Xometry (XMTR)·Q4 2025 Earnings Summary
Xometry Smashes Q4 and Announces CEO Transition — Stock Jumps 8%
February 24, 2026 · by Fintool AI Agent
Xometry delivered a blowout Q4 2025, posting record revenue of $192M (+30% YoY) and crushing consensus estimates by nearly 5%. The AI-powered manufacturing marketplace extended its streak of accelerating growth, with marketplace revenue surging 33% year-over-year. Adjusted EBITDA of $8.4M marked a $7.3M improvement from Q4 2024, demonstrating the company's path to profitability at scale.
Alongside the record results, Xometry announced a planned leadership transition: Founder and CEO Randy Altschuler will become Executive Chair on July 1, 2026, with President Sanjiv Singh Sahni stepping into the CEO role.
The stock responded decisively — XMTR jumped 7.6% after hours to $60.97, adding to a year that's seen shares more than triple from 52-week lows.
CEO Transition: What's Changing?
The leadership transition is the result of a "deliberate, long-term succession process" with Xometry's board, according to Altschuler. Key details:
Why now? Altschuler framed the timing as deliberate, citing the company's record 2025 results and "increasingly profitable trajectory" as the ideal window for transition. He emphasized he's "not going anywhere" — remaining the largest individual long-term shareholder and focusing on strategic growth initiatives and corporate partnerships.
Who is Sanjiv Singh Sahni? Sahni joined Xometry in January 2024 as President and has led global operations. His background includes driving growth and scale at large global marketplaces. Management credited his focus on product-led growth as a key driver of the accelerated revenue and profitability in 2025.
Did Xometry Beat Earnings?
Yes — handily. Xometry beat on both revenue and profitability:
This marks the 8th consecutive quarter of revenue beats for Xometry. The outperformance was driven by:
- Marketplace momentum: 33% YoY growth, accelerating from 31% in Q3
- Enterprise penetration: Accounts with >$500K LTM spend grew revenue 40%+ YoY; 4 accounts now exceed $10M in annual spend
- International expansion: Continuing strong growth, with long-term target of 30-40% of marketplace revenue
- AI pricing improvements: Marketplace gross margin expanded 80bps to 35.3%, up from 25% four years ago
Ask Fintool AI AgentWhat Did Management Guide?
Management raised FY2026 guidance meaningfully, signaling confidence in sustained momentum:
Q1 2026 Guidance:
- Revenue: $187-$189M (24-25% growth YoY)
- Marketplace growth: 27-28% YoY
- Adj. EBITDA: $6.5-$7.5M (vs ~breakeven in Q1 2025)
FY 2026 Guidance:
- Revenue growth: At least 21% (implies ~$832M+)
- Marketplace growth: At least 23%
- Incremental Adj. EBITDA margins: At least 20%
The guidance implies Xometry is on track to hit $1B in revenue by FY2027, a milestone management has been targeting. CFO James Miln noted the company expects to reach sustainable free cash flow positive at the $225M quarterly revenue run rate.
What Changed From Last Quarter?
Several key metrics accelerated or improved sequentially:
The standout was operating leverage. Non-GAAP operating expenses grew at half the rate of revenue growth (15% vs 30% YoY). Sales and marketing declined 20bps to 15.6% of revenue, while operations and support dropped 80bps to 8.1%.
Key Growth Initiatives in Q4
Management highlighted several strategic wins:
Product Innovation:
- Launched Workcenter mobile app — improves supplier job acceptance, management, and cash flow visibility
- Rolled out auto-quoting for injection molding in U.S. and Europe — one of largest custom manufacturing categories
- Enhanced AI-powered DFM now interprets technical drawings, improving proprietary dataset
- Launched Parts Library in EU — consolidates upload history for quick reorders
Enterprise Traction:
- 140+ accounts with LTM spend >$500K, growing revenue 40%+ YoY
- 4 accounts now exceed $10M spend — driven by multi-year production programs
- Management noted these large accounts are increasingly embedded in BOMs for production work
- Teamspace now has 11,000+ teams created globally since launch
Thomas Platform Modernization:
- Launched new dynamic ad-serving model and Thomas Smart Search
- Platform connects industrial buyers with 500,000+ listed North American suppliers
- 2026 focus: AI-enabled natural language search for buyer requirements
Ask Fintool AI AgentProfitability Path: From Losses to Leverage
Xometry's journey to profitability has been remarkable. The company went from $(27.5M) Adj. EBITDA in FY2023 to $18.5M positive in FY2025 — a $46M swing in just two years.
The ~$600M revenue run rate proved to be the inflection point for positive Adj. EBITDA. Management is targeting 20%+ incremental EBITDA margins as the company scales to $1B — a framework they've delivered on (FY25 came in at exactly ~20% incremental margins).
Q&A Highlights: What Analysts Asked
Several themes dominated the analyst Q&A:
On the CEO Transition:
"While this is news today, this transition is the result of a deliberate succession process... The timing reflects the strength of our position." — Randy Altschuler
On Macro/Tariffs — No Pull-Forward:
"I don't think our results are the beneficiary of any sort of pull-forward or anything tariff related... We really haven't seen any change from a macro perspective." — Randy Altschuler
On Large Enterprise Accounts ($10M+): Management explained these accounts are "more heavily weighted towards production" and increasingly embedded in customer BOMs, creating significant stickiness. The key to growth has been technology integrations — ERP PunchOuts, Teamspace, and workflow embeddings.
On International Path to Profitability: CFO Miln noted international unit economics (gross margin structure) are "very similar" to the U.S. Long-term, international could grow to 30-40% of the business with similar economics. The U.S. segment already reached nearly 7% Adj. EBITDA margin.
On Guidance Conservatism: When asked about deceleration implied in 2026 guidance despite Q4's acceleration, management acknowledged being "mindful of the macro" but emphasized Q1 started "very strong" and they raised both Q1 and full-year guidance.
Ask Fintool AI AgentHow Did the Stock React?
XMTR surged 7.6% after hours to $60.97 following the release:
The stock has been on a tear — up more than 3x from its 52-week low of $18.59 as investors increasingly price in Xometry's marketplace model and path to profitability.
Key KPIs to Watch
Management tracks several proprietary metrics that drive the business:
The combination of 20%+ buyer growth and improving revenue per buyer (through enterprise penetration) is the core engine driving Xometry's momentum.
Forward Catalysts
Looking ahead, several developments could move the stock:
Near-term (1-2 quarters):
- Q1 2026 results (expected late April/early May)
- CEO transition on July 1 — Sanjiv Singh Sahni takes over
- Thomas advertising platform stabilization and monetization improvements
- Further injection molding auto-quoting expansion
Medium-term (2-4 quarters):
- Path to $1B revenue run rate (potentially by Q4 2026)
- Sustainable free cash flow positive at $225M quarterly run rate
- International revenue reaching 25%+ of marketplace
- Further marketplace gross margin expansion toward 40%
Secular tailwinds:
- Reshoring/nearshoring driving supply chain diversification
- Tariff uncertainty benefiting flexible sourcing platforms
- Manufacturing digitization still early innings — Xometry sees "pivotal time in manufacturing"
Ask Fintool AI AgentThe Bottom Line
Xometry delivered a clean beat-and-raise quarter that validated its marketplace model — and used the moment of strength to announce a planned CEO transition. With 30% revenue growth accelerating, positive (and expanding) EBITDA, and a clear path to $1B in revenue, the company is executing well against its stated targets.
The 7.6% after-hours pop suggests investors are rewarding the consistency and appear comfortable with the leadership transition. After 8 straight revenue beats and a swing from losses to profitability, Xometry has earned benefit of the doubt heading into 2026.
Key questions for next quarter: Can Sanjiv Singh Sahni maintain the momentum as he prepares to take the CEO role? Will Thomas advertising stabilize? And can the company reach sustainable free cash flow positive as it approaches the $225M quarterly run rate?
Data sourced from Xometry Q4 2025 earnings presentation and S&P Global. Values marked with asterisk () retrieved from S&P Global.*
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