Xometry, Inc.

Thank you for standing by. Welcome to the Xometry Q2 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You'll then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Sean Noni, VP of Investor Relations. Please go ahead.

Good morning, and thank you for joining us on Xometry's Q2 2025 earnings call. Joining me are Randy Altshuler, our Chief Executive Officer, Sanjeev Singh Sahani, our President, and James Milne, our Chief Financial Officer. During today's call, we will review our financial results for the second quarter 2025 and discuss our guidance for the third quarter and full year 2025. 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 US Securities and Exchange Commission, including our Form 10Q for the quarter ended June 30, 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 also like to point out that on today's call, we 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 -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 US GAAP. To see the reconciliation of these non-GAAP measures, please refer to our earnings press release distributed today and in our investor presentation, both of which are available in the Investors section of our website and .zometry.com. A replay of today's call will also be posted on our website. With that, I'd like to turn the call over to Randy.

Thanks, Sean. Good morning and thank you for joining our Q2 2025 earnings call. Q2 was another strong quarter with record revenue, gross margin, and adjusted EBITDA. Q2 revenue increased 23% year over year to 163 million as we gained significant share in the large and fragmented custom manufacturing market. Marketplace growth remained robust, increasing 26% year over year, driven by our rapidly expanding networks of buyers and suppliers and deepening enterprise engagement. Our global marketplaces continue to respond well to the volatile supply chain environment. Powered by our improving AI pricing and selection algorithms, marketplace gross margin reached a record .4% in Q2, up 190 basis points year over year, contributing to a record overall company gross margin of 40.1%. Expanding marketplace gross margin underscores the value we're creating with our AI powered marketplace. Our efficacy and competitive mode continues to increase as we grow our networks of buyers and suppliers and gain more data to continuously train our algorithms. This has driven significant and steady increases in our marketplace gross margins. From the 25% level four years ago, to 35% plus today. Each quarter of growth and improvements in our technology helps to incrementally power the quarters that follow. In Q2, we delivered strong operating leverage with adjusted EBITDA of 3.9 million and improvement of 6.6 million year over year. Our results, industry leading growth and significant market share gains underscored the differentiated and durable advantages of our marketplace model. We're building a superior business model that delivers strong experience for both buyers and suppliers while driving increasing operating scale and expanding adjusted EBITDA margin. We deliver these results even as we continue to invest in our key growth initiatives and drive further use of AI throughout our platforms. Since joining Xometry in January in the new role as president, Sanjeev Singh Sani has accelerated our efforts to embed technology and AI across the organization to enhance our position as the digital rails in this massively fragmented and traditionally offline custom manufacturing market. We are deploying generative AI at scale to improve experience and drive additional value for both our buyers and suppliers. Our pace of product introductions is increasing including several new releases in Q2 and early Q3. These include, in Q2, we continue to improve the buyer experience in our marketplace. We enhanced our instant quoting and selection, expanded instant quoting for new additive materials and added the ability to dynamically view 2D drawings in the quote flow. In Q2, Xometry EU launched our Teamspace solution in Europe, UK and Turkey. Teamspace is a cloud-based solution within Xometry platform that enables customers to collaborate with other users on projects and custom part orders. This global expansion enables Xometry to drive deeper enterprise engagement and enhance viral buyer growth. We are pleased with the initial results. In Q3, Xometry EU launched integration capabilities for enterprise customers to streamline procurement. This feature enables buyers to order custom parts directly from the Xometry EU site while still within the buyer's procurement platform, streamlining the purchasing process, reducing errors and improving efficiency by automating data transfer between systems. In July, we began testing an improved mobile experience for our suppliers in WorkCenter, a cloud-based platform for suppliers. The new WorkCenter mobile app enables suppliers to interact more easily within Xometry's platform, including viewing 3D part design files, sharing images of work in progress and receiving push notifications. Also in July, we introduced a new AI-powered capability that automates the extraction of information from technical drawings to help drive more accurate quoting and supplier selection. This capability will be further enhanced to accelerate our initiative to instantly quote technical drawings. On ThomasNet, we are pleased with the initial test results of our new search experience using natural language algorithms to improve buyer search results based on intent. We were pleased to see a 10% plus improvement in our buyer engagement levels. Now in Q3, we will begin selling on the new ad serving technology platform for new customers. We expect that the new technology will increase advertising penetration and engagement. There's much more to come in the following months and quarters on the technology front as we focus on further improving buyer and supplier experience and expanding our platforms. Our technology initiatives, combined with our enterprise sales and marketing efforts, are powering our land and expand strategy. For example, in Q2, Xometry became a preferred supplier for a major European aerospace company. The customer chose Xometry for our easy to use platform and business model, enabling the customer to start transitioning from its legacy procurement system. Embedded in the customer supply chain, Xometry is now being used for quick-term projects and long-term production programs. This is a good example of an enterprise customer, which we believe can generate 10 plus million dollars in annual revenue. Now, before I hand it over to James, I wanna take a moment to highlight how we're winning, especially with large customers, and why we believe Xometry is increasingly becoming a strategic sourcing partner to some of the world's most demanding buyers. First, driving technology innovation to deliver improving marketplace price, speed, and selection. We continue to strengthen our AI-driven marketplace with smarter quoting, dynamic pricing, and integrated workflows to make the platform more valuable to our networks of buyers and suppliers. For buyers, this means faster, more accurate sourcing with greater transparency, increasing agility, and speed to market. Second, we're improving supply chain resiliency. Our marketplace helps customers mitigate supply chain volatility and disruptions by offering access to a diverse, expanding global manufacturing network of over 4,000 active suppliers. This allows buyers to instantly diversify their supplier base, reducing dependencies on a single source or region, and enhancing overall resilience. Our global sourcing efforts and flexible asset-light model are resonating with customers, given the rapidly changing global trade environment. Third, delivering a scalable enterprise offering. Our land and expand playbook is powered by technology, as enterprise accounts increasingly adopt our software solutions, including Teamspace and ERP integrations. As we drive adoption of enterprise technology, we become more embedded in customer workflows, reducing buyer friction and expanding walletshare in these large accounts. Fourth, driving value to our global supplier network. Our marketplace is driving increasing value for suppliers, enabling them to sell their capacity digitally, unlock access to global demand, and increase asset utilization and profitability. Suppliers leverage our cloud-based software platform WorkCenter to more efficiently manage their operations, and they utilize our fintech products to improve cash flows. We continue to win, and momentum remains strong in Q3. We are raising our 2025 revenue growth outlook, given robust demand in our marketplace and strong execution of our teams. I will now turn the call over to James for a more detailed review of Q2 in our business outlook.