E2open Parent (ETWO) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 2025 subscription revenue was $132.0M, above guidance midpoint, with improved retention and net new ARR growth, and total revenue was $151.7M, down 3.7%-4% YoY, mainly due to professional services decline.

• Net loss for Q3 was $381.6M, including a $369.1M non-cash goodwill impairment charge, with additional $10.0M intangible asset impairment; net loss improved from prior year.

• Leadership changes included Pawan Joshi as Chief Strategy Officer and Rachit Lohani as Chief Product and Technology Officer, with new executive appointments and stock awards.

• Recognized as a leader in the 2024 IDC MarketScape for supply chain planning, with major product updates focused on AI and automation.

• Several strategic subscription deals and cross-sell wins were closed with new and existing clients across multiple industries.

Financial highlights

• Q3 subscription revenue: $132.0M (down 0.6%-1% YoY); professional services revenue: $19.7M (down 20.4% YoY); total Q3 revenue: $151.7M (down 3.7%-4% YoY).

• Non-GAAP gross profit: $104.3M (margin 68.8%-69%); GAAP gross profit: $75.7M (margin 49.9%-50%).

• Adjusted EBITDA: $53.6M (margin 35%-35.3%), down 3%-3.2% YoY.

• Net loss: $381.6M, including $369.1M goodwill and $10.0M intangible asset impairments.

• Cash and equivalents at quarter end: $151.2M; $155.0M available under revolving credit facility.

Outlook and guidance

• Q4 FY25 subscription revenue expected at $131M–$134M (down 2.5% to 0.3% YoY), with $800K FX headwind.

• FY25 subscription revenue guidance: $526M–$529M (down 2.0% to 1.5% YoY), with $1.1M FX headwind.

• FY25 total revenue guidance: $607M–$611M (down 4.3% to 3.7% YoY); non-GAAP gross margin expected at 68%-70%.

• FY25 adjusted EBITDA expected near low end of $215M–$225M range; margin ~35%.

• Management expects continued pressure from lower bookings and elevated churn, but liquidity is sufficient for at least twelve months.