Xometry, Inc.

Previous wording

Xometry, Inc. (“Xometry”, the “Company”, “we”, or “our”) was incorporated in the State of Delaware in May 2013 and our corporate headquarters is located in North Bethesda, Maryland. Xometry operates a global artificial intelligence (“AI”) powered online manufacturing marketplace, a leading North American industrial sourcing platform Thomasnet® and a suite of cloud-based services including Workcenter and Teamspace that are rapidly digitizing the manufacturing industry. Together, these platforms provide manufacturers the critical resources they need to grow their business and make it easy for buyers to create resilient supply chains. Xometry's marketplaces uses proprietary AI to help buyers efficiently source custom-manufactured parts and assemblies and attain instant pricing and lead times. The AI enables our rapidly growing network of manufacturers to select the optimal jobs to fill their capacity. Our suite of cloud-based services and our Thomasnet industrial sourcing platform helps manufacturers and industrial service providers grow their businesses using our advertising, marketing and financial services.

Current wording

Xometry, Inc. (“Xometry”, the “Company”, “we”, or “our”) was incorporated in the State of Delaware in May 2013 and our corporate headquarters is located in North Bethesda, Maryland. Xometry operates a global artificial intelligence (“AI”) powered online manufacturing marketplace, a leading North American industrial sourcing platform Thomasnet® and a suite of cloud-based services including Workcenter and Teamspace that are rapidly digitizing the manufacturing industry. Together, these platforms provide manufacturers the critical resources they need to grow their business and make it easy for buyers to create resilient supply chains. Xometry’s marketplaces use proprietary AI to help buyers efficiently source custom-manufactured parts and assemblies and attain instant pricing and lead times. The AI enables our rapidly growing network of manufacturers to select the optimal jobs to fill their capacity. Our suite of cloud-based services and our Thomasnet industrial sourcing platform helps manufacturers and industrial service providers grow their businesses using our advertising, marketing and financial services.

Previous wording

We use proprietary technology to enable product designers, engineers, buyers, and supply chain professionals to instantly access the capacity of a global network of manufacturing facilities. The Company’s platform makes it possible for buyers to quickly receive pricing, expected lead times, manufacturability feedback and place orders on the Company’s platform. The network allows the Company to provide high volumes of unique parts, including custom components and assemblies for its buyers, as well as larger production orders of single parts. Xometry’s Teamspace offers enterprise-wide collaboration software that unites engineers, managers and purchasing executives to expedite procurement of custom-manufacturing services. We continue to improve features on Xometry and expand the offering with the launch of Teamspace in Europe in the second quarter of 2025.

Current wording

We use proprietary technology to enable product designers, engineers, buyers, and supply chain professionals to instantly access the capacity of a global network of manufacturing facilities. The Company’s platform makes it possible for buyers to quickly receive pricing, expected lead times, manufacturability feedback and place orders on the Company’s platform. The network allows the Company to provide high volumes of unique parts, including custom components and assemblies for its buyers, as well as larger production orders of single parts. Xometry’s Teamspace offers enterprise-wide collaboration software that unites engineers, managers and purchasing executives to expedite procurement of custom-manufacturing services. We continue to improve features on Xometry and expand the offering with the launch of Teamspace in Europe in the second quarter of 2025. In the third quarter of 2025, Thomasnet launched a new dynamic ad serving technology platform and began selling on the new platform for new customers. During the fourth quarter of 2025, we launched the new Workcenter mobile application, expanding the functionality of the platform.

Previous wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, fluctuations in inflation and interest rates, volatile market conditions, impacts from tariffs, the Russia-Ukraine war, conflict in the Middle East and other geopolitical tensions, have led to economic uncertainty globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology and manufacturing, which may impact our business and our customers’ businesses.

Current wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, fluctuations in inflation and interest rates, volatile market conditions, impacts from tariffs, the ongoing U.S. government shutdown, the Russia-Ukraine war, conflict in the Middle East and other geopolitical tensions, have led to economic uncertainty globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology and manufacturing, which may impact our business and our customers’ businesses.

Previous wording

In June 2025, we issued $250.0 million aggregate principal amount of 0.75% Convertible Senior Notes due 2030. The net proceeds from the issuance of the 2030 Notes were approximately $242.2 million, net of debt issuance costs. We used a portion of the net proceeds to (i) repurchase a portion of our outstanding 1.00% convertible senior notes due 2027, (ii) enter into capped call transactions and (iii) repurchase shares of our Class A common stock. Refer to Note 9, Debt Commitments and Contingenciesfor our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

In June 2025, we issued $250.0 million aggregate principal amount of 0.75% Convertible Senior Notes due 2030. The net proceeds from the issuance of the 2030 Notes were approximately $241.4 million, net of debt issuance costs. We used a portion of the net proceeds to (i) repurchase a portion of our outstanding 1.00% convertible senior notes due 2027, (ii) enter into capped call transactions and (iii) repurchase shares of our Class A common stock. Refer to Note 9, Debt Commitments and Contingenciesfor our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

During 2025, we initiated restructuring actions to help improve efficiency and align resources by reducing our workforce by approximately 5%. The workforce reduction focused on realigning our staffing levels to help us meet the current and future objectives of our business. For the three and six months ended June 30, 2025, we incurred $0.1 million and $1.6 million, respectively, for employee termination costs related to our restructuring. Refer to Note 9, Debt Commitments and Contingencies—Restructuringfor our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

During 2025, we initiated restructuring actions to help improve efficiency and align resources by reducing our workforce by approximately 5%. The workforce reduction focused on realigning our staffing levels to help us meet the current and future objectives of our business. For the nine months ended September 30, 2025, we incurred $1.5 million for employee termination costs related to our restructuring. Refer to Note 9, Debt Commitments and Contingencies—Restructuringfor our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 74,777 as of June 30, 2025, up 22% from 61,530 as of June 30, 2024. The key drivers of Active Buyer growth are continued account and buyer engagement and the success of our strategy to attract new buyers.

Current wording

Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 78,282 as of September 30, 2025, up 21% from 64,851 as of September 30, 2024. The key drivers of Active Buyer growth are continued account and buyer engagement and the success of our strategy to attract new buyers.

Previous wording

Accounts with Last Twelve-Month, or LTM, Spend of At Least $50,000 means an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period. We view the acquisition of an account as a foundation for the addition of long-term buyers to our marketplace. Once an account joins our platform, we aim to expand the relationship and increase engagement and spending activities from that account over time. The number of accounts with LTM Spend of at least $50,000 on our platform reached 1,653 as of June 30, 2025, up 15% from 1,436 as of June 30, 2024.

Current wording

Accounts with Last Twelve-Month, or LTM, Spend of at Least $50,000 means an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period. We view the acquisition of an account as a foundation for the addition of long-term buyers to our marketplace. Once an account joins our platform, we aim to expand the relationship and increase engagement and spending activities from that account over time. The number of accounts with LTM Spend of at Least $50,000 on our platform reached 1,724 as of September 30, 2025, up 14% from 1,506 as of September 30, 2024.

Previous wording

We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income, other expenses, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, benefit for income taxes, stock-based compensation, payroll tax expense related to stock-based compensation, charitable contributions of common stock, income from unconsolidated joint venture, restructuring charges, and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.

Current wording

We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income, other expenses, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, (benefit) provision for income taxes, stock-based compensation, payroll tax expense related to stock-based compensation, charitable contributions of common stock, income from unconsolidated joint venture, impairment of assets, restructuring charges, and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.

Previous wording

For the three months ended June 30, 2025, Adjusted EBITDA was $3.9 million, as compared to Adjusted EBITDA loss of $(2.6) million for the same quarter in 2024. For the three months ended June 30, 2025, Adjusted EBITDA Margin was 2.4% of revenue, as compared to (2.0)% of revenue for the same quarter in 2024. For the six months ended June 30, 2025, Adjusted EBITDA was $4.0 million, as compared to Adjusted EBITDA loss of $(10.1) million for the same period in 2024. For the six months ended June 30, 2025, Adjusted EBITDA Margin was 1.3% of revenue, as compared to (4.0)% of revenue for the same period in 2024. The increase in Adjusted EBITDA was driven primarily by increased operating efficiencies as we continue to grow our revenue and margins faster than our expenses.

Current wording

For the nine months ended September 30, 2025, Adjusted EBITDA was $10.1 million, as compared to Adjusted EBITDA of $(10.7) million for the same period in 2024. For the nine months ended September 30, 2025, Adjusted EBITDA Margin was 2.1% of revenue, as compared to (2.7)% of revenue for the same period in 2024. The increase in Adjusted EBITDA was driven primarily by increased operating efficiencies as we continue to grow our revenue and margins faster than our expenses.

Previous wording

We define Non-GAAP net income (loss), as net loss adjusted for depreciation and amortization, stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, gain on sale of property and equipment, charitable contributions of common stock, lease termination, restructuring charges, loss on debt extinguishment and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.

Current wording

We define Non-GAAP net income (loss), as net loss adjusted for depreciation and amortization, stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, gain on sale of property and equipment, charitable contributions of common stock, lease termination, impairment of assets, restructuring charges, loss on debt extinguishment and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.

Previous wording

For the three months ended June 30, 2025, Non-GAAP net income was $4.7 million, as compared to Non-GAAP net loss of $(0.6) million for the same quarter in 2024. For the quarter ended June 30, 2025, Non-GAAP net income (loss) was 2.9% of revenue, as compared to (0.5)% of revenue for the same quarter in 2024.

Current wording

For the three months ended September 30, 2025, Non-GAAP net income was $6.2 million, as compared to Non-GAAP net income of $1.1 million for the same quarter in 2024. For the quarter ended September 30, 2025, Non-GAAP net income was 3.4% of revenue, as compared to 0.8% of revenue for the same quarter in 2024.

Previous wording

For the six months ended June 30, 2025, Non-GAAP net income was $5.5 million, as compared to Non-GAAP net loss of $(6.3) million for the same period in 2024. For the six months ended June 30, 2025, Non-GAAP net income (loss) was 1.8% of revenue, as compared to (2.5)% of revenue for the same period in 2024.

Current wording

For the nine months ended September 30, 2025, Non-GAAP net income was $11.7 million, as compared to Non-GAAP net loss of $(5.2) million for the same period in 2024. For the nine months ended September 30, 2025, Non-GAAP net income (loss) was 2.4% of revenue, as compared to (1.3)% of revenue for the same period in 2024.

Previous wording

Marketplace cost of revenue primarily consists of the cost to us of the products that are manufactured or produced by us or our suppliers for delivery to buyers on our platform, internal and external production costs, shipping costs and certain internal depreciation. We expect cost of revenue to increase in absolute dollars to the extent our revenue increases and transaction volume increases. As we grow and add suppliers to our platform, we are able to improve our pricing efficiency, we expect cost of revenue to decline as a percentage of revenue over time.

Current wording

Marketplace cost of revenue primarily consists of the cost to us of the products that are manufactured or produced by us or our suppliers for delivery to buyers on our platform, internal and external production costs, shipping costs and certain internal depreciation. We expect cost of revenue to increase in absolute dollars to the extent our revenue increases and transaction volume increases. As we grow and add suppliers to our platform, we are able to improve our pricing efficiency, and we expect cost of revenue to decline as a percentage of revenue over time.

Previous wording

Gross profit, or revenue less cost of revenue, is primarily affected by the growth of our revenue. Our gross profit margin is primarily affected by liquidity of our suppliers’ network and the efficiency of our pricing and will be benefited by increasing the use of existing supplier services and the variety of supplier services offerings over time.

Current wording

Gross profit, or revenue less cost of revenue, is primarily affected by the growth of our revenue. Our gross profit margin is primarily affected by the size of our supplier network and the efficiency of our pricing and will benefit from increasing the use of existing supplier services and the variety of supplier services offerings over time.

Previous wording

Sales and marketing expenses are expensed as incurred and include the costs of our digital marketing strategies, branding costs and other advertising costs, certain depreciation and amortization expense, contract acquisition costs and compensation expenses, including stock-based compensation, to our sales and marketing employees. We intend to continue to invest in our sales and marketing capabilities in the future to continue to increase our brand awareness, add new accounts and further penetrate existing accounts. We expect sales and marketing expense to increase in absolute dollars in the future as we grow our business, though in the near-term sales and marketing expenses may fluctuate from period-to-period based on the timing of our investments in our sales and marketing functions as these investments may vary in scope and scale over future periods.

Current wording

Sales and marketing expenses are expensed as incurred and include the costs of our digital marketing strategies, branding costs and other advertising costs, certain depreciation and amortization expense, contract acquisition costs and compensation expenses, including stock-based compensation, for our sales and marketing employees. We intend to continue to invest in our sales and marketing capabilities in the future to continue to increase our brand awareness, add new accounts and further penetrate existing accounts. We expect sales and marketing expense to increase in absolute dollars in the future as we grow our business, though in the near-term sales and marketing expenses may fluctuate from period to period based on the timing of our investments in our sales and marketing functions as these investments may vary in scope and scale over future periods.

Previous wording

Product development costs that are not eligible for capitalization are expensed as incurred. This account also includes compensation expenses, including stock-based compensation expenses to our employees performing these functions, restructuring charges and certain depreciation and amortization expense. We expect product development expense to increase in absolute dollars in the future, though in the near-term product development expenses may fluctuate from period-to-period based on total revenue levels and the timing of our investments in our product development functions as these investments may vary in scope and scale over future periods.

Current wording

Product development costs that are not eligible for capitalization are expensed as incurred. These costs primarily consist of compensation expenses, including stock-based compensation expenses to our employees performing these functions, restructuring charges and certain depreciation and amortization expense. We expect product development expense to increase in absolute dollars in the future, though in the near-term product development expenses may fluctuate from period to period based on total revenue levels and the timing of our investments in our product development functions as these investments may vary in scope and scale over future periods.

Previous wording

Other expenses consist primarily of loss on debt extinguishment, realized foreign exchange gains and/or losses and other expenses.

Current wording

Other expenses consist primarily of loss on debt extinguishment, realized foreign exchange gains and/or losses, non-income based taxes and other expenses.

Previous wording

Total revenue increased $30.0 million, or 23%, from $132.6 million for the three months ended June 30, 2024 to $162.5 million for the three months ended June 30, 2025. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $30.9 million, or 26%, from $117.3 million for the three months ended June 30, 2024 to $148.2 million for the three months ended June 30, 2025. The increase in marketplace revenue was primarily due to increased buyer activity on the platform, particularly with respect to enterprise customers, for the three months ended June 30, 2025 as compared to the prior year period.

Current wording

Total revenue increased $39.0 million, or 28%, from $141.7 million for the three months ended September 30, 2024 to $180.7 million for the three months ended September 30, 2025. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $39.6 million, or 31%, from $127.0 million for the three months ended September 30, 2024 to $166.6 million for the three months ended September 30, 2025. The increase in marketplace revenue was primarily due to increased buyer activity on the platform, particularly with respect to enterprise customers, for the three months ended September 30, 2025 as compared to the prior year period.

Previous wording

Supplier services revenue decreased $1.0 million, or 6% from $15.3 million for the three months ended June 30, 2024 to $14.3 million for the three months ended June 30, 2025. The decrease in revenue was due to reductions in Thomas advertising and marketing services and to a lesser extent a decrease in Thomas non-core services partly offset by growth in financial services.

Current wording

Supplier services revenue decreased $0.6 million, or 4% from $14.7 million for the three months ended September 30, 2024 to $14.1 million for the three months ended September 30, 2025. The decrease in revenue was due to reductions in Thomas advertising and marketing services and to a lesser extent a decrease in Thomas non-core services partly offset by growth in financial services.

Previous wording

Total revenue for the three months ended June 30, 2025 and 2024 was $135.7 million and $112.2 million, respectively, for the U.S. operating segment and $26.8 million and $20.4 million, respectively, for the International operating segment.

Current wording

Total revenue for the three months ended September 30, 2025 and 2024 was $151.1 million and $117.6 million, respectively, for the U.S. operating segment and $29.6 million and $24.1 million, respectively, for the International operating segment.

Previous wording

Total cost of revenue increased $17.7 million, or 22%, from $79.7 million for the three months ended June 30, 2024 to $97.4 million for the three months ended June 30, 2025. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and supplier services for the three months ended June 30, 2025 was $95.8 million and $1.6 million, respectively, as compared to $78.0 million and $1.7 million, respectively, for the three months ended June 30, 2024.

Current wording

Total cost of revenue increased $22.8 million, or 27%, from $85.9 million for the three months ended September 30, 2024 to $108.7 million for the three months ended September 30, 2025. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and supplier services for the three months ended September 30, 2025 was $107.1 million and $1.6 million, respectively, as compared to $84.3 million and $1.5 million, respectively, for the three months ended September 30, 2024.

Previous wording

Gross profit increased $12.3 million, or 23%, from $52.9 million for the three months ended June 30, 2024 to $65.2 million for the three months ended June 30, 2025. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Current wording

Gross profit increased $16.2 million, or 29%, from $55.8 million for the three months ended September 30, 2024 to $72.0 million for the three months ended September 30, 2025. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Previous wording

Total gross margin was 40.1% for three months ended June 30, 2025 as compared to 39.9% for the three months ended June 30, 2024. The increase was primarily driven by higher marketplace gross margin as compared to the prior period.

Current wording

Total gross margin was 39.9% for the three months ended September 30, 2025 as compared to 39.4% for the three months ended September 30, 2024. The increase was primarily driven by higher marketplace gross margin as compared to the prior period.

Previous wording

Gross margin for marketplace was 35.4% for the three months ended June 30, 2025, as compared to 33.5% for the three months ended June 30, 2024. The improvement was due largely to our AI-driven platform and expanding network of active suppliers which optimizes pricing to buyers and suppliers.

Current wording

Gross margin for marketplace was 35.7% for the three months ended September 30, 2025, as compared to 33.6% for the three months ended September 30, 2024. The improvement was due largely to our AI-driven platform and expanding network of active suppliers which optimizes pricing to buyers and suppliers.

Previous wording

Gross margin for our supplier services improved slightly to 88.9% for the six months ended June 30, 2025, as compared to 88.4% for the prior year period.

Current wording

Gross margin for our supplier services was 88.7% for the three months ended September 30, 2025, as compared to 89.6% for the three months ended September 30, 2024.

Previous wording

Sales and marketing expense increased $2.3 million, or 8%, from $27.5 million for the three months ended June 30, 2024 to $29.8 million for the three months ended June 30, 2025, primarily due to additional sales and marketing employees and their compensation and benefit costs and increased advertising costs. As a percent of total revenue, sales and marketing expenses decreased to 18.3% for the three months ended June 30, 2025 from 20.7% for the three months ended June 30, 2024.

Current wording

Sales and marketing expense increased $5.4 million, or 20%, from $27.2 million for the three months ended September 30, 2024 to $32.6 million for the three months ended September 30, 2025, primarily due to increases in consulting expenses and employee compensation costs, including stock-based compensation and benefit costs. As a percent of total revenue, sales and marketing expenses decreased to 18.1% for the three months ended September 30, 2025 from 19.2% for the three months ended September 30, 2024.

Previous wording

Advertising expense increased 5%, from $8.8 million for the three months ended June 30, 2024 to $9.2 million for the three months ended June 30, 2025 primarily due to increased marketplace advertising.

Current wording

Advertising expense decreased 1.9%, from $9.4 million for the three months ended September 30, 2024 to $9.2 million for the three months ended September 30, 2025 primarily due to decreased marketplace advertising.

Previous wording

Operations and support expense increased $3.6 million, or 25%, from $14.2 million for the three months ended June 30, 2024 to $17.7 million for the three months ended June 30, 2025, primarily due to additional employees and their compensation cost including stock based compensation, consulting expense and increases in severance costs. As a percent of total revenue, operations and support expenses increased to 10.9% for the three months ended June 30, 2025 from 10.7% for the three months ended June 30, 2024.

Current wording

Operations and support expense increased $3.7 million, or 25%, from $14.7 million for the three months ended September 30, 2024 to $18.4 million for the three months ended September 30, 2025, primarily due to increases in stock-based compensation, consulting expenses and employee compensation and benefit costs. As a percent of total revenue, operations and support expenses decreased to 10.2% for the three months ended September 30, 2025 from 10.4% for the three months ended September 30, 2024.

Previous wording

Product development expense increased $1.0 million, or 10%, from $10.0 million for the three months ended June 30, 2024 to $11.0 million for the three months ended June 30, 2025, primarily as a result of increases in amortization expense related to capitalized internal-use software development costs, increases in software costs and increases in severance costs. As a percent of total revenue, product development expenses decreased to 6.8% for the three months ended June 30, 2025 as compared to 7.6% for the three months ended June 30, 2024.

Current wording

Product development expense increased $3.2 million, or 34%, from $9.3 million for the three months ended September 30, 2024 to $12.5 million for the three months ended September 30, 2025, primarily as a result of an increase in amortization expense related to capitalized internal-use software development costs, increases in stock-based compensation and software costs. As a percent of total revenue, product development expenses increased to 6.9% for the three months ended September 30, 2025 as compared to 6.6% for the three months ended September 30, 2024.

Previous wording

General and administrative expense increased $0.5 million, or 3%, from $16.5 million for the three months ended June 30, 2024 to $16.9 million for the three months ended June 30, 2025. The increase was due to increases in the cost of charitable contributions of Class A common stock, reserves for bad debt, consulting costs and software and maintenance costs. As a percent of total revenue, general and administrative expenses decreased to 10.4% for the three months ended June 30, 2025 from 12.4% for the three months ended June 30, 2024.

Current wording

General and administrative expense increased $3.4 million, or 21%, from $16.1 million for the three months ended September 30, 2024 to $19.5 million for the three months ended September 30, 2025, primarily due to increases in reserves for bad debt, the cost of charitable contributions of Class A common stock and consulting costs. As a percent of total revenue, general and administrative expenses decreased to 10.8% for the three months ended September 30, 2025 from 11.3% for the three months ended September 30, 2024.

Previous wording

Interest and dividend income decreased $0.6 million, or 21%, from $2.8 million for the three months ended June 30, 2024 to $2.2 million for the three months ended June 30, 2025. The decrease was primarily due to lower investment in the money market account as the Company funds ongoing operations.

Current wording

Interest and dividend income decreased $0.6 million, or 23%, from $2.8 million for the three months ended September 30, 2024 to $2.1 million for the three months ended September 30, 2025. The decrease was primarily due to lower investment in the money market account as the Company funds ongoing operations.

Previous wording

Total segment Adjusted EBITDA from our U.S. reportable segment for the six months ended June 30, 2025 and 2024 was $9.9 million and $(5.2) million, respectively. Total segment Adjusted EBITDA from our International reportable segment for the six months ended June 30, 2025 and 2024 was $(5.9) million and $(4.9) million, respectively.

Current wording

Segment Adjusted EBITDA from our U.S. reportable segment for the three months ended September 30, 2025 and 2024 was $10.3 million and $1.4 million, respectively. Segment Adjusted EBITDA from our International reportable segment for the three months ended September 30, 2025 and 2024 was $(4.2) million and $(2.0) million, respectively.

Previous wording

Revenue and cost of revenue is presented in the following tables for the six months ended June 30, 2025 and 2024 (in thousands):

Current wording

Revenue and cost of revenue is presented in the following tables for the nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Total revenue increased $58.2 million, or 23%, from $255.3 million for the six months ended June 30, 2024 to $313.5 million for the six months ended June 30, 2025. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $60.1 million, or 27%, from $224.5 million for the six months ended June 30, 2024 to $284.6 million for the six months ended June 30, 2025. The increase in marketplace revenue was primarily due to increased buyer activity on the platform, particularly with respect to enterprise customers, for the six months ended June 30, 2025 as compared to the prior year period.

Current wording

Total revenue increased $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. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $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. The increase in marketplace revenue was primarily due to increased buyer activity on the platform, particularly with respect to enterprise customers, for the nine months ended September 30, 2025 as compared to the prior year period.

Previous wording

Supplier services revenue decreased $1.9 million, or 6%, from $30.8 million for the six months ended June 30, 20244 to $28.9 million for the six months ended June 30, 2025. The decrease in revenue was due to reductions in Thomas advertising and marketing services and to a lesser extent a decrease in Thomas non-core services partly offset by growth in financial services.

Current wording

Supplier services revenue decreased $2.5 million, or 5%, from $45.5 million for the nine months ended September 30, 2024 to $43.1 million for the nine months ended September 30, 2025. The decrease in revenue was due to reductions in Thomas advertising and marketing services and to a lesser extent a decrease in Thomas non-core services partly offset by growth in financial services.

Previous wording

Total revenue for the six months ended June 30, 2025 and 2024, was $263.6 million and $215.5 million, respectively, for the U.S. operating segment, and $50.0 million and $39.8 million, respectively, for the International operating segment.

Current wording

Total revenue for the nine months ended September 30, 2025 and 2024, was $414.6 million and $333.1 million, respectively, for the U.S. operating segment, and $79.6 million and $63.9 million, respectively, for the International operating segment.

Previous wording

Total cost of revenue increased $37.5 million, or 24%, from $154.5 million for the six months ended June 30, 2024 to $192.0 million for the six months ended June 30, 2025. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and supplier services for the six months ended June 30, 2025 was $188.8 million and $3.2 million, respectively, as compared to $150.9 million and $3.6 million, respectively, for the six months ended June 30, 2024.

Current wording

Total cost of revenue increased $60.3 million, or 25%, from $240.4 million for the nine months ended September 30, 2024 to $300.7 million for the nine months ended September 30, 2025. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and supplier services for the nine months ended September 30, 2025 was $295.9 million and $4.8 million, respectively, as compared to $235.3 million and $5.1 million, respectively, for the nine months ended September 30, 2024.

Previous wording

Gross profit increased $20.7 million, or 21%, from $100.8 million for the six months ended June 30, 2024 to $121.5 million for the six months ended June 30, 2025. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Current wording

Gross profit increased $36.9 million, or 24%, from $156.6 million for the nine months ended September 30, 2024 to $193.5 million for the nine months ended September 30, 2025. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Previous wording

Total gross margin was 38.8% for six months ended June 30, 2025 as compared to 39.5% for the six months ended June 30, 2024. The decrease is primarily driven by faster growth and associated mix shift to marketplace revenue which has lower gross margin than supplier services.

Current wording

Total gross margin was 39.2% for the nine months ended September 30, 2025 as compared to 39.4% for the nine months ended September 30, 2024. The decrease is primarily driven by faster growth and associated mix shift to marketplace revenue which has a lower gross margin than supplier services.

Previous wording

Gross margin for marketplace was 33.7% for the six months ended June 30, 2025, as compared to 32.8% for the six months ended June 30, 2024. The improvement was due largely to our AI-driven platform and expanding network of active suppliers which optimizes pricing to buyers and suppliers.

Current wording

Gross margin for marketplace was 34.4% for the nine months ended September 30, 2025, as compared to 33.1% for the nine months ended September 30, 2024. The improvement was due largely to our AI-driven platform and expanding network of active suppliers which optimizes pricing to buyers and suppliers.