Commerce.com (CMRC) Q4 2025 earnings summary

Executive summary

• FY25 revenue was $342.3M, up 3% year-over-year, and ARR reached $359.1M, also up 3%.

• Enterprise ARR grew 10% to $287.2M, representing 80% of total ARR.

• FY25 focused on operational simplification, investment in high-value initiatives, and a unified brand and platform for AI-enabled commerce.

• Q4 delivered the strongest sequential subscription ARR improvement in more than 18 months, with B2B customers driving most new platform ARR.

Financial highlights

• Q4 revenue was $89.5M, up 3%; subscription solutions revenue rose 5% to $65.2M.

• FY25 non-GAAP operating income was $28M; non-GAAP operating margin expanded 230 bps versus 2024 and 990 bps versus 2023.

• FY25 GAAP gross margin improved to 79% from 77%; non-GAAP gross margin was 79% in Q4.

• FY25 net loss was $(19.3)M, while non-GAAP net income was $20.7M; adjusted EBITDA was $31.7M.

• FY25 operating cash flow was $27.4M; cash, equivalents, and marketable securities totaled $143M at year-end.

Outlook and guidance

• Q1 2026 revenue guidance is $82.5M–$83.5M, with non-GAAP operating income of $9.3M–$10.3M.

• FY26 revenue guidance is $347.5M–$369.5M, with non-GAAP operating income of $34M–$53M and a 10%–14% operating margin.

• FY26 guidance implies 2%–8% revenue growth and Rule of 40 performance of 11%–22%.

• First-time GAAP profitability is expected in FY26; cash and cash equivalents are expected to exceed long-term debt by midyear.