Xometry (XMTR) didn’t kick off the 2025 fiscal year on solid footing. The stock dropped roughly 40% in February following the release of its Q4 2024 earnings and forward guidance. The results themselves weren’t weak—far from it.
While solid on paper, the numbers did fall short of the high bar the company set the year prior, when it posted 75% revenue growth. Investors may be reassessing growth expectations now that the company is operating in a more challenging macro environment.
Enterprise customer performance remained a bright spot. Revenue from accounts spending over $500,000 annually grew 40%—a strong signal of deeper customer engagement and increasing platform utility.
However, the market reaction was swift and negative, largely due to a softer-than-expected Q1 outlook. Although full-year guidance aligned with expectations, the lower Q1 forecast, combined with heightened tariff-related uncertainty, weighed heavily on sentiment.
In short, while the fundamentals remain healthy, investor confidence may take time to rebound unless macro clarity improves.
Heading into earnings, our swing trade thesis on Xometry (XMTR) is based on the expectation that the company will report Q1 results largely in line with market estimates. The key focus for investors will likely be management’s commentary around how macroeconomic pressures and new U.S. tariffs are impacting operations and demand.
Recent research released by Xometry underscores how tariffs, reshoring trends, and investments in automation are influencing the broader manufacturing sector. According to CEO Randy Altschuler, 42% of U.S. manufacturing executives have already reshored some production, with another 19% planning to do so. These insights come from Xometry’s “American Manufacturing Resurgence” report and highlight broader structural tailwinds that could benefit the company over time.
Xometry’s business model—custom, on-demand manufacturing—places it at the center of two major 2025 investment themes: artificial intelligence and M&A. The company’s proprietary AI platform helps streamline pricing and lead times, while its strong leadership team has a proven track record in building and scaling companies.
CEO Randy Altschuler previously co-founded and sold OfficeTiger and CloudBlue Technologies, while Chief Strategy Officer Laurence Zuriff brings two decades of hedge fund experience to the table. Their combined ownership of approximately 15% of the company reinforces their long-term conviction.
From a trade perspective, we’re targeting $35 as a near-term price objective, assuming earnings confirm stability and the macro environment doesn’t deteriorate further.
Xometry operates as an advanced, AI-powered on-demand manufacturing marketplace, connecting businesses that need custom parts with a large network of vetted manufacturing partners. The platform simplifies what has traditionally been a complex and fragmented procurement process, offering instant quotes, transparent pricing, and streamlined order management for CNC machining, 3D printing, sheet metal fabrication, and other specialized manufacturing services.
Users can upload their design files, receive real-time pricing and lead time estimates, and place orders directly through the platform—making it an efficient solution for both one-off prototypes and high-volume production runs.
Xometry stands out not only for its breadth of capabilities but also for its data-driven approach. The company collects and analyzes a large volume of transaction data across its network, using that insight to improve pricing accuracy, production efficiency, and supplier matching.
Its AI-powered recommendation engine also helps guide customers to the best options based on materials, production methods, and delivery timelines.
As of Q1 2025, the company reported that its platform has generated over $1 billion in revenue for small- and mid-sized U.S. manufacturers since 2020. More than 4,375 suppliers globally are active on the platform, with the majority of revenue benefiting U.S.-based manufacturers. This ecosystem supports reinvestment in equipment, workforce expansion, and long-term business development for participating suppliers.
In short, Xometry continues to position itself as a central player in the ongoing digital transformation of the manufacturing sector.
Xometry is actively enhancing its platform with new AI-driven initiatives aimed at improving both the customer and supplier experience. The company plans to sharpen its customer segmentation efforts through AI-powered advertising, while also expanding the capabilities of its Workcenter software to better support suppliers in managing their production workflows.
Additionally, Xometry is developing multimodal AI models designed to integrate text, images, and 3D CAD files. These models are intended to streamline the design-to-manufacturing process, making it faster and more efficient for both customers and manufacturing partners.
The company currently has more than 4,375 active suppliers worldwide, with the majority of revenue benefiting American manufacturers. By joining Xometry’s platform, suppliers gain access to a larger customer base, helping to fuel reinvestment in equipment, hiring, and business growth.
With reshoring trends gaining momentum, manufacturers are increasingly adopting digital platforms like Xometry to improve efficiency and supply chain resilience. Xometry continues to offer valuable solutions for both buyers and suppliers, positioning itself at the center of a rapidly evolving manufacturing landscape.
On one side are buyers — companies seeking specific parts, components, or products. On the other side are suppliers — manufacturers equipped with the machinery and expertise to complete these jobs efficiently.
At the heart of Xometry’s platform is its AI-powered matching system. Much like a matchmaking algorithm, Xometry’s AI instantly pairs customer requests with the best-fit manufacturers based on criteria such as process type, material, quantity, delivery timeline, and cost. This ensures faster turnaround times and better pricing for customers while maximizing efficiency for suppliers.
Beyond just a matchmaking service, Xometry functions as a one-stop shop for a wide range of manufacturing needs. Through a single platform, customers can access diverse services including 3D printing, CNC machining, sheet metal fabrication, injection molding, and more. By streamlining access to various manufacturing processes, Xometry makes it easier for businesses to source high-quality parts without the need to manage multiple vendors individually
Instant Quoting:
Through its AI-driven platform, Xometry allows customers to receive instant price quotes and estimated delivery times for custom parts. This eliminates the usual delays associated with back-and-forth communications and manual quoting, making it faster and easier to start new projects.
Quality Assurance:
Xometry maintains strict quality control standards by vetting all manufacturing partners in its network. Customers can feel confident that the parts they order will meet high performance and quality expectations.
Global Supplier Network:
With a network of manufacturing partners around the world, Xometry can offer customers competitive pricing, faster lead times, and access to a wide range of manufacturing capabilities, from CNC machining to 3D printing and injection molding.
Additional Services:
Beyond core manufacturing matchmaking, Xometry offers project support for complex jobs and a supplies marketplace where customers can purchase raw materials and essential tools, providing a comprehensive solution for manufacturing needs.
In short, Xometry is helping to modernize and digitize the manufacturing industry, making the process of sourcing custom parts as seamless and accessible as ordering products online. Their model improves efficiency, speeds up delivery, and simplifies a traditionally fragmented industry.
Marketplaces, when scaled effectively, tend to be highly durable business models—and so far, Xometry’s performance suggests it is on the right path.
The company is rapidly expanding, building the kind of network effects that, over time, allow leading platforms to pull away from the competition. Based on what we’re seeing, there’s little evidence to suggest that Xometry can’t continue to strengthen its competitive advantage over the next decade.
Much of this success ties back to its use of artificial intelligence. Unlike some companies that lean heavily on AI as a buzzword, Xometry applies AI in a practical, meaningful way—optimizing products, materials, and processes using a unique, proprietary dataset. This practical application of AI provides a solid foundation for long-term growth.
Looking ahead, Xometry appears well-positioned to continue scaling and improving its business, setting the stage for many more years of expansion.
Xometry closed 2024 with $486 million in marketplace revenue, marking a 23% increase over the prior year. Supplier services revenue, however, declined 13% to $59.6 million as the company sharpened its focus on core offerings. The bottom line showed progress—Xometry’s annual net loss narrowed to $50.4 million, an improvement from the $67.5 million deficit recorded in 2023.
The year was one of strategic expansion. Xometry grew its supplier base by 28%, prioritizing quality certifications to attract larger customers across the automotive, aerospace, and medical device industries. The company also secured a new patent for its AI-driven Instant Quoting Engine, bringing its U.S. patent portfolio to a dozen.
Beyond U.S. borders, Xometry enhanced its marketplace capabilities, expanding into Turkey and India while introducing vacuum casting and additional material options in its European marketplace. Localization efforts continued with the addition of Czech and Hungarian, bringing the total number of supported languages to 18.
Marketplaces, when successful, tend to compound their advantages over time. They are binary in nature—either they fail outright, or they scale dramatically. Xometry appears to be on the latter path, strengthening its network effects and widening the gap between itself and competitors lacking its breadth.
RBC Capital Maintains Sector Perform on Xometry, Lowers Price Target to $32
JP Morgan Maintains Overweight on Xometry, Lowers Price Target to $30
Citizens Capital Markets Reiterates Market Outperform on Xometry, Maintains $40 Price Target
Citigroup Maintains Buy on Xometry, Lowers Price Target to $39
UBS Maintains Neutral on Xometry, Raises Price Target to $33
Cantor Fitzgerald Maintains Underweight on Xometry, Raises Price Target to $20
JMP Securities Reiterates Market Outperform on Xometry, Maintains $42 Price Target
RBC Capital Maintains Sector Perform on Xometry, Raises Price Target to $40
