Xometry, Inc. (NASDAQ: XMTR) saw its stock price surge 5.09% in pre-market trading on Tuesday following the release of its impressive first-quarter 2025 financial results. The AI-powered manufacturing marketplace reported better-than-expected revenue and a significant improvement in profitability, signaling strong momentum for the company.

For the first quarter ended March 31, 2025, Xometry reported revenue of $150.971 million, surpassing analysts' expectations of $148.1 million. This represents a robust 23% year-over-year increase from $122.69 million in the same period last year. The company's strong performance was primarily driven by accelerated growth in its marketplace segment, which saw a 27% year-over-year increase in revenue.

Notably, Xometry achieved a remarkable turnaround in profitability. The company reported adjusted earnings per share (EPS) of $0.02, compared to a loss of $(0.12) per share in the first quarter of 2024. This improvement was underpinned by a significant enhancement in adjusted EBITDA, which reached $78,000, marking a $7.5 million year-over-year improvement. The company's focus on operational efficiency and marketplace growth appears to be paying off, as demonstrated by the 18% increase in gross profit to $56.331 million.

Investors are likely encouraged by Xometry's positive outlook for the second quarter and full year 2025. The company expects Q2 revenue to be between $155 million and $157 million, representing 17-18% year-over-year growth. Moreover, Xometry raised its full-year 2025 marketplace growth outlook from at least 20% to at least 22%, while anticipating positive adjusted EBITDA for the entire year.

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.