Commerce.com, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $84.2 million, a decrease of 2.1% year-over-year compared to $86.0 million in Q3 2025.
• Total Annual Revenue Run-Rate (ARR) reached $357.6 million as of September 30, 2026, an increase of 0.5% year-over-year.
• Subscription solutions revenue was $64.7 million, up 0.1% year-over-year.
• Gross Merchandise Volume (GMV) was $9.0 billion, an increase of 14% year-over-year.
• GAAP loss from operations was $1.8 million, compared to a loss of $0.4 million in Q3 2025.
• Non-GAAP operating income was $8.0 million, flat compared to $8.0 million in Q3 2025; Non-GAAP operating margin was 9.5% versus 9.3% in Q3 2025.
• GAAP net loss was $3.2 million, compared to a loss of $2.2 million in Q3 2025.
• Non-GAAP net income was $6.6 million (8% of revenue), compared to $6.2 million (7% of revenue) in Q3 2025.
• Adjusted EBITDA was $9.9 million, compared to $8.8 million in Q3 2025.
• Net cash provided by operating activities was $9.4 million, down from $10.6 million in Q3 2025.
• Free cash flow was $5.7 million, compared to $7.6 million in Q3 2025.
• Cash, cash equivalents, restricted cash, and marketable securities totaled $162.8 million as of September 30, 2026.
• Deferred revenue was $68.8 million as of September 30, 2026, up from $59.6 million as of December 31, 2025.
• Convertible notes totaled $156.3 million (current and long-term combined) as of September 30, 2026.
• GAAP gross margin was 74% (down from 78% in Q3 2025); Non-GAAP gross margin was 75% (down from 79% in Q3 2025).
• Net Revenue Retention (NRR) was 94.7%, compared to 94.5% in Q3 2025 and 95.8% in Q2 2026.

Guidance and Future Outlook:

• Q4 2026 total revenue is expected to be between $83.4 million and $86.4 million.
• Q4 2026 Non-GAAP operating income is expected to be between $6.8 million and $8.8 million.
• Full-year 2026 total revenue is expected to be between $339.0 million and $342.0 million.
• Full-year 2026 Non-GAAP operating income is expected to be between $35.3 million and $37.3 million.
• The company targets a full-year Non-GAAP operating margin of at least 20% beginning in 2027.
• The strategic operating plan aims for estimated annualized Non-GAAP operating cost reductions of $60 million to $80 million.
• The company does not provide guidance for GAAP income from operations, cash flows from operating activities, or reconciliations of forecasted Non-GAAP operating income to GAAP measures.

Business Segments and Product Lines:

• Revenue in the United States declined 3% year-over-year; EMEA grew 7%; APAC declined 9%.
• New capabilities announced in September include Feedonomics Enrichment and BigCommerce Catalog Enrichment to support AI-ready product intelligence.
• In October, a partnership with Cloudflare was announced enabling AI agents to search, compare, and shop directly on BigCommerce stores.
• U.S. brands and retailers using Feedonomics received early access to Amazon Shop Direct, an AI-powered program for product discovery.
• Customer highlights include migrations and launches by Bici Escapa, Simply Thank You, Valley Vet Supply, and RatioParts.

Market and Competitive Landscape:

• Commerce was recognized as a Challenger in the 2026 Gartner Magic Quadrant for Digital Commerce Platforms, marking the seventh consecutive year of recognition.
• The company operates in competitive markets with risks related to sustaining revenue growth rates and market share.

Risks and Challenges:

• Leadership transition involving the departure of CFO/COO Daniel Lentz and the appointment of Tyler Duncan as Interim CFO may disrupt business.
• Actual results may vary from forward-looking assumptions due to factors outside the company's control.
• Risks include potential decline in new customers, renewals, or upgrades; service interruptions; and cybersecurity attacks.
• The company's ability to pay interest and principal on indebtedness depends on operating performance cash flows.
• Limited operating history makes evaluating future prospects difficult.

Management Commentary and Tone:

• CEO Travis Hess described the quarter as reflecting "disciplined execution" and noted the strategic operating plan is driving efficiency and profitability while protecting investments in high-impact growth areas.
• Management highlighted investments in product intelligence, AI-driven agentic commerce, and open architecture.
• The company expressed confidence in Tyler Duncan's ability to provide continuity and drive the next phase of disciplined execution and profitable growth.

Other Key Points:

• Daniel Lentz, CFO and COO, departed the company effective November 13, 2026.
• Tyler Duncan, previously Senior Vice President of Finance and Investor Relations, serves as Interim CFO.
• Emily Harnish joined Commerce as Chief Marketing Officer in August.
• A strategic operating plan announced in September focuses on cost reduction and increasing profitability and free cash flow.
• The company relies on an exception provided by Item 10(e)(1)(i)(B) of Regulation S-K regarding the reconciliation of forward-looking Non-GAAP measures to GAAP measures due to the difficulty of forecasting stock-based compensation and restructuring charges.