferred, capital-heavy businesses often run with acceptable ratios up to 2.0 or 2.5. Xometry's ratio shows a higher reliance on debt than equity compared to some pure-play tech companies, but it is well within the acceptable range for a growth-focused, industrial-adjacent marketplace.
• Cash Position: The company maintains a strong liquidity cushion, reporting cash, cash equivalents, and marketable securities of $225 million as of September 30, 2025.

The company's financing strategy is a masterclass in balancing capital needs with shareholder protection. They used the debt issuance to address over $200 million of existing debt, but they also took steps to mitigate the equity risk inherent in convertible notes (which can be exchanged for stock).

They purchased a capped call hedge for $17.5 million, which acts as an insurance policy against dilution if the stock price rises significantly. The initial cap price is set at $63.35, a 75% premium over the stock price at the time of the transaction. Plus, Xometry allocated $8 million to repurchase 220,994 shares of common stock, further demonstrating a commitment to offsetting dilution. This is defintely a growth company using debt to fuel its expansion while being mindful of its capital structure and shareholder value.

To understand the core mission driving this financial maneuvering, you should review the Mission Statement, Vision, & Core Values of Xometry, Inc. (XMTR).

Here is a snapshot of the core debt structure:

Your next step should be to look at the interest coverage ratio, which will tell you how easily Xometry's new positive Adjusted EBITDA of $6.1 million in Q3 2025 covers the interest payments on that 0.75% debt.

Liquidity and Solvency

You're looking at Xometry, Inc. (XMTR) and asking the right question: can this growth company cover its bills in the near-term? The short answer is yes, absolutely. Their liquidity position is defintely a major strength, backed by a significant cash reserve and exceptional current ratios.

As of the most recent data near November 2025, Xometry's liquidity ratios are stellar. The Current Ratio sits at 3.62, and the Quick Ratio is nearly identical at 3.58. What this means in plain English is that for every dollar of short-term debt (current liabilities), the company has about $3.62 in short-term assets to cover it. The Quick Ratio, which strips out less-liquid inventory, is almost the same, telling you that their assets are highly liquid-mostly cash and receivables. That's a fortress balance sheet for a technology-driven marketplace.

Working Capital Trends and Cash Reserves

The working capital (current assets minus current liabilities) is robust, and the underlying trends show improving efficiency. The high Quick Ratio of 3.58 confirms that the company's asset-light marketplace model doesn't tie up much capital in inventory, which is a major positive. They are focused on improving working capital efficiency, which is exactly what you want to see from a platform business.

Here's the quick math on their immediate reserves: as of September 30, 2025, Xometry held $225 million in cash, cash equivalents, and marketable securities. This is a massive buffer that allows them to continue investing in growth without immediate pressure from capital markets. That kind of cash on hand gives them serious operational flexibility.

Cash Flow Statement Overview

Now, let's look at the cash flow statement, which is where the rubber meets the road. While the balance sheet is strong, the cash flow from operations (CFO) is in a critical transition phase. For the trailing twelve months (TTM) ending in mid-2025, the Operating Cash Flow turned positive at $1.33 million, a significant improvement from the negative figures in prior years. This suggests the marketplace is starting to generate cash as it scales.

The two other cash flow areas tell a clear story:

• Investing Cash Flow: This is where they spend money on the business. Capital expenditures (CapEx) are low, expected to be around $7 million per quarter for the rest of 2025, consistent with their asset-light model.
• Financing Cash Flow: This shows smart balance sheet management. In June 2025, Xometry completed a refinancing of its debt, issuing $250 million in new 0.75% convertible notes due in 2030. This move extended the maturity and lowered the cost of their debt, fortifying the balance sheet for the next five years.

Near-Term Risks and Opportunities

The primary risk is that Xometry is still a growth company, and the GAAP net loss attributable to common stockholders was $11.6 million for Q3 2025. The opportunity, however, is clear: they are achieving positive Adjusted EBITDA, which hit $6.1 million in Q3 2025, and their Operating Cash Flow is turning positive. This means the core business economics are improving rapidly, and they have the cash to fund the remaining path to GAAP profitability. The liquidity is a non-issue; the focus is on sustained cash generation. For a deeper dive into their valuation models, check out Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Xometry, Inc. (XMTR) after a huge run-up, and the question is simple: is this stock overvalued, undervalued, or just priced for growth? The quick takeaway is that traditional valuation metrics suggest it's a high-growth, high-risk play, not a value stock. It is defintely a growth story.

The core challenge here is Xometry's current lack of GAAP profitability. When a company has negative earnings per share (EPS), its Price-to-Earnings (P/E) ratio becomes negative, which makes it useless for comparison against profitable peers. Analysts forecast Xometry will post a negative EPS of approximately -$0.66 for the current fiscal year.

Here's the quick math on the key valuation ratios as of November 2025:

• Price-to-Earnings (P/E): The trailing twelve months (TTM) P/E ratio is a negative -46.7. This is a flashing sign that the company is still in its heavy investment phase, prioritizing market share and scale over near-term profits.
• Price-to-Book (P/B): The P/B ratio is high at approximately 10.50. This tells you the market values the company at over ten times its net asset value (book value), which is typical for a tech-enabled platform with significant intangible assets like its marketplace and proprietary technology.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is also negative, sitting at about -100.56. While the company has shown positive Adjusted EBITDA-like the $3.9 million reported for Q2 2025-the GAAP EBITDA is still negative, pushing this metric into territory that signals high operational losses relative to its enterprise value.

The market is clearly pricing in future growth, but you need to see a path to sustained profitability to justify these multiples. Here is a snapshot of the core valuation metrics:

Looking at the stock's performance, Xometry, Inc. has been on a tear, with the stock price increasing by about 89.63% over the last 12 months. The 52-week range is stark, moving from a low of $18.59 in April 2025 to a high of $69.26 in November 2025. The latest closing price is around $55.39. That kind of volatility is a clear risk, but it also reflects the massive potential investors see in the digital manufacturing marketplace.

The analyst consensus is mixed, but generally optimistic. While some firms rate it a 'Hold,' the prevailing sentiment leans toward a 'Moderate Buy'. The average 12-month price target is in the range of $57.89 to $61.14, with the most bullish targets reaching $75.00. This suggests the stock, trading near the lower end of the average target, has limited near-term upside based on current consensus, but the high target shows what a successful execution of their growth strategy could unlock.

Finally, Xometry, Inc. is a growth company, so don't expect income. The dividend yield is 0.00%, and there is no payout ratio to track, as the company is reinvesting all capital back into the business. If you want to dive deeper into who is betting on this growth, you should check out Exploring Xometry, Inc. (XMTR) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Xometry, Inc. (XMTR) because its AI-powered marketplace is a compelling growth story, but every high-growth model carries significant risks. The direct takeaway is that while the marketplace is expanding rapidly, the company's inability to achieve consistent GAAP profitability-a net loss of $11.6 million in Q3 2025-remains the primary financial risk for shareholders. We need to map the internal and external pressures to understand the path to sustainable value.

Here's the quick math: Xometry is guiding for full-year 2025 revenue between $676 million and $678 million, a strong top-line number, but the persistent net losses and high operating expenses are creating margin pressure. This is a classic growth-vs-profitability trade-off. They are spending heavily to capture market share in a fragmented custom manufacturing industry, but if revenue growth slows, the high cost structure becomes a serious problem. The company's cash position of $225 million as of September 30, 2025, provides a buffer, but it's not infinite.

The operational and external risks are just as critical. The custom manufacturing space is intensely competitive, and Xometry faces pressure from both established players and new digital entrants. Plus, the overall macroeconomic climate is a real headwind. A contracting manufacturing environment means buyers may pull back on custom orders, which directly impacts Xometry's transaction volume.

• Financial Risk: Persistent GAAP net losses, like the $11.6 million loss in Q3 2025, despite positive Adjusted EBITDA of $6.1 million.
• Operational Risk: The Supplier Services segment is struggling; its revenue declined by 4% year-over-year in Q3 2025 to $14.1 million.
• External Risk: Increased competitive pressures and macroeconomic uncertainty that could slow enterprise spending.

To be fair, Xometry has clear mitigation strategies. They are doubling down on what they call their AI-powered technology enhancements, like the new Workcenter mobile app, to drive efficiency and improve their marketplace gross margin, which hit a record 35.7% in Q3 2025. Management expects to deliver 20% annual incremental Adjusted EBITDA margins as they scale toward a future $1 billion revenue target. This focus on margin expansion through technology is the defintely the right play. If these investments don't pay off in greater operating leverage, the net loss problem will only get worse.

For a deeper dive into the company's financial metrics, you can read our full analysis here: Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at Xometry, Inc. (XMTR) and wondering if the recent growth is a flash in the pan or a sustainable trend. The direct takeaway is that their growth is defintely structural, driven by a maturing, AI-powered marketplace that is now delivering on profitability, not just scale. Management has raised the full-year 2025 revenue and earnings guidance because their core strategy is working, even in a challenging manufacturing environment.

Here's the quick math: Xometry, Inc. has raised its full-year 2025 revenue outlook to a range of $676 million to $678 million, which is a significant vote of confidence. More importantly, they've guided for full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be positive, in the range of $16 million to $17 million, a massive turnaround from prior losses. This isn't just about revenue; it's about profitable revenue growth.

The marketplace, which is the engine of the business, is projected to grow by 27% to 28% for the full year 2025. This acceleration is fueled by a few clear drivers:

• AI-Powered Product Innovation: The company continues to invest in its proprietary algorithms, which drive smarter quoting, dynamic pricing, and better matching between buyers and suppliers. They've even introduced a new AI feature to instantly quote technical drawings, cutting down the time it takes to start a job.
• Enterprise Engagement: They are successfully driving deeper engagement with large corporate customers. The number of accounts spending at least $50,000 annually on the marketplace grew 14% year-over-year to 1,724 as of September 30, 2025. Tools like Teamspace, a cloud-based collaboration solution, and new ERP integrations are making Xometry, Inc. a strategic sourcing partner, not just a vendor.
• International Expansion: The international segment is expanding rapidly, growing 31% in a recent quarter and aiming to eventually generate 30% to 40% of total revenue from outside the U.S. This global footprint provides supply chain resiliency for buyers who are shifting toward domestic and alternative sourcing geographies.

The real competitive advantage for Xometry, Inc. isn't just the size of its network, but the intelligence of its platform. Their AI-driven marketplace provides instant pricing and lead times, simplifying a traditionally complex, offline process. Plus, the company has achieved Cybersecurity Maturity Model Certification (CMMC Level 2), which is crucial for positioning them as a trusted partner in the high-value aerospace and defense industries. This focus on technology and security is what separates them from traditional manufacturing brokers.

What this estimate hides, though, is the continued drag from the Supplier Services segment, which is expected to be down approximately 5% year-over-year for FY 2025, largely due to the transition of the Thomas Ad serving platform. Still, the core marketplace's margin expansion-with marketplace gross margin hitting a record 35.7% in Q3 2025-more than offsets this. The company is clearly prioritizing profitable marketplace scale.

For a deeper dive into the valuation and risk profile, check out the full post: Breaking Down Xometry, Inc. (XMTR) Financial Health: Key Insights for Investors.

Here's a snapshot of the forward-looking financial picture:

Your next step should be to monitor the Q4 2025 results for confirmation on the Adjusted EBITDA guidance, as hitting that positive range is a critical inflection point. Finance: track Q4 operating expense leverage against the $6 million to $7 million Adjusted EBITDA target.