Xometry, the online marketplace that connects manufacturers with companies needing custom parts, delivered a strong fiscal third quarter that beat Wall Street's expectations. Revenue jumped more than 40% year over year to $252.4 million, and RBC Capital Markets responded by raising its price target on the stock to $117.
The results show that Xometry is growing without leaning on any single customer or product line. RBC, an investment bank, said the company topped its forecasts on both revenue and adjusted EBITDA—a profit measure that strips out non-cash and one-off items. The bank pointed to broad-based demand and stronger traction with large enterprise clients as key drivers.
What's driving the growth?
Xometry runs a digital marketplace where businesses can upload designs for custom parts and receive quotes from a network of manufacturers. It's a two-sided platform: manufacturers get access to orders they might not otherwise find, and buyers get a faster, more transparent way to source parts.
The latest numbers show that model is gaining momentum. Marketplace revenue rose 43% year over year, and the number of active buyers grew 20%. Perhaps more tellingly, the count of accounts spending at least $50,000 over the past 12 months climbed 26% to 2,172. That suggests not just more customers, but customers who are using the platform more heavily—a sign of deepening engagement rather than one-off transactions.
Management also raised its 2026 revenue growth outlook to at least 37%, and guided fourth-quarter revenue to between $254 million and $256 million. That came in above RBC's prior estimate, giving investors another reason to feel optimistic about the near-term trajectory.
Why RBC isn't more bullish
Despite the upbeat numbers, RBC kept a neutral-style rating on the stock. The bank's reasoning: the bigger swing factor isn't the current quarter's sales growth, but whether a planned beta launch tied to Xometry's partnership with Siemens will translate into meaningful operating improvements as it ramps through 2027.
The Siemens partnership, which is expected to begin a beta test in the first quarter of 2027, could open up new avenues for Xometry to integrate its marketplace with industrial software and workflows. If that collaboration starts contributing to operating results, it could change how analysts model the company's profitability—not just its top-line growth.
For now, RBC's $117 target is only slightly above Xometry's share price of $111.19. When a stock trades close to a freshly raised target, it often means investors have already "given credit" for the latest upside surprise by paying a higher valuation multiple. In other words, another quarter of 40%-plus revenue growth may not move the needle much on its own, even with the company talking up at least 37% growth in 2026.
What it means for investors
For everyday investors, Xometry's story is a reminder that strong revenue growth doesn't always translate into a big stock pop. The market tends to look ahead, and if a company's shares already reflect strong sales, the next catalyst has to be something that changes the profit picture.
That's why RBC highlighted the Siemens beta. If that partnership starts contributing to operating results in 2027, Xometry's shares could react more to evidence of margin improvement than to headline revenue growth alone. Investors should watch for updates on that front, as well as any signs that enterprise customer growth is continuing at the pace seen in Q3.
Xometry's performance also fits into a broader theme of digital marketplaces disrupting traditional manufacturing supply chains. Similar dynamics have played out in other industries, where platforms that connect buyers and sellers have scaled rapidly by offering convenience and transparency. The company's ability to grow its high-spending accounts suggests it's capturing a share of that opportunity.
As with any growth stock, there are risks. Competition in the manufacturing marketplace space is real, and the company's path to sustained profitability will depend on its ability to keep expanding margins while maintaining growth. The Siemens partnership could be a key piece of that puzzle, but it's still early days.
For now, Xometry's Q3 beat and RBC's target raise give investors a clearer picture of a company that's executing well on its growth strategy. The next big test will be whether it can turn that growth into lasting profitability—and whether the Siemens beta delivers on its promise.
