Xometry (NASDAQ:XMTR) reported record fourth-quarter and full-year 2025 results, citing accelerating revenue growth, expanding marketplace margins, and a year of sustained profitability. Management also announced a planned CEO transition, with founder and Chief Executive Officer Randy Altschuler set to become executive chair effective July 1, 2026, and current President Sanjeev Singh Sahni slated to assume the CEO role.
Leadership transition set for July 2026
Altschuler said the leadership change follows a “deliberate, long-term succession process” and comes at a time when the company is on an “increasingly profitable trajectory.” He emphasized that the transition does not change the company’s strategic direction, and noted he will remain closely involved as executive chair, focusing on strategic growth initiatives and corporate partnerships.
Q4 and full-year performance highlighted by marketplace growth and margin expansion
In the fourth quarter, Xometry said revenue rose 30% year-over-year to more than $192 million, with marketplace revenue of $178 million and supplier services revenue of $13.9 million. Marketplace revenue grew 33% year-over-year, which management attributed to expansion of buyer and supplier networks and growth among larger accounts.
Chief Financial Officer James Miln said the company’s Q4 performance reflected “real-time responsiveness” to customer demand and reinforced Xometry’s position as “the digital rails” for a largely offline custom manufacturing market. He added that as the company progresses toward $1 billion in revenue, management expects continued profitability improvements while still investing in growth initiatives.
Key profitability metrics for Q4 included gross profit of $75.2 million, up 27% year-over-year, and total gross margin of 39.1%. Marketplace gross margin was 35.3%, up 80 basis points year-over-year, while marketplace gross profit dollars increased 36% year-over-year. Altschuler noted marketplace gross margin has risen from about 25% four years ago to approximately 35% in 2025, which he and Miln both attributed to the economic value created by the company’s AI-native marketplace and improving algorithms.
For the full year 2025, Miln said Xometry accelerated annual revenue growth by 800 basis points to 26%, expanded marketplace gross margin by 120 basis points, and delivered $18.5 million in adjusted EBITDA compared with an adjusted EBITDA loss of $9.7 million in 2024.
Enterprise accounts and buyer metrics show increasing scale
Management repeatedly pointed to enterprise momentum as a core driver of results. Altschuler said revenue from marketplace accounts with at least $500,000 in last-twelve-month spend increased by over 40% year-over-year in Q4. He also said the company ended 2025 with four accounts at $10 million or more in spend, supported by multi-year production programs.
Miln provided additional funnel metrics, saying the number of accounts with at least $50,000 in last-twelve-month spend rose 18% year-over-year to 1,760 in Q4, and the company ended 2025 with more than 140 accounts spending at least $500,000 over the prior 12 months.
On platform usage, Miln said Q4 active buyers increased 20% year-over-year to 81,821, with a net addition of 3,539 active buyers. Marketplace revenue per active buyer increased 11% year-over-year, which he attributed primarily to enterprise growth.
In the Q&A, Altschuler described how large customers are being brought deeper into the platform through workflow integrations such as PunchOut and ERP purchasing system integrations, as well as Teamspace, which he said supports larger and longer-running projects. He also said the work at the largest customers is “more heavily weighted toward production” and that Xometry is “increasingly in the BOM,” referring to bill-of-materials integration.
Product roadmap and platform initiatives: quoting, DFM, Teamspace, Thomas, and suppliers
Sahni outlined several product and platform initiatives management believes are driving growth:
- Injection molding auto quotes: Xometry launched auto quotes for injection molding in the U.S. and Europe, providing immediate pricing and lead time estimates.
- AI design for manufacturing (DFM): The company expanded AI-powered DFM, including the ability to interpret technical drawings, which Sahni said enhances its proprietary dataset.
- Materials and process expansion: Xometry added high-performance materials for additive manufacturing in the U.S. marketplace and introduced a preferred subprocess feature for CNC machining.
- Teamspace and Parts Library: Teamspace, launched in the EU and now scaled to more than 11,000 teams created globally, is being expanded alongside the EU Parts Library, which consolidates upload and order history for reordering.
Sahni said 2026 priorities include expanding injection molding capabilities, adding materials and finishes, advancing pricing intelligence with more personalization, and improving the e-commerce experience through deeper integration of automated DFM and AI-assisted workflows.
On the Thomas Industrial Sourcing platform, Sahni said Xometry modernized Thomas in 2025 and launched a new dynamic ad-serving model and “Thomas Smart Search” in Q4. He said early results were encouraging, and 2026 efforts will focus on improving buyer-supplier interaction and search relevance, along with a new marketing campaign to strengthen the Thomas brand. Miln said services revenue declined about 1% quarter-over-quarter in Q4 but described the core advertising business as largely stabilized.
On suppliers, Sahni said Xometry has about 5,000 active suppliers across 50 countries and expanded its network in the U.S. with a focus on larger suppliers with key quality certifications, while also growing sourcing in Europe, India, China, and Turkey. He highlighted the Workcenter mobile app, launched in 2025, as a tool to increase supplier engagement. In response to a question about supplier capacity and engagement, Sahni said the mobile app supports suppliers in accepting jobs away from a desk, managing jobs and updates in real time, and managing cash flow, while also feeding data back into Xometry’s models.
Guidance: Q1 growth outlook and at least 21% growth for 2026
For the first quarter of 2026, Miln guided revenue to $187 million to $189 million, representing 24% to 25% year-over-year growth, with marketplace growth expected at approximately 27% to 28%. The company expects Q1 services revenue to be largely flat quarter-over-quarter as it transitions the Thomas ad serving platform and search upgrades.
Xometry projected adjusted EBITDA of $6.5 million to $7.5 million for Q1 2026, compared to roughly breakeven in Q1 2025. Miln also said the company expects stock-based compensation expense (including payroll taxes) of about $11 million, or roughly 6% of revenue, in the quarter.
For full-year 2026, Miln said the company expects at least 21% revenue growth, with at least 20% growth in Q2 through Q4, while remaining “mindful of the uncertain macro environment.” Management expects marketplace gross margin in 2026 to be higher than 2025, services revenue to be approximately flat year-over-year with modest second-half growth, and incremental adjusted EBITDA margins of at least 20%.
On cash and liquidity, Miln said Xometry ended Q4 with $219 million in cash, cash equivalents, and marketable securities. The company generated $6.1 million in operating cash flow in 2025 and invested $10.3 million in Q4 capital expenditures, which were “almost entirely software-related.” In the Q&A, Miln said he expects the company to reach sustainably positive free cash flow as it continues to grow, and suggested that at a $225 million quarterly revenue run rate—assuming a similar capex percentage—Xometry would be free-cash-flow positive on a sustainable basis.
About Xometry (NASDAQ:XMTR)
Xometry, Inc (NASDAQ: XMTR) operates a technology-driven marketplace that connects businesses with on-demand manufacturing capacity across a wide array of processes. Through its proprietary Instant Quoting Engine and Xometry Platform, the company streamlines sourcing for CNC machining, 3D printing, sheet metal fabrication, injection molding, urethane casting and other custom manufacturing services. By aggregating a network of thousands of vetted suppliers, Xometry offers rapid lead times, transparent pricing and real-time order tracking to customers in sectors ranging from automotive and aerospace to medical devices and industrial equipment.
Since its founding in 2013 and headquarters in Rockville, Maryland, Xometry has expanded its geographic reach to serve customers in North America, Europe and beyond.
