Commerce.com (CMRC) investor relations material

Executive summary

• Q3 revenue was $84.245M, down 2.1% YoY; GMV grew 14% to $9.023B and ARR was $357.578M.

• Non-GAAP operating income was $7.984M, or 9.5% margin, and FY2026 profitability guidance increased while the revenue midpoint was maintained.

• The strategic plan targets $60M–$80M in annualized non-GAAP operating cost reductions and at least 20% full-year non-GAAP operating margin beginning in 2027.

Financial highlights

• Q3 revenue was $84.245M: Subscription Solutions $64.740M and Partner and Services $19.505M.

• GAAP gross profit was $62.394M, with a 74.1% margin versus 78.4% YoY; non-GAAP gross margin was 74.5%.

• GAAP operating loss was $1.803M versus $0.435M; non-GAAP operating income was $7.984M versus $7.993M, with margin of 9.5% versus 9.3%.

• GAAP net loss was $3.214M versus $2.243M; non-GAAP net income was $6.573M versus $6.185M. Q3 restructuring charges were $4.021M.

• Adjusted EBITDA was $9.852M; operating cash flow was $9.364M and free cash flow was $5.7M after $3.6M in capex.

Outlook and guidance

• Q4 2026 revenue guidance is $83.4M–$86.4M; non-GAAP operating income guidance is $6.8M–$8.8M, with an 8%–10% margin range.

• FY2026 revenue guidance is $339.0M–$342.0M; non-GAAP operating income guidance is $35.3M–$37.3M, raised $2.3M at the midpoint versus September's updated outlook.

• Annualized non-GAAP operating cost reductions remain targeted at $60M–$80M; implementation is expected to be substantially complete by Q2 2027, with ~$5M of savings estimated in 2026.

• The target is at least 20% full-year non-GAAP operating margin beginning in 2027; preliminary 2027 revenue assumptions are broadly in line with 2026 levels.

• Expected restructuring charges are $4M–$8.5M in Q4 2026 and $2.2M–$4.2M in H1 2027; charges are excluded from non-GAAP operating income, while cash payments affect free cash flow.