With the business potentially at an important milestone, we thought we'd take a closer look at Xometry, Inc.'s (NASDAQ:XMTR) future prospects. Xometry, Inc. operates an artificial intelligence (AI) powered online manufacturing marketplace in the United States and internationally. The US$1.3b market-cap company announced a latest loss of US$50m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Xometry will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 11 industry analysts covering Xometry, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$6.2m in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 69% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Xometry's growth isn't the focus of this broad overview, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Xometry is its relatively high level of debt. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in Xometry's case is 90%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Xometry which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Xometry, take a look at Xometry's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Xometry worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Xometry is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Xometry's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.