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DATE

Feb. 24, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Randy Altschuler
  • President — Sanjeev Sahni
  • Chief Financial Officer — James Miln
  • VP, Investor Relations — Shawn Milne

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TAKEAWAYS

  • Revenue -- $192 million for the quarter, up 30% year over year, and represented a 200 basis point sequential acceleration from Q3.
  • Marketplace Revenue -- $178 million, increasing 33% year over year, primarily attributed to expansion among buyers and suppliers and large account growth.
  • Supplier Services Revenue -- $13.9 million in Q4, comprising the remainder of total revenue.
  • Gross Profit -- $75.2 million, up 27% year over year, with gross margin of 39.1%.
  • Marketplace Gross Margin -- 35.3% in Q4, expanding 80 basis points year over year.
  • Adjusted EBITDA -- $8.4 million for the quarter, a $7.3 million year-over-year increase.
  • Full-Year Adjusted EBITDA -- $18.5 million in 2025, compared to a loss of $9.7 million in 2024, with 20% incremental adjusted EBITDA margin achieved.
  • U.S. Segment Adjusted EBITDA -- $10.8 million in Q4, or a 6.8% margin, representing a $6.8 million year-over-year improvement.
  • International Segment Adjusted EBITDA -- $2.4 million loss in Q4, a $0.5 million improvement from 2024's $3.0 million loss.
  • Active Buyers -- 81,821 as of quarter-end, increasing 20% year over year, with 3,539 net additions in Q4.
  • Marketplace Revenue per Active Buyer -- Grew 11% year over year, driven by stronger enterprise growth.
  • Enterprise Accounts -- 140+ accounts with at least $500,000 last twelve months' spend, up over 40% year over year, and 1,760 accounts with $50,000+ spend, rising 18%.
  • Large Accounts ($10 million+ annual spend) -- Four customer accounts reached this threshold by year-end, attributed to multiyear production programs and increased workflow integration.
  • Marketplace Gross Margin Trend -- Expanded from 25% four years ago to approximately 35% in 2025, reflecting ongoing algorithm improvements and data network effects.
  • Operating Cash Flow -- $6.1 million positive in 2025, reflecting working capital efficiency.
  • Capital Expenditures -- $10.3 million in Q4, almost entirely allocated to software investments.
  • Cash and Equivalents and Marketable Securities -- $219 million as of quarter-end.
  • Q1 2026 Guidance -- Revenue expected between $187 million and $189 million (24%-25% year-over-year growth), with marketplace growth forecast at 27%-28%.
  • Q1 2026 Adjusted EBITDA Guidance -- Expected between $6.5 million and $7.5 million, compared to roughly breakeven in 2025.
  • Full Year 2026 Guidance -- Anticipates at least 21% revenue growth and incremental adjusted EBITDA margins of at least 20%.
  • Marketplace Offerings Expansion -- AI-powered design for manufacturing, auto-quotes for injection molding in the U.S. and Europe, and new high-performance additive manufacturing materials launched.
  • Supplier Network -- Approximately 5,000 active suppliers globally, with expansion focused on scaling capabilities, certifications, and geographic coverage.
  • TeamSpace Feature -- Over 11,000 teams created globally since launch, enhancing enterprise and team-based workflow adoption.
  • Thomas Platform -- Over 500,000 listed North American suppliers, with a new dynamic ad-serving model and Smart Search launched in Q4.
  • WorkCenter Platform -- Proprietary quote-to-cash solution with new mobile app launched in 2025 to drive supplier engagement and real-time data flows.
  • Leadership Transition -- Effective July 1, 2026, Sanjeev Sahni will become CEO, and Randy Altschuler will move to Executive Chair while remaining involved in strategic initiatives.

SUMMARY

The earnings call highlighted Xometry (XMTR 1.12%)'s acceleration in both revenue and profitability, underscored by increasing adoption among enterprise accounts and steady operating leverage improvements. Management explicitly reported ongoing investments in automation, AI, and product features designed to further expand wallet share among high-spend customers and deepen supplier engagement within the network. The company announced a planned, deliberate CEO transition, aligning executive responsibilities with continued product-led growth and a focus on network effects. Forward-looking statements framed confidence in achieving sustained 20%+ annual incremental adjusted EBITDA margins and higher gross margins, while guidance for 2026 called for growth in both revenue and profitability amid a large addressable market. Xometry underscored the resilience and scalability of its platform for both buyers and suppliers, with cash on hand providing flexibility to drive future initiatives.

  • Leadership stated that new AI-powered platform enhancements and expanded marketplace offerings will be central to driving further penetration among large enterprise buyers.
  • Management disclosed that services revenue is expected to remain flat in 2026, with only modest recovery anticipated in the second half of the year.
  • The CFO guided to international segment profit improvements in 2026, attributing progress to similar unit economics as the U.S. operations and strategic balancing of growth and profitability objectives.
  • Direct supplier engagement through the WorkCenter mobile app is creating network lock-in by improving quoting, workflow management, and cash flow processes for suppliers.
  • CEO transition was framed as a product of record results and stable momentum, with the outgoing CEO remaining active in strategic partnership development and cross-industry initiatives.

INDUSTRY GLOSSARY

  • DFM (Design for Manufacturing): Automated analysis process using AI/machine learning to detect and correct manufacturability issues before production, integrated directly into quoting and supplier workflows.
  • ERP (Enterprise Resource Planning): Business process management software suite integrating procurement, production, and supplier chain workflows—Xometry embeds its procurement solutions in customer ERPs to drive enterprise account stickiness.
  • TeamSpace: Xometry's collaborative team feature enabling multiple users within an enterprise to manage, share, and reorder parts and projects, fostering larger, more integrated customer relationships.
  • WorkCenter: Xometry's proprietary digital platform giving suppliers a unified interface for quoting, job management, workflow tracking, and cash flow—now with a dedicated mobile app.
  • Thomas Platform: Xometry's digital marketplace connecting industrial buyers to a broad network of North American suppliers, featuring search, advertising, and supplier discovery functions.
  • BOM (Bill of Materials): A comprehensive list of materials, components, and instructions required for a specific production job, with Xometry's integration strengthening recurring enterprise relationships.

Full Conference Call Transcript

Shawn Milne: Q4 and full year 2025 earnings call. Joining me are Randy Altschuler, our Chief Executive Officer; Sanjeev Sahni, our President; and James Miln, our Chief Financial Officer. During today's call, we will review our financial results for the fourth quarter and full year 2025 and discuss our guidance for the first quarter and full year 2026. During today's call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, strategy, long-term growth, and overall future prospects. Such statements may be identified by terms such as “believe,” “expect,” “intend,” and “may.” These statements are subject to risks and uncertainties which could cause them to differ materially from actual results.

Information concerning those risks is available in our earnings press release distributed before the market opened today, and in our filings with the U.S. Securities and Exchange Commission, including our Form 10-K for the year ended 12/31/2025. We caution you not to place undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. We would also like to point out that on today's call, we will report GAAP and non-GAAP results. We use these non-GAAP financial measures internally for financial and operating decision-making purposes and as a means to evaluate period-to-period comparisons.

Non-GAAP financial measures are presented in addition to and not as a substitute or superior to measures of financial performance prepared in accordance with U.S. GAAP. To see the reconciliation of these non-GAAP measures please refer to our earnings press release distributed today and to our investor presentation, both of which are available on the Investors section of our website at investors.xometry.com. A replay of today's call will also be posted on our website. With that, I would like to turn the call over to Randy.

Randy Altschuler: Thanks, Shawn.

Randy Altschuler: Our record Q4 quarter and record full year 2025 powerfully demonstrate the success of our AI-native marketplace in the massive, complex, and highly fragmented custom manufacturing market. Our revenue growth and profitability accelerated as 2025 progressed, and we are encouraged by our strong start to 2026. Alongside reporting record financial results, today, we announced the planned transition in Xometry, Inc.'s leadership. Effective 07/01/2026, I will transition to become the Executive Chair of the Board and Sanjeev Sahni, Xometry, Inc.'s current President, will become Chief Executive Officer. This transition is the result of a deliberate long-term succession process with our Board, and we are aligned in our conviction that Sanjeev is the right leader for our next chapter.

Together with Laurence Zuriff, I cofounded Xometry, Inc. in 2013 with a mission to make the world's manufacturing capacity accessible to all by digitizing the vast, highly fragmented custom manufacturing market. We stayed true to that vision from the start, and that consistency is now delivering scale and accelerating growth and profitability. I am proud that in 2025, our marketplace served over 80,000 active buyers around the world. The record performance we are reporting today and the momentum that built throughout 2025 and is carrying into 2026 reflects the investments and changes we have been making in our product, technology, go-to-market strategies, and leadership.

As we continue to lean into product-led growth, I have decided that this is the right time to hand over the leadership of Xometry, Inc. to Sanjeev. Sanjeev has been my close partner since he joined in January and has held the operational mandate for our global teams. During his tenure, Sanjeev has been instrumental to Xometry, Inc.'s accelerated revenue growth and expanded profitability while further deepening our suite of advanced technology and AI capabilities across the business. Sanjeev's track record at Xometry, Inc., and his background of driving global growth, innovation, and scale with large global marketplaces, makes him the right leader to drive our next stage of innovation and profitable growth.

Sanjeev has done a terrific job as our President, and I expect that he will continue to outperform as our CEO. In my new role as Executive Chair, as the largest individual long-term shareholder, I will remain closely involved in the company's future focusing on strategic growth initiatives and key corporate partnerships. In short, I am not going anywhere. While this transition will be a milestone for Xometry, Inc., as always, our focus remains on executing the significant opportunity in front of us. It is a pivotal time in manufacturing, driven by accelerating digital transformation, increasing customer demands for speed and transparency, rapid AI-driven innovation, and the crucial need for resilient supply chains including the push towards reshoring.

This new era necessitates resilient digital workflows and robust supplier networks. Xometry, Inc.'s AI-native marketplace is digitizing how custom manufacturing is priced, sourced, and fulfilled by replacing manual legacy processes. Our networks of buyers and suppliers, alongside the proprietary data they generate in their interactions in our marketplace, continue to grow and create increasing network effects. Over the last year, we have accelerated our product development to meet these increasing expectations and requirements of custom manufacturing buyers. We have enhanced flexibility in manufacturing selection by expanding the portfolio of high-performance manufacturing materials and certifications.

For rapidly innovating sectors across all end markets, Xometry, Inc. provides a secure, certified platform that facilitates AI-enabled sourcing, with improved visibility into qualified domestic suppliers, to meet the growing need for speed, scale, and compliance. As I said earlier, Q4 was a record quarter for Xometry, Inc. across many fronts, including revenue, gross profit, and adjusted EBITDA. Q4 revenue growth accelerated, increasing 30% year over year, driven by 33% marketplace growth through our expanding networks of buyers and suppliers, and deepening enterprise engagement. Q4 marketplace gross margin expanded 80 basis points year over year to 35.3%. The expansion of our marketplace gross margin underscores the significant economic value generated by our AI-native marketplace.

Our competitive moat continues to increase as we grow our networks of buyers and suppliers and gain more data to continuously train our algorithms. This continuous improvement has driven substantial and steady growth in our marketplace gross margins, moving from 25% four years ago to approximately 35% in 2025. Enterprise growth remained robust in Q4, finishing off a strong 2025 as revenue from marketplace accounts with last twelve months’ spend of at least $500,000 increased by over 40% year over year. We are focused on driving further penetration in our largest accounts, each with an estimated potential spend of at least $10,000,000 annually.

In 2025, we ended with four accounts with at least $10,000,000 of spend driven by strong execution from sales, in our technology solutions, and an acceleration in large multiyear production programs across key end markets. Our strong Q4 financial results capped a transformative year for Xometry, Inc., as we delivered accelerating revenue growth and four consecutive quarters of positive and increasing EBITDA margins. At the same time, we invested in and strengthened our platforms to deliver robust secular growth and expanding profitability in the coming years. We are off to a strong start in Q1 and expect robust growth to continue in 2026, which James will discuss later in the call.

I will now turn it over to our President, Sanjeev Sahni, to discuss some of the initiatives that are driving our strong growth and increasing profitability. Thanks, Randy, and good morning. I am honored and excited to step into the CEO role at Xometry, Inc. on July 1.

Sanjeev Sahni: Under Randy's leadership, Xometry, Inc. has been defined by a singular, unwavering mission to make the world's manufacturing capacity accessible to all. I look forward to working closely with Randy and our talented global team to accelerate our product-led growth and further cement Xometry, Inc. as the essential marketplace for the custom manufacturing industry. Reflecting on the past year, I continue to be impressed by our large market opportunity and long runway of growth ahead. As we increasingly become a product-led company, we are focused on key growth initiatives including expanding our marketplace offerings, driving structural growth for enterprise accounts, and building out our global supplier network. Let me start by talking about expanding marketplace offerings.

In 2025, Xometry, Inc. accelerated the pace of innovation, enabling better pricing, speed, and selection for our buyers, and finding the optimal match for suppliers in our network. Xometry, Inc. launched auto-quotes for injection molding services in the U.S. and Europe, providing customers immediate access to pricing and lead time estimates for one of the most critical production processes and one of the largest categories in custom manufacturing. We expanded our marketplace capabilities, including AI-powered design for manufacturing, or DFM, which utilizes machine learning and automated algorithms to identify and correct production issues early in the design phase. We recently added the ability to interpret technical drawings within our AI DFM, further enhancing our proprietary dataset.

In Q4, we added a portfolio of high-performance materials for additive manufacturing technologies to the U.S. marketplace. These materials are critical for advanced applications in aerospace, defense, and medical device industries. Additionally, we introduced a preferred subprocess feature for CNC machining. Also in 2025, we launched our highly successful TeamSpace feature in the EU. TeamSpace continues to scale with over 11,000 teams created globally since launch. Additionally, Xometry, Inc. EU launched its parts library, simplifying how customers manage and reuse part data across projects. The EU parts library consolidates the client's entire uploaded part history into a single, filterable interface, enabling users to quickly reorder previously quoted or produced parts. In 2026, our focus remains on key marketplace expansion efforts.

These include: first, increasing our marketplace offerings. In injection molding, we will expand our capabilities, further enhancing the buyer experience and growing the associated supplier network. Also, we will continue to add material and finish offerings, enabling us to service more complex and production-scale programs. Second, continuing to advance our pricing intelligence, including more personalized pricing based on customer context and order characteristics. Third, further raising the bar to deliver a world-class e-commerce experience through deeper integration of automated DFM analysis and AI-assisted customer and supply workflows. One of the key drivers of accelerating growth of our marketplace has been our ability to drive structural enterprise growth.

As Randy mentioned, we delivered strong enterprise growth in 2025, with 40%+ revenue growth from our larger customers. Xometry, Inc. is becoming more embedded within the enterprise customer workflows, which in turn drives larger and more predictable spend. In 2025, we ended with four accounts with at least $10,000,000 spend driven by strong execution from sales and the efficacy of our technology solutions. We expect more accounts to join the $10,000,000+ threshold in 2026, driven in part by many multiyear production programs across key end markets. In 2026, we are focusing on driving further structural enterprise adoption through deeply embedded sales and marketing motions and increasing use of technology solutions, including TeamSpace and ERP procurement integrations.

Now let me talk about our Thomas industrial sourcing platform. We made significant progress in 2025 modernizing our commerce platform so we can return to growth. Thomas is a leading digital platform connecting industrial buyers with over 500,000 listed North American suppliers. Thomas supports manufacturers, distributors, and service providers with tools and resources to drive business growth. We launched a new dynamic ad-serving model in Q4 and Thomas’ Smart Search, setting the stage for a completely new experience on the Thomas platform. We are pleased with the early results. For 2026, Thomas is focused on improving how buyers and suppliers interact across the Thomas network by allowing buyers to describe requirements more naturally and quickly to find local suppliers.

We will improve search results relevance and help our advertisers better access the extensive demand on Thomas. To continue to grow Thomas awareness, we are strengthening the Thomas brand with a new marketing campaign. Finally, we are focused on expanding our global supplier network and improving the supplier experience. Our global supplier network of approximately 5,000 active suppliers is a significant strategic advantage, giving buyers unmatched speed, capacity, and resilience, allowing for immediate scaling, and offering sourcing flexibility across 50 countries on four continents. In the U.S., we expanded our supplier base with a focus on larger suppliers with key quality certifications to ensure the needs of our enterprise customers.

Globally, we expanded our sourcing network to include more suppliers in Europe, India, China, and Turkey. In 2025, we launched a new WorkCenter mobile app to improve supplier experience and engagement. The WorkCenter platform is Xometry, Inc.'s proprietary all-in-one quote-to-cash solution enabling its partners to source and consolidate work, manage operations, monitor performance, and secure cash flow. By providing easier access to the job board and job management, we expect to drive increasing supplier engagement. In 2026, we will continue to strengthen marketplace density by enhancing supplier matching precision and expanding network depth across geographies and capabilities, especially in India. We will further increase the choice of processes and lead time from suppliers across the world.

In 2026, we have an exciting roadmap of updates and new features for our WorkCenter mobile app, including improving usability by enhancing how users review jobs and designs. There is much more to come in the following months, as we focus on further improving buyer and supplier experiences and expanding our platforms.

Sanjeev Sahni: Our momentum remains strong in Q1. We expect robust profitable growth to continue in 2026 given strong demand on our marketplace and our product roadmap. I will now turn the call over to James for a more detailed review of Q4 and our business outlook. Thanks, Sanjeev. And good morning, everyone. Having worked closely with Randy over the past two years, I have seen firsthand how his, and Laurence’s, vision have translated into the rapidly growing profitable business we are reporting today.

James Miln: I would like to thank Randy for leading the company to where we are today and setting Xometry, Inc. up for our next chapter. Looking ahead, I speak for the entire executive team when I say we welcome the opportunity to work alongside Sanjeev to accelerate our momentum. He has been a disciplined partner in driving our 2025 performance and we are excited to continue to scale the business toward our long-term targets under Sanjeev's leadership. Turning now to our financial results, marked by accelerating revenue growth and a significant increase in marketplace gross profit, Xometry, Inc. had an excellent Q4.

This performance highlights the real-time responsiveness of our marketplace to customer demand and solidifies Xometry, Inc.'s position as the digital rails for the largely offline and fragmented custom manufacturing industry. As we progress toward $1,000,000,000 in revenue, we anticipate continuous improvements in profitability alongside ongoing investment in our growth initiatives. 2025 was a standout year for Xometry, Inc. as we accelerated annual revenue growth 800 basis points to 26%, further expanded marketplace gross margin by 120 basis points, and delivered full-year profitability with $18,500,000 adjusted EBITDA compared to a loss of $9,700,000 in 2024. At the same time, investments in our platforms have positioned us for robust secular growth and increased profitability in the coming years.

Revenue grew 30% year over year in Q4 to more than $192,000,000, a 200 basis point sequential acceleration from Q3. Q4 marketplace revenue was $178,000,000, and supplier services revenue was $13,900,000. Q4 marketplace revenue increased 33% year over year driven by strong execution, expansion of buyer and supplier networks, and growth with larger accounts. Marketplace growth was robust across many verticals, including aerospace and defense, electronics and semiconductors, energy, and automotive. Q4 active buyers increased 20% year over year to 81,821, with a net addition of 3,539 active buyers, driven by efficient corporate marketing initiatives. Q4 marketplace revenue per active buyer increased 11% year over year primarily due to strong enterprise growth.

We view accounts with at least $50,000 spend as the top of the enterprise funnel. In Q4, the number of accounts with last twelve months’ spend of at least $50,000 on our platform increased 18% year over year to 1,760. Enterprise investments are continuing to show returns with strong revenue growth from marketplace accounts, ending 2025 with over 140 accounts with last twelve months’ spend of at least $500,000. Our enterprise strategy focuses on our largest accounts, which we believe each have $10,000,000+ in potential annual per account revenue. Services revenue declined approximately 1% quarter over quarter as we have largely stabilized the core advertising business.

We are focused on improving engagement and monetization on the platform, which remains a leader in industrial sourcing, supplier selection, and digital marketing solutions. Q4 gross profit was $75,200,000, an increase of 27% year over year, with gross margin of 39.1%. Q4 gross margin for marketplace was 35.3%, an increase of 80 basis points year over year. Q4 marketplace gross profit dollars increased a robust 36% year over year. We are focused on driving marketplace gross profit dollar growth through the combination of top-line growth and gross margin expansion. The growth in our marketplace gross margin underscores the significant value our AI-native marketplace is providing. Moving on to Q4 operating costs.

James Miln: Q4 total non-GAAP operating expenses were $67,000,000, increasing 15% year over year, demonstrating strong leverage by growing at half the rate of our revenue growth. We are applying strong discipline and rigor to our capital and resource allocation across teams while investing in our growth initiatives. In Q4, sales and marketing decreased 20 basis points year over year to 15.6% of revenue. Marketplace advertising spend was 5.2% of marketplace revenue, which was down 40 basis points year over year as we delivered accelerating growth and expanding profitability. In Q4, operations and support decreased 80 basis points year over year to 8.1% of revenue. We are focused on driving increasing automation with AI across operations and support.

Q4 adjusted EBITDA was $8,400,000, an increase of $7,300,000 year over year, driven by strong growth in revenue, gross profit, and operating efficiencies. In 2025, we delivered our target of approximately 20% incremental adjusted EBITDA margin. In Q4, our U.S. segment adjusted EBITDA was $10,800,000, or 6.8% adjusted EBITDA margin, a $6,800,000 improvement year over year driven by expanding gross profit and strong operating expense leverage. Our International segment adjusted EBITDA loss was $2,400,000 in Q4 2025, a $500,000 improvement from a loss of $3,000,000 in 2024. We expect continued improvement in international segment operating leverage in 2026. At the end of the fourth quarter, cash and cash equivalents and marketable securities were $219,000,000.

We generated $6,100,000 operating cash flow in 2025, driven by strong operating leverage and focus on working capital efficiency. In the fourth quarter, we invested $10,300,000 in capex, almost entirely software-related, reflecting our technology investments in the platform and accelerating product rollouts. We are focused on improving working capital efficiency and cash flow conversion given our asset-light model and limited capital spending. Throughout 2025, our AI-native marketplace delivered strong revenue and gross profit growth along with significant operating leverage, showcasing our disciplined execution. As we progress towards $1,000,000,000 in revenue, we anticipate continuing to deliver at least 20% incremental adjusted EBITDA leverage annually.

Given the vast market opportunity and our low penetration rates, we will continue to strategically balance future investment with the relentless pursuit of operating leverage.

James Miln: For the first quarter, we expect revenue in the range of $187,000,000 to $189,000,000, or 24% to 25% growth year over year. We expect Q1 marketplace growth to be approximately 27% to 28% year over year. As Randy mentioned, trends remain strong in Q1, even as we are mindful of the uncertain macro environment. We expect Q1 services revenue to be largely flat quarter over quarter as we work through the transition of the recently launched Thomas ad-serving platform and search upgrades. In Q1, we expect adjusted EBITDA of $6,500,000 to $7,500,000 compared to roughly breakeven in 2025. In Q1, we expect stock-based compensation expenses, including related payroll taxes, to be approximately $11,000,000, or approximately 6% of revenue.

For the full year 2026, we expect at least 21% revenue growth, driven by our Q1 outlook and at least 20% growth in Q2 to Q4.

James Miln: Our guide for the year reflects us continuing to be mindful of the uncertain macro environment. We expect 2026 marketplace gross margin to be higher than 2025, as each quarter of growth and technological advancement incrementally fuels performance in the subsequent quarters. For 2026, we expect services revenue approximately flat year over year, with modest growth in the second half of the year. For the full year 2026, we expect incremental adjusted EBITDA margins of at least 20%. I want to close by thanking our dedicated Xometry, Inc. team members worldwide, whose tireless commitment, professionalism, and passion are instrumental to our continued success.

We are incredibly proud of our shared accomplishments and look forward to continuing to revolutionize the manufacturing industry together. With that, operator, can you please open up the call for questions?

Operator: Thank you. And wait for your name to be announced. To withdraw your question, simply press *11 again. Please stand by while we compile the Q&A roster. Our first question coming from the line of Cory Carpenter with J.P. Morgan. Your line is now open.

Cory Carpenter: Hey, good morning. Thanks for the questions. Maybe, Randy, one for you and one for you, Sanjeev. Randy, could you just expand a bit on why now for the CEO change? Why was this the right time for you? And where do you expect to focus your time? And then, Sanjeev, look, clearly a ton in the product pipeline, but maybe could you just talk about what you are most excited about or what initiatives you think could have the most meaningful impact on growth this year? Thank you.

Randy Altschuler: Great. Well, Cory, good morning. Look, while this is news today, this transition is the result of a deliberate succession process, and as we undergo this transition, I think it is important to remember that though we are changing the person in the seat, and I am sitting right next to him right here, we are not changing the destination on the map. And my commitment to Xometry, Inc. is as strong as ever. And the timing of this transition is deliberate, and it reflects the strength of our position. You know, with the record 2025 results, we are on a clear, increasingly profitable trajectory, making this the ideal window for a leadership transition later this year on July 1.

And these results, frankly, from last year and the momentum we are seeing in the first quarter this year reflect the impact of Sanjeev’s leadership and his focus on product-led growth, which have been key components of our recent success. And as the largest individual long-term shareholder here, I am not going anywhere. As you asked, I remain deeply involved in our future, specifically driving our strategic growth initiatives and corporate partnerships. I plan developing cross-industry initiatives from a strategic vantage point, specifically where Xometry, Inc. has a significant opportunity to become the essential platform for an industry that is rapidly moving towards a digital-first, AI-powered model. And we are very uniquely positioned.

I think there is a lot of strategic partnerships we can build based on that. Now I know, Sanjeev.

Sanjeev Sahni: Thanks for the question. Executing on growth initiatives, and driving significant market share gains in this massive fragmented market is really critical for our ongoing growth. We expect the pace of new product introductions to continue in 2026 as we further expand the marketplace menu, setting up the continued growth in wallet share. We are focused on both initiatives across the board, including expanding our marketplace offering, driving structural growth for enterprise accounts, and building out our global supplier network. As I have grown and scaled marketplaces in my career, I have seen how the financial models are inherently attractive. Network effects that build competitive moats are able to generate increasing value as the companies grow.

As the last few years have demonstrated, we have been able to reaccelerate growth while continuing to improve gross margins and deliver at least 20% incremental adjusted EBITDA margins. As Xometry, Inc. scales, I expect that we will be able to continue to demonstrate consistently strong leverage, delivering increasing profitability and cash flow.

Operator: Thank you. And our next coming from the line of Andrew Boone with Citizens. Your line is now open.

Andrew M. Boone: Thanks so much for taking the question. You guys printed a really strong Q4 with acceleration. As I look at the guidance for Q1 2026 and then 2026 in total, it implies a deceleration. Can you just speak to that? Is that conservatism? Is there something from macro that you guys are seeing? Or anything else you want to highlight there? And then as I think about the pacing of international investments, you guys talk about improvement for 2026. Can you just elaborate on that in terms of what our expectations should be as we think about the path of profitability for international? Thank you.

Randy Altschuler: Yeah. This is Randy, Andrew, and thank you for the question. Let me just start by saying we have a lot of momentum. We have mentioned, I think, a couple of times in the script we raised the guidance for Q1. So Q1 has started very strong. I think we are mindful of the macro. So that is why. But just to be clear, we also raised our guidance for the year as well. So as the year progresses, and hopefully, we keep the momentum, we will continue to update. But so far, there has been no change, lots of strong momentum, and we are hopeful and confident that will continue throughout the year.

James Miln: Yeah. Andrew, this is James. Just to build on that, you know, I think as you point out, Q4 was a great quarter, seeing marketplace growth accelerate to 33% year over year. I think that does really reflect the progress the team are making, particularly at the enterprise growth we have been driving, becoming more embedded in those workflows with our largest customers. Seeing those enterprise accounts more than $500,000 grow to more than 140, seeing the revenue per buyer up 11% year over year, and seeing the traction that we are making there is really encouraging. And behind that is also the product-led initiatives. And really we are taking significant share here.

I think as we look forward, you know, Andrew, you said, like, you know, we are always mindful of that macro environment. You know, we control what we can control. And I think we are very pleased with being able to increase the outlook for Q1 here and for the year ahead. And I think as we go through each quarter, we will be able to continue to give you updates as we move forward. The second question, was that international? Yeah. So on international—yeah—and so on that too, I am really pleased with the overall opportunity and performance we have had in international.

What we have talked about before is, you know, the unit economics that we are seeing, the gross margin, the gross profit structure, are very similar internationally as we see in the U.S. And as we penetrate deeper into different international markets, we really see very common use cases and needs for our buyers, and common opportunity for us to take advantage of our marketplace offering for our suppliers. So I think that over the long term, certainly continue to feel very strongly about international being able to grow into a larger part of our business, going up to 30% to 40%. And I think over time, very similar economics.

And so it is great to see the U.S. leading the way and getting to nearly 7% adjusted EBITDA margin. And I think we will continue to just balance those choices on profitability and growth as we continue to grow the international business. Thank you.

Operator: Thank you. Our next question in queue coming from the line of Brian Drab with William Blair. Your line is now open.

Brian Drab: Hi. Good morning. Thanks for taking my questions. Randy, congratulations on the decision. And yeah, it has been an amazing run so far. I was wondering if you—one thing that stood out, and I am joining the call late, but one thing that stood out was the slide showing what you are doing with some of the larger customers and how fast those customers’ counts are growing and the revenue with those customers are growing. Now have four customers over $10,000,000 in revenue.

Can you talk about what you are doing specifically, as you can, with those customers and how you are having success, whether it is working yourself into the bill of materials for production runs, ERP systems, etcetera, to build those big customers? Because it looks like it is really happening.

Randy Altschuler: Yep. Brian, thank you. And, you know, I think these larger customers, and as we talk about, you know, we have got a bunch of these customers now that we think can have a $10,000,000 spend. We have probably got more of them now. We have got that 140—I do not know, Brian, if you heard that. If you joined the call, we have over 140 customers now that have more than $500,000 LTM spend with us. That is up 40% from last year when we had 100, so that has been growing rapidly. And there are a couple of keys to that. It starts with the technology. You know, we are embedded more and more in the workflow.

And we are embedded in their supply chain. Our punchouts, integrations with their ERP and their purchasing systems are instrumental in that. So that just makes us part of what they are doing every day. Then you layer on top of that the improvements that we are continuously making with TeamSpace, which has been a terrific product for us. And TeamSpace also lends itself to larger projects, as we talked about. We have more and more multiyear projects with these customers. TeamSpace helps facilitate that. And we are constantly adding features to that and enhancing that. So that is that product-led growth.

And then, you know, marrying that are the investments that we have made in the last couple years in our salesforce, in our go-to-market, and now we are marrying that also with—we have been making changes in the marketing side as well. You know, Stephanie Deszrate joined us in the beginning of last year as our new CMO. So the things are coming together to build out those larger customers. So those types of customers, is the work very varied across your different process offerings or do they focus typically on one?

Randy Altschuler: No. It varies. And I think, Brian, you know, that slide was intended to show a couple things. First of all, that our platform is extensible. We are in multiple different industries. Number two, also, if you go through it, we are doing multiple different processes as well. So that is one of the advantages of a marketplace and our platform. It is extensible, and also we can continue to add, and we mentioned in the script, new processes, the instant quoting for injection molding that we had at the end of the year in the U.S., and we had Europe, the new materials. All that is adding to more one-stop shopping.

I did want to mention one more thing, Brian, which is, you know, the macro is shaky. There is a lot of noise out there. There is a flight to reliability and security and safety, and Xometry, Inc.’s platform provides that, particularly as a public company with our transparency, with the systems we have in place, the security we have in place. For larger customers, that is very important. As they think about ensuring that they can deliver to their end customers, they want a partner that can make that happen. And our platform is that partner. And then just lastly on this topic, and then I will pass it on.

The next slide 11, you know, shows the different work. I like these slides that you show, you know, different work that you are doing for some major customers. I do not know if those are the same customers. I imagine there is some overlap between these slides. These are probably customers that are at least $250,000 or $50,000 with you. But for the customers that you are doing the $10,000,000 in revenue with, are those customers that are generally doing production work with you, low-volume production, and you are in the bill of materials, it is just recurring production that you are involved in? Or is it just a ton of development work, or is it both?

Randy Altschuler: It is certainly more heavily weighted towards production, Brian. And we are increasingly in the BOM. Just as you build into the BOM. Absolutely.

Brian Drab: Yeah. Okay. Alright. Congratulations. Thanks a lot.

Operator: Thank you. Our next question coming from the line of Eric Sheridan with Goldman Sachs. Your line is now open.

Eric Sheridan: Thanks so much for taking the question. I wanted to build on sort of a couple of the answers you have given so far. When you think about the verticalization of the platform today, what are you seeing as the biggest tailwinds to growth on an industry vertical standpoint today? And how are you thinking about continuing to maintain or build upon some of that operating momentum in certain industry verticals? And which ones do you feel you are under-indexed to today? And what do you think you need to do in terms of changing some of the indexing across some industry verticals that maybe you feel are more opportunity sets looking longer term? Thanks so much.

Randy Altschuler: Yeah. Look, I think, Eric, as I mentioned earlier, you know, we are pretty well diversified across multiple verticals. And that is the advantage of our technology platform. It is extensible. So when you see the growth that we are getting, it is across multiple industries. So I would not say there is one vertical versus another. I think overall, and this is for me one of the most exciting things about Xometry, Inc., and why we are going to have durable, enduring, large growth for many years to come, we are underpenetrating the overall market. The TAM is huge, and I am super proud of the results that we have.

But we should continue to grow super well for a long time with the TAM as massive out there. And look, I think there is definitely a trend towards digitization. More and more people are using AI-powered models. As the leader in that, as we can get the word out, more and more companies are—that is the tailwind as people realize this is a better solution. People want resilient supply chains. People want it to be digital. People want to have the latest technology available to them. And we are at that intersection of many different things, between manufacturing and technology, between design and delivery, and we play that key role.

So the more we can get that word out, the more that we can build these integrations—and this is one of the many things that Sanjeev is bringing to the table—you will continue to see that growth continue and hopefully even accelerate.

James Miln: Great. Thank you. Eric, and Randy, just to add, I think as we build out our global supply network, the enterprise capabilities that we have across multiple verticals are an important added value that we bring, whether that is in aerospace or cybersecurity and defense and medical. And then having the WorkCenter platform, being able to, whatever the vertical, put up these jobs to the optimal supplier, the best match who has those capabilities, can deliver a quality—that, you know, us continuing to build on that performance across all of these categories, to Randy’s point, helps us penetrate where we still have a lot of opportunity ahead.

Operator: Thank you. Our next question coming from the line of Ron Josey with Citi. Your line is now open.

Ron Josey: Randy, congrats, and Sanjeev, looking forward to working more closely with you. I wanted to ask a little bit, as a follow-up to Eric’s question here, just the brand awareness amongst your buyer base. Randy, you just talked about the TAM being so large and we are just sort of getting started on getting the buyers. So talk just about brand awareness, what Xometry, Inc. is offering, particularly at sales and marketing spend. I think that accelerated in the quarter. And so just talk to us about how you balance overall profitability in sales and marketing with building that awareness.

And then, James, as we think about 2026 and the 20% incremental adjusted EBITDA margins, I believe that is consistent with 2025. Love to hear your thoughts about how the management team is balancing incremental investments, which is overall greater EBITDA, as we do get to this scale. Or are we just super early given the size of the TAM? Thank you.

Randy Altschuler: Morning. So let me tackle this, and Sanjeev and James will jump in. So let me just start by saying, look, you know, there is a pool of millions of buyers, and we are balancing, though, profitability and making sure we have got profitable growth. In marketing, we have got some good slides there that show that is becoming more and more efficient as we have been going on. So I would say we have got robust growth. And as we talked about, Q1 has started very strong as well. But there certainly is a balance between growth and profitability, and we are trying to optimize for both.

That 20% incremental profitability, I think we have a long way to go on the awareness side. We are making good strides. But again, that is where you should expect to see durable, long-term growth year after year from us as more and more people learn about us. It is also where the technology is critical. And by integrating, by these punchouts, by becoming embedded in the workflows, as Brian mentioned earlier, being part of, as Brian described, being part of BOM and the bill of materials, that enables you, without spending marketing dollars, to get much greater awareness within your customer base.

And in these large customers, these $10,000,000+ customers that we now have and these $500,000+ customers, it is a great next step to hit that milestone. Those are key ways to get out. Those companies have often tens of thousands of employees in different locations. The more we can be embedded in their systems, that gets you free advertising, free build-in, and particularly, as I mentioned earlier, as more and more customers are, in this environment, looking for resilient supply chains and want surety and reliability, that also helps drive more people to our platform.

Sanjeev Sahni: Let me just add a couple to that, Ron. As you know, Xometry, Inc. has been an AI-native marketplace from inception. So use of data science, machine learning, and foundational models has been key. Even as the AI overviews and AI-enabled answer engines, or AEOs, are getting scale, we actually think of them as a new organic channel for brand messaging and awareness. We are investing in AI marketing capabilities internally, and continue to strengthen where we are with those efforts. In fact, we believe that we are very well positioned to take advantage of this change in how people search because we have been known to create high-quality content and expertise across multiple different categories that we operate in.

So I think with new opportunities, with answer engines and AI overviews, we actually are using them to drive some of that message.

James Miln: So, and Ron, on the investment and profitability question, over the last two years, you have seen us accelerate growth and deliver a full-year adjusted EBITDA profitability and incremental margins of 20% and more. Actually, we have delivered those incremental margins over the last three years. So I think that is helping really demonstrate very tangibly the leverage that we see in the marketplace model. To your point, I think it is still very early. There is still this huge opportunity ahead. We are very focused in giving some guideposts here as we scale to a billion to continue to deliver at least 20% incremental adjusted EBITDA even as we continue to invest in those growth initiatives.

The advantage of being an asset-light model with strong cash flow conversion from adjusted EBITDA means that if we continue to grow here and approach a billion, we will be seeing that come through both in adjusted EBITDA and in the cash flow. And I think that gives us a lot of optionality as we think about the capital allocation and the opportunities ahead to really further scale the business. So it will not always be linear quarter to quarter, but certainly, you have seen us demonstrate this over the last few years, and I think we continue to expect to do that on our path to a billion here.

Operator: Thank you. Our next question coming from the line of Greg Palm with Craig-Hallum. Your line is now open.

Gregory William Palm: Yes. Congrats on the results and obviously to Randy and Sanjeev congrats on the planned transition here. I wanted to maybe start with a macro question because there is some thought that we may actually see a broader rebound in manufacturing this year. It has been a while since we have had that. Number one, have you seen any change in, call it, supplier behavior on a year-to-date basis relative to last year or the last few years?

And just in terms of the marketplace overall, what kind of impacts would that have both on revenue and also from a gross margin standpoint, if we did see, call it, a rebounding manufacturing market and thus maybe a byproduct with some tighter capacity industry-wide?

Randy Altschuler: Yeah. So just to start, you know, I think it has been business as usual. I want to be clear. I do not think our results are the beneficiary of any sort of pull-forward or anything tariff-related, etcetera. I think it is just, you know, as we have been gaining more and more market share, as we become more and more embedded in our customers, more people are looking for digital solutions. That has helped us, so we have not really seen any change from a macro perspective. I think, Greg, as we gave our guide for this year, we mentioned we are mindful of the macro.

But if there was an upturn in the macro, that would absolutely be a tailwind for us. It would be helpful for us. I think the improvement in our margins reflects our AI approach. We are training our models. Our algorithms are improving as we get more and more data, we get more and more accurate. As we grow those networks of buyers and suppliers, the data plus the growth of those networks, that is what is enabling us to grow our gross margins. And we have been doing that very steadily and consistently year over year since we went public.

So I think you should expect, as James said, in 2026, for our gross margins to be higher than they were in 2025. We are excited for Q1 gross margins to be higher year over year and sequentially, and I think that if we do get a tailwind from a favorable macro, that will only be helping us not only on the growth side, but also on the bottom line as well.

Gregory William Palm: Makes sense. And then I wanted to just follow up on the cohort analysis, because there is some interesting stuff there. In terms of the makeup of those $10,000,000 accounts, I just want to be clear. Is it a quantity or a quality? Like, are they doing a lot more projects, or are they doing bigger, higher value? And in terms of how these accounts are serviced from an account manager standpoint, anything differently in terms of how that started and has evolved through that relationship that maybe you can use to push more accounts into this specific cohort?

Randy Altschuler: So a couple things. So there is certainly, with those larger accounts, more and more production work. There are certainly larger projects, as we sort of talked about earlier. It is overall more volume. And I think on that chart, you will see the number of users that we have got in those accounts. So it is a combination, but certainly, larger projects are helping there. And then we are built into the BOM. We are built into the bill of materials, so that creates a lot of stickiness for you if you become the go-to for certain parts of that customer for a long time. And again, those technology innovations help a lot with this.

I think you are asking about what is the key to those larger accounts. So they all start small. You know, where we get the awareness. I think particularly these integrations—being embedded in their workflows and in their technology—that has been critical to the growth. And when you get those technology lock-ins, that makes it very sticky. It makes it easier for the customer to default to you, and it provides additional awareness, particularly with those larger customers, across a bigger base because these are large companies. So those things really help. We also have, you know, obviously, as you can imagine, our salesforce, we have got a tiered salesforce like a lot of other companies.

So in terms of account management, you have got some different motions there too. It is really the technology that is the critical element that helps that happen.

Operator: Thank you. Our next question coming from the line of Josh Chan with UBS. Your line is now open.

Josh Chan: Hi, good morning. Thanks for taking my questions and congrats, Randy, Sanjeev, on the transition. Maybe just two quick questions from me. Number one, on obviously very strong demand from customers. I guess, how do you feel about your momentum adding active suppliers? Are you concentrated more on active larger suppliers, so maybe the count does not matter quite as much? And then second question is, as you continue to grow EBITDA, what are your thoughts about potentially getting to a breakeven free cash flow at some point in the near future? Thank you.

Sanjeev Sahni: Thanks for the question, Josh. This is Sanjeev. Let me take the first part. I think, as you mentioned, supplier growth is a key element to continue to drive the marketplace growth. As you mentioned, we have close to 5,000 suppliers overall in our system. Balancing how we do margins across buyers and suppliers, continuing to grow both sides of the marketplace is equally important to us across those spaces.

But yes, as we think about the ongoing growth in the large enterprise accounts and the kind of needs they have, we continue to make sure that in our network, we not only have suppliers that are capable of delivering those large programs, but also have the right certifications and requirements that are met to meet the quality certifications of that customer.

And so therefore, balancing the network for both size, breadth, and depth—so size in terms of number, breadth in terms of geographical spread where we want to make sure that we can service the customer needs from anywhere in the globe, and then depth in terms of processes that they can service for us—remains critical, and we continue to invest a ton there.

James Miln: Thanks, Sanjeev. Josh, on cash flow—so good question. I think you have already seen us go positive or very close to positive on a number of quarters in the last year. So, generally, asset-light model with good cash conversion. Cash flow is coming after adjusted EBITDA, so we had our first full year of adjusted EBITDA profitability at $18.5 million. So as we expect over the next year, we will start getting to sustainable free cash flow positive as well as we continue to grow. To put a little bit more framing around that, capex—operational cash flow last year was actually positive at $6,000,000.

We have been investing in our product-led strategy, and so you have seen capex—well, that was $10,300,000 in the quarter. I think if we assume a similar sort of percentage of revenue in the year ahead, at around 6%, then when we hit the $225,000,000 quarterly run rate, we would expect to be free cash flow positive on a sustainable basis.

Operator: Our next question comes from the line of Matt Swanson with RBC Capital Markets. Your line is now open.

Matthew John Swanson: Hi, thanks for taking my question. We have touched on this in a couple of different parts, but I wanted to focus a little bit more on the WorkCenter mobile app and just what benefits that might give you from the competitive environment of just making it easier to work with for suppliers. They obviously have a limited number of hours every day their machines can be running. How does that help to make sure that they are running on Xometry, Inc. projects?

Sanjeev Sahni: Thanks for that question. I think the WorkCenter mobile app is proving to be a substantial lock-in with our partners and suppliers across the globe. The advantages that we see are across three different interactions that those partners and suppliers have. One is on the job board itself, which is accepting a job that we offer them.

A lot of the suppliers are not always in front of their computer to be able to actually accept jobs, and the flexibility that a mobile app provides them to be able to accept a job where they might be actually at a machine and, or they might be away from their desk at home, given the size and scale of some of these suppliers. That has been a huge benefit just to get started. The second one is around management of the job itself.

And I think the big advantage there is as they work through those jobs, they want to make sure that they are able to provide us with the most timely inputs, both in terms of updates on the job, but also questions that might arise during manufacturing. So improving the analysis around the DFM piece that we were talking about before. So it acts as a mechanism for us to get real-time data back from the manufacturing flows coming back into our models and helping us improve those. And then finally, of course, managing their own cash flows.

As you can imagine, a lot of these suppliers are trying to balance lots of jobs that they have, like you mentioned, but also trying to manage the outcomes for their business. So this has been the three areas of engagement that we continue to see increase.

Matthew John Swanson: I appreciate that. And I know there have been a lot of questions on the large customer front because these are some impressive numbers you guys delivered. But I guess what I was wondering is when you are thinking about how customers go from $50,000s to $500,000 to $10,000,000, are there any internal signals that you look at that kind of signal people are starting to upsize? Is there any correlation with the further spreading out of TeamSpace? Or anything else that gives you more confidence that the enterprise momentum we have seen in 2025 will continue to build in 2026.

Randy Altschuler: I think it starts with those customers. We have a pretty good idea or estimate of what their total spend is. So it just starts with qualifying that these companies can spend $10,000,000+ with us. And I think if we ever shared the names of who those customers are, they are spending many multiples more than that $10,000,000. So even if we have a modest share of their total spend, that is a very achievable number. So it just starts with that. And, again, because of our platform, it is very extensible. You can imagine that it is relevant to lots of industries.

There are lots of big customers that are buying billions of dollars of custom manufacturing, a lot more than that. So it starts with just that qualification. I think, as you correctly alluded to, as we get more and more buyers who are adopting the platform, as more and more teams are created, because that is a way for customers to invite their colleagues to join and use the platform, that is obviously a great signal. And then as we get traction with our integrations with the punchouts, get embedded in the workflows, become included in those BOMs, those are also great signals. But these are customers that clearly are spending the money.

It is our job to show them that this is the best solution, and that is why we are seeing momentum there. We would expect that number to grow every year, and that group of $500,000+ to grow as well. Lots more to go.

Operator: Thank you. And there are no further questions in the queue at this time. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.