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Revenue growth accelerated to 30% year-over-year in Q4, driven by a 33% expansion in the marketplace segment as digital transformation shifts custom manufacturing away from manual legacy processes.
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Marketplace gross margins expanded to 35.3%, a 10-point increase over four years, fueled by continuous training of AI algorithms with proprietary data from growing buyer and supplier interactions.
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Enterprise engagement deepened significantly, with revenue from accounts spending over $500,000 annually growing by more than 40% year-over-year.
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The company successfully transitioned to a product-led growth model, utilizing features like Teamspace and ERP integrations to become embedded in large-scale customer workflows.
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Operational leverage improved through increased automation in support functions, allowing non-GAAP operating expenses to grow at half the rate of revenue.
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The marketplace model demonstrated resilience and a ‘flight to safety’ effect, as large customers prioritized Xometry’s reliability and transparency amidst a volatile macroeconomic environment.
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Management expects at least 21% revenue growth for full year 2026, assuming a consistent 20% growth rate for the final three quarters despite macroeconomic uncertainty.
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The leadership transition effective July 1, 2026, will see Sanjeev Singh Sahni become CEO to focus on product-led innovation while co-founder Randy Altschuler shifts to Executive Chair.
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Marketplace gross margins are projected to be higher in 2026 than 2025, driven by incremental technological advancements and pricing intelligence improvements.
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Strategic focus remains on driving ‘structural enterprise adoption’ by moving more accounts into the $10 million-plus annual spend threshold through multi-year production programs.
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The company maintains a target of at least 20% incremental adjusted EBITDA margins annually as it scales toward a $1 billion revenue run rate.
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The Thomas industrial sourcing platform is undergoing a transition to a new dynamic ad serving model and ‘Smart Search,’ which is expected to keep services revenue flat in the near term.
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Global supplier network expansion is prioritizing India and high-certification domestic suppliers to meet the compliance needs of aerospace, defense, and medical sectors.
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Management highlighted the push toward reshoring and supply chain resilience as a primary secular tailwind for the digital marketplace model.
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The transition to Executive Chair allows the co-founder to remain closely involved in Xometry’s future, focusing on strategic growth initiatives and key corporate partnerships.
