Xometry Q2 2026 Earnings: Marketplace Growth Narrows the Operating Loss

Xometry (NASDAQ: XMTR) reported second-quarter 2026 revenue of $229.3 million, up 41% from $162.5 million a year earlier, while its GAAP diluted loss narrowed to $0.10 per share from $0.52. Marketplace revenue increased 45%, and adjusted EBITDA rose to $14.1 million from $3.9 million, although consolidated gross margin declined.

Core financial results

Higher marketplace volume added approximately $22.0 million of gross profit, outpacing a $17.2 million increase in operating expenses and narrowing the operating loss. The improvement in the bottom-line loss was also helped by a more favorable nonoperating comparison: Q2 2025 included a $16.4 million loss on debt extinguishment that did not recur in Q2 2026.

Xometry changed its definition of non-GAAP net income effective January 1, 2026 and recast prior-period amounts, so the non-GAAP comparison above uses the revised basis.

Marketplace and U.S. operations drove growth

Marketplace revenue accounted for approximately 94% of total revenue and remained the main growth engine. Active buyers increased 20%, while accounts spending at least $50,000 over the last 12 months grew 23%; management also cited increased wallet share in larger accounts.

Revenue from existing marketplace accounts remained 98% of marketplace revenue. International operations continued to grow but remained unprofitable on an adjusted EBITDA basis.

Management linked marketplace growth to expanding buyer and supplier networks, deeper enterprise engagement and improvements to Xometry’s AI-based customer and supplier tools. Product changes during the quarter included a context-aware manufacturing process recommender, more detailed cost-prediction models and adaptive sourcing models that incorporate supplier capabilities, quality history and on-time shipping performance.

Marketplace scale lifted adjusted margins despite gross-margin compression

The quarter combined faster revenue growth with lower consolidated gross margin. Marketplace gross margin declined 70 basis points to 34.7%, while the much higher-margin services business recorded a 3% revenue decline. The mix shift toward marketplace revenue therefore added to consolidated margin pressure.

Operating leverage nevertheless improved. Total operating expenses rose approximately 23%, slower than the 34% increase in gross profit, while adjusted EBITDA margin reached 6.2% from about 2.4% a year earlier—an improvement of 380 basis points. This indicates that marketplace scale and expense leverage more than offset gross-margin compression at the adjusted EBITDA level, though not yet enough to produce GAAP operating income.

Cash flow and balance sheet

Xometry did not provide a standalone quarterly operating cash flow figure. For the first six months of 2026, operating activities generated $17.5 million, compared with a $4.1 million use of cash in the first half of 2025. The improvement came despite a $33.3 million use of cash from higher accounts receivable, partly offset by a $25.7 million contribution from accounts payable and accrued cost of revenue.

Capitalized software development and purchases of property and equipment totaled $24.0 million for the six-month period, exceeding operating cash flow by approximately $6.4 million. That comparison shows that adjusted profitability has improved faster than cash generation after investment spending.

Cash, cash equivalents and marketable securities reached $517 million at June 30, up $293 million from March 31. The increase was primarily financing-driven, including $248 million of net proceeds from a follow-on stock offering and $50 million from a private placement with Siemens. Convertible notes totaled approximately $328.7 million at quarter-end, including $85.5 million classified as current.

Financial guidance

Xometry raised its full-year revenue growth outlook to 33%-34% from 27%-28%, a six-percentage-point increase at both ends of the range. Q3 guidance implies slower year-over-year growth than Q2, but the adjusted EBITDA outlook calls for further sequential improvement.

The full-year adjusted EBITDA range represents an improvement of approximately $41.5 million to $43.5 million from 2025.

Recent insider transactions

The supplied insider dataset’s 10 most recent records include seven sales, one purchase and two stock awards. These entries include grants and an indirect transaction, so they do not all represent open-market activity.

The transaction records alone do not establish insiders’ views on Xometry’s future performance.

Risks investors should monitor

• Margin pressure: Marketplace gross margin declined 70 basis points, and the faster-growing marketplace carries a substantially lower margin than services. Continued mix or unit-margin pressure could limit the conversion of revenue growth into gross profit.
• Slower growth in Q3 guidance: The guided 30%-31% total revenue growth and approximately 33% marketplace growth are below Q2’s respective 41% and 45% rates.
• International losses: International revenue increased approximately 29%, but the segment’s adjusted EBITDA loss widened to $3.3 million.
• GAAP and adjusted earnings remain materially different: Xometry reported positive adjusted EBITDA and non-GAAP income while remaining GAAP loss-making. Stock-based compensation alone was $11.3 million for the quarter.
• Liquidity growth was financing-led: Most of the sequential increase in cash and securities came from new equity, while first-half investment spending exceeded operating cash flow.

Summary

Xometry’s Q2 2026 results showed marketplace-led revenue growth, a narrower operating loss and substantial adjusted EBITDA margin expansion. The main counterweights were lower gross margin, continued international losses and a GAAP loss, while the raised full-year outlook makes marketplace growth, margin performance and operating cash generation the central measures to watch in coming quarters.