Xometry, Inc. (XMTR) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Xometry, Inc. operates as an AI-native global online manufacturing marketplace, connecting buyers with suppliers for custom manufacturing services (CNC, 3D printing, etc.) and offering digital marketing and financial services. The company is organized into two reportable segments: U.S. and International.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Revenue | $229.3 million | $162.5 million | $434.4 million | $313.5 million |
| Gross Profit | $87.2 million | $65.2 million | $165.6 million | $121.5 million |
| Gross Margin | 38.0% | 40.1% | 38.1% | 38.8% |
| Net Loss (GAAP) | $(5.3) million | $(26.4) million | $(10.6) million | $(41.5) million |
| Adjusted EBITDA | $14.1 million | $3.9 million | $24.6 million | $4.0 million |
| Non-GAAP Net Income | $9.9 million | $1.1 million | $16.8 million | $(1.4) million |
| Cash & Marketable Securities | $516.7 million (as of June 30, 2026) | |||
| Convertible Notes Outstanding | $335.8 million principal ($328.7 million carrying value) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 41% year-over-year (Q2) and 39% year-over-year (YTD), driven primarily by a 45% increase in Marketplace revenue due to higher buyer activity, particularly among enterprise customers.
- Profitability Improvement: GAAP Net Loss narrowed significantly from $26.4 million in Q2 2025 to $5.3 million in Q2 2026. This improvement was largely due to the absence of a $16.4 million loss on debt extinguishment recorded in Q2 2025.
- Operating Expenses: Total operating expenses increased 23% in Q2 2026 compared to Q2 2025, primarily due to higher stock-based compensation, charitable contributions of common stock, and increased headcount. However, operating expenses as a percentage of revenue decreased from 46.4% to 40.4%.
- Capital Structure: In June 2026, the company completed a common stock issuance raising approximately $247.6 million in net proceeds. Additionally, Siemens purchased $50 million of Class A common stock in May 2026.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue investing in sales and marketing to drive growth. The company anticipates operating expenses to increase in absolute dollars but decrease as a percentage of revenue over time.
- Convertible Notes Triggers: During Q2 2026, the "Sale Price Trigger" was met for both the 2027 and 2030 Convertible Notes. Holders may convert these notes at any time during the three months ending September 30, 2026.
- Recent Acquisition: On July 1, 2026 (subsequent event), Xometry acquired GoBRANDgo, LLC for approximately $4.6 million in cash plus up to $2.5 million in contingent stock to enhance AI marketing capabilities.
- Risks: Key risks include macroeconomic uncertainty, foreign exchange rate volatility (International revenue is ~16% of total), and the potential dilution from the conversion of outstanding convertible notes.
Investor Verification Checklist
- Debt Conversion Risk: Verify the current share price relative to the conversion prices of the 2027 ($56.11) and 2030 ($47.06) notes to assess immediate dilution risk, as conversion triggers are currently active.
- Non-GAAP Adjustments: Review the reconciliation of GAAP Net Loss to Non-GAAP Net Income, specifically the exclusion of depreciation expense starting in 2026 and the impact of stock-based compensation ($19.7 million YTD).
- Accounts Receivable: Monitor the $33.3 million increase in accounts receivable YTD 2026, which contributed to a cash outflow in operating activities despite revenue growth.
- Segment Performance: Note that while the U.S. segment generated positive Adjusted EBITDA ($17.5 million Q2), the International segment remained negative ($-3.3 million Q2).