Xometry, Inc.

Previous wording

Xometry, Inc. (“Xometry”, the “Company”, “our”, or “we”) is an AI-native global online manufacturing marketplace with a suite of services that are rapidly digitizing the custom manufacturing industry. Xometry’s marketplace enables the design-to-production workflow by providing the AI-driven execution layer that translates design intent into intelligent sourcing decisions and production outcomes at scale. The marketplace offers transparency and traceability from the first quote to final delivery. We provide services that power the broader manufacturing lifecycle. These services include advertising and marketing services through our Thomasnet industrial sourcing platform, financial services and Workcenter, our cloud-based manufacturing execution system. These services deepen our relationships with suppliers. Together, our marketplace and services platforms provide manufacturers the critical resources they need to grow their business and make it easy for buyers to create locally resilient supply chains.

Current wording

Xometry, Inc. (“Xometry”, the “Company”, “our”, or “we”) is an AI-native global online manufacturing marketplace with a suite of services that are rapidly digitizing the custom manufacturing industry. Xometry’s marketplace enables the design-to-production workflow by providing the AI-driven execution layer that translates design intent into intelligent sourcing decisions and production outcomes at scale. The marketplace offers transparency and traceability from the first quote to final delivery. We provide services that power the broader manufacturing lifecycle. These services include advertising and marketing services through our Thomasnet industrial sourcing platform, financial services and Workcenter, our cloud-based manufacturing execution system. These services deepen our relationships with suppliers. Together, our marketplace and services platforms provide manufacturers with the critical resources they need to grow their business and make it easy for buyers to create locally resilient supply chains.

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 10, Commitments and Contingencies—Restructuringfor our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

During 2025 and 2026, we initiated restructuring actions to help improve efficiency and align resources by reducing our workforce by approximately 5% and 4%, respectively. The workforce reductions focused on realigning our staffing levels to help us meet the current and future objectives of our business. For the three and nine months ended September 30, 2026, we incurred $1.4 million and $1.3 million, respectively, for employee termination costs related to the restructuring. For the three and nine months ended September 30, 2025, we incurred $(0.1) million and $1.5 million, respectively, for employee termination costs related to the restructuring, respectively. Refer to Note 10, Commitments and Contingencies—Restructuringfor our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

On July 1, 2026, we acquired the assets of GoBRANDgo, LLC (“GoBRANDgo”) pursuant to an Asset Purchase Agreement. The acquisition of GoBRANDgo is expected to enhance our marketing services offering through GoBRANDgo's AI and automation capabilities. The aggregate non-contingent portion of the purchase price was approximately $4.6 million and was paid in cash on the closing date. In addition, the Asset Purchase Agreement includes a contingent consideration arrangement to the former owners of GoBRANDgo of up to a maximum of $2.5 million (undiscounted) in the Company’s Class A common stock based upon the achievement of certain revenue and adjusted earnings before interest, taxes, depreciation and amortization targets.

Current wording

On July 1, 2026, we acquired certain assets and liabilities of GoBRANDgo, LLC (“GoBRANDgo”), a strategic marketing agency based in St. Louis, pursuant to an asset purchase agreement (the "GoBRANDgo Asset Purchase Agreement"). The acquisition of GoBRANDgo is expected to enhance our marketing services offering through GoBRANDgo’s AI and automation capabilities. The aggregate non-contingent portion of the purchase price was approximately $4.6 million and was paid in cash on the closing date. In addition, the GoBRANDgo Asset Purchase Agreement includes a contingent consideration arrangement to the former owners of GoBRANDgo to receive up to 28,454 shares of the Company’s Class A common stock based on the achievement of 2026 and 2027 performance targets.

Previous wording

Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 89,557 as of June 30, 2026, up 20% from 74,777 as of June 30, 2025. 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 93,812 as of September 30, 2026, up 20% from 78,282 as of September 30, 2025. 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

We define an existing account as an account where at least one buyer has made a purchase on our marketplace. We believe the efficiency and transparency of our business model leads to increasing account stickiness and spend over time. Buyers can utilize our marketplace for both one-off and recurring manufacturing opportunities. For example, a buyer may choose to utilize our marketplace’s CNC manufacturing processes to manufacture a discrete component for a prototype, and then may choose to later use our marketplace to mass produce that same component. A buyer may also recommend our marketplace to other engineers within their organizations who are designing other products and who may use an entirely different set of manufacturing processes, deepening our reach and stickiness with an account.

Current wording

We define an existing account as an account where at least one buyer has made a purchase on our marketplace. We believe the efficiency and transparency of our business model lead to increasing account stickiness and spend over time. Buyers can utilize our marketplace for both one-off and recurring manufacturing opportunities. For example, a buyer may choose to utilize our marketplace’s CNC manufacturing processes to manufacture a discrete component for a prototype and then may choose to later use our marketplace to mass produce that same component. A buyer may also recommend our marketplace to other engineers within their organizations who are designing other products and who may use an entirely different set of manufacturing processes, deepening our reach and stickiness with an account.

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 2,039 as of June 30, 2026, up 23% from 1,653 as of June 30, 2025.

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 2,172 as of September 30, 2026, up 26% from 1,724 as of September 30, 2025.

Previous wording

Adjusted EBITDA and Non-GAAP Net Income (Loss) are non-GAAP financial measures that we use, in addition to our GAAP financial measures, to evaluate our business. We have included Adjusted EBITDA and Non-GAAP Net Income (Loss) in this filing because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that Adjusted EBITDA and Non-GAAP Net Income (Loss) provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Our calculation of Adjusted EBITDA and Non-GAAP Net Income (Loss) may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies. Adjusted EBITDA and Non-GAAP Net Income (Loss) should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Current wording

Adjusted EBITDA and Non-GAAP Net Income are non-GAAP financial measures that we use, in addition to our GAAP financial measures, to evaluate our business. We have included Adjusted EBITDA and Non-GAAP Net Income in this filing because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that Adjusted EBITDA and Non-GAAP Net Income provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Our calculation of Adjusted EBITDA and Non-GAAP Net Income may differ from similarly titled non-GAAP measures, if any, reported by our peer companies and therefore may not serve as an accurate basis of comparison among companies. Adjusted EBITDA and Non-GAAP Net Income should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Previous wording

We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and 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, provision for (benefit from) 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 and other expenses, depreciation and amortization, amortization of lease intangible, provision for (benefit from) 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, 2026, Adjusted EBITDA was $14.1 million, as compared to Adjusted EBITDA of $3.9 million for the same quarter in 2025. For the three months ended June 30, 2026, Adjusted EBITDA Margin was 6.2% of revenue, as compared to 2.4% of revenue for the same quarter in 2025.

Current wording

For the three months ended September 30, 2026, Adjusted EBITDA was $21.4 million, as compared to Adjusted EBITDA of $6.1 million for the same quarter in 2025. For the three months ended September 30, 2026, Adjusted EBITDA Margin was 8.5% of revenue, as compared to 3.4% of revenue for the same quarter in 2025.

Previous wording

For the six months ended June 30, 2026, Adjusted EBITDA was $24.6 million, as compared to Adjusted EBITDA of $4.0 million for the same period in 2025. For the six months ended June 30, 2026, Adjusted EBITDA margin was 5.7% of revenue, as compared to 1.3% of revenue for the same period in 2025.

Current wording

For the nine months ended September 30, 2026, Adjusted EBITDA was $46.1 million, as compared to Adjusted EBITDA of $10.1 million for the same period in 2025. For the nine months ended September 30, 2026, Adjusted EBITDA margin was 6.7% of revenue, as compared to 2.1% of revenue for the same period in 2025.

Previous wording

The increase in Adjusted EBITDA for each of these periods was driven primarily by increased operating efficiencies as we continue to grow our revenue and margins faster than our expenses.

Current wording

The increase in Adjusted EBITDA for each of these periods was driven by strong marketplace gross profit growth and significant operating expense leverage.

Previous wording

We define Non-GAAP Net Income (Loss), as net loss adjusted for stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, charitable contributions of common stock, lease termination, restructuring charges, loss on debt extinguishment, amortization of acquired intangible assets & patents, other amortization 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, as net loss adjusted for stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, charitable contributions of common stock, lease termination, impairment of assets, restructuring charges, loss on debt extinguishment, amortization of acquired intangible assets & patents, other amortization 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

Effective January 1, 2026, we revised our definition of Non-GAAP Net Income (Loss) to exclude depreciation expense which had previously been included as an adjustment. Management believes this revised definition provides a more representative view of our core operating performance. All prior-period amounts have been recast to conform to this new definition.

Current wording

Effective January 1, 2026, we revised our definition of Non-GAAP Net Income to exclude depreciation expense which had previously been included as an adjustment. Management believes this revised definition provides a more representative view of our core operating performance. All prior-period amounts have been recast to conform to this new definition.

Previous wording

For the three months ended June 30, 2026, Non-GAAP net income was $9.9 million, as compared to Non-GAAP net income of $1.1 million for the same quarter in 2025. For the three months ended June 30, 2026, Non-GAAP net income was 4.3% of revenue, as compared to 0.7% of revenue for the same quarter in 2025.

Current wording

For the three months ended September 30, 2026, Non-GAAP net income was $18.6 million, as compared to Non-GAAP net income of $2.1 million for the same quarter in 2025. For the three months ended September 30, 2026, Non-GAAP net income was 7.4% of revenue, as compared to 1.2% of revenue for the same quarter in 2025.

Previous wording

For the six months ended June 30, 2026, Non-GAAP net income was $16.8 million, as compared to Non-GAAP net loss of $(1.4) million for the same period in 2025. For the six months ended June 30, 2026, Non-GAAP net income (loss) was 3.9% of revenue, as compared to (0.5)% of revenue for the same period in 2025.

Current wording

For the nine months ended September 30, 2026, Non-GAAP net income was $35.4 million, as compared to Non-GAAP net income of $0.7 million for the same period in 2025. For the nine months ended September 30, 2026, Non-GAAP net income was 5.1% of revenue, as compared to 0.1% of revenue for the same period in 2025.

Previous wording

Total revenue increased $66.7 million, or 41%, from $162.5 million for the three months ended June 30, 2025 to $229.3 million for the three months ended June 30, 2026. This growth was a result of an increase in marketplace revenue. Marketplace revenue increased $67.1 million, or 45%, from $148.2 million for the three months ended June 30, 2025 to $215.4 million for the three months ended June 30, 2026. 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, 2026 as compared to the prior year period.

Current wording

Total revenue increased $71.7 million, or 40%, from $180.7 million for the three months ended September 30, 2025 to $252.4 million for the three months ended September 30, 2026. This growth was primarily a result of an increase in marketplace revenue. Marketplace revenue increased $71.4 million, or 43%, from $166.6 million for the three months ended September 30, 2025 to $238.0 million for the three months ended September 30, 2026. 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, 2026 as compared to the prior year period.

Previous wording

Total cost of revenue increased $44.8 million, or 46%, from $97.4 million for the three months ended June 30, 2025 to $142.1 million for the three months ended June 30, 2026. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and services for the three months ended June 30, 2026 was $140.6 million and $1.5 million, respectively, as compared to $95.8 million and $1.6 million, respectively, for the three months ended June 30, 2025.

Current wording

Total cost of revenue increased $45.1 million, or 41%, from $108.7 million for the three months ended September 30, 2025 to $153.8 million for the three months ended September 30, 2026. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and services for the three months ended September 30, 2026 was $152.3 million and $1.5 million, respectively, as compared to $107.1 million and $1.6 million, respectively, for the three months ended September 30, 2025.

Previous wording

Gross profit increased $22.0 million, or 34%, from $65.2 million for the three months ended June 30, 2025 to $87.2 million for the three months ended June 30, 2026. The increase in gross profit was primarily due to increases in revenue from marketplace as compared to the prior year period.

Current wording

Gross profit increased $26.7 million, or 37%, from $72.0 million for the three months ended September 30, 2025 to $98.7 million for the three months ended September 30, 2026. The increase in gross profit was primarily due to increases in revenue from marketplace as compared to the prior year period.

Previous wording

Total gross margin was 38.0% for the three months ended June 30, 2026 as compared to 40.1% for the three months ended June 30, 2025. The decrease was primarily driven by faster growth and associated mix shift to marketplace revenue which has lower gross margin than services.

Current wording

Total gross margin was 39.1% for the three months ended September 30, 2026 as compared to 39.9% for the three months ended September 30, 2025. The decrease was primarily driven by faster growth and associated mix shift to marketplace revenue which has lower gross margin than services.

Previous wording

Gross margin for marketplace was 34.7% for the six months ended June 30, 2026, as compared to 33.7% for the six months ended June 30, 2025. 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 36.0% for the three months ended September 30, 2026, as compared to 35.7% for the three months ended September 30, 2025. The improvement was due largely to our AI-driven platform and expanding network of active suppliers which optimize pricing to buyers and suppliers.

Previous wording

Gross margin for services was 89.1% for the three months ended June 30, 2026, as compared to 88.7% for the three months ended June 30, 2025.

Current wording

Gross margin for services was 89.9% for the three months ended September 30, 2026, as compared to 88.7% for the three months ended September 30, 2025.

Previous wording

Sales and marketing expense increased $9.3 million, or 17%, from $56.2 million for the six months ended June 30, 2025 to $65.6 million for the six months ended June 30, 2026, primarily due to increases in commission expense, employee compensation and benefit costs due to increased headcount, consulting expenses and marketing and advertising spend. As a percent of total revenue, sales and marketing expenses decreased to 15.1% for the six months ended June 30, 2026 from 17.9% for the six months ended June 30, 2025.

Current wording

Sales and marketing expense increased $2.9 million, or 9%, from $32.6 million for the three months ended September 30, 2025 to $35.6 million for the three months ended September 30, 2026, primarily due to increases in employee compensation and benefit costs due to increased headcount and commission expenses, partially offset by decreases in consulting expenses, stock-based compensation, and marketing and advertising spend. As a percent of total revenue, sales and marketing expenses decreased to 14.1% for the three months ended September 30, 2026 from 18.1% for the three months ended September 30, 2025.

Previous wording

Advertising expense decreased $0.6 million, from $9.2 million for the three months ended June 30, 2025 to $8.6 million for the three months ended June 30, 2026, primarily due to decreased marketplace advertising.

Current wording

Advertising expense decreased $0.4 million, from $9.2 million for the three months ended September 30, 2025 to $8.8 million for the three months ended September 30, 2026, primarily due to decreased marketplace advertising.

Previous wording

Product development expense increased $2.0 million, or 18%, from $11.0 million for the three months ended June 30, 2025 to $13.0 million for the three months ended June 30, 2026, primarily as a result of an increase in software costs and depreciation and amortization, offset by increases in the amount of compensation and benefits cost and stock-based compensation capitalized to software development. As a percent of total revenue, product development expenses decreased to 5.7% for the three months ended June 30, 2026, as compared to 6.8% for the three months ended June 30, 2025.

Current wording

Product development expense increased $3.6 million, or 29%, from $12.5 million for the three months ended September 30, 2025 to $16.1 million for the three months ended September 30, 2026, primarily as a result of increases in software costs, depreciation and amortization, employee compensation and benefit costs and restructuring costs, partially offset by decreases in stock-based compensation capitalized to software development and consulting expenses. As a percent of total revenue, product development expenses decreased to 6.4% for the three months ended September 30, 2026, as compared to 6.9% for the three months ended September 30, 2025.

Previous wording

General and administrative expense increased $7.8 million, or 46%, from $16.9 million for the three months ended June 30, 2025 to $24.7 million for the three months ended June 30, 2026, primarily driven by increases in stock-based compensation, the costs of charitable contributions of Class A common stock and reserves for bad debt. As a percent of total revenue, general and administrative expenses increased to 10.8% for the three months ended June 30, 2026 from 10.4% for the three months ended June 30, 2025.

Current wording

General and administrative expense increased $4.2 million, or 22%, from $19.5 million for the three months ended September 30, 2025 to $23.7 million for the three months ended September 30, 2026, primarily driven by increases in stock-based compensation, employee compensation and benefit costs, including bonus expense, and the costs of charitable contributions of Class A common stock, partially offset by decreases in software costs and reserves for bad debt. As a percent of total revenue, general and administrative expenses decreased to 9.4% for the three months ended September 30, 2026 from 10.8% for the three months ended September 30, 2025.

Previous wording

Interest expense remained flat at approximately $1.2 million for the three months ended June 30, 2026 and 2025.

Current wording

Interest expense remained flat at approximately $1.3 million for the three months ended September 30, 2026 and 2025.

Previous wording

Interest and dividend income decreased $0.1 million, or 2%, from $4.5 million for the six months ended June 30, 2025 to $4.4 million for the six months ended June 30, 2026. 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 increased $2.3 million, or 108%, from $2.1 million for the three months ended September 30, 2025 to $4.4 million for the three months ended September 30, 2026. The increase was primarily due to higher investment balances in marketable securities.

Previous wording

Segment Adjusted EBITDA from our U.S. reportable segment for the three months ended June 30, 2026 and 2025 was $17.5 million and $6.9 million, respectively. Segment Adjusted EBITDA from our International reportable segment for the three months ended June 30, 2026 and 2025 was $(3.3) million and $(2.9) million, respectively.

Current wording

Segment Adjusted EBITDA from our U.S. reportable segment for the three months ended September 30, 2026 and 2025 was $22.0 million and $10.3 million, respectively. Segment Adjusted EBITDA from our International reportable segment for the three months ended September 30, 2026 and 2025 was $(0.6) million and $(4.2) million, respectively.

Previous wording

Revenue and cost of revenue is presented in the following tables for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

Revenue and cost of revenue is presented in the following tables for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Total revenue increased $120.9 million, or 39%, from $313.5 million for the six months ended June 30, 2025 to $434.4 million for the six months ended June 30, 2026. This growth was a result of an increase in marketplace revenue. Marketplace revenue increased $122.1 million, or 43%, from $284.6 million for the six months ended June 30, 2025 to $406.7 million for the six months ended June 30, 2026. 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, 2026 as compared to the prior year period.

Current wording

Total revenue increased $192.6 million, or 39%, from $494.2 million for the nine months ended September 30, 2025 to $686.9 million for the nine months ended September 30, 2026. This growth was a result of an increase in marketplace revenue. Marketplace revenue increased $193.5 million, or 43%, from $451.2 million for the nine months ended September 30, 2025 to $644.7 million for the nine months ended September 30, 2026. 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, 2026 as compared to the prior year period.

Previous wording

Total cost of revenue increased $76.8 million, or 40%, from $192.0 million for the six months ended June 30, 2025 to $268.8 million for the six months ended June 30, 2026. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and services for the six months ended June 30, 2026 was $265.5 million and $3.3 million, respectively, as compared to $188.8 million and $3.2 million, respectively, for the six months ended June 30, 2025.

Current wording

Total cost of revenue increased $121.8 million, or 41%, from $300.7 million for the nine months ended September 30, 2025 to $422.5 million for the nine months ended September 30, 2026. This increase was primarily the result of an increase in marketplace cost of revenue. Total cost of revenue from marketplace and services for the nine months ended September 30, 2026 was $417.8 million and $4.7 million, respectively, as compared to $295.9 million and $4.8 million, respectively, for the nine months ended September 30, 2025.

Previous wording

Gross profit increased $44.1 million, or 36%, from $121.5 million for the six months ended June 30, 2025 to $165.6 million for the six months ended June 30, 2026. 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 $70.8 million, or 37%, from $193.5 million for the nine months ended September 30, 2025 to $264.3 million for the nine months ended September 30, 2026. 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 38.1% for the six months ended June 30, 2026 as compared to 38.8% for the six months ended June 30, 2025. The decrease was primarily driven by primarily driven by faster growth and associated mix shift to marketplace revenue which has lower gross margin than services.

Current wording

Total gross margin was 38.5% for the nine months ended September 30, 2026 as compared to 39.2% for the nine months ended September 30, 2025. The decrease was primarily driven by faster growth and associated mix shift to marketplace revenue which has lower gross margin than services.

Previous wording

Gross margin for our services was 88.1% for the six months ended June 30, 2026, as compared to 88.9% for the six months ended June 30, 2025.

Current wording

Gross margin for our services was 88.7% for the nine months ended September 30, 2026, as compared to 88.8% for the nine months ended September 30, 2025.

Previous wording

Advertising expense increased $1.4 million, from $16.0 million for the six months ended June 30, 2025 to $17.4 million for the six months ended June 30, 2026 primarily due to increased services advertising.

Current wording

Advertising expense increased $0.9 million, from $25.3 million for the nine months ended September 30, 2025 to $26.2 million for the nine months ended September 30, 2026 primarily due to increased services advertising.

Previous wording

Operations and support expense increased $3.7 million, or 21%, from $17.7 million for the three months ended June 30, 2025 to $21.4 million for the three months ended June 30, 2026, primarily due to increases in consulting expenses and employee compensation and benefit costs due to increased headcount. As a percent of total revenue, operations and support expenses decreased to 9.3% for the three months ended June 30, 2026 from 10.9% for the three months ended June 30, 2025.

Current wording

Operations and support expense increased $11.1 million, or 21%, from $53.2 million for the nine months ended September 30, 2025 to $64.3 million for the nine months ended September 30, 2026, primarily due to increases in employee compensation and benefit costs due to increased headcount, consulting expenses and bonus expense, partially offset by a decrease in stock-based compensation. As a percent of total revenue, operations and support expenses decreased to 9.4% for the nine months ended September 30, 2026 from 10.8% for the nine months ended September 30, 2025.

Previous wording

Product development expense increased $2.2 million, or 10%, from $22.2 million for the six months ended June 30, 2025 to $24.4 million for the six months ended June 30, 2026, primarily as a result of an increase in software costs, depreciation and amortization expense, and increased consulting costs, offset by increases in the amount of compensation and benefits cost and stock-based compensation capitalized to software development. As a percent of total revenue, product development expenses decreased to 5.6% for the six months ended June 30, 2026 as compared to 7.1% for the six months ended June 30, 2025.

Current wording

Product development expense increased $5.8 million, or 17%, from $34.7 million for the nine months ended September 30, 2025 to $40.5 million for the nine months ended September 30, 2026, primarily as a result of increases in software costs, depreciation and amortization expense and consulting costs, partially offset by decreases in compensation and benefits cost and stock-based compensation, which reflects increases in amounts capitalized to software development. As a percent of total revenue, product development expenses decreased to 5.9% for the nine months ended September 30, 2026 as compared to 7.0% for the nine months ended September 30, 2025.

Previous wording

General and administrative expense increased $11.4 million, or 34%, from $34.0 million for the six months ended June 30, 2025 to $45.4 million for the six months ended June 30, 2026, primarily driven by increases in stock-based compensation, the costs of charitable contributions of Class A common stock, reserves for bad debt and higher employee compensation and benefit costs due to increased headcount. As a percent of total revenue, general and administrative expenses decreased to 10.4% for the six months ended June 30, 2026 from 10.8% for the six months ended June 30, 2025.

Current wording

General and administrative expense increased $15.6 million, or 29%, from $53.4 million for the nine months ended September 30, 2025 to $69.1 million for the nine months ended September 30, 2026, primarily driven by increases in stock-based compensation, employee compensation and benefit costs, the costs of charitable contributions of Class A common stock, credit card and bank fees, professional fees, partially offset by a decrease in software costs. As a percent of total revenue, general and administrative expenses decreased to 10.1% for the nine months ended September 30, 2026 from 10.8% for the nine months ended September 30, 2025.

Previous wording

Other expenses decreased by $16.8 million, from $18.2 million for the six months ended June 30, 2025 to $1.5 million for the six months ended June 30, 2026. The decrease was primarily due to a $16.4 million loss on debt extinguishment recognized in connection with the partial repurchase of the 2027 Notes in the second quarter of 2025.

Current wording

Other expenses decreased by $17.6 million, from $19.9 million for the nine months ended September 30, 2025 to $2.3 million for the nine months ended September 30, 2026. The decrease was primarily due to a $16.4 million loss on debt extinguishment recognized in connection with the partial repurchase of the 2027 Notes in the second quarter of 2025.

Previous wording

Segment Adjusted EBITDA from our U.S. reportable segment for the six months ended June 30, 2026 and 2025 was $30.8 million and $9.9 million, respectively. Segment Adjusted EBITDA from our International reportable segment for the six months ended June 30, 2026 and 2025 was $(6.1) million and $(5.9) million, respectively.

Current wording

Segment Adjusted EBITDA from our U.S. reportable segment for the nine months ended September 30, 2026 and 2025 was $52.8 million and $20.2 million, respectively. Segment Adjusted EBITDA from our International reportable segment for the nine months ended September 30, 2026 and 2025 was $(6.7) million and $(10.1) million, respectively.