Xometry Achieves Record Marketplace Growth and Improved Margins in Q3 2025—Guidance Raised on Profitability
Marketplace Momentum Accelerates: Record Revenue and Margin Gains
Xometry’s third quarter 2025 numbers tell a story of surging momentum: marketplace revenue jumped 31% year-over-year to $166.6 million, setting a new high-water mark. Overall consolidated revenue reached $180.7 million, a 28% increase from a year ago. What’s driving this surge? Xometry credits rapid adoption from enterprise buyers, a bigger, more active network of both buyers and suppliers, and ongoing innovation in its AI-powered platform.
Gross profit for the quarter increased by 29% to $72 million, underpinned by a marketplace gross margin of 35.7%—a 2.1 percentage point improvement versus Q3 2024. The company is delivering more of each revenue dollar to its bottom line, thanks in part to greater operational efficiency and platform leverage.
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Consolidated Revenue | $180.72M | $141.70M | 28% |
| Marketplace Revenue | $166.59M | $126.97M | 31% |
| Gross Profit | $72.03M | $55.83M | 29% |
| Marketplace Gross Margin | 35.7% | 33.6% | +2.1 pts |
| Adjusted EBITDA | $6.14M | ($0.63M) | Improved |
| Active Buyers | 78,282 | 64,851 | 21% |
| Large Accounts ($50K+ LTM spend) | 1,724 | 1,506 | 14% |
| Non-GAAP Net Income | $6.21M | $1.11M | 457% |
Operating Efficiency and Profitability Mark a Turning Point
Perhaps most telling is the leap in profitability: Adjusted EBITDA improved by $6.8 million to reach $6.1 million this quarter, while non-GAAP net income rose to $6.2 million. This performance shift, compared to a $0.63 million Adjusted EBITDA loss a year ago, highlights meaningful operating leverage as revenue scales and the platform matures.
The company also tightened expense management and increased marketplace gross margin by 210 basis points, demonstrating not just revenue growth, but profitable growth. Xometry’s net loss under GAAP metrics remains ($11.6M), reflecting continued investment in expansion, but non-GAAP measures now show solid positive trends.
Active Buyer Growth Signals Expanding Network Effects
Xometry’s marketplace is seeing healthy user adoption. Active buyers climbed 21% year-over-year to over 78,000, while high-value accounts (those spending $50,000+ over the past twelve months) increased 14% to 1,724. These metrics underscore increasing platform utility for both enterprise and SMB customers—likely creating network effects that should help drive further adoption and engagement.
Repeat business is another strength: 98% of revenue came from existing accounts, indicating stickiness and high customer satisfaction.
Innovation and Platform Expansion Underpin Growth
Xometry has maintained a steady cadence of platform and product innovation, introducing the Workcenter mobile app—a proprietary quote-to-cash workflow solution for suppliers. Additional tech highlights this quarter include:
- U.S. launch of auto-quotes for injection molding, leveraging AI to digitize complex workflows from quote to delivery
- New pay-for-performance dynamic ad tech from Thomasnet
- Expanded AI-powered Design for Manufacturing tools, further automating supplier matching and quote accuracy
- Xometry EU upgrades: dozens of new materials, faster delivery, and a digital parts library for buyers
Each initiative appears tailored to increase stickiness, broaden supplier capabilities, and strengthen the core network value proposition.
Guidance Raised: Confidence in Continued Growth and Profitability
Xometry is lifting both Q4 and full-year 2025 guidance. Revenue for Q4 is forecast between $182–$184 million (23–24% growth y/y), while full-year revenue guidance rises to $676–$678 million. Adjusted EBITDA guidance is also up: the company expects $6–$7 million in Q4, and $16–$17 million for the full year. Management’s expectation is for sustained 20% incremental EBITDA margins as revenue scales toward $1 billion, reflecting confidence in the scalability of its model.
| Q4 2025 Outlook | Low | High |
|---|---|---|
| Revenue (in millions) | $182 | $184 |
| Adjusted EBITDA (in millions) | $6 | $7 |
| FY 2025 Outlook | Low | High |
| Revenue (in millions) | $676 | $678 |
| Adjusted EBITDA (in millions) | $16 | $17 |
Takeaway: Momentum, Scale, and a Strengthening Platform
Xometry’s Q3 results spotlight the company’s rapid execution across platform expansion, marketplace growth, and operational improvement. Key metrics—accelerating marketplace revenue, stronger margins, active buyer gains, and improving Adjusted EBITDA—signal robust network effects and underlying business quality.
For investors and analysts, the focus will be on Xometry’s ability to sustain this blend of high growth and margin expansion, and on whether the recent pace of enterprise adoption and technology-driven product launches can maintain or even accelerate network growth. The record quarter and raised outlook set a clear tone of confidence from management—and present a data-driven case for Xometry’s trajectory toward scalable, profitable growth.
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