Xometry delivered the kind of quarter growth investors hope for from a marketplace reaching scale. Non-GAAP earnings of $0.28 per share beat the $0.19 consensus by 33.3% and cleared the $0.21 Earnings Whisper number. Revenue of $252.44 million topped the $235.82 million consensus by 7.0%. Earnings grew 380.0% year over year, and revenue grew 39.7%, holding near 40% for a second straight quarter as the company passed a $1 billion annualized run rate. The milestone that will get the most attention is the first GAAP-profitable quarter: net income of $1.9 million, or $0.03 per share, versus an $11.6 million loss a year ago. The central tension is that management again guided to a sharp fourth-quarter deceleration, yet its guides have repeatedly proven conservative.

The quality of the beat holds up better than many profitability turns, though the GAAP milestone deserves scrutiny. Operating income was essentially breakeven at $57,000. Net income was carried by $4.4 million of interest and dividend income on a cash pile that grew to $505 million after an equity raise and a $50 million Siemens investment. That capital also expanded the share base, which partly explains why non-GAAP diluted EPS growth trails non-GAAP net income growth. Still, the operating improvement is real. Marketplace revenue rose 43% to $238 million. Marketplace gross margin hit a record 36.0%, up from 34.7% in each of the prior two quarters. Adjusted EBITDA jumped to $21.4 million, a margin of 8.5% versus 3.4% a year earlier, as non-GAAP operating expenses grew at less than half the pace of revenue.

The call reinforced that demand is broadening rather than leaning on a few large accounts:

• **Buyer growth:** Net active buyer additions reached a record 4,255, the fourth consecutive sequential increase.
• **Large accounts:** Accounts spending $50,000 or more grew 26%, accelerating from 23%, 21% and 18% over the prior three quarters. Revenue from $500,000-plus accounts grew over 40%.
• **Marketing efficiency:** Marketplace ad spend fell to a record-low 3.0% of revenue from 5.2% three quarters ago.
• **International:** Growth accelerated to 32% from 29%, and the segment moved close to breakeven.
• **U.S.:** Segment EBITDA margin climbed to 10.3%.

Full-year revenue growth guidance now stands at roughly 37%. That compares with "at least 21%" at the start of the year, and adjusted EBITDA guidance rose about $7 million to $68-$68.5 million.

Bears have legitimate ammunition, though:

• **Q4 guide:** Revenue of $254-$256 million implies 32-33% growth and only marginal sequential improvement. Marketplace growth is guided to 35-36%, down from 43%.
• **Services:** Revenue grew just 2%, and the fourth quarter is guided flat to slightly up, walking back the earlier expectation of a return to growth.
• **International profit:** Management flagged one-off expense favorability in the segment's Q3 result that should reverse.
• **Cash conversion:** Year-to-date operating cash flow of about $25 million was outpaced by $38.9 million of capitalized software and equipment spending. Accounts receivable rose $55 million since December, and capex climbed to roughly $15 million in the quarter. Free cash flow has not yet caught up with the EBITDA story.
• **Margin trade-offs:** Management also signaled willingness to trade gross margin for share under its newer pricing flexibility.

The forward catalysts are more concrete than before. The Siemens Design Center integration has a firm Q1 2027 beta date, with staged launches through 2027. The expanded TradeCentric partnership adds purchase-order and invoice automation across more than 220 e-procurement systems. Most buyer traffic now runs on the new AI-native, API-based platform.

The market setup is more complicated than the surprise implies. Shares closed at $95.49 the day before the report, up 7.1% from the opening price after the August release and 25.6% above the 200-day moving average. However, they sat 15.5% below the 52-week high of $112.94 set on October 6, meaning the stock had already surrendered a good portion of its autumn run. Investor sentiment stayed mildly positive but slipped from 0.054 to 0.033, a modest cooling rather than a reversal. The Earnings Whispers trend signals lean positive, with sequential growth and momentum improving, though AVWAP remains negative. That fits a stock where enthusiasm has been tested after a peak.

The bottom line is that Xometry delivered a clean beat-and-raise with accelerating large-account demand, record margins and a symbolic GAAP profit. Its track record of conservative guidance makes the implied Q4 slowdown look more like a floor than a forecast. The open questions are whether 40% growth survives tougher comparisons, whether services can stabilize, and whether rising capex and receivables let EBITDA translate into real free cash flow.