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What changed in Xometry, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Xometry, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+159 added−141 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-25)

Top changes in Xometry, Inc.'s 2025 10-K

159 paragraphs added · 141 removed · 116 edited across 2 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

14 edited+1 added−1 removed16 unchanged
Biggest changeAny future determination regarding the declaration and payment of dividends, if any, will be at the discretion of our board of directors and will depend on then-existing conditions, including our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board of directors may deem relevant. 43 Performance Graph The following performance graph shows a comparison from June 30, 2021 (the date our Class A common stock commenced trading on the Nasdaq Global Select Market) through December 31, 2024, of the cumulative total return for our Class A common stock, the Nasdaq Composite Index, and the Russell 2000 Index.
Biggest changeAny future determination regarding the declaration and payment of dividends, if any, will be at the discretion of our board of directors and will depend on then-existing conditions, including our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board of directors may deem relevant. Recent Sales of Unregistered Securities None.
Our cybersecurity risk assessment and management processes are implemented and maintained by certain members of management, including (i) our CTO, Vaidyanathan Raghavan, who previously served as the General Manager of Technology at Wayfair and holds a Master of Science in Electrical Engineering degree from the University of Minnesota ; and (ii) our Vice President of Information Technology and Security, Mr.
Our cybersecurity risk assessment and management processes are implemented and maintained by certain members of management, including (i) our CTO, Vaidyanathan Raghavan, who previously served as the General Manager of Technology at Wayfair and holds a 42 Master of Science in Electrical Engineering degree from the University of Minnesota ; and (ii) our Vice President of Information Technology and Security, Mr.
Our board of directors receives such reports periodically from the Audit Committee and from our CTO. The board of directors also receive various reports, summaries or presentations related to cybersecurity threats, risk, and mitigation. 41 It em 2. Properties. We believe that our facilities are well maintained and are generally suitable to meet our needs.
Our board of directors receives such reports periodically from the Audit Committee and from our CTO. The board of directors also receive various reports, summaries or presentations related to cybersecurity threats, risk, and mitigation. It em 2. Properties. We believe that our facilities are well maintained and are generally suitable to meet our needs.
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our Chief Executive Officer, CTO, Chief Financial Officer, and General Counsel, who works with our incident response team to help mitigate and remediate cybersecurity incidents of which they are notified.
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our Chief Executive Officer, President, CTO, Chief Financial Officer, and General Counsel, who works with our incident response team to help mitigate and remediate cybersecurity incidents of which they are notified.
We identify and assess risks from cybersecurity threats by monitoring and evaluating our threat 40 environment using various methods including using manual and automated tools, analyzing reports of threats and actors, evaluating our risk profile, conducting audits, conducting threat and vulnerability assessments, and performing tabletop incident response exercises.
We identify and assess risks from cybersecurity threats by monitoring and evaluating our threat environment using various methods including using manual and automated tools, analyzing reports of threats and actors, evaluating our risk profile, conducting audits, conducting threat and vulnerability assessments, and performing tabletop incident response exercises.
Our management, including our CTO and Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Our management, including our President, CTO and Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more matters could have a material adverse effect on our consolidated results of operations, financial condition or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 42 PART II It em 5.
However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more matters could have a material adverse effect on our consolidated results of operations, financial condition or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 43 PART II It em 5.
All of our offices are leased and we do not own any real property. Our operating leases range in expiration from 2025 to 2029. We have leased offices and/or facilities in the following locations: U.S.
All of our offices are leased and we do not own any real property. Our operating leases range in expiration from 2026 to 2032. We have leased offices and/or facilities in the following locations: U.S.
Our Chief People Officer, CTO and recruiting personnel are responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy, and communicating key priorities to relevant personnel.
Our Chief Human Resource Officer, President, CTO and recruiting personnel are responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy, and communicating key priorities to relevant personnel.
As of February 10, 2025, there was one holder of record of our Class B common stock. Dividend Policy We have never declared or paid cash dividends on our capital stock.
As of February 9, 2026, there was one holder of record of our Class B common stock. Dividend Policy We have never declared or paid cash dividends on our capital stock.
Holders of Record As of February 10, 2025, there were 87 holders of record of our Class A common stock. The actual number of stockholders is greater than this number of record holders and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees.
Holders of Record As of February 9, 2026, there were 60 holders of record of our Class A common stock. The actual number of stockholders is greater than this number of record holders and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees.
The performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or Exchange Act. 44 Recent Sales of Unregistered Securities None. It em 6. [Reserved]. 45
The performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or Exchange Act. Item 6. [Reserved] 45
We are not a party to any legal proceedings, that individually or in the aggregate, are reasonably expected to have a material adverse effect on our consolidated results of operations, financial condition or cash flows.
From time to time, we are involved in various claims and legal actions that arise in the ordinary course of business. We are not a party to any legal proceedings, that individually or in the aggregate, are reasonably expected to have a material adverse effect on our consolidated results of operations, financial condition or cash flows.
Operating Leases City, State Square Footage North Bethesda, MD 28,068 New York, NY 93,072 (1)(2) Horsham, PA 24,377 (2) Gaithersburg, MD 21,529 Lexington, KY 10,109 Culver City, CA 5,838 (2) International Operating Leases City, Country Square Footage Ottobrunn, Germany 21,129 Istanbul, Turkey 11,840 Chelmsford, England 3,304 Lyon, France 1,172 Shenzhen, China 3,983 Shanghai, China 2,085 (1) 50,478 square feet of this office has been sublet.
Operating Leases City, State Square Footage Gaithersburg, MD 31,971 North Bethesda, MD 28,068 Lexington, KY 15,706 Boston, MA 10,183 International Operating Leases City, Country Square Footage Hohenbrunn, Germany 26,103 Bangalore, India 13,490 Istanbul, Turkey 11,840 Shenzhen, China 3,983 Chelmsford, England 3,304 Shanghai, China 2,085 Lyon, France 1,172 Ite m 3. Legal Proceedings.
Removed
(2) All or a portion of these offices are not used by the Company. Ite m 3. Legal Proceedings. From time to time, we are involved in various claims and legal actions that arise in the ordinary course of business.
Added
Purchases of Equity Securities by the Issuer None. 44 Performance Graph The following performance graph shows a comparison from June 30, 2021 (the date our Class A common stock commenced trading on the Nasdaq Global Select Market) through December 31, 2025, of the cumulative total return for our Class A common stock, the Nasdaq Composite Index, and the Russell 2000 Index.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

102 edited+42 added−24 removed44 unchanged
Biggest changeNon-GAAP Net Loss We define Non-GAAP net loss, as net loss adjusted for depreciation and amortization, stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, loss on sale of property and equipment, charitable contributions of common stock, impairment of assets, lease abandonment and termination, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. 52 For the Year Ended December 31, 2024 2023 Non-GAAP Net Loss: Net loss $ (50,403 ) $ (67,465 ) Add (deduct): Depreciation and amortization 13,012 10,738 Stock-based compensation 29,322 22,118 Payroll tax expense related to stock-based compensation (1) 965 — Amortization of lease intangible 720 950 Amortization of deferred costs on convertible notes 1,859 1,860 Acquisition and other 686 824 Loss on sale of property and equipment 2 92 Charitable contribution of common stock 1,686 1,029 Lease abandonment and termination — 8,778 Impairment of assets 82 397 Restructuring charges — 738 Costs to exit the tools and materials business — 586 Non-GAAP Net Loss $ (2,069 ) $ (19,355 ) (1) During 2024, we changed the definition of Non-GAAP Net Loss to exclude payroll tax expense related to stock-based compensation.
Biggest changeYear Ended December 31, 2025 2024 Non-GAAP Net Income (Loss): Net loss $ (61,748 ) $ (50,403 ) Add (deduct): Depreciation and amortization 18,750 13,012 Stock-based compensation 36,362 29,322 Payroll tax expense related to stock-based compensation 2,465 965 Amortization of lease intangible 720 720 Amortization of deferred costs on convertible notes 2,098 1,859 Acquisition and other 1,164 686 Loss on sale of property and equipment — 2 Charitable contribution of common stock 3,272 1,686 Lease termination (4 ) — Impairment of assets 49 82 Restructuring charges 1,262 — Loss on debt extinguishment 16,430 — Non-GAAP Net Income (Loss) $ 20,820 $ (2,069 ) For the year ended December 31, 2025, Non-GAAP Net Income was $20.8 million, as compared to Non-GAAP Net Loss of $(2.1) million for the same period in 2024.
We expect cost of revenue to increase in absolute dollars to the extent our revenue increases and transaction volume increases. As we grow and add suppliers to our platform, we are able to improve our pricing efficiency, we expect cost of revenue to decline as a percentage of revenue over time.
We expect the cost of revenue to increase in absolute dollars to the extent our revenue increases and transaction volume increases. As we grow and add suppliers to our platform, we are able to improve our pricing efficiency and we expect cost of revenue to decline as a percentage of revenue over time.
Other Income (Expenses) Interest Expense Interest expense consists of interest incurred on our outstanding borrowings under our outstanding convertible notes or other borrowings. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” Interest and Dividend Income Interest and dividend income consists of interest and dividends on our cash, cash equivalents and marketable securities.
Other (Expenses) Income Interest Expense Interest expense consists of interest incurred on our outstanding borrowings under our outstanding convertible notes or other borrowings. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” Interest and Dividend Income Interest and dividend income consists of interest and dividends on our cash, cash equivalents and marketable securities.
Historically, our assumptions, judgments and estimates relative to our critical accounting estimates have not differed materially from actual results. 60 Valuation of Goodwill and Intangible Assets Goodwill has indefinite useful life and is not amortized. Goodwill is tested for impairment at least annually on the first day of the fourth quarter, or more frequently if impairment indicators are present.
Historically, our assumptions, judgments and estimates relative to our critical accounting estimates have not differed materially from actual results. Valuation of Goodwill and Intangible Assets Goodwill has indefinite useful life and is not amortized. Goodwill is tested for impairment at least annually on the first day of the fourth quarter, or more frequently if impairment indicators are present.
Investing Activities Cash used in investing activities was $20.2 million during the year ended December 31, 2024, primarily due to the purchase of equity securities of $18.8 million and the purchase of property and equipment (which includes internal-use software development costs) of $18.1 million, offset by the proceeds from the sale of marketable securities of $16.5 million.
Cash used in investing activities was $20.2 million during the year ended December 31, 2024, primarily due to the purchase of marketable securities of $18.8 million and the purchase of property and equipment (which includes internal-use software development costs) of $18.1 million, offset by the proceeds from the sale of marketable securities of $16.5 million.
With 47 operations throughout the majority of the contiguous United States and customers in Europe and Asia, we have established footholds in major markets around the world. As we have expanded our physical presence, we have also added new language functionality to our platforms to reach a wider customer base.
With operations throughout the majority of the contiguous United States and customers in Europe and Asia, we have established footholds in major markets around the world. As we have expanded our physical presence, we have also added new language functionality to our platforms to reach a wider customer base.
Our business benefits from a virtuous network effect, because adding buyers to our platform generates greater demand on our marketplace which in turn attracts more suppliers to the platform, allowing us to rapidly scale and increase the number of manufacturing processes offered on our platform.
Our business benefits from a network effect, because adding buyers to our platform generates greater demand on our marketplace which in turn attracts more suppliers to the platform, allowing us to rapidly scale and increase the number of manufacturing processes offered on our platform.
As permitted in the accounting standards, the Company has the unconditional option to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative assessment. A quantitative impairment test involves comparing the fair value of a reporting unit with its carrying value.
As permitted in the accounting standards, the Company has the unconditional option to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative assessment. 63 A quantitative impairment test involves comparing the fair value of a reporting unit with its carrying value.
We define “suppliers” as individuals or businesses who have been approved by us to either manufacture a product on our marketplace for a buyer or have utilized our supplier services, including our financial services or the purchase of tools and materials.
We define “suppliers” as individuals or businesses who have been approved by us to either manufacture a product on our marketplace for a buyer or have utilized our services, including our financial services or the purchase of tools and materials.
Accordingly, we believe that Adjusted EBITDA and Non-GAAP net loss provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Accordingly, we believe that Adjusted EBITDA and Non-GAAP Net Income (Loss) provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Our calculation of Adjusted EBITDA and Non-GAAP net loss may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies.
Our calculation of Adjusted EBITDA and Non-GAAP net income (loss) may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies.
Operations and Support Operations and support expenses are the costs we incur in support of the buyers and suppliers on our platform which are provided by phone, email and chat for purposes of resolving buyer and supplier-related matters.
Operations and Support Operations and support expenses are the costs we incur in support of the buyers and suppliers on our platform which are provided by phone, email and chat for purposes of resolving buyer and suppliers related matters.
We have included Adjusted EBITDA and Non-GAAP net loss in this filing because they are key measures used by our management to evaluate our operating performance.
We have included Adjusted EBITDA and Non-GAAP Net Income (Loss) in this filing because they are key measures used by our management to evaluate our operating performance.
Buyers purchase specialized CNC manufacturing, sheet metal manufacturing, 3D printing, injection molding, urethane casting, tube cutting, tube bending and finishing services. Customer purchases range from rapid prototyping of single parts to high-volume production on our marketplace. These products are primarily manufactured by our network of suppliers.
Buyers purchase specialized CNC manufacturing, sheet metal manufacturing, 3D printing, injection molding, urethane casting, stamping, extrusions, tube cutting, tube bending and finishing services. Customer purchases range from rapid prototyping of single parts to high-volume production on our marketplace. These products are primarily manufactured by our network of suppliers.
As we add to our supplier base, our AI-driven pricing becomes more competitive, and therefore more attractive to buyers, leading to higher revenue and improved margins. However, if we do not efficiently price the manufacturing opportunities on our platform, our revenue and margins could be adversely impacted.
As we add to our supplier base, our AI-driven pricing becomes more competitive, and therefore more attractive to buyers, leading to higher revenue and improved margins. However, if we do not efficiently price the manufacturing opportunities on our marketplace, our revenue and margins could be adversely impacted.
Refer to Note 11, Debt and Commitments and Contingencies—Restructuring to of our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. 48 Key Operational and Business Metrics In addition to the measures presented in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K, we use the following key operational and business metrics to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and develop forecasts, and make strategic decisions: Active Buyers We define Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months.
Refer to Note 11, Debt and Commitments and Contingencies—Restructuring in Part II, Item 8 of this Form 10-K. 48 Key Operational and Business Metrics In addition to the measures presented in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K, we use the following key operational and business metrics to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and develop forecasts, and make strategic decisions: Active Buyers We define Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months.
This section of our Annual Report on Form 10-K includes a discussion regarding our financial condition and results of operations for the fiscal years ended December 31, 2024 and 2023, and year-to-year comparisons between fiscal years ended December 31, 2024 and 2023.
This section of our Annual Report on Form 10-K includes a discussion regarding our financial condition and results of operations for the fiscal years ended December 31, 2025 and 2024, and year-to-year comparisons between fiscal years ended December 31, 2025 and 2024.
As of December 31, 2024, customers can access our platforms in 18 languages. We will continue to dedicate sales and marketing resources to develop our supplier networks and attract buyers to our marketplace in other regions.
As of December 31, 2025, customers can access our platforms in 18 languages. We will continue to dedicate sales and marketing resources to develop our supplier networks and attract buyers to our marketplace in other regions.
A discussion regarding our financial condition and results of operations for the fiscal year ended December 31, 2022, and year-to-year comparisons between fiscal years ended December 31, 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 29, 2024.
A discussion regarding our financial condition and results of operations for the fiscal year ended December 31, 2023, and year-to-year comparisons between fiscal years ended December 31, 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025.
Financing Activities Cash provided by financing activities was $4.6 million during the year ended December 31, 2024, primarily resulting from $5.1 million of proceeds from the exercise of stock options offset by the payment of contingent considerations related to an acquisition in 2021.
Cash provided by financing activities was $4.6 million during the year ended December 31, 2024, primarily resulting from $5.1 million of proceeds from the exercise of stock options offset by the payment of contingent considerations related to acquisitions in 2021.
A buyer may also recommend our marketplace to other engineers within their organizations who are designing other products and who may use an entirely different set of manufacturing processes, deepening our reach and stickiness with an account. For the quarter ended December 31, 2024, 97% of our revenue was generated from existing accounts.
A buyer may also recommend our marketplace to other engineers within their organizations who are designing other products and who may use an entirely different set of manufacturing processes, deepening our reach and stickiness with an account. For the quarter ended December 31, 2025, 98% of our revenue was generated from existing accounts.
Revenue from our marketplace primarily reflects the sales of parts and assemblies on our platform. Revenue from supplier services primarily includes the sale of advertising and to a lesser extent financial service products, SaaS products and tools and materials.
Revenue from our marketplace primarily reflects the sales of parts and assemblies on our platform. Revenue from services primarily includes the sale of advertising and to a lesser extent financial service products and SaaS products.
Sales and Marketing Sales and marketing expenses are expensed as incurred and include the costs of our digital marketing strategies, branding costs and other advertising costs, certain depreciation and amortization expense, contract acquisition costs and compensation expenses, including stock-based compensation, to our sales and marketing employees.
Sales and Marketing Sales and marketing expenses are expensed as incurred and include the costs of our digital marketing strategies, branding costs and other advertising costs, restructuring charges, certain depreciation and amortization expense, contract acquisition costs and compensation expenses, including stock-based compensation for our sales and marketing employees.
We may not recognize benefits from these investments, and we may not effectively manage additional risks relating to operating outside the United States, including increased operational and regulatory risks. Expansion of Our Supplier Services In 2020, we launched financial services to help our suppliers manage their cash flow.
We may not recognize benefits from these investments, and we may not effectively manage additional risks relating to operating outside the United States, including increased operational and regulatory risks. Expansion of Our Services (previously referred to as “Supplier Services”) In 2020, we launched financial services to help our suppliers manage their cash flow.
Recent Accounting Pronouncements For information on recently issued accounting pronouncements, see Note 2 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Ite m 7A. Quantitative and Qualitative Disclosures About Market Risk. Quantitative and Qualitative Disclosures About Market Risk We are exposed to market risks in the ordinary course of our business.
Recent Accounting Pronouncements For information on recently issued accounting pronouncements, see Note 2 to our Consolidated Financial Statements under Part II, Item 8 of this Annual Report on Form 10-K. Ite m 7A. Quantitative and Qualitative Disclosures About Market Risk. Quantitative and Qualitative Disclosures About Market Risk We are exposed to market risks in the ordinary course of our business.
Gross margin for marketplace was 33.5% for the year ended December 31, 2024, as compared to 30.8% for the year ended December 31, 2023. The improvement over the prior year period was due largely to our AI-driven platform and expanding supplier network which optimizes pricing to buyers and suppliers.
Gross margin for marketplace was 34.7% for the year ended December 31, 2025, as compared to 33.5% for the year ended December 31, 2024. The improvement over the prior year period was due largely to our AI-driven platform and expanding supplier network, which optimizes pricing to buyers and suppliers.
We intend to continue investing in acquiring new buyers through traditional paid sales and marketing techniques as well as leveraging our organic referral network to drive awareness and build trust. The number of Active Buyers on our platform reached 68,267 as of December 31, 2024, up 23% from 55,325 as of December 31, 2023.
We intend to continue investing in acquiring new buyers through traditional paid sales and marketing techniques as well as leveraging our organic referral network to drive awareness and build trust. The number of Active Buyers on our platform reached 81,821 as of December 31, 2025, up 20% from 68,267 as of December 31, 2024.
The suppliers on our platform offer a diversified and expanding mix of manufacturing processes. 46 These manufacturing processes include computer numerical control (“CNC”) manufacturing, sheet metal forming, sheet cutting, 3D printing (including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion and lubricant sublayer photo-curing), die casting, stamping, injection molding, urethane casting, tube cutting, tube bending, as well as finishing services, rapid prototyping and high-volume production.
These manufacturing processes include computer numerical control (“CNC”) manufacturing, sheet metal forming, sheet cutting, 3D printing (including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, 46 carbon digital light synthesis, multi jet fusion and lubricant sublayer photo-curing), die casting, stamping, injection molding, urethane casting, tube cutting, tube bending, as well as finishing services, rapid prototyping and high-volume production.
An increase or decrease in the number of Active Buyers is a key indicator of our ability to attract, retain and engage buyers on our platform. Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 68,267 as of December 31, 2024, up 23% from 55,325 as of December 31, 2023.
An increase or decrease in the number of Active Buyers is a key indicator of our ability to attract, retain and engage buyers on our platform. Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 81,821 as of December 31, 2025, up 20% from 68,267 as of December 31, 2024.
Other Expenses Other expenses consist primarily of realized foreign exchange gains and/or losses, realized and/or unrealized losses on marketable securities, non-income based taxes, losses on the extinguishments of debt and other expenses. Income from Unconsolidated Joint Venture Income from unconsolidated joint venture consists of our share of the joint venture's income.
Other Expenses Other expenses consist primarily of loss on debt extinguishment, realized foreign exchange gains and/or losses, non-income based taxes and other expenses. Income from Unconsolidated Joint Venture Income from unconsolidated joint venture consists of our share of the joint venture’s income.
Cost of Revenue Marketplace cost of revenue primarily consists of the cost to us of the products that are manufactured or produced by us or our suppliers for delivery to buyers on our platform, internal and external production costs, shipping costs and certain internal depreciation.
Services revenue includes the sale of marketing and advertising services and financial service products. Cost of Revenue Marketplace cost of revenue primarily consists of the cost to us of the products that are manufactured or produced by us or our suppliers for delivery to buyers on our platform, internal and external production costs, shipping costs and certain internal depreciation.
As a percent of total revenue, sales and marketing expenses decreased to 19.9% for the year ended December 31, 2024 from 20.2% for the year ended December 31, 2023.
As a percent of total revenue, sales and marketing expenses decreased to 17.9% for the year ended December 31, 2025 from 19.9% for the year ended December 31, 2024.
As a percent of total revenue, operations and support expenses decreased to 10.8% for the year ended December 31, 2024 from 11.3% for the year ended December 31, 2023.
As a percent of total revenue, operations and support expenses decreased to 10.5% for the year ended December 31, 2025 from 10.8% for the year ended December 31, 2024.
Cost of revenue for supplier services primarily consists of internal and external production costs and website hosting. Gross Profit Gross profit, or revenue less cost of revenue, is primarily affected by the growth of our revenue.
Services cost of revenue primarily consists of internal and external production costs and website hosting. Gross Profit Gross profit, or revenue less cost of revenue, is primarily affected by the growth of our revenue and the mix of our business between marketplace and services.
The Company’s platform makes it possible for buyers to quickly receive pricing, expected lead times, manufacturability feedback and place orders on the Company’s platform. The network allows the Company to provide high volumes of unique parts, including custom components and assemblies for its buyers.
The Company’s marketplace makes it possible for buyers to quickly receive pricing, expected lead times, and manufacturability feedback and place orders on the marketplace. The network allows us to provide high volumes of unique parts, including custom components and assemblies for our buyers, as well as larger production orders of single parts.
It is possible that our conclusions regarding impairment of goodwill could change in future periods if, for example, our businesses do not perform as projected or overall economic conditions in future periods vary from current assumptions. For our U.S. reporting unit, our annual goodwill impairment test was performed as of October 1, 2024.
It is possible that our conclusions regarding impairment of goodwill could change in future periods if, for example, our businesses do not perform as projected or overall economic conditions in future periods vary from current assumptions.
The decline during the year ended December 31, 2024 is primarily due to our exit from the tools and materials business and the wind down of Thomas non-core services. 51 Adjusted EBITDA We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, benefit for income taxes, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, stock-based compensation, payroll tax expense related to stock-based compensation, lease abandonment, charitable contributions of common stock, income from an unconsolidated joint venture, impairment of assets, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.
Adjusted EBITDA We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, provision (benefit) for income taxes, stock-based compensation, payroll tax expense related to stock-based compensation, charitable contribution of common stock, income from unconsolidated joint venture, impairment of assets, restructuring charges, and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.
The number of active suppliers, which we define as suppliers that have used our platform at least once during the last twelve months to manufacture a product, has grown 28% from 3,429 for the year ended December 31, 2023 to 4,375 for the year ended December 31, 2024.
The number of active suppliers, which we define as suppliers that have used our platform at least once during the last twelve months to manufacture a product, has grown 17% year-over-year (1) to 4,996 for the year ended December 31, 2025.
Gross Profit and Margin Gross profit increased $37.4 million, or 21%, from $178.3 million for the year ended December 31, 2023 to $215.6 million for the year ended December 31, 2024. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.
Gross Profit and Margin Gross profit increased $53.1 million, or 25%, from $215.6 million for the year ended December 31, 2024 to $268.8 million for the year ended December 31, 2025. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.
We empower suppliers to grow their manufacturing businesses and improve machine utilization by providing access to an extensive, diverse base of buyers. We also offer suppliers supporting products and services to meet their unique needs. The Thomasnet product sourcing and supplier discovery platform provides access to in-depth profiles of 500,000 North American suppliers.
We empower suppliers to grow their manufacturing businesses and improve machine utilization by providing access to an extensive, diverse base of buyers. We also offer suppliers supporting services to meet their unique needs. The Thomasnet digital platform connects industrial buyers with over 500,000 North American suppliers.
We may also engage in equity or debt financings to secure additional funds. Our future capital requirements will depend on many 58 factors, including our revenue growth rate, receivable and payable cycles, the timing and extent of investments in product development, sales and marketing, operations and support and general and administrative expenses.
Our future capital requirements will depend on many factors, including our revenue growth rate, receivable and payable cycles, the timing and extent of investments in product development, sales and marketing, operations and support and general and administrative expenses.
Total revenue for the year ended December 31, 2024 and 2023 was $456.7 million and $403.3 million, respectively, for the U.S. reportable segment, and $88.8 million and $60.1 million, respectively, for the International reportable segment.
Total revenue for the year ended December 31, 2025 and 2024 was $573.8 million and $456.7 million, respectively, for the U.S. reportable segment, and $112.9 million and $88.8 million, respectively, for the International reportable segment.
In addition to being able to manage existing orders, Workcenter is designed to integrate seamlessly with the AI-driven Xometry marketplace, giving suppliers a one-stop view into all of their orders.
In addition to being able to manage existing orders, Workcenter is designed to integrate seamlessly with the AI-driven Xometry marketplace, giving suppliers a one-stop view into all of their orders. These solutions help industrial companies increase online visibility and drive business growth.
Total cost of revenue for the year ended December 31, 2024 and 2023 was $274.8 million and $247.5 million, respectively for the U.S. reportable segment, and $55.1 million and $37.6 million, respectively, for the International reportable segment.
Total cost of revenue for the year ended December 31, 2025 and 2024 was $347.7 million and $274.8 million, respectively for the U.S. reportable segment, and $70.2 million and $55.1 million, respectively, for the International reportable segment.
Expansion of Our International Operations In 2019, we launched Xometry in Europe, followed by Xometry Asia in 2022 and Xometry United Kingdom and Xometry Turkey in 2023. We believe there is significant opportunity in the global manufacturing ecosystem for our marketplace.
(1) In 2025, we adjusted the number of our 2024 Active Suppliers to reflect an immaterial correction. 47 Expansion of Our International Operations In 2019, we launched Xometry in Europe, followed by Xometry Asia in 2022 and Xometry United Kingdom and Xometry Turkey in 2023. We believe there is significant opportunity in the global manufacturing ecosystem for our marketplace.
The majority of our revenue is derived from the sale of part(s) and assemblies to our customers on our marketplace, which we refer to as marketplace revenue.
The majority of our revenue is derived from the sale of part(s) and assemblies to our customers on our marketplace, which we refer to as marketplace revenue. The suppliers on our platform offer a diversified and expanding mix of manufacturing processes.
This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $91.2 million, or 23%, from $394.8 million for the year ended December 31, 2023 to $485.9 million for the year ended December 31, 2024.
This growth was a result of an increase in marketplace revenue, partially offset by a decrease in services revenue. Marketplace revenue increased $143.7 million, or 30%, from $485.9 million for the year ended December 31, 2024 to $629.6 million for the year ended December 31, 2025.
We intend to continue to invest in our AI and machine learning technologies in order to continuously improve the speed and accuracy of our pricing and placement activity. We also continue to invest in our services-oriented architecture and cloud infrastructure to support scalability.
We intend to continue to invest in our AI and machine learning technologies to continuously improve the speed and accuracy of our pricing and placement activity. We also continue to invest in our services-oriented architecture and cloud infrastructure to support scalability. Any investments we make in these areas will occur before we recognize benefits, if any, from the investments.
We believe that the fair value assigned to the assets acquired and liabilities assumed are based on reasonable assumptions and estimates that a market participant would use.
Our determination of the fair value of the intangible assets acquired involves the use of significant estimates and assumptions. Refer to our “Business Combinations” disclosure below. We believe that the fair value assigned to the assets acquired and liabilities assumed are based on reasonable assumptions and estimates that a market participant would use.
The key drivers of Active Buyer growth are continued account and buyer engagement and the success of our strategy to attract new buyers. 49 Percentage of Revenue from Existing Accounts We define an existing account as an account where at least one buyer has made a purchase on our marketplace.
The key drivers of Active Buyer growth are primarily due to strong enterprise growth and efficient corporate marketing initiatives. 49 Percentage of Revenue from Existing Accounts We define an existing account as an account where at least one buyer has made a purchase on our marketplace.
Cash provided by investing activities was $16.8 million during the year ended December 31, 2023, primarily due to the proceeds from the sale of marketable securities of $50.0 million offset by the purchase of property and equipment (which includes internal-use software development costs) of $18.5 million, $11.6 million for the purchase of marketable securities, and $3.3 million for the acquisition of Tridi.
Investing Activities Cash used in investing activities was $16.6 million during the year ended December 31, 2025, primarily due to the purchase of property and equipment (which includes the internal-use software development costs) of $30.2 million and the purchase of marketable securities of $8.5 million offset by the sale of marketable securities of $22.0 million.
Inflation Risk We do not believe that inflation has had a material effect on our business, results of operations, or financial condition. If our costs were to become subject to significant inflationary pressures such as those caused by geopolitical tensions, we may not be able to fully offset such higher costs through price increases.
If our costs were to become subject to significant inflationary pressures such as those caused by geopolitical tensions, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, results of operations and financial condition. 65
Any investments we make in these areas will occur before we recognize benefits, if any, from the investments. Further, the effectiveness of these efforts may be difficult to measure. If we are unable to continue to improve our platform, the efficiency of our platform may be impaired, and our revenue and gross profit may be adversely impacted.
Further, the effectiveness of these efforts may be difficult to measure. If we are unable to continue to improve our marketplace, the efficiency of our marketplace may be impaired, and our revenue and gross profit may be adversely impacted.
We expect product development expense to increase in absolute dollars in the future, though in the near-term product development expenses may fluctuate from period-to-period based on total revenue levels and the timing of our investments in our product development functions as these investments may vary in scope and scale over future periods. 54 General and Administrative General and administrative expenses primarily consist of compensation expenses, including stock-based compensation expenses, for executive, finance, legal and other administrative personnel, professional service fees and certain depreciation and amortization expense.
Product development expenses may fluctuate from period to period based on the timing of our investments, which may vary in scope and scale over future periods. 54 General and Administrative General and administrative expenses primarily consist of compensation expenses, including stock-based compensation expenses, for executive, finance, legal and other administrative personnel, provision for bad debt, professional service fees, facilities cost, restructuring charges and certain depreciation and amortization expense.
Impairment indicators may include any significant changes in the manner of our use of the assets or the strategy of our overall business, certain restructuring initiatives, significant negative industry or economic trends and significant decline in our share price for a sustained period. 61 When such events or changes in circumstances occur, we compare the carrying amounts of the asset or asset groups with their respective estimated undiscounted future cash flows.
Impairment indicators may include any significant changes in the manner of our use of the assets or the strategy of our overall business, certain restructuring initiatives, significant negative industry or economic trends and significant decline in our share price for a sustained period.
If the average exchange rate of Euros changed unfavorably by 10%, our revenues for the year ended December 31, 2024 would have decreased by 1.3%. During the year ended December 31, 2024, our revenues were not materially impacted as the average exchange rate remained consistent between the year period ended December 31, 2023 and December 31, 2024.
If the average exchange rate of Euros changed unfavorably by 10%, our revenues for the year ended December 31, 2025 would have decreased by 1.3%.
The following table sets forth our statement of operations data for the years indicated: Year Ended December 31, 2024 2023 (in thousands) Revenue $ 545,529 $ 463,406 Cost of revenue 329,905 285,147 Gross profit 215,624 178,259 Operating expenses: Sales and marketing 108,437 93,688 Operations and support 58,975 52,372 Product development 39,322 34,462 General and administrative 64,957 70,916 Impairment of assets 82 397 Total operating expenses 271,773 251,835 Loss from operations (56,149 ) (73,576 ) Other income (expenses): Interest expense (4,752 ) (4,784 ) Interest and dividend income 10,782 11,607 Other expenses (757 ) (1,511 ) Income from unconsolidated joint venture 452 446 Total other income 5,725 5,758 Loss before income taxes (50,424 ) (67,818 ) Benefit for income taxes 21 353 Net loss (50,403 ) (67,465 ) Net (loss) income attributable to noncontrolling interest (2 ) 7 Net loss attributable to common stockholders $ (50,401 ) $ (67,472 ) 55 The following table sets forth our statement of operations data expressed as a percentage of total revenue for the years indicated: Year Ended December 31, 2024 2023 Revenue 100.0 % 100.0 % Cost of revenue 60.5 % 61.5 % Gross profit 39.5 % 38.5 % Operating expenses: Sales and marketing 19.9 % 20.2 % Operations and support 10.8 % 11.3 % Product development 7.2 % 7.4 % General and administrative 11.9 % 15.3 % Impairment of assets — % 0.1 % Total operating expenses 49.8 % 54.3 % Loss from operations (10.3 )% (15.8 )% Other income (expenses): Interest expense (0.9 )% (1.0 )% Interest and dividend income 2.0 % 2.5 % Other expenses (0.1 )% (0.3 )% Income from unconsolidated joint venture 0.1 % 0.1 % Total other income 1.1 % 1.3 % Loss before income taxes (9.2 )% (14.5 )% Benefit for income taxes — % 0.1 % Net loss (9.2 )% (14.4 )% Net (loss) income attributable to noncontrolling interest — % — % Net loss attributable to common stockholders (9.2 )% (14.4 )% The following tables present our disaggregated revenue and cost of revenue.
The following table sets forth our statement of operations data for the years indicated: Year Ended December 31, 2025 2024 Revenue $ 686,631 $ 545,529 Cost of revenue 417,858 329,905 Gross profit 268,773 215,624 Operating expenses: Sales and marketing 122,749 108,437 Operations and support 72,415 58,975 Product development 46,792 39,322 General and administrative 72,284 64,957 Impairment of assets 49 82 Total operating expenses 314,289 271,773 Loss from operations (45,516 ) (56,149 ) Other (expenses) income: Interest expense (4,907 ) (4,752 ) Interest and dividend income 8,568 10,782 Other expenses (19,708 ) (757 ) Income from unconsolidated joint venture 404 452 Total other (expenses) income (15,643 ) 5,725 Loss before income taxes (61,159 ) (50,424 ) (Provision) benefit from income taxes (589 ) 21 Net loss (61,748 ) (50,403 ) Net loss attributable to noncontrolling interest (5 ) (2 ) Net loss attributable to common stockholders $ (61,743 ) $ (50,401 ) 56 The following table sets forth our statement of operations data expressed as a percentage of total revenue for the years indicated: Year Ended December 31, 2025 2024 Revenue 100.0 % 100.0 % Cost of revenue 60.9 % 60.5 % Gross profit 39.1 % 39.5 % Operating expenses: Sales and marketing 17.9 % 19.9 % Operations and support 10.5 % 10.8 % Product development 6.8 % 7.2 % General and administrative 10.5 % 11.9 % Impairment of assets — % — % Total operating expenses 45.7 % 49.8 % Loss from operations (6.6 )% (10.3 )% Other (expenses) income: Interest expense (0.7 )% (0.9 )% Interest and dividend income 1.2 % 2.0 % Other expenses (2.9 )% (0.1 )% Income from unconsolidated joint venture 0.1 % 0.1 % Total other (expenses) income (2.3 )% 1.1 % Loss before income taxes (8.9 )% (9.2 )% (Provision) benefit from income taxes (0.1 )% — % Net loss (9.0 )% (9.2 )% Net loss attributable to noncontrolling interest — % — % Net loss attributable to common stockholders (9.0 )% (9.2 )% The following tables present our disaggregated revenue and cost of revenue.
These services help suppliers manage their business more efficiently, even on jobs that they source outside of our platform. In December 2021, we acquired Thomas Publishing Company and its subsidiaries (collectively, “Thomas”), which significantly expanded our supplier services to include digital advertising, marketing services and data solutions for our suppliers.
These services help suppliers manage their business more efficiently, even on jobs that they source outside of our platform. In December 2021, we acquired Thomas, which significantly expanded our services. Thomas offers a suite of digital marketing services including SEO, content creation, data-driven advertising, analytics and insights.
As a percent of total revenue, general and administrative expenses decreased to 11.9% for the year ended December 31, 2024 from 15.3% for the year ended December 31, 2023. Impairment of assets Impairment of assets decreased $0.3 million, or 79%, from $0.4 million for the year ended December 31, 2023 to $0.1 million for the year ended December 31, 2024.
As a percent of total revenue, general and administrative expenses decreased to 10.5% for the year ended December 31, 2025 from 11.9% for the year ended December 31, 2024.
We expect sales and marketing expense to increase in absolute dollars in the future as we grow our business, though in the near-term sales and marketing expenses may fluctuate from period-to-period based on the timing of our investments in our sales and marketing functions as these investments may vary in scope and scale over future periods.
Sales and marketing expenses may fluctuate from period to period based on the timing of our investments, which may vary in scope and scale over future periods.
Operating Expenses Sales and Marketing Sales and marketing expense increased $14.7 million, or 16%, from $93.7 million for the year ended December 31, 2023 to $108.4 million for the year ended December 31, 2024, primarily due to additional sales and marketing employees and their compensation costs, including stock-based compensation and to a lesser extent advertising expense.
Operating Expenses Sales and Marketing Sales and marketing expense increased $14.3 million, or 13%, from $108.4 million for the year ended December 31, 2024 to $122.7 million for the year ended December 31, 2025, primarily due to increases in employee compensation costs, including stock-based compensation and benefit costs, and consulting expenses.
Operations and Support Operations and support expense increased $6.6 million, or 13%, from $52.4 million for the year ended December 31, 2023 to $59.0 million for the year ended December 31, 2024, primarily due to hiring of additional operations and support employees and their 57 compensation costs including stock-based compensation.
Advertising expense increased 1.8%, from $35.1 million for the year ended December 31, 2024 to $35.8 million for the year ended December 31, 2025 due to increased services and marketplace advertising. 58 Operations and Support Operations and support expense increased $13.4 million, or 23%, from $59.0 million for the year ended December 31, 2024 to $72.4 million for the year ended December 31, 2025, primarily due to the hiring of additional operations and support employees and their compensation costs, including stock-based compensation, an increase in consulting costs and severance costs related to restructuring.
Results of Operations The following is our discussion of the consolidated results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023.
(Provision) Benefit for Income Taxes (Provision) benefit for income taxes primarily consists of income based taxes primarily from international operations. 55 Results of Operations The following is our discussion of the consolidated results of operations for the year ended December 31, 2025 as compared to the year ended December 31, 2024.
In addition, our supplier services include financial service products to facilitate faster payments and a cloud-based manufacturing execution system (“Workcenter”) to help suppliers optimize their productivity. Factors Affecting Our Performance Continued Growth in Active Buyers We must maintain and grow our Active Buyer base and grow our wallet share with existing buyers.
These solutions help industrial companies increase online visibility and drive business growth. In addition, our services include financial service products to facilitate faster payments. Factors Affecting Our Performance Continued Growth in Active Buyers We must maintain and grow our Active Buyer base and grow our wallet share with existing buyers.
We intend to continue to invest in our sales and marketing capabilities in the future to continue to increase our brand awareness, add new accounts and further penetrate existing accounts.
We intend to continue to invest in our sales and marketing capabilities in the future to continue to increase our brand awareness, add new accounts and further penetrate existing accounts. We expect sales and marketing expense to increase in absolute dollars in the future as we grow our business but decrease over time as a percentage of revenue.
The non-cash adjustments primarily relate to stock-based compensation of $22.1 million, $14.4 million of reduction to our right of use lease assets and depreciation and amortization of $10.7 million.
The non-cash adjustments primarily relate to stock-based compensation of $36.4 million, depreciation and amortization of $18.8 million, loss on debt extinguishment of $16.4 million and a $4.6 million reduction to our right of use lease assets.
Cost of Revenue Total cost of revenue increased $44.8 million, or 16%, from $285.1 million for the year ended December 31, 2023 to $329.9 million for the year ended December 31, 2024. This increase was primarily the result of an increase in marketplace cost of revenue offset by a decrease in supplier services costs of revenue.
Cost of Revenue Total cost of revenue increased $88.0 million, or 27%, from $329.9 million for the year ended December 31, 2024 to $417.9 million for the year ended December 31, 2025. This increase was primarily the result of an increase in marketplace cost of revenue.
Total cost of revenue from marketplace and supplier services for the year ended December 31, 2024 was $323.4 million and $6.5 million, respectively, as compared to $273.3 million and $11.9 million, respectively, for the year ended December 31, 2023. Marketplace cost of revenue was driven by increased activity and growth on our marketplace which drove increased costs from our suppliers.
Total cost of revenue from marketplace and services for the year ended December 31, 2025 was $411.3 million and $6.5 million, respectively, as compared to $323.4 million and $6.5 million, respectively, for the year ended December 31, 2024.
Revenue and cost of revenue is presented in the following tables for the years ended December 31, 2024 and 2023 (in thousands): For the Year Ended December 31, 2024 2023 Marketplace Revenue $ 485,946 $ 394,754 Cost of revenue 323,365 273,264 Gross Profit $ 162,581 $ 121,490 Gross Margin 33.5 % 30.8 % Supplier services Revenue $ 59,583 $ 68,652 Cost of revenue 6,540 11,883 Gross Profit $ 53,043 $ 56,769 Gross Margin 89.0 % 82.7 % 56 Comparison of the Years Ended December 31, 2024 and 2023 Revenue Total revenue increased $82.1 million, or 18%, from $463.4 million for the year ended December 31, 2023 to $545.5 million for the year ended December 31, 2024.
Revenue and cost of revenue is presented in the following tables for the years ended December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 2024 Marketplace Revenue $ 629,642 $ 485,946 Cost of revenue 411,337 323,365 Gross Profit $ 218,305 $ 162,581 Gross Margin 34.7 % 33.5 % Services Revenue $ 56,989 $ 59,583 Cost of revenue 6,521 6,540 Gross Profit $ 50,468 $ 53,043 Gross Margin 88.6 % 89.0 % 57 Comparison of the Years Ended December 31, 2025 and 2024 Revenue Total revenue increased $141.1 million, or 26%, from $545.5 million for the year ended December 31, 2024 to $686.6 million for the year ended December 31, 2025.
Income from Unconsolidated Joint Venture Income from unconsolidated joint venture remained flat at approximately $0.5 million for the year ended December 31, 2024 and 2023. Additional Segment Considerations Total segment Adjusted EBITDA from our U.S. reportable segment for the year ended December 31, 2024 and 2023 was $0.2 million and ($15.8) million, respectively.
Additional Segment Considerations Segment Adjusted EBITDA from our U.S. reportable segment for the years ended December 31, 2025 and 2024 was $31.0 million and $0.2 million, respectively.
Product Development Product development expense increased $4.9 million, or 14%, from $34.5 million for the year ended December 31, 2023 to $39.3 million for the year ended December 31, 2024, primarily as a result of increases in amortization expense related to developed software assets and additional software costs.
Product Development Product development expense increased $7.5 million, or 19%, from $39.3 million for the year ended December 31, 2024 to $46.8 million for the year ended December 31, 2025, primarily as a result of increases in amortization expense related to capitalized internal-use software development costs, increases in software costs, stock-based compensation, consulting costs and severance costs related to restructuring.
Adjusted EBITDA and Non-GAAP net loss should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. 53 Components of Results of Operations Revenue Our marketplace revenue is primarily comprised of sales of parts and assemblies to customers through our platform.
Adjusted EBITDA and Non-GAAP Net Income (Loss) should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
These costs primarily consist of compensation expenses of the support staff, including stock-based compensation, certain depreciation and amortization expense and software costs used in delivering buyer and suppliers services.
These costs primarily consist of compensation expenses of the support staff, including stock-based compensation, restructuring charges, certain depreciation and amortization expense and software costs used in delivering buyer and suppliers services. We expect operations and support expenses to increase in absolute dollars in the future as we grow our business but decrease over time as a percentage of revenue.
We expect operations and support expense to increase in absolute dollars in the future, though in the near-term operations and support expenses may fluctuate from period-to-period based on total revenue levels and the timing of our investments in our operations and support functions as these investments may vary in scope and scale over future periods.
We expect general and administrative expenses to increase in absolute dollars in the future as we grow our business but decrease as a percentage of revenue. General and administrative expenses may fluctuate from period to period due to the timing of our investments, which may vary in scope and scale over future periods.
Year Ended December 31, 2024 2023 Net loss $ (50,403 ) $ (67,465 ) Add (deduct) Interest expense, interest and dividend income and other expenses (5,273 ) (5,312 ) Depreciation and amortization 13,012 10,738 Amortization of lease intangible 720 950 Benefit for income taxes (21 ) (353 ) Stock-based compensation 29,322 22,118 Payroll tax expense related to stock-based compensation (1) 965 — Lease abandonment — 8,706 Acquisition and other 686 824 Charitable contribution of common stock 1,686 1,029 Income from unconsolidated joint venture (452 ) (446 ) Impairment of assets 82 397 Restructuring charges — 738 Costs to exit the tools and materials business — 586 Adjusted EBITDA $ (9,676 ) $ (27,490 ) (1) During 2024, we changed the definition of Adjusted EBITDA to exclude payroll tax expense related to stock-based compensation.
Year Ended December 31, 2025 2024 Net Loss $ (61,748 ) $ (50,403 ) Add (deduct): Interest expense, interest and dividend income and other expenses (1) 16,047 (5,273 ) Depreciation and amortization 18,750 13,012 Amortization of lease intangible 720 720 Provision (benefit) from income taxes 589 (21 ) Stock-based compensation 36,362 29,322 Payroll tax expense related to stock-based compensation 2,465 965 Acquisition and other 1,164 686 Charitable contribution of common stock 3,272 1,686 Income from unconsolidated joint venture (404 ) (452 ) Impairment of assets 49 82 Restructuring charges 1,262 — Adjusted EBITDA $ 18,528 $ (9,676 ) (1) Includes loss on debt extinguishment.
The increase in marketplace revenue was primarily due to increased buyer activity on the platform for the year ended December 31, 2024, as compared to the prior year period. Supplier services revenue decreased $9.1 million, or 13%, from $68.7 million for the year ended December 31, 2023 to $59.6 million for the year ended December 31, 2024.
The increase in marketplace revenue was primarily due to increased buyer activity on the platform, particularly with respect to enterprise customers, for the year ended December 31, 2025, as compared to the prior year period.
We may, from time to time, repurchase our convertible senior notes using cash on hand, either on the open market or in privately negotiated transactions. 59 Cash Flows Year Ended December 31, 2024 2023 (in thousands) Net cash used in operating activities $ (15,384 ) $ (29,877 ) Net cash (used in) provided by investing activities (20,179 ) 16,806 Net cash provided by financing activities 4,639 1,067 Operating Activities For the year ended December 31, 2024, net cash used in operating activities was $15.4 million, primarily due to a net loss of $(50.4) million adjusted for non-cash charges of $50.5 million and a net decrease in our operating assets and liabilities of $(15.5) million.
Cash Flows Year Ended December 31, 2025 2024 (in thousands) Net cash provided by (used in) operating activities $ 6,086 $ (15,384 ) Net cash used in investing activities $ (16,636 ) $ (20,179 ) Net cash provided by financing activities $ 2,890 $ 4,639 Operating Activities For the year ended December 31, 2025, net cash provided by operating activities was $6.1 million, primarily due to a net loss of $(61.7) million adjusted for non-cash charges of $81.4 million and a net $(13.6) million adjustment from changes in operating assets and liabilities.
The net decrease in operating assets and liabilities is primarily driven by changes in accounts receivable of $20.6 million primarily due to our continued growth, lease liabilities of $5.5 million and contract liabilities of $1.4 million, offset by changes in accounts payable and accrued cost of revenue of $12.6 million, prepaid expenses of $1.7 million and other accrued expenses of $1.6 million.
The net decrease in operating assets and liabilities is primarily driven by changes in accounts receivable of $21.8 million resulting from our continued growth, a reduction in lease liabilities of $6.9 million, and a reduction of prepaid expenses of $2.3 million, offset by changes in accounts payable and accrued cost of revenue of $9.2 million due to the timing of payments to vendors and suppliers, other accrued expenses of $7.4 million and contract liabilities of $2.2 million. 62 For the year ended December 31, 2024, net cash used in operating activities was $15.4 million, primarily due to a net loss of $(50.4) million adjusted for non-cash charges of $50.5 million and a net $(15.5) million adjustment from changes in operating assets and liabilities.
We believe our existing cash and cash equivalents and marketable securities will be sufficient to support our working capital and capital expenditure requirements for at least the next twelve months. We believe we will meet our longer-term expected future cash requirements primarily from a combination of cash flow from operating activities and available cash and cash equivalents and marketable securities.
As of December 31, 2025, our principal sources of liquidity were cash and cash equivalents and marketable securities totaling $219.1 million. We believe our existing cash and cash equivalents and marketable securities will be sufficient to support our working capital and capital expenditure requirements for at least the next twelve months.
Liquidity and Capital Resources We have financed our operations primarily through sales of our equity securities and borrowings under our convertible notes. As of December 31, 2024, our cash and cash equivalents and marketable securities totaled $239.8 million.
Segment Adjusted EBITDA from our International reportable segment for the years ended December 31, 2025 and 2024 was $(12.5) million and $(9.8) million, respectively. 59 Liquidity and Capital Resources Overview We have financed our operations primarily through sales of our equity securities and borrowings under our convertible notes.

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