With the business potentially at an important milestone, we thought we'd take a closer look at Xometry, Inc.'s (NASDAQ:XMTR) future prospects. Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. On 31 December 2024, the US$1.4b market-cap company posted a loss of US$50m for its most recent financial year. As path to profitability is the topic on Xometry's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Xometry

Xometry is bordering on breakeven, according to the 11 American Trade Distributors analysts. They expect the company to post a final loss in 2026, before turning a profit of US$6.2m in 2027. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Xometry given that this is a high-level summary, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Xometry is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Xometry's case is 90%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Xometry, so if you are interested in understanding the company at a deeper level, take a look at Xometry's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Valuation: What is Xometry worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Xometry is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Xometry’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.