Xometry, Inc. (XMTR) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended March 31, 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 | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $205.1 million | $151.0 million |
| Gross Profit | $78.5 million | $56.3 million |
| Gross Margin | 38.3% | 37.3% |
| Net Loss (GAAP) | $(5.3) million | $(15.1) million |
| Adjusted EBITDA | $10.5 million | $0.1 million |
| Operating Cash Flow | $14.6 million | $(3.7) million |
| Cash & Marketable Securities | $224.0 million | $226.3 million (Dec 31, 2025) |
| Total Debt (Convertible Notes) | $335.8 million (Principal) | $335.8 million (Principal) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 36% year-over-year, driven primarily by a 40% increase in Marketplace revenue ($191.3M vs. $136.4M). Services revenue declined slightly by 5%.
- Profitability Improvement: The company significantly reduced its GAAP net loss from $15.1M to $5.3M. Adjusted EBITDA turned positive, rising from $0.1M to $10.5M, reflecting improved operating leverage.
- Margin Expansion: Gross margin improved to 38.3% from 37.3%, with Marketplace gross margin expanding to 34.7% from 31.8% due to AI-driven pricing optimization.
- Debt Restructuring: In Q1 2026, the company used proceeds from 2030 Notes to repurchase approximately $201.7M of its 2027 Notes, resulting in a $16.4M loss on debt extinguishment recorded in "Other expenses."
- Operational Efficiency: Operating expenses as a percentage of revenue decreased across all categories (Sales & Marketing, Operations, Product Development, G&A) despite absolute dollar increases.
Outlook, Risks, and Unusual Items
- Strategic Partnership: On May 6, 2026 (subsequent event), Xometry entered a Collaboration Agreement with Siemens, agreeing to sell approximately 1.05 million shares for $50 million in a private placement.
- Key Metrics: Active Buyers grew 20% to 85,581. Accounts with Last Twelve-Month (LTM) spend of at least $50,000 grew 21% to 1,864. 98% of revenue came from existing accounts.
- Risks: Management cites macroeconomic uncertainty, inflation, interest rates, and geopolitical tensions as potential headwinds. Foreign exchange fluctuations impacted international revenue (11% fluctuation in average rates).
- Unusual Items: The $16.4M loss on debt extinguishment and $1.5M in restructuring charges (in Q1 2025, compared to $0.02M in Q1 2026) are significant non-recurring items affecting GAAP results.
Investor Verification Checklist
- Verify the sustainability of the 34.7% Marketplace gross margin expansion and the impact of AI pricing algorithms on supplier costs.
- Confirm the closing of the $50 million Siemens equity investment and its impact on future capitalization.
- Monitor the remaining $85.8M principal of 2027 Convertible Notes maturing in February 2027 and the company's liquidity position relative to this obligation.
- Assess the trajectory of International segment Adjusted EBITDA, which remains negative at $(2.8)M, compared to the profitable U.S. segment ($13.3M).
- Review the $22.7M increase in Accounts Receivable to ensure collection cycles remain stable despite revenue growth.