Xometry issues $250 million in convertible notes, refinances debt

NORTH BETHESDA, Md. - Xometry, Inc. (NASDAQ:XMTR), a $1.63 billion market cap AI-powered manufacturing marketplace showing strong revenue growth of 19.35% over the last twelve months, announced Thursday it has closed a $250 million offering of 0.75% Convertible Senior Notes due 2030 in a private placement to qualified institutional buyers.

The AI-powered manufacturing marketplace used approximately $216.7 million of the proceeds to repurchase about $201.7 million of its existing 1.00% Convertible Senior Notes due 2027. The company allocated an additional $17.5 million to fund capped call transactions and approximately $8 million to repurchase 220,994 shares of its common stock. According to InvestingPro data, Xometry operates with a moderate debt level and maintains strong liquidity with a current ratio of 3.74.

The new notes carry a 0.75% annual interest rate, payable semiannually beginning December 15, 2025. They have an initial conversion price of approximately $47.06 per share, representing a 30% premium over Xometry’s closing stock price on June 9, 2025.

Xometry purchased a capped call hedge with a cap price initially set at $63.35, which represents a 75% premium over the market price on the transaction date.

"This transaction solidifies our balance sheet, providing us with increased financial flexibility to continue to focus on profitable growth as we digitize manufacturing worldwide," said Randy Altschuler, CEO of Xometry, in the press release statement. While the company is not currently profitable, InvestingPro analysis indicates that net income is expected to grow this year, with analysts forecasting profitability in 2025.

James Miln, CFO of Xometry, noted the transaction was designed to "opportunistically refinance our debt at attractive terms" while minimizing potential future dilution for equity shareholders.

The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Xometry operates an AI-powered marketplace that connects buyers with manufacturers and provides digital manufacturing services. For deeper insights into Xometry’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed valuation metrics in the Pro Research Report, part of the platform’s coverage of 1,400+ US stocks.

In other recent news, Xometry, Inc. reported impressive first-quarter results, exceeding analyst expectations. The company posted adjusted earnings per share of $0.02, surpassing the breakeven forecast, and achieved a 23% year-over-year revenue increase to $150.97 million, beating the consensus estimate of $148.65 million. Xometry’s core marketplace revenue saw a 27% rise, driven by strong growth among U.S. enterprise customers. Looking ahead, the company anticipates second-quarter revenue between $155-157 million, aligning with analyst projections, and has increased its full-year 2025 marketplace growth outlook from 20% to 22%.

In addition to earnings news, Xometry announced plans for a private offering of $225 million in Convertible Senior Notes due 2030, with an option for an additional $25 million. The proceeds are intended for strategic initiatives like capped call transactions and share repurchases. The company aims to minimize dilution and manage capital structure through these financial maneuvers. Xometry ended Q1 with $231 million in cash and marketable securities, highlighting its strong financial position. The company’s active buyers increased by 22% year-over-year, reflecting growing market engagement.

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