Xometry Raises 2026 Outlook as Q3 Revenue Jumps 40%

Xometry Inc. (NASDAQ: XMTR) raised its full-year 2026 revenue growth outlook after third-quarter sales increased 40% year over year, supported by strong marketplace growth and a larger network of active buyers. The digital manufacturing marketplace also reported record adjusted EBITDA as operating expenses declined relative to revenue.

Revenue rose to $252.4 million in the quarter ended September 30 from $180.7 million a year earlier. Marketplace revenue increased 43% to $238 million and was the main driver of the company’s overall growth.

Xometry now expects full-year revenue growth of at least 37%, compared with its previous guidance of at least 33% to 34%. The updated outlook assumes marketplace revenue growth of about 41%. Full-year adjusted EBITDA is expected to range from $68 million to $68.5 million, up from $18.5 million in 2025.

For the fourth quarter, management projects revenue of $254 million to $256 million, representing year-over-year growth of 32% to 33%, driven by expected marketplace growth of 35% to 36%. Adjusted EBITDA is forecast at $22 million to $22.5 million, compared with $8.4 million in the fourth quarter of 2025.

Marketplace margins and operating leverage improve

Third-quarter gross profit increased 37% to a record $98.7 million. Marketplace gross profit rose 44%, while marketplace gross margin reached a record 36.0%, up 130 basis points sequentially. Xometry attributed the margin performance to its artificial-intelligence models and supplier-selection capabilities. Total gross margin was 39.1%.

Adjusted EBITDA increased to $21.4 million from $6.1 million a year earlier, lifting the adjusted EBITDA margin to 8.5% from 3.4%. On a GAAP basis, Xometry recorded net income of $1.9 million, compared with a net loss of $11.6 million in the prior-year quarter.

Non-GAAP operating expenses fell to 30.7% of revenue from 36.6% a year earlier. Non-GAAP sales and marketing expense declined to 12.6% of revenue from 15.9%, while general and administrative expense fell to 6.6% from 9.1%. Operations and support expense edged down to 7.9% of revenue from 8.2%, while product development increased to 3.6% from 3.4%.

Advertising spending represented 3.0% of marketplace revenue, down 200 basis points year over year, even as the company added a record 4,255 net active buyers during the quarter.

Buyer network and enterprise activity expand

Active buyers increased 20% year over year to 93,812. Xometry said corporate marketing efficiency and improving personalization contributed to buyer growth. The company’s supplier network included 4,996 active suppliers in fiscal 2025, up 17%, with growth among larger suppliers and those holding expanded certifications.

The number of marketplace accounts with at least $50,000 in spending over the last 12 months rose 26% to 2,172. Accounts with at least $500,000 in trailing-12-month spending exceeded 140 in fiscal 2025, and revenue from that group grew more than 40% year over year in the third quarter. Existing accounts generated 98% of marketplace revenue, unchanged from the year-earlier period.

International revenue grew 32% year over year and represented 16% of marketplace revenue, compared with 2% in 2020. Xometry’s long-term target is for international markets to account for 30% to 40% of marketplace revenue.

The company continued investing in its AI-based marketplace, including the launch of a next-generation Workcenter intended to improve job matching and the addition of more than 100 custom materials to its instant-quoting engine. Management also cited progress on its collaboration with Siemens, an expanded partnership with TradeCentric and efforts to increase monetization and advertiser participation on the Thomas platform.

As revenue scales beyond $1 billion, Xometry is targeting annual incremental adjusted EBITDA margins of at least 20%. Management also expects the company’s asset-light marketplace, low capital expenditure needs and limited working-capital requirements to support cash conversion from adjusted EBITDA.

The outlook remains subject to risks including macroeconomic conditions, tariffs, international expansion, margin execution, profitability and the company’s ability to maintain buyer, supplier and strategic-partner relationships. Xometry also noted that a reconciliation of forward-looking adjusted EBITDA to GAAP net income or loss was unavailable without unreasonable effort because certain excluded items may be highly variable and difficult to predict.