Xometry (XMTR) Q2 2026: Marketplace Revenue Surges 45% on AI-Driven Buyer Expansion
Xometry’s accelerating marketplace revenue growth, up 45% YoY, highlights the compounding effects of its AI-native platform and product-led strategy. Enterprise buyer penetration, seamless workflow integrations, and disciplined cost leverage are converging to drive both top-line outperformance and expanding profitability. With Siemens integration and international scaling set to further unlock demand, Xometry’s digital manufacturing infrastructure is at a new inflection point.
Summary
- AI Model Integration Drives Growth: Unified, data-rich AI models are powering broad-based marketplace adoption and margin expansion.
- Enterprise and Network Effects Accelerate: Deeper enterprise wallet share and new buyer adds compound network scale and stickiness.
- Siemens Partnership Signals Platform Leverage: Workflow integration and data partnerships lay groundwork for future category and geography expansion.
Business Overview
Xometry operates an AI-native digital marketplace for custom manufacturing, connecting buyers with a global network of over 5,000 suppliers across 50 countries. The company generates revenue through its core marketplace, where buyers source on-demand manufacturing services (such as CNC machining, injection molding, additive manufacturing), and through its services segment, which includes Thomas, a digital sourcing and advertising platform for industrial buyers and suppliers. Marketplace revenue is the primary growth engine, while services revenue supplements network reach and monetization.
Performance Analysis
Xometry delivered record Q2 results, with total revenue up 41% year-over-year and marketplace revenue accelerating to 45% growth. This marked the fourth consecutive quarter of accelerating top-line growth, driven by both new buyer acquisition (+20% YoY active buyers) and increased wallet share from existing enterprise customers. Marketplace revenue per active buyer climbed 21% YoY, reflecting deeper penetration and higher-value transactions, particularly among large enterprise accounts.
Gross profit increased 34% YoY, with marketplace gross profit up 42%. Marketplace gross margin held steady at 34.7% as the company balanced rapid expansion with continued investment in AI-driven pricing and sourcing. Adjusted EBITDA margin expanded to 6.2%, up 380 basis points, as operating cost discipline outpaced revenue growth. U.S. segment profitability reached 9% adjusted EBITDA margin, while international losses narrowed, signaling improving global unit economics.
- Marketplace Revenue Outpaces Services: The core marketplace accounted for $215M of Q2 revenue, dwarfing the $13.9M from services, and driving overall growth acceleration.
- Active Buyer Adds Hit Decade High: Nearly 4,000 net new active buyers joined the platform, the highest quarterly net add in 10 quarters, signaling effective MarTech and AI-powered conversion.
- Enterprise Penetration Deepens: Accounts spending over $50K rose 23% YoY to 2,039, with a record 175 new enterprise accounts added in Q2, highlighting Xometry’s increasing relevance for large-scale, recurring production programs.
Cost leverage was evident across sales, marketing, and operations, with sales and marketing expense down 320 basis points as a percentage of revenue. Marketplace advertising spend hit a record low, reflecting improved AI-driven targeting and personalization. International expansion, while still a drag on profitability, showed sequential improvement and is positioned for further margin gains as the U.S. playbook is deployed abroad.
Executive Commentary
"Our AI models are effectively optimizing conversion, buyer growth, and market share gains. On top of the revenue growth, Q2 adjusted EBITDA improved $10.2 million year over year to $14.1 million. We delivered record results in the first half of 2026 and we are again raising our outlook for the second half of this year."
Sanjeev Singh Sahni, Chief Executive Officer
"These achievements demonstrate that our marketplace is becoming the essential infrastructure for a predominantly offline and fragmented industry. Driven by our record Q2 results and strong start to Q3, we are raising our revenue and adjusted EBITDA guidance for the full year."
James Milne, Chief Financial Officer
Strategic Positioning
1. AI-Native Product-Led Growth
Xometry’s proprietary AI models now function as an integrated ecosystem, optimizing pricing, sourcing, and manufacturability in real time. Upgrades to cost prediction and sourcing algorithms have materially improved pricing accuracy (notably, a 15% improvement in CNC cost prediction) and supplier-job matching, which directly boosts conversion and gross margin. The platform’s intelligence engine continuously learns from production outcomes, creating a feedback loop that sharpens every subsequent transaction.
2. Enterprise Engagement and Workflow Integration
Deeper integration within enterprise workflows, especially through partnerships like Siemens Design Center, is embedding Xometry’s intelligence directly into customer design and procurement environments. This not only increases stickiness but also expands the company’s role as the connective digital layer from design intent to manufacturing execution. Early enterprise adoption in robotics, autonomous systems, and defense platforms is driving larger, recurring orders and multi-year production programs.
3. Marketplace Scale and Network Effects
The expanding global supplier network, now spanning 50 countries, gives Xometry unmatched speed, capacity, and resilience. The addition of new suppliers in India and Vietnam, alongside deeper relationships and higher average volumes per supplier, is increasing network liquidity and enabling the platform to meet diverse buyer needs, from urgent expedited jobs to cost-sensitive sourcing.
4. Services Platform Monetization
Thomas, Xometry’s services platform, is stabilizing and poised for renewed growth as new AI-powered tools and advertising products are rolled out. The transition to a new ad platform and redesigned search experience is already improving monetization, while the vast supplier directory continues to supplement marketplace capacity and engagement.
Key Considerations
Xometry’s Q2 results mark a strategic inflection for its AI-driven marketplace, with compounding network effects and product innovation fueling both growth and margin leverage. The company’s playbook is now being extended internationally and into higher-value enterprise workflows.
Key Considerations:
- AI Model Maturity: Integrated AI models are driving both higher conversion and more accurate pricing, setting the stage for sustained margin expansion.
- Enterprise Wallet Share: Larger customers are increasingly embedding Xometry into their procurement processes, raising the predictability and stickiness of revenue streams.
- International Margin Progress: While still loss-making, international operations are improving, with the U.S. playbook being actively deployed to accelerate profitability abroad.
- Workflow Partnerships: Siemens integration and similar partnerships could unlock new buyer pools and embed Xometry deeper in customer value chains.
- Disciplined Capital Allocation: Recent equity raises and a strong cash position provide flexibility for organic growth, tech investment, and selective M&A, with a clear focus on reinforcing marketplace moats.
Risks
Key risks include the pace of gross margin expansion, which depends on ongoing AI model improvements and competitive pricing dynamics. International scaling may introduce operational complexity and uneven profitability. Macroeconomic volatility, including shifts in manufacturing PMI and buyer demand, could impact growth rates, while new workflow partnerships carry integration risk and uncertain adoption timelines. Xometry’s reliance on continuous technology differentiation remains central to sustaining its current trajectory.
Forward Outlook
For Q3 2026, Xometry guided to:
- Revenue of $234M to $236M, representing 30% to 31% YoY growth
- Adjusted EBITDA of $16M to $17M, up from $6.1M in Q3 2025
For full-year 2026, management raised guidance:
- Revenue growth outlook to 33% to 34% (from 27% to 28%)
- Marketplace revenue growth of approximately 37%
- Adjusted EBITDA of $60M to $62M
Management highlighted several factors that will shape the second half:
- Further AI-driven gross margin expansion, targeting the 35% to 40% range
- Initial Siemens integration costs included in H2 guidance, with revenue impact expected in 2027
Takeaways
Xometry’s Q2 results underscore the power of a data-driven, AI-native marketplace in transforming custom manufacturing. As the company crosses new revenue and profitability milestones, its expanding platform and workflow integrations are laying the foundation for multi-year compounding growth.
- Marketplace Flywheel Accelerates: AI-powered buyer acquisition and enterprise penetration are driving both top-line growth and margin leverage, with record new buyer adds and deepening enterprise wallet share.
- Product-Led Strategy Delivers: Integrated AI models and workflow partnerships like Siemens are embedding Xometry deeper into customer value chains, boosting conversion and stickiness.
- International and Services Upside: Early signs of international margin improvement and renewed services monetization offer additional optionality for future growth and platform breadth.
Conclusion
Xometry’s Q2 performance marks a critical inflection in its evolution as the digital infrastructure for custom manufacturing. With compounding network effects, disciplined execution, and expanding workflow partnerships, the company is well-positioned to capitalize on the massive shift from offline to online procurement in industrial production.
Industry Read-Through
Xometry’s accelerating AI-native marketplace growth signals a broader digital transformation in custom manufacturing and industrial procurement. The success of integrated workflow partnerships, such as with Siemens, points to a future where procurement, design, and production are increasingly interconnected through digital platforms. Competitors and adjacent players in manufacturing, supply chain, and B2B ecommerce should take note of the speed at which AI-driven platforms can capture both wallet share and operational leverage. The rising importance of data feedback loops and seamless buyer experiences is likely to reshape competitive dynamics across industrial sectors, with technology integration and supplier network depth emerging as key differentiators.