Commerce.com (CMRC) Q4 2025 earnings summary

Executive summary

• Achieved $342.3M in revenue for 2025, up 3% year-over-year, with ARR reaching $359.1M, 80% from enterprise accounts, and non-GAAP operating income of $28M.

• Transitioned to an AI-led, agentic commerce platform, rebranded under a unified platform, and launched new products like Surface and Makeswift.

• Recognized for leadership in B2B and B2C commerce, with strong analyst accolades and industry awards.

• Added major new B2B and consumer customers, and expanded partnerships with OpenAI, Microsoft, Google, PayPal, and Stripe.

• 2025 marked a business transformation with improved efficiency, margin expansion, and strategic rebrand.

Financial highlights

• Q4 revenue was $89.5M, up 3% year-over-year; full-year ARR ended at $359M; subscription solutions revenue rose 5% to $65.2M.

• Non-GAAP gross margin reached 79% in 2025; GAAP gross margin improved to 79% from 77%.

• Non-GAAP operating margin expanded by 230 bps vs. 2024 and 990 bps vs. 2023; non-GAAP operating income was $7.4M in Q4.

• Operating cash flow was $3M for Q4 and $27.4M for 2025; cash and equivalents at year-end were $143M.

• Net debt reduced from $33M in 2024 to $11M in 2025, a 67% decrease.

Outlook and guidance

• Q1 2026 revenue expected between $82.5M and $83.5M; non-GAAP operating income between $9.3M and $10.3M.

• Full-year 2026 revenue guidance of $347.5M–$369.5M, non-GAAP operating income of $34M–$53M, and non-GAAP operating margins of 10%–14%.

• Guidance implies 2%–8% full-year growth and exceeds current Street consensus.

• Expecting GAAP profitability for the first time in 2026.

• Cash and equivalents anticipated to exceed total long-term debt by mid-2026.