Xometry, Inc. (XMTR): A Bull Case Theory

We came across a bullish thesis on Xometry, Inc. (XMTR) on Value Investigator’s Substack. In this article, we will summarize the bulls’ thesis on XMTR. Xometry, Inc. (XMTR)'s share was trading at $30.16 as of 13^th June. XMTR’s forward P/E was 91.74 respectively according to Yahoo Finance

Xometry (XMTR) operates an AI-powered, asset-light marketplace that connects buyers of custom-manufactured parts with a vast network of global suppliers, streamlining procurement and enabling efficient supply chain management. By offering instant quoting and dynamic supplier matching, Xometry eliminates traditional frictions in sourcing while helping manufacturers optimize capacity. The company earns revenue through a spread-based model, charging buyers more than it pays suppliers, allowing it to scale without owning physical assets.

The recent Q1 earnings confirmed the strength and scalability of this model, with marketplace revenue accelerating to 27% year-over-year growth, up from 20% in Q4, and active buyers growing 22% to over 71,000. Total revenue reached $151 million for the quarter and $574 million on a trailing twelve-month basis. Critically, Xometry posted its first positive adjusted EBITDA ($0.1 million), a major inflection points after a $7.4 million loss the prior year, reflecting early operating leverage.

CEO Randy Altschuler emphasized that global trade complexity and the reshoring trend validate Xometry’s marketplace approach, which proved agile during the COVID-era disruptions. Newly appointed President Sanjeev Sahni further underscored the strategic advantage of Xometry’s geographically diversified supplier base across the U.S. and 50 countries. The company’s model is increasingly resonant in a volatile supply chain landscape, offering speed, flexibility, and resilience without asset burden.

With incremental EBITDA margins exceeding 20% and sustained growth above that level, Xometry is now scaling into profitability. If today’s price reflects pessimism around past losses, this transition phase could offer a compelling entry point with significant upside potential.

Previously, we covered a bullish thesis on Xometry (XMTR) by Unconventional Value in February 2025, framing it as a digital-native marketplace disrupting custom manufacturing through AI, instant quoting, and strong network effects. Despite a ~14% stock decline since, Value Investigator reinforces the thesis by highlighting accelerating revenue growth, a rising active buyer base, and XMTR’s first positive adjusted EBITDA. The company’s asset-light model and global supplier network position it well amid supply chain volatility and reshoring trends. Together, the theses frame Xometry as a structurally advantaged, high-growth platform at an inflection point toward profitability, offering attractive upside from depressed levels.

Xometry, Inc. (XMTR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Xometry, Inc. (XMTR) at the end of the first quarter which was 14 in the previous quarter. While we acknowledge the risk and potential of XMTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.