Group 1: Fund Performance - Liberty Park Fund returned 1.13% net of fees in Q3 2025, significantly underperforming the Russell 2000's return of 12.40% [1] - The fund's long positions grew by 14.42%, contributing 12.38% on a weight-adjusted basis, while shorts increased by 18.60%, detracting 10.85% on a weight-adjusted basis [1] - The average gross exposure was 142.48%, and the average net exposure was 33.61% [1] Group 2: Xometry, Inc. Overview - Xometry, Inc. (NASDAQ:XMTR) is an AI-powered online marketplace for custom-manufactured parts, with a one-month return of 1.85% and a 52-week gain of 42.85% [2] - As of December 31, 2025, Xometry, Inc. stock closed at $59.47 per share, with a market capitalization of $3.048 billion [2] Group 3: Xometry, Inc. Financial Performance - Xometry, Inc. reported a revenue growth of 28% year-over-year in Q3 2025, reaching $181 million, driven by strong marketplace growth [3] - The company continues to experience over 40% growth in its enterprise business, and the fund remains positive on its long-term potential [3] - Xometry, Inc. was held by 32 hedge fund portfolios at the end of Q3 2025, an increase from 22 in the previous quarter [3]

Core Insights - A significant trend is emerging where approximately 80% of US companies are expected to bring manufacturing back to the US, indicating a shift towards reshoring and nearshoring practices [1][3] - The concept of "Made in America" is evolving into "Made to Win," suggesting that companies that do not rebuild domestic manufacturing capacity may lose market share [2][3] Manufacturing Outlook - 29% of CEOs have already brought back work to the US, with a larger percentage planning to do so, highlighting a competitive advantage for those who reshore [3] - The return of manufacturing is not solely dependent on Federal Reserve rate cuts; factors such as AI advancements and national security concerns are also driving this trend [5][7] AI and Automation - By 2026, AI is expected to reshape the manufacturing workforce, transitioning from pilot projects to integral operations, which will enhance productivity and favor localized manufacturing [6] - The integration of AI in manufacturing is anticipated to create more automation, further supporting the trend of bringing work back to the US [6] National Security Concerns - Manufacturing is increasingly viewed as a national security issue, with bipartisan support for ensuring domestic capabilities in critical industries [7] - This perspective is consistent across different administrations, emphasizing the importance of self-sufficiency in manufacturing [7] Supply Chain Strategies - Companies are diversifying their global supply chains, moving away from reliance on a single country to ensure resilience against various risks [10][12] - The focus is on establishing operations in multiple locations to maintain supply chain integrity regardless of political or economic changes [10][12] Workforce Dynamics - The narrative around blue-collar jobs is shifting, with high-tech manufacturing roles becoming more attractive to younger generations, particularly in the context of AI integration [13][14] - These high-paying, high-demand jobs are critical for national security and are expected to draw interest from Gen Z workers [14]

Summary of Xometry Conference Call Company Overview - **Company**: Xometry (NasdaqGS: XMTR) - **Industry**: Custom Manufacturing Marketplace - **Business Model**: AI-powered marketplace connecting buyers and suppliers in a fragmented industry Key Points and Arguments Marketplace Dynamics - Xometry operates an AI-powered marketplace for custom manufacturing, addressing a historically offline and fragmented industry with hundreds of thousands of small manufacturers and millions of buyers [2][3] - The platform provides buyers with instant pricing, visibility into manufacturing options, and resilient supply chains, significantly reducing the time to obtain quotes from days or weeks to seconds [3][4] - Suppliers can join the marketplace at no cost, gaining access to a broader customer base without the burden of sales and marketing [5] Growth and Market Trends - Despite macroeconomic headwinds, Xometry has experienced accelerated growth, gaining market share by offering better value propositions compared to traditional methods [9][10] - The enterprise segment has shown significant traction, with a focus on integrating with customers' procurement platforms and enhancing the sales strategy to target larger accounts [13][15][19] - In 2024, Xometry reported 1,700 accounts with over $50,000 spent, up from 100 accounts with over $500,000 spent the previous year, indicating strong growth in enterprise customers [16] Financial Performance - Xometry expects marketplace growth of 27-28% for the full year 2025, driven by success across all segments and product initiatives [23][26] - The company achieved a gross profit margin of 35.7%, with gross profit dollars growing 40% year-over-year, and an adjusted EBITDA margin of 21% year-to-date [36] International Expansion - Xometry's international business has grown from $3 million in 2020 to a $120 million run rate, outpacing U.S. growth [40][42] - The company aims for 30-40% of marketplace revenue to come from international markets, leveraging technology developed in the U.S. for global expansion [39][40] Product Innovation and Customer Experience - Xometry has invested in product innovation, including the launch of the Work Center Mobile app to enhance supplier communication and job visibility [31][34] - The company is focused on personalizing the customer experience through data science and machine learning, aiming to become the preferred marketplace for customized parts [30][31] Advertising and Cross-Pollination Opportunities - The acquisition of ThomasNet presents a unique opportunity for advertising and cross-pollination within the Xometry ecosystem, enhancing the customer experience and supplier visibility [49][51] Future Outlook - Xometry envisions becoming a $100 billion-plus company, positioning itself as the leader in custom manufacturing by leveraging data, networks, and product innovation [68] Additional Important Insights - The company emphasizes the importance of balancing growth and profitability, with a focus on disciplined capital expenditure and operational efficiency [36][38] - Xometry's marketplace model allows for flexible sourcing across global suppliers, which is particularly advantageous in the context of tariffs and supply chain disruptions [47][48]

Core Insights - Xometry, Inc. has been recognized on the Deloitte Technology Fast 500 list for the sixth consecutive year, highlighting its status as one of the fastest-growing technology companies in North America [1][4]. Company Performance - Xometry achieved a remarkable 150% revenue growth from 2021 to 2024, driven by its AI-powered marketplace, an expanding network of buyers and suppliers, and strong enterprise engagement [2][3]. - The company is on track to generate $1 billion in revenue for small- and medium-sized U.S. manufacturers through its marketplace during the same period [2]. Industry Recognition - The Deloitte Technology Fast 500 ranks companies based on their percentage of fiscal year revenue growth, emphasizing the importance of proprietary technology and intellectual property in driving revenue [4][5]. - To qualify for the Fast 500, companies must have a minimum of $50,000 in base-year operating revenues and at least $5 million in current-year operating revenues, with a growth rate of 50% or greater [5]. Company Overview - Xometry's AI-powered marketplace and cloud-based services are transforming the manufacturing industry by providing essential resources for manufacturers and streamlining procurement processes for buyers [6].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - Xometry, Inc. (XMTR) is positioned at the intersection of manufacturing and technology, making it an interesting investment opportunity [1] - The manufacturing sector is identified as a promising area for investment due to its growth potential [1]

Company Performance - Xometry (XMTR) reported strong Q3 results with significant revenue growth and narrowing losses [1] - Guidance for Q4 suggests a moderation in growth, but this may be overly conservative, with expectations for continued growth [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misinterpretations of long-term business prospects [1] - The firm aims for excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's investment approach emphasizes company and industry fundamentals to uncover unique insights, with a preference for smaller cap stocks [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Some industries may experience stagnation or secular decline, potentially improving business performance due to reduced competition [1] - The economy is increasingly influenced by asset-light businesses, leading to a decline in infrastructure investment needs [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]

Active Buyers and Revenue Growth - As of September 30, 2025, the number of Active Buyers reached 78,282, representing a 21% increase from 64,851 as of September 30, 2024[158]. - For the quarter ended September 30, 2025, 98% of revenue was generated from existing accounts, indicating strong account retention and revenue predictability[161]. - The number of accounts with Last Twelve-Month Spend of at least $50,000 increased by 14% to 1,724 as of September 30, 2025, up from 1,506 as of September 30, 2024[164]. - Total revenue increased by $39.0 million, or 28%, from $141.7 million for the three months ended September 30, 2024, to $180.7 million for the same period in 2025[195]. - Marketplace revenue increased by $39.6 million, or 31%, from $127.0 million for the three months ended September 30, 2024, to $166.6 million for the same period in 2025, driven by increased buyer activity[195]. - Total revenue increased by $97.3 million, or 24%, from $397.0 million for the nine months ended September 30, 2024, to $494.2 million for the nine months ended September 30, 2025[216]. - Marketplace revenue increased by $99.7 million, or 28%, from $351.4 million for the nine months ended September 30, 2024, to $451.2 million for the nine months ended September 30, 2025, driven by increased buyer activity[216]. Financial Performance and Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2025, was $6.1 million, compared to $(0.6) million for the same quarter in 2024, reflecting improved operational efficiency[168]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $10.1 million, a significant improvement from $(10.7) million for the same period in 2024[169]. - For the three months ended September 30, 2025, Non-GAAP net income was $6.2 million, compared to $1.1 million for the same quarter in 2024, representing an increase of 463%[171]. - For the nine months ended September 30, 2025, Non-GAAP net income was $11.7 million, compared to a Non-GAAP net loss of $(5.2) million for the same period in 2024[172]. - Non-GAAP net income for the nine months ended September 30, 2025, represented 2.4% of revenue, compared to (1.3)% of revenue for the same period in 2024[172]. Operating Expenses and Profitability - Total operating expenses for the three months ended September 30, 2025, were $83.1 million, compared to $67.3 million for the same period in 2024[191]. - Gross profit for the three months ended September 30, 2025, was $72.0 million, compared to $55.8 million for the same period in 2024[191]. - The gross margin for marketplace revenue increased to 35.7% for the three months ended September 30, 2025, from 33.6% for the same period in 2024[194]. - Loss from operations for the three months ended September 30, 2025, was $(11.1) million, compared to $(11.5) million for the same period in 2024[191]. - Total gross margin was 39.2% for the nine months ended September 30, 2025, compared to 39.4% for the same period in 2024[222]. Cash Flow and Financing Activities - For the nine months ended September 30, 2025, net cash provided by operating activities was $1.7 million, compared to a net cash used of $24.5 million in the same period of 2024[262][263]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $6.0 million, primarily due to the purchase of property and equipment of $19.9 million[264]. - Net cash provided by financing activities was $2.5 million for the nine months ended September 30, 2025, resulting from $241.4 million in net proceeds from the issuance of the 2030 Notes[266]. - The company issued $250.0 million of 0.75% Convertible Senior Notes due 2030, with net proceeds of approximately $241.4 million[153]. - The company recorded approximately $17.5 million of net proceeds from the 2030 Notes to pay the cost of the Capped Calls, classified as equity[257]. Workforce and Restructuring - The company initiated restructuring actions in 2025, resulting in a workforce reduction of approximately 5% and incurring $1.5 million in employee termination costs[154]. International Operations and Currency Impact - Approximately 16% of the company's revenues for the nine months ended September 30, 2025, were generated from international operations, primarily in Euros[273]. - If the average exchange rate of Euros changed unfavorably by 10%, revenues for the nine months ended September 30, 2025, would have decreased by 1.3%[273]. Other Financial Metrics - Interest and dividend income decreased by $1.7 million, or 20.5%, from $8.3 million for the nine months ended September 30, 2024, to $6.6 million for the nine months ended September 30, 2025[209]. - General and administrative expense increased by $5.9 million, or 12.4%, from $47.5 million for the nine months ended September 30, 2024, to $53.4 million for the nine months ended September 30, 2025[207]. - Net loss attributable to common stockholders was $53.1 million for the nine months ended September 30, 2025, compared to a net loss of $40.5 million for the same period in 2024[213]. - The company experienced a net decrease in operating assets and liabilities primarily driven by changes in accounts receivable of $23.4 million due to increased sales[262]. - The company did not experience delays in receiving payments from U.S. government agencies during the quarter ended September 30, 2025, but an extended government shutdown could disrupt cash flows[259].

Core Insights - Xometry reported quarterly earnings of $0.11 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.02 per share a year ago [1] - The company achieved revenues of $180.72 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 7.42% and up from $141.7 million year-over-year [2] - Xometry's stock has increased approximately 13.9% year-to-date, compared to a 16.5% gain in the S&P 500 [3] Earnings Performance - The company has surpassed consensus EPS estimates three out of the last four quarters, with a notable surprise of +80% in the previous quarter [1] - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $175.59 million, and for the current fiscal year, the estimate is $0.35 on revenues of $657.33 million [7] Market Outlook - The sustainability of Xometry's stock price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Rank for Xometry is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Manufacturing - General Industrial industry, to which Xometry belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Q3 revenue increased 28% year-over-year to $181 million, with marketplace revenue at $167 million and supplier services revenue at $14.1 million [15][16] - Q3 gross profit was $72 million, a 29% year-over-year increase, with a gross margin of 39.9% [17] - Adjusted EBITDA for Q3 was $6.1 million, compared to a loss of $0.6 million in Q3 2024, marking a significant improvement [18][19] - Cash and cash equivalents at the end of Q3 were $225 million, a decrease of approximately $1 million from Q2 2025 [19] Business Line Data and Key Metrics Changes - Marketplace revenue grew 31% year-over-year, driven by strong execution and expansion of buyer and supplier networks [15][16] - Supplier services revenue declined approximately 1% quarter-over-quarter, stabilizing the core advertising business [17] - Active buyers increased 21% year-over-year to 78,282, with a net addition of 3,505 active buyers [16] Market Data and Key Metrics Changes - Marketplace growth was robust across verticals including semiconductors, aerospace, and automotive [16] - International segment adjusted EBITDA loss was $4.2 million in Q3 2025, compared to $2 million in Q3 2024, indicating ongoing investments for global scale [19] Company Strategy and Development Direction - The company aims to become the de facto digital rails in custom manufacturing, focusing on marketplace dynamics and AI technology [5][8] - Investments in technology and product development are expected to drive future growth, with a focus on enhancing buyer and supplier experiences [8][12] - The company is raising its full-year marketplace growth outlook from 23%-24% to 27%-28% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth despite an uncertain macro environment, with expectations for 20% total revenue growth in 2026 [23] - The company is focused on balancing growth and profitability while investing in technology to scale the business [50] Other Important Information - The company launched auto-quoting for injection molding services in the U.S. and a new Workcenter mobile app to enhance supplier engagement [9][12] - The company expects Q4 revenue in the range of $182-$184 million, representing 23%-24% growth year-over-year [22] Q&A Session Summary Question: Can you unpack the 20% growth for 2026? - Management indicated that the growth is driven by marketplace growth initiatives and does not assume macroeconomic improvements [25][27] Question: What is the significance of the Work Center mobile app? - The app is designed to enhance customer and supplier experiences by simplifying data sharing and improving engagement [29][30] Question: Can you discuss team changes and talent acquisition? - The company is attracting top talent to enhance technology capabilities, which is crucial for achieving revenue goals [33][34] Question: What changed in guidance from Q2 to Q3? - Increased customer adoption of technology tools and strong performance across enterprise accounts contributed to the guidance change [47] Question: How is the international expansion performing? - International revenue grew 23% year-over-year, with expectations for it to become 30%-40% of marketplace revenue over time [44][45]