Shares of Xometry, Inc. (NASDAQ: XMTR) are soaring 9.60% in Tuesday's trading session following the company's impressive first-quarter 2025 earnings report that surpassed analyst expectations and featured an upgraded full-year outlook.

The AI-powered manufacturing marketplace reported Q1 revenue of $150.97 million, beating the consensus estimate of $148.11 million and representing a robust 23% year-over-year increase. Adjusted earnings per share came in at $0.02, marking a significant improvement from a loss of $0.12 per share in the same period last year and surpassing the breakeven expectation.

Xometry's strong performance was driven by accelerated growth in its marketplace segment, which saw a 27% year-over-year increase in revenue to $136 million. The company also reported a 22% increase in active buyers to 71,454, indicating growing adoption of its platform. Notably, Xometry achieved a positive Adjusted EBITDA of $78,000, reflecting a substantial $7.5 million year-over-year improvement and demonstrating progress towards profitability.

Investors are particularly encouraged by Xometry's raised guidance for the full year 2025. The company now expects marketplace revenue growth of at least 22%, up from the previous outlook of at least 20%. Additionally, Xometry anticipates being Adjusted EBITDA positive for the entire year, signaling confidence in its ability to maintain profitability.

The market's enthusiastic response to Xometry's earnings is further supported by positive analyst sentiment. The current average analyst rating on the shares is "buy," with 8 out of 11 analysts recommending either "strong buy" or "buy." Wall Street's median 12-month price target for Xometry stands at $33.00, suggesting significant upside potential from current levels.

As Xometry continues to expand its AI-powered marketplace and drive supply chain resiliency, the company's strong Q1 performance and optimistic guidance suggest it is well-positioned for continued growth in the evolving manufacturing industry. The stock's surge today reflects investor confidence in Xometry's ability to capitalize on the increasing demand for digital manufacturing solutions and its potential for long-term value creation.