Xometry Inc (NASDAQ:XMTR) Surpasses Q3 2025 Estimates, Lifts Outlook as Shares Rally

Xometry Inc (NASDAQ:XMTR) reported financial results for the third quarter of 2025 that surpassed analyst expectations, leading to a notable positive reaction in pre-market trading. The company, which operates an AI-powered marketplace for custom manufacturing, posted record revenue and demonstrated a significant improvement in profitability metrics.

Earnings and Revenue Versus Estimates

The company's performance in the third quarter exceeded the forecasts set by financial analysts. The primary drivers of this beat were robust growth in the core marketplace business and an expansion in gross margins.

• Revenue: Xometry reported Q3 revenue of $180.7 million, surpassing the analyst consensus estimate of $171.6 million.
• Earnings Per Share (Non-GAAP): The company reported non-GAAP EPS of $0.11, edging out the estimated $0.105.

This double beat appears to be the catalyst for a strong pre-market response, with the stock trading approximately 6.7% higher following the earnings announcement.

Financial and Operational Highlights

The earnings report highlighted several areas of strength, particularly within the company's marketplace segment, which connects buyers with suppliers for custom manufacturing.

• Marketplace Growth: Marketplace revenue accelerated to $167 million, a 31% increase year-over-year.
• Profitability Improvement: Adjusted EBITDA showed a dramatic turnaround, reaching $6.1 million compared to a loss of $0.6 million in the same quarter last year. Non-GAAP net income was $6.2 million, up from $1.1 million in the prior year period.
• Gross Margin Expansion: The marketplace gross margin expanded by 210 basis points to 35.7%, contributing to a record overall gross profit of $72.0 million.
• Customer Base Expansion: The number of active buyers on the platform grew 21% to 78,282, while accounts spending over $50,000 annually increased 14% to 1,724.

Forward Outlook and Analyst Comparison

Looking ahead, Xometry provided guidance for the fourth quarter and raised its full-year outlook. The company's forecast for the upcoming period aligns closely with, or slightly exceeds, current market expectations.

• Q4 2025 Revenue Guidance: Xometry expects revenue between $182 million and $184 million. This range sits comfortably above the analyst sales estimate of $179.5 million for the quarter.
• Q4 2025 Adjusted EBITDA Guidance: The company anticipates Adjusted EBITDA of $6 to $7 million, a significant improvement from the $1.0 million reported in Q4 2024.
• Full-Year 2025 Guidance: Management raised its full-year revenue guidance to a range of $676 to $678 million and its Adjusted EBITDA guidance to $16 to $17 million.

Market Reaction and Strategic Initiatives

The positive market reaction in pre-market trading suggests investor approval of both the strong quarterly beat and the confident outlook for the remainder of the year. The results indicate that Xometry's strategic initiatives, including the expansion of its buyer and supplier networks and deeper engagement with enterprise customers, are yielding tangible financial results. Recent business highlights, such as the launch of a new mobile app for suppliers and the expansion of auto-quoting capabilities for injection molding, were also featured in the report as contributors to the platform's growth and efficiency.

For a detailed breakdown of future earnings estimates and historical performance, readers can review the earnings and estimates page for XMTR.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.