AI quoting is scaling, profits still lag
- Marketplace revenue was $191.3 million in Q1 2026, up 40% year over year.
- The core Marketplace segment made up about 93% of Q1 2026 revenue.
- Adjusted EBITDA rose to $10.5 million in Q1 2026, from $0.1 million a year earlier.
- Xometry still posted a Q1 2026 net loss of $5.3 million, so GAAP profits are not here yet.
- The Siemens deal could put Xometry quoting inside engineering software, but the revenue impact is still unproven.
Fast growth, not cheap
Xometry looks stronger after Q1 2026. Revenue reached $205.1 million, up 36% year over year, and management raised its full-year revenue growth outlook to 27% to 28%. The clearest win is the Marketplace business, which grew 40% and reached a 34.7% gross margin.
The bull case is simple. Xometry uses AI to price custom parts quickly, then matches buyers with suppliers that can make them. If more buyers and suppliers join, the data gets better, quotes get sharper, and the marketplace can scale with less cost added each time.
The Siemens collaboration adds a large possible channel. Siemens agreed to invest $50 million in Xometry common stock and plans to embed Xometry's quoting, lead time, and manufacturability tools into Siemens Xcelerator. That could put Xometry in front of many engineers at the point when they design parts.
The bear case still matters. Xometry lost $5.3 million on a GAAP basis in Q1 2026. Services revenue fell 5%, international adjusted EBITDA stayed negative, and the founder CEO moving to Executive Chair adds transition risk. The stock also needs growth to stay high, because valuation is already a major pressure point.
A marketplace spread on custom parts
Xometry makes most of its money from transactions in its manufacturing marketplace. A buyer asks for a custom part, Xometry gives a fast quote, and then Xometry finds a supplier to make the part. The company earns the gap between what the buyer pays and what it pays the supplier.
That model can scale well, but it carries pricing risk. Xometry often commits to a buyer price before it secures the final supplier cost. If its quote is wrong, or if supply costs jump, gross margin can fall.
The smaller Services segment includes Thomasnet advertising and marketing, supplier financial services, and software like Workcenter. This business has useful supplier relationships, but revenue has been shrinking because Thomas advertising and marketing services have been under pressure.
Tools for buyers and suppliers
Instant Quoting Engine
This is the core AI tool that gives buyers fast pricing, lead times, and manufacturability feedback. It is the main reason Xometry can turn a messy custom-parts market into an online buying flow.
Manufacturing marketplace
Buyers can source CNC machining, injection molding, 3D printing, sheet metal fabrication, urethane casting, and other custom work. This segment drove about 93% of Q1 2026 revenue.
Siemens Xcelerator integration
The May 2026 Siemens collaboration aims to place Xometry quoting tools directly inside Siemens engineering software. It could become a low-cost customer channel, but adoption and revenue metrics are not yet clear.
Teamspace
Teamspace gives enterprise buyers collaboration tools for sourcing custom parts. It helps Xometry serve larger teams and procurement workflows.
Thomasnet
Thomasnet offers supplier advertising and digital marketing. The business is still useful to the supply side of the network, but Services revenue fell 5% year over year in Q1 2026.
Workcenter and supplier services
Workcenter is cloud software for manufacturers, while financial services can help suppliers get paid faster. These tools help keep suppliers close to Xometry's marketplace.
Marketplace now dominates
This mix uses Q1 2026 revenue. Marketplace was $191.3 million of $205.1 million total revenue, while Services was $13.8 million.
What could break the story
GAAP losses linger
High impact · Medium oddsXometry is improving on adjusted EBITDA, but it still reported a $5.3 million net loss in Q1 2026. The 2025 Form 10-K also showed an accumulated deficit of $432.0 million at year-end 2025. If GAAP profits stay out of reach, investors may lose patience with the growth story.
Bad quotes squeeze margins
High impact · Medium oddsXometry gives buyers prices before it always knows the final supplier cost. That creates a real spread risk. If the AI quote is too low, or if suppliers demand more, Marketplace gross margin can fall.
Services keeps shrinking
Medium impact · High oddsServices revenue fell 5% year over year to $13.8 million in Q1 2026. The pressure is tied to Thomas advertising and marketing services. If this decline continues, it can offset some of the profit gains from the core marketplace.
Siemens hype outruns revenue
Medium impact · Medium oddsThe Siemens deal is a strong validation point, but Xometry has not yet shown how much revenue it will create. A software integration can take time, and user interest does not always turn into orders. The market may expect results faster than they arrive.
CEO transition slows execution
Medium impact · Medium oddsFounder Randy Altschuler is moving to Executive Chair, and a new CEO will take over. Leadership changes can work well, but they can also shift priorities or slow decisions. This matters because Xometry is still proving its path to GAAP profitability.
Trade policy raises costs
Medium impact · Medium oddsXometry faces uncertainty from U.S. trade policy, including tariff changes noted in its risk factors. Tariffs can raise supplier costs, disrupt supply chains, or make customers delay orders. That could hurt both demand and margins.
In one breath
What does Xometry actually do?
Xometry helps companies buy custom manufactured parts online. Its AI quoting tool estimates price and lead time, then the company matches the order with suppliers in its manufacturing network.
How does Xometry make money?
Most revenue comes from the Marketplace segment. Xometry charges the buyer for a part and pays a supplier to make it, keeping the spread between the two prices.
Is Xometry profitable?
Xometry had positive adjusted EBITDA of $10.5 million in Q1 2026. But it still had a GAAP net loss of $5.3 million, so the company has not fully crossed into standard accounting profit.
Why does the Siemens partnership matter?
Siemens plans to embed Xometry's quoting and manufacturability tools into Siemens Xcelerator software. If it works, engineers could move from design to sourcing without leaving their CAD workflow.