XMTR earnings analysis
What we found in XMTR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Xometry delivered Q2 revenue of $229.3 million, up 41% year over year and 11.7% sequentially, driven by 45% marketplace growth and continued expansion in active buyers and larger accounts. Profitability improved substantially, with operating margin improving to negative 2.4% from negative 6.3% and Adjusted EBITDA reaching $14.1 million, although GAAP diluted EPS remained a $0.10 loss. The principal trade-offs are a 210-basis-point gross-margin decline from marketplace mix, shrinking services revenue, and potential conversion exposure on $328.7 million of convertible notes carrying value.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Marketplace drove 41% revenue growth
- Q2 revenue rose $66.7 million, or 41%, year over year to $229.3 million, led by marketplace revenue growth of $67.1 million, or 45%, to $215.4 million. Revenue also increased 11.7% sequentially from $205 million in Q1 2026.
- Operating loss narrowed sharply
- Operating leverage improved materially: operating loss narrowed to $5.5 million, or 2.4% of revenue, from $10.3 million, or 6.3%, a year earlier. Adjusted EBITDA increased to $14.1 million (6.2% margin) from $3.9 million (2.4% margin).
- Loss reduced; adjusted profit expanded
- GAAP net loss narrowed to $5.3 million from $26.4 million a year ago. The prior-year result included a $16.4 million loss on debt extinguishment, while Q2 2026 non-GAAP net income increased to $9.9 million from $1.1 million.
- Buyer engagement and repeat revenue strengthened
- Marketplace engagement expanded: active buyers reached 89,557, up 20% from 74,777, while accounts with at least $50,000 of trailing-12-month spend increased 23% to 2,039. Existing accounts generated 98% of Q2 revenue.
- Operating cash flow turned positive
- Six-month operating cash flow turned positive at $17.5 million, versus cash used of $4.1 million a year earlier. After $24.0 million of capitalized software and property/equipment spending, implied six-month free cash flow was negative about $6.5 million.
- Liquidity strengthened through equity raises
- Liquidity increased following equity financing: cash, cash equivalents and marketable securities totaled $516.7 million at June 30, 2026, supported by $247.6 million of net proceeds from the June equity issuance and $50.0 million from Siemens' share purchase.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue mix compressed gross margin
- Gross margin fell 210 basis points year over year to 38.0% from 40.1%, as faster marketplace growth shifted mix toward the lower-margin marketplace business. Marketplace gross margin also declined to 34.7% from 35.4%.
- High-margin services revenue declined
- Services revenue declined 3% to $13.9 million from $14.3 million, driven by lower Thomas advertising and marketing services. This business retains an 89.1% gross margin, well above the marketplace's 34.7%.
- Convertible notes are currently convertible
- Both convertible-note sale-price triggers were met: holders may convert the $243.2 million carrying value of 2030 Notes and the $85.5 million carrying value of 2027 Notes during the quarter ending September 30, 2026, creating potential cash-use or dilution risk.
- Receivables growth consumed working capital
- Working-capital absorption remains significant: six-month accounts receivable increased $33.3 million due to higher sales, contributing to a $7.2 million net use from changes in operating assets and liabilities.
- No material risk-factor updates; FX exposure remains
- Risk-factor disclosures were unchanged: the filing states there were no material changes from the 2025 Form 10-K. Nonetheless, International revenue was approximately 16% of six-month revenue, and a 10% unfavorable euro move would reduce six-month revenue by 1.2%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.1
- Gross margin
- 38.0%
- Operating margin
- -2.4%
- Segment
- Marketplace revenue: $215.369 million, up 45% year over year from $148.223 million; gross margin 34.7% versus 35.4%.
- Segment
- Services revenue: $13.911 million, down 3% year over year from $14.324 million; gross margin 89.1% versus 88.7%.
- Segment
- U.S. reportable segment revenue: $194.7 million versus $135.7 million year over year.
- Segment
- International reportable segment revenue: $34.5 million versus $26.8 million year over year.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that $516.7 million of cash, cash equivalents and marketable securities is expected to support working-capital and capital-expenditure requirements for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · May 7, 2026
- Xometry reported impressive Q1 2026 results, including a revenue of $205.1 million, significantly surpassing estimates and marking a 36% increase year-over-year. EPS improved to $0.12 from a loss of $0.30 in the prior…
- 10-K · February 24, 2026
- Xometry’s 2025 10-K emphasizes an AI-native marketplace strategy, continued network scale (81,821 Active Buyers; 4,996 Active Suppliers) and product expansion (auto-quote for injection molding added in late 2025).…
- 10-Q · November 4, 2025
- Xometry reported Q3 revenue of $180,715,000, up $39,017,000 (27.5%) versus Q3 2024, with gross profit rising to $72,029,000. Operating loss narrowed slightly to $(11,059,000) (about -6.1% of revenue) but the company…
- 10-Q · August 5, 2025
- Xometry reported Q2 revenue of $162.5M, up $29.95M (22.6%) versus Q2 2024, with gross profit rising to $65.2M and gross margin holding near 40.1%. Loss from operations narrowed to $(10.3)M from $(15.3)M a year ago, but…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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