Xometry (NASDAQ:XMTR) reported record third-quarter results as marketplace revenue growth, gross-margin expansion and operating leverage helped the custom manufacturing platform achieve its first quarter of GAAP profitability.
Revenue rose 40% year over year to $252 million in the third quarter of 2026, while marketplace revenue increased 43% to $238 million. Services revenue was $14.4 million, up about 2% from a year earlier. Chief Executive Officer Sanjeev Singh Sahni said the company’s results reflected broad-based demand across customer verticals, growing buyer adoption and expansion within large enterprise accounts.
“Q3 was a record quarter for Xometry across many fronts, including revenue, gross profit, marketplace gross margin, and adjusted EBITDA,” Sahni said. He added that the company had reached a revenue run rate above $1 billion and had penetrated less than 1% of its estimated $275 billion addressable custom-manufacturing market.
Profitability and Margin Expansion
Gross profit increased 37% year over year to $98.7 million, supported by a 44% rise in marketplace gross profit. Marketplace gross margin reached a record 36.0%, up 130 basis points from the second quarter.
The company reported GAAP net income of $1.9 million, compared with a GAAP net loss of $11.6 million in the third quarter of 2025. Adjusted EBITDA rose to $21.4 million, or an 8.5% margin, from a 3.4% margin a year earlier. The year-over-year incremental adjusted EBITDA margin was 21%.
Chief Financial Officer James Miln said non-GAAP operating expenses increased 17% year over year to $77.4 million, less than half the rate of revenue growth. Operating costs as a percentage of revenue improved by 590 basis points, with general and administrative expenses and sales and marketing expenses declining as a percentage of revenue.
Marketplace advertising spending fell to a record-low 3.0% of marketplace revenue, down 200 basis points year over year. Miln attributed the improvement to product-led growth initiatives, AI model optimization, marketing technology and personalization efforts.
At quarter-end, Xometry held $505 million in cash, cash equivalents and marketable securities. The company generated $25.6 million in operating cash flow through the first nine months of 2026 and invested about $15 million in third-quarter cash capital expenditures, almost entirely for software-related investments.
Buyer Growth and Enterprise Expansion
Active buyers increased 20% year over year to 93,812, including a record 4,255 net additions during the quarter. Marketplace revenue per active buyer rose 19%, which Miln said was primarily driven by higher wallet share.
The number of accounts with at least $50,000 in trailing-12-month marketplace spending grew 26% year over year to 2,172, with 133 net additions in the quarter. Revenue from accounts spending at least $500,000 increased more than 40% year over year.
Xometry said it ended 2025 with four customers spending at least $10 million annually and expects additional accounts to exceed that threshold in 2026. Management cited multiyear production programs, enterprise software integrations and procurement tools as drivers of its larger-account growth.
During the quarter, the company expanded its relationship with TradeCentric to add purchase-order and invoice automation to its PunchOut integration for U.S. customers. The integration works with more than 220 e-procurement systems, including Coupa, SAP Ariba and Microsoft Dynamics, according to Sahni.
Sahni said Xometry has more than 17,000 Teamspace users globally and is focused on reducing friction for enterprise buyers through integrations with customers’ existing procurement and design workflows.
Product Development, Suppliers and Siemens Partnership
The company moved most buyer traffic to a rebuilt e-commerce platform that Sahni said is faster, more mobile optimized and designed to support AI-native workflows. Product changes during the quarter included a redesigned buyer dashboard with one-click reordering, delivery-date displays in place of separate lead and transit-time estimates, and more than 100 additional custom materials in the Instant Quoting Engine.
For suppliers, Xometry rolled out a next-generation Workcenter homepage to all U.S. suppliers, adding job-discovery tools, performance scores and payout visibility. The company said the updated job board includes filters, an on-screen 3D viewer and drawing-review capabilities.
Xometry’s global network includes more than 5,000 active suppliers. Sahni said the company expanded certified capacity and ITAR sponsorships during the quarter, helping suppliers pursue higher-value work.
The company is also progressing on its collaboration with Siemens. Xometry is developing native integrations within Siemens Designcenter that would bring Xometry’s manufacturability and pricing capabilities into the platform. Sahni said the companies expect a beta launch in the first quarter of 2027, followed by a gradual rollout across Designcenter versions during the year.
Management expects the Siemens partnership to positively affect 2027 operating results. Miln said buyers acquired through Siemens could carry higher incremental margins because Xometry would not incur the same sales and marketing costs associated with directly acquiring those buyers.
Raised 2026 Outlook
Based on third-quarter performance and what management described as a strong start to the fourth quarter, Xometry raised its full-year outlook.
- Fourth-quarter revenue is expected to be $254 million to $256 million, representing 32% to 33% year-over-year growth.
- Fourth-quarter marketplace revenue growth is expected to be approximately 35% to 36% year over year.
- Fourth-quarter adjusted EBITDA is projected at $22 million to $22.5 million, compared with $8.4 million in the fourth quarter of 2025.
- For full-year 2026, revenue growth is now expected to be approximately 37%, up from prior guidance of 33% to 34%.
- Full-year marketplace revenue growth is expected to be approximately 41%.
- Full-year adjusted EBITDA is expected to be $68 million to $68.5 million, about $7 million above previous guidance.
Xometry continues to target marketplace gross margins of 35% to 40% over the long term and at least 20% incremental adjusted EBITDA margin on a full-year basis above its $1 billion revenue run rate. Management said it will provide a detailed 2027 outlook with its fourth-quarter results.
About Xometry (NASDAQ:XMTR)
Xometry, Inc (NASDAQ:XMTR) operates a technology-driven marketplace that connects businesses seeking custom parts with a network of manufacturing suppliers. Its platform uses automated pricing, manufacturability analysis and digital workflows to help customers source parts and manage production more efficiently.
The company supports a range of manufacturing processes, including CNC machining, 3D printing, sheet metal fabrication, injection molding, urethane casting and other specialized production services.
