Xometry, Inc.

Good day and thank you for standing by. Welcome to Xometry's Q2 2026 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'll need to press star 1 1 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 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, Shawn Milne, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you for joining us on Xometry's Q2 2026 earnings call. Joining me are Sanjeev Singh Sahni, our Chief Executive Officer, and James Milne, our Chief Financial Officer. During today's call, we will review our financial results for the second quarter of 2026 and discuss our guidance for the third 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-Q for the quarter ended June 30, 2026. We caution you to not 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'd 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 our investor presentation, both of which are available on the Investors section of our website at investors.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 Sanjeev.

Thanks, Shawn. Good morning, and thank you for joining our Q2 earnings call. Our accelerating growth and record Q2 results demonstrate the growing strength of our AI-native marketplace. Q2 was a record quarter for Xometry across many fronts, including revenue, gross profit, and Achasta Dibida. Q2 revenue increased 41% year-over-year to a record $229 million. Marketplace revenue growth accelerated to 45% year-over-year, driven by broad base strength across many verticals, improving conversion rates, increasing adoption by new buyers and growing wallet share of existing buyers. We continued to see strong enterprise growth. Q2 marks our fourth consecutive quarter of accelerating revenue growth. Our AI models are effectively optimizing conversion, buyer growth, and market share gains. On top of the revenue growth, Q2 adjusted EBITDA improved $10.2 million year over year to $14.1 million. We delivered record results in the first half of 2026 and we are again raising our outlook for the second half of this year. The strength we saw in Q2 has continued in Q3 and we are off to a strong start in the quarter. We expect strong compounding growth and operating leverage to continue through the second half of 2026 and for years to come. I reiterate this point. Thank you very much. That gap is the opportunity. We are in the opening innings of a digital transformation, and our ability to capture this massive, untapped opportunity gives us strong confidence in our long-term growth trajectory. Beyond the shift from offline to online, we see a long-term tailwind in physical AI. The rapid growth of robotics, autonomous systems, and defense platforms creates a new category of customers needing fast on demand parts. Our marketplace is well positioned to capture this demand. The four consecutive quarters of accelerating growth are direct evidence that the product led strategy put in place last year is working. We are defining the e-commerce playbook in custom manufacturing and raising the experience bar for buyers and suppliers everywhere. We will structure our calls going forward to provide updates on our key focus areas. First, I will talk about establishing Xometry as the infrastructure for custom manufacturing. Our confidence in driving the next S-curve of our growth stems from our ability to apply our core AI models to a decade plus of proprietary data. The intelligence we derive from our data gives our customers the confidence in manufacturability of their part, the instant pricing options we present, and Xometry's ability to source the part optimally. The depth of our data and the intelligence is unrivaled in custom manufacturing. That same intelligence is now extending beyond our marketplace, embedding natively into partnership environments like Siemens Design Center, proof that intelligence itself Not just the marketplace around it is the infrastructure other platforms want to build on. More broadly, we see this as Xometry becoming the connective layer between design intent and actual physical production. Siemens is the first but not the only place we expect to integrate our intelligence. Deep technical integration is a critical pillar of our product-led growth strategy. Establishing seamless AI-native digital threads that remove friction from the custom manufacturing workflows will be an ongoing focus. We are making excellent progress on the Siemens collaboration, with both teams moving at the pace we expected. We are building real integration, bringing Xometry's manufacturability and pricing insight directly into Siemens Design Center. In addition to the work within Design Center, there's also active collaboration between Siemens Supply Frame and Thomas, extending the value both teams can bring to their customers. We will share more as we hit milestones and we expect the Siemens partnership to positively impact our 2027 operating results. Our second focus area is improving our AI native marketplace experiences. Our customer and supplier online journeys are rapidly defining the e-commerce playbook in custom manufacturing. As I've shared before, one of our core beliefs is that the B2B buying experience should be every bit as good as what people experience in their personal lives. The days of clunky B2B software, multi-step checkout processes, and waiting days for an email quote are simply over. What we are seeing is a generational shift in who is making manufacturing purchasing decisions. The engineers, procurement buyers, and supply chain lead roles are now full of dynamic, digitally native individuals. They expect the same frictionless experience at work that they have in their personal lives. When they find that Xometry can deliver, they become Xometry champions inside their organizations. In Q2, we made significant upgrades to our proprietary AI models that power our marketplace. Specifically, we enhanced model capabilities in costing, sourcing, and process recommendations. These comprehensive upgrades deploy a new generation of high capacity interconnected models that span the entire manufacturing journey. The upgrades enable additional data insights across five elements of our data architecture, geometry, manufacturability, certifications, supplier capability, and production outcomes. The smarter the platform gets, the faster we can turn complex engineering inputs into manufacturing decisions. As part of our AI model upgrades, we launched a new generation Cost Prediction Model that considers a greater breadth and depth of inputs, including geometry, material, finish, and whether the part is a standalone part or one of several in a job. This granular input leads to more accurate pricing. The model understands the specific parameters each part requires delivering an approximately 15% improvement in CNC cost prediction accuracy. In addition, in Q2, we launched a new adaptive sourcing model that uses our proprietary data to price jobs dynamically for our suppliers. The new model incorporates an upgraded partner suitability score for each job measured against partners' specific machine capabilities quality and on-time shipping history. By matching jobs to the right machines, we ensure our suppliers receive a curated flow of better-fitting work which strengthens our network overall. Lastly, we launched an upgraded context-aware AI process recommender. It reads apart industry application to anticipate needs like tighter tolerances for aerospace components, By factoring in material and geometry, it closes a real gap for first-time customers. Buyers are now accepting the recommendation more than 85% of the time, with the biggest gains coming from exactly those first-time customers. I will now share advances we made in our third focus area, expanding our buyer and supplier networks. Our focus is on becoming the most expansive custom manufacturing e-commerce platform for buyers and suppliers. We delivered strong active buyer growth during the quarter. The active buyers increasing 20% year over year to over 89,000. Our marketing teams have strengthened our MarTech and personalization capabilities, helping drive almost 4,000 net ads. Their efforts combined with our AI model optimizations are driving conversion rate improvements and continued robust buyer growth. At the same time, these efforts are also steadily decreasing our marketing costs as a percentage of revenue, which is improving marketplace unit economics. There are still millions of potential buyers to convert. We expect continual improvements in marketing technology and AI models will enable us to steadily increase our conversion rates and net ads. Our partnership with Siemens and our other initiatives to become the infrastructure layer in custom manufacturing will further accelerate these trends. In Q2, we further strengthened our US injection molding offering. We added new auto-coatable materials To expand choices for our buyers, we also made free, on-demand, design-for-manufacturability consultations, schedulable directly on the platform, connecting customers with our injection molding experts from the very first coat. Additionally, we launched self-service, one-click reordering for injection molded parts. customers can generate new quotes that automatically carry forward configurations, specifications, and files from the original order, routing them directly back to the original supplier holding the tool. Small thing on the surface, but it is exactly the kind of friction we are trying to strip out everywhere, because friction is the only thing standing between a first order and a habit. We are ever more focused Our global network of over 5,000 active suppliers across 50 countries remains a significant strategic advantage, giving buyers unmatched speed, capacity, and resilience. In Q2, we added capacity in newer international markets, providing our buyers more choice and flexibility, including India and Vietnam. We continue to expand domestically, as we recently referenced in our Texas Market Press release. Additionally, we are investing in new categories, adding suppliers with specific advanced capabilities and certifications. Furthermore, we are supporting our high-performing partners in obtaining additional certifications to meet growing production demands, alongside expanding supplier breadth, We continue to expand the depth of our relationship with each supplier, driving up average volume per supplier and becoming more integral to their long-term success. Our fourth focus area is deepening enterprise engagement. We continue to deliver robust enterprise growth. Our Q2 revenue from our larger customers increased by more than 40%. We delivered a record net addition of 175 accounts with greater than $50,000 spent. As Xometry becomes more embedded in our customers' workflows, we are seeing continued wallet share gains and more predictable spend. We ended 2025 with four accounts spending at least $10 million annually. We expect more accounts to cross that threshold in 2026. This is driven by multi-year production programs across key end markets. For example, this deeper integration is exactly what we saw with a major enterprise robotics leader who faced a critical build deadline. They turned to us with a massive challenge, nearly 200 complex parts, including metal structures and tight tolerance CNC components, all needed within a short delivery window. We brought the strength of a marketplace to bear and leveraged 40 network suppliers to deliver the full build on time and on spec. This success proved that our platform is the go-to solution for high stakes, large scale hardware programs directly resulting in significant follow on production work. The final focus area I will share is leveraging services opportunities. Our services offerings under Thomas helped us engage with suppliers who aren't yet in the marketplace ecosystem. Thomas has built the largest digital sourcing network in North America for industrial manufacturing, providing buyers access to over 500,000 suppliers. We are focused on improving our monetization on the Thomas platform and leveraging the vast network to supplement Xometry's supplier capacity. We made strong progress on our Thomas platform in Q2. We have completed the transition to our new ad platform and redesigned search experience. These are already healing improvement in monetization. We are building on this momentum by launching new AI-powered tools and processes for our Thomas marketing services. With the traction we are seeing across advertising and marketing services, we are ever more confident Thank you for joining us. and proud of the pace at which our teams continue to execute our product-led growth strategy. I will now turn the call over to James for a more detailed review of Q2 and our business outlook.