The economics of manufacturing marketplaces
Xometry's marketplace gross margin hit 35.7% in Q3 2025. Fictiv lost $20M on $98M in revenue. Protolabs is outsourcing more than ever. Here's what the numbers mean for the shops doing the actual work.
Follow the money
When a buyer pays $1,000 for a CNC part through a manufacturing marketplace, here's approximately where that money goes:
Xometry (publicly traded, XMTR)
Xometry reported a marketplace gross margin of 35.7% in Q3 2025. That means the shop receives roughly $640 of the $1,000 the buyer pays. The remaining $360 covers Xometry's platform operations, sales, technology, and profit. On top of that, Xometry still operates at a net loss (-9% net margin), meaning even the $360 isn't enough to cover their full cost structure.
Fictiv (acquired by MISUMI, 2025)
MISUMI disclosed that Fictiv generated $98M in revenue with -$20M in operating income in its first year post-acquisition — a -21% operating margin. The managed service model is even more expensive to operate than a marketplace, which means the buyer-to-shop spread is wider, and the premium pricing reflects it.
Protolabs (publicly traded, PRLB)
Protolabs runs a hybrid model: in-house factories (higher margin) plus outsourced network via Hubs (lower margin). Overall gross margin is around 45%, but that's blended across both models. For outsourced work, the economics are similar to Xometry — the network partner receives a fraction of the buyer's price.
Why this matters for precision work
For commodity prototyping — standard aluminum parts with commercial tolerances — a 35% platform take is annoying but survivable. The parts are simple, the tooling is standard, and cycle times are short.
For precision work — tight tolerances, tool steel, EDM, Swiss turning — the math breaks down. These jobs require expensive tooling, skilled operators, slower cycle times, and quality inspection. A 35% cut on top of those real costs means the shop is either losing money or cutting corners. There's no third option.
The Axhera model
Axhera doesn't take a percentage of every transaction. We're a capacity network — we connect buyers with shops that have the right machines and open capacity, and the shop quotes and invoices directly. The shop keeps 100% of the job revenue.
This works because our cost structure is fundamentally different. We don't manage production, handle logistics, or operate manufacturing centers. The shops do what they're built to do. We provide the infrastructure that makes them visible to the buyers who need their specific capabilities.
Find the right shop for precision work
Search by process, machine, and tolerance — not just price.
Keep your customers. Set your own prices.
Join a network that works for you, not against you.