Investment Thesis
Xometry demonstrates strong top-line growth of 25.9% with a healthy 38.3% gross margin, but is unprofitable with negative operating income of -5.2M and negative free cash flow of -15.6M. The combination of high debt burden (335.8M) relative to minimal cash reserves (21.0M) and inability to cover interest expenses (coverage ratio of -4.1x) creates significant financial risk.
Strengths
- Strong revenue growth of 25.9% YoY indicates robust market demand and business traction
- Healthy gross margin of 38.3% demonstrates operational efficiency in core service delivery
- Positive operating cash flow of 14.6M and adequate current ratio of 1.78x provide near-term liquidity cushion
Risks
- Negative free cash flow of -15.6M with -7.6% FCF margin indicates cash burn despite revenue growth, depleting resources
- High leverage with 335.8M long-term debt against only 21.0M cash creates acute refinancing and solvency risk
- Negative interest coverage of -4.1x means operating income cannot service debt obligations, increasing default probability
Key Metrics to Watch
- Operating margin trajectory - must achieve profitability from current -2.5% to reduce interest coverage vulnerability
- Free cash flow inflection - FCF margin must turn positive to stop cash depletion and reduce debt pressure
- Debt reduction progress - leverage ratio of 1.19x must improve through debt paydown or equity strengthening
Financial Metrics
Revenue
205.1M
Net Income
-5.3M
EPS (Diluted)
$-1.03
Free Cash Flow
-15.6M
Total Assets
740.3M
Cash
21.0M
Profitability Ratios
Gross Margin
38.3%
Operating Margin
-2.5%
Net Margin
-2.6%
ROE
-1.9%
ROA
-0.7%
FCF Margin
-7.6%
Balance Sheet & Liquidity
Current Ratio
1.78x
Quick Ratio
1.76x
Debt/Equity
1.19x
Debt/Assets
61.7%
Interest Coverage
-4.15x
Long-term Debt
335.8M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T08:49:35.109751 |
Data as of: 2026-03-31 |
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