Xometry (XMTR) delivered "strong" Q4 results but the announcement of a planned CEO transition may be weighing on investor sentiment, RBC Capital Markets said.
Revenue increased 30% to $192 million, up from 28% growth in the previous quarter. Gross profit rose 39% to $75.2 million and marketplace revenue grew 33% year over year. RBC said the results show the company's execution remains impressive despite a challenging economic environment.
The stock has been weak since the earnings release even with strong results. The brokerage said investors appear cautious about the CEO transition and the company's initial 2026 guidance.
The company's management noted that the leadership change, with co-founder Randy Altschuler moving to executive chair and President Sanjeev Singh Sahni set to become CEO on July 1, was planned and comes at a position of strength.
"On the CEO, we feel this has the makings of an orderly transition and do not read into the timing," the firm said. It added that the guidance could be conservative, pointing out that Xometry had initially guided for 20% marketplace growth in 2025 but delivered 30%.
RBC adjusted its price target on Xometry to $55 from $64 and kept its sector perform rating.
Shares of Xometry were down 5.6% in recent Wednesday trading.
Price: 41.95, Change: -2.50, Percent Change: -5.61
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