Xometry (XMTR) Q4 2025: Marketplace Revenue Jumps 33% as Enterprise Penetration Deepens
Xometry’s record quarter underscores the accelerating adoption of its AI-native marketplace by large enterprise buyers, driving both revenue and margin expansion. The company’s deliberate leadership transition and robust product roadmap reflect confidence in sustaining profitable growth even amid macro uncertainty. Investors should watch for continued enterprise scaling and the impact of new platform features on wallet share through 2026.
Summary
- Enterprise Penetration Drives Outperformance: Large accounts are increasingly embedding Xometry into workflows, fueling rapid revenue growth.
- AI-Native Marketplace Expands Margins: Proprietary data and automation are delivering steady gross margin gains and operational leverage.
- Leadership Transition Signals Confidence: Planned CEO succession and strong Q1 start support a multi-year runway for profitable expansion.
Performance Analysis
Xometry closed Q4 2025 with record results, marked by a 30% year-over-year revenue increase and clear operational leverage. Marketplace revenue, which represents the core business of connecting buyers and suppliers for custom manufacturing, grew 33% YoY to $178 million, outpacing the company’s overall revenue growth. Supplier services, including digital advertising and sourcing tools, remained stable at $13.9 million, with management noting stabilization in this legacy line.
Marketplace gross margin expanded to 35.3%, up 80 basis points YoY, reflecting the compounding effects of proprietary AI-driven pricing and matching algorithms. Active buyers increased 20% to over 81,800, while revenue per buyer rose 11%, demonstrating both customer acquisition and deepening wallet share, especially among large enterprise accounts. Operating expenses grew just 15% YoY, half the rate of revenue, showcasing cost discipline and improved sales efficiency. Adjusted EBITDA reached $8.4 million, a $7.3 million YoY improvement, with the U.S. segment delivering nearly 7% margin.
- Enterprise Account Momentum: Over 140 customers now spend $500,000+ annually, and four accounts surpassed $10 million, indicating Xometry’s platform is becoming mission-critical.
- Active Buyer and Supplier Growth: Net new active buyers and ongoing supplier network expansion underpin marketplace density and resilience.
- Operating Leverage Materializes: Sales and marketing as a percent of revenue decreased, while automation and AI investments enabled margin expansion.
Xometry’s asset-light, AI-driven model continues to gain scale, with positive cash flow and disciplined CapEx focused on platform enhancements.
Executive Commentary
"Our record Q4 quarter and record full year 2025 powerfully demonstrate the success of our AI-native marketplace today in the massive, complex, and highly fragmented custom manufacturing market. Our revenue growth and profitability accelerated as 2025 progressed, and we are encouraged by our strong start to 2026."
Randy Altshuler, Chief Executive Officer, Co-Founder
"2025 was a standout year for Xometry as we accelerated annual revenue growth 800 basis points to 26%. Further expanded marketplace gross margin by 120 basis points and delivered full-year profitability with $18.5 million in adjusted EBITDA compared to a loss of $9.7 million in 2024."
James Milne, Chief Financial Officer
Strategic Positioning
1. Enterprise Account Deepening
Xometry’s focus on embedding its platform into large customer workflows is yielding tangible results. With four customers now spending over $10 million and 140+ crossing the $500,000 threshold, the company is moving beyond transactional relationships to become an integral part of customer supply chains. Integration with ERP systems and the TeamSpace collaboration feature are key enablers, driving recurring production work and stickiness.
2. Marketplace Expansion and AI Differentiation
The company’s AI-native marketplace leverages proprietary algorithms and data to deliver instant quoting, personalized pricing, and improved supplier matching. Recent launches include autocodes for injection molding, AI-powered Design for Manufacturing (DFM) tools, and expanded material portfolios, especially for high-spec verticals like aerospace and medical devices. These features both widen the addressable market and raise switching costs for buyers and suppliers.
3. Supplier Network and Platform Stickiness
With nearly 5,000 active suppliers across 50 countries, Xometry’s network scale is a strategic moat. The WorkCenter mobile app, a quote-to-cash management tool, increases supplier engagement and operational efficiency, especially for larger, certified suppliers serving enterprise clients. Geographic expansion in Europe, India, China, and Turkey further enhances supply resilience and one-stop-shop capabilities.
4. Thomas Platform Modernization
The Thomas industrial sourcing platform, while a smaller revenue contributor, is being repositioned for digital growth. New dynamic ad-serving and smart search features are aimed at revitalizing buyer-supplier interactions and monetization, with a renewed marketing push to build awareness in 2026.
5. Leadership Transition and Product-Led Growth
The planned CEO handoff to Sanjeev Singh Sani reflects confidence in the company’s trajectory and product-led strategy. Sani’s operational mandate and experience scaling marketplaces are expected to drive further innovation and profitable growth, while outgoing CEO Altshuler remains involved as Executive Chair to focus on strategic partnerships and cross-industry initiatives.
Key Considerations
Q4 results crystallize Xometry’s transition from growth to profitable scale, powered by network effects and AI-driven automation. The company’s deliberate succession planning, robust product pipeline, and disciplined capital allocation suggest a clear path to sustained margin expansion and cash generation.
Key Considerations:
- Enterprise Scaling Signals: Embedding into customer ERPs and multi-year production programs are driving larger, more predictable revenue streams.
- AI and Automation Leverage: Steady gross margin expansion is underpinned by continuous algorithm improvement and operational automation.
- Supplier Network Depth: Focus on certified, global suppliers enhances ability to meet complex enterprise requirements and supports geographic diversification.
- Product Innovation Cadence: Rapid feature rollouts, including DFM and WorkCenter updates, are designed to capture greater wallet share and improve user experience.
- Balanced Capital Allocation: Asset-light model and strong cash conversion provide flexibility for continued investment without sacrificing profitability targets.
Risks
Macro uncertainty remains a watchpoint, as management’s 2026 guidance is tempered by caution around broader manufacturing cycles. While Xometry’s marketplace model is resilient, a prolonged industrial downturn could dampen buyer activity. Execution risk also exists in international expansion and the integration of new platform features. Finally, competitive intensity in digital manufacturing and potential customer concentration among large accounts warrant ongoing attention.
Forward Outlook
For Q1 2026, Xometry guided to:
- Revenue of $187 to $189 million, implying 24% to 25% YoY growth
- Marketplace growth of 27% to 28% YoY
- Adjusted EBITDA of $6.5 to $7.5 million
For full-year 2026, management raised guidance:
- At least 21% revenue growth
- Marketplace gross margin higher than 2025
- Incremental adjusted EBITDA margin of at least 20%
Management highlighted:
- Strong Q1 start and ongoing enterprise momentum
- Continued investment in product, supplier network, and international expansion
Takeaways
- Enterprise Adoption Accelerates: Xometry’s platform is becoming embedded in large customer workflows, driving higher, more predictable revenue and deepening competitive moat.
- Margin Expansion Validates Model: AI-driven automation and network effects are consistently improving gross margins and operating leverage, supporting profitable growth at scale.
- Product and Platform Innovation Remain Central: Rapid feature deployment and supplier engagement tools are critical levers for wallet share and network density in 2026 and beyond.
Conclusion
Xometry’s Q4 capped a transformative year, with marketplace revenue and margin gains fueled by enterprise scaling, AI automation, and disciplined execution. The leadership transition and robust product roadmap point to continued profitable growth, though vigilance on macro and competitive risks remains warranted.
Industry Read-Through
Xometry’s results reinforce the accelerating digitization of custom manufacturing, with AI-driven marketplaces gaining share from legacy procurement models. The company’s traction among large enterprise accounts and emphasis on workflow integration signal a broader shift toward digital-first, resilient supply chains. Competitors and adjacent platforms should note the importance of network effects, embedded solutions, and supplier engagement tools in capturing share. For industrial technology investors, Xometry’s performance highlights the growing premium on automation, data-driven pricing, and asset-light models in manufacturing services.