Commerce Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Commerce (Nasdaq: CMRC) reported Q3 2025 results for the quarter ended September 30, 2025: Total revenue $86.0M (+3% YoY) and ARR $355.7M (+2% YoY). Subscription solutions revenue was $64.7M (+3% YoY) and Enterprise ARR was $269.2M (+5% YoY), representing 76% of total ARR.

Profitability improved: GAAP gross margin 78%, Non‑GAAP operating income $8.0M, Adjusted EBITDA $8.8M, GAAP net loss ($2.2M), Non‑GAAP net income $6.2M. Cash and equivalents totaled $143.2M.

Company announced new Feedonomics Surface, PayPal‑powered payments (U.S. launch 2026) and agentic commerce pilots. Q4 2025 revenue guidance: $87.8M–$92.8M.

Positive

• Total revenue of $86.0M (+3% YoY)
• Enterprise ARR $269.2M (+5% YoY) now 76% of ARR
• Non‑GAAP operating income of $8.0M
• Adjusted EBITDA of $8.8M
• Cash and marketable securities of $143.2M

Negative

• GAAP net loss of ($2.2M) for Q3 2025
• Number of enterprise accounts down 2% YoY
• APAC revenue declined 3% YoY

Insights

Industry Financial Analyst

Commerce shows modest top‑line growth, stronger margins and positive cash flow, but growth remains limited and guidance is cautious.

Revenue of $86.0 million (up 3%) and ARR of $355.7 million (up 2%) point to slow but consistent expansion; enterprise ARR rose to $269.2 million (up 5%) and enterprise ARPA improved 7%, signalling better monetization of larger accounts even as enterprise count fell 2%. Profitability metrics moved materially toward positive: GAAP operating loss narrowed to ($0.4) million, non‑GAAP operating income was $8.0 million, adjusted EBITDA was $8.8 million, and free cash flow was $7.6 million, supporting a clearer path to sustained cash generation.

Key dependencies and risks include sustaining enterprise ARPA gains while stemming account attrition and delivering on the planned Q4 2025 and full‑year outlooks; management disclosed Q4 revenue guidance of $87.8–$92.8 million and full‑year revenue guidance of $340.6–$345.6 million, with non‑GAAP operating income targets. Watch: execution on the PayPal payments rollout (U.S. launch in 2026), Feedonomics Surface adoption, and regional performance trends (EMEA +9%, APAC -3%) over the next 1–4 quarters for evidence the company can convert improved margins into durable revenue growth.

Third Quarter Total Revenue of $86.0 Million, an Increase of 3% Versus Prior Year. Total ARR of $355.7 Million, an Increase of 2% Versus Prior Year. Enterprise ARR of $269.2 Million, an Increase of 5% Versus Prior Year

AUSTIN, Texas, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Commerce.com, Inc. (Nasdaq: CMRC) (formerly BigCommerce Holdings, Inc.), a provider of an open, intelligent ecosystem of technology solutions that empower businesses to unlock data potential and deliver seamless, personalized experiences at scale, today announced financial results for its third quarter ended September 30, 2025.

“The third quarter marked another strong step forward in our transformation, with revenue in line with guidance and profitability and cash flow exceeding expectations,” said Travis Hess, CEO of Commerce. “We are now squarely in execution mode, scaling sustainable growth across core offerings and leaning into strategic partnerships with AI leaders like Perplexity, Google, and PayPal to power agentic commerce. As buyer behavior shifts, our differentiated approach, flexible platform, enriched data and AI-enabled experiences, are driving real momentum across B2B and B2C.”

Third Quarter Financial Highlights:

• Total revenue was $86.0 million, up 3% compared to the three months ended September 30, 2024.
• Total annual revenue run-rate (“ARR”) as of September 30, 2025 was $355.7 million, up 2% compared to September 30, 2024.
• Subscription solutions revenue was $64.7 million, up 3% compared to the three months ended September 30,  2024.
• ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $269.2 million as of September 30, 2025, up 5% from September 30, 2024.
• ARR from Enterprise Accounts as a percent of total ARR was 76% as of September 30, 2025, compared to 74% as of September 30, 2024.
• GAAP gross margin was 78%, compared to 76% in the three months ended September 30,2024. Non-GAAP gross margin was 79%, compared to 78% in the three months ended September 30, of 2024.

Other Key Business Metrics

• Number of enterprise accounts was 5,751, down 2% compared to the three months ended September 30, 2024.
• Average revenue per account (“ARPA”) of enterprise accounts was $46,806, up 7% compared to the three months ended September 30, 2024.
• Revenue in the United States grew by 2% compared to the three months ended September 30, 2024.
• Revenue in EMEA grew by 9% and revenue in APAC declined by 3% compared to the three months ended September 30, 2024.

Loss from Operations and Non-GAAP Operating Income

• GAAP loss from operations was ($0.4) million, compared to ($19.2) million in the three months ended September 30, 2024.
• Non-GAAP operating income was $8.0 million, compared to $4.3 million in the three months ended September 30, 2024.

GAAP Net Loss, Non-GAAP Net Income and Earnings Per Share

• GAAP net loss was ($2.2) million, compared to ($7.0) million in the three months ended September 30, 2024.
• Non-GAAP net income was $6.2 million or 7% of revenue, compared to $4.4 million or 5% of revenue in the three months ended September 30, 2024.
• GAAP basic net loss per share was ($0.03) based on 80.8 million shares of weighted average shares outstanding, compared to ($0.09) based on 77.9 million shares of weighted average shares outstanding in the three months ended September 30, 2024.
• Non-GAAP basic net income per share was $0.08 based on 80.8 million shares of weighted average shares outstanding, compared to $0.06 based on 77.9 million shares of weighted average shares outstanding in the three months ended September 30, 2024.

Adjusted EBITDA

• Adjusted EBITDA was $8.8 million, compared to $5.4 million in the three months ended September 30, 2024.

Cash

• Cash, cash equivalents, restricted cash, and marketable securities totaled $143.2 million as of September 30, 2025.
• In the three months ended September 30, 2025, net cash provided by operating activities was $10.6 million, compared to $5.6 million provided by operating activities for the same period in 2024. We reported free cash flow of $7.6 million in the three months ended September 30, 2025.
  

Business Highlights:

Corporate Highlights

• The Company announced the availability of Feedonomics Surface, a new solution that simplifies and automates the process of connecting product catalogs to important advertising channels like Google Shopping and Meta. Feedonomics Surface provides Feedonomics' powerful data optimization and automation tools directly to merchants so they can improve their return on advertising spending with a stronger data feed.
• The Company announced a new embedded payment processing solution available exclusively to BigCommerce merchants. Powered by PayPal, BigCommerce Payments is slated for a U.S. launch in 2026, with international expansion planned in subsequent phases.
• The Company announced a new agentic commerce feature with seamless agentic checkout through Commerce’s integration with PayPal, enabling pilot merchants to participate in seamless agentic checkout experiences.
• The Company announced it is releasing two new Feedonomics applications in the Shopify App Store: Feedonomics for Advertising and Feedonomics for Listings & Orders. These apps provide a robust, formalized foundation that empowers merchants and partners to manage complex, cross-platform operations and scale their business with greater ease.

Customer Highlights

• Mountain Warehouse, a leading outdoor clothing and equipment retailer, launched its European Union storefront with additional storefronts planned. Mountain Warehouse built a composable storefront with Catalyst and featuring multi-storefront, custom checkout and multi-language functionality.
• LCA Franchising, a laser, skin care & cosmetic clinic, launched four Catalyst storefronts across Australia, New Zealand, UK and Canada, leveraging BigCommerce agency partner Aligent.
• F&C Distributors launched its first B2B ecommerce store, updating its operations which had previously been done entirely offline. They integrated with Quickbooks using Webgility and are now working on launching two B2C stores.
• DriveDen, one of the UK’s leading retailers of premium car travel accessories, has become one of the first businesses in the country to launch an ecommerce site on Catalyst, the next generation storefront technology from leading ecommerce platform BigCommerce. The project was delivered in partnership with Nottingham-based digital agency Rusty Monkey.

Q4 and 2025 Financial Outlook:

For the fourth quarter of 2025, we currently expect:

• Total revenue between $87.8 million to $92.8 million.
• Non-GAAP operating income is expected to be between $4.3 million to $9.3 million.

For the full year 2025, we currently expect:

• Total revenue between $340.6 million and $345.6 million.
• Non-GAAP operating income between $24.7 million and $29.7 million.

Our fourth quarter and 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.

We do not provide guidance for loss from operations , the most directly comparable GAAP measure to Non-GAAP operating income, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating income and Non-GAAP income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 7:00 a.m. CT (8:00 a.m. ET) on Thursday, November 6, 2025. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the “Commerce conference call.” The live webcast of the conference call can be accessed from Commerce’s investor relations website at http://investors.commerce.com.

Following the completion of the call through 11:59 p.m. ET on Thursday, November 13, 2025, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 6059610. A webcast replay will also be available at http://investors.commerce.com for 12 months.

About Commerce

Commerce (Nasdaq: CMRC) empowers businesses to innovate, grow, and thrive by providing an open, AI-driven commerce ecosystem. As the parent company of BigCommerce, Feedonomics, and Makeswift, Commerce connects the tools and systems that power growth, enabling businesses to unlock the full potential of their data, deliver seamless and personalized experiences across every channel, and adapt swiftly to an ever-changing market. Trusted by leading businesses like Coldwater Creek, Cole Haan, Harvey Nichols, King Arthur Baking Co., Mizuno, Perry Ellis, SportsShoes and Uplift Desk, Commerce delivers the storefront control, optimized data, and AI-ready tools businesses need to grow, serve diverse buyers, and operate with confidence in an increasingly intelligent, multi-surface world. For more information, visit commerce.com or follow us on X and LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “strategy, “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our ability to successfully execute our rebranding initiative, our increased focus on AI enablement, market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q3 and fiscal 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Commerce at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Commerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these Non-GAAP financial measures internally in analyzing our financial results and believes that use of these Non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar Non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical Non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Annual Revenue Run-Rate

We calculate annual revenue run-rate at the end of each month as the sum of: (1) contractual monthly recurring revenue at the end of the period, which includes platform subscription fees, invoiced growth adjustments, feed management subscription fees, recurring professional services revenue, and other recurring revenue, multiplied by twelve to prospectively annualize recurring revenue, and (2) the sum of the trailing twelve-month non-recurring and variable revenue, which includes one-time partner integrations, one-time fees, payments revenue share, and any other revenue that is non-recurring and variable.

Enterprise Account Metrics

To measure the effectiveness of our ability to execute against our growth strategy, we calculate ARR attributable to Enterprise Accounts. We define Enterprise Accounts as accounts with at least one unique Enterprise plan subscription or an enterprise level feed management subscription (collectively “Enterprise Accounts”). These accounts may have more than one Enterprise plan or a combination of Enterprise plans and non-enterprise plans.

Average Revenue Per Account

We calculate average revenue per account (“ARPA”) for accounts in the Enterprise cohort at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, where applicable. We allocate partner revenue, where applicable, primarily based on each customer’s share of gross merchandise volume (“GMV”) processed through that partner’s solution. For partner revenue that is not directly linked to customer usage of a partner’s solution, we allocate such revenue based on each customer’s share of total platform GMV. Each account’s partner revenue allocation is calculated by taking the account’s trailing twelve-month partner revenue, then dividing by twelve to create a monthly average to apply to the applicable period in order to normalize ARPA for seasonality.

Adjusted EBITDA

We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, restructuring charges, depreciation, gain on convertible notes extinguishment, interest income, interest expense, other expense, and our provision or benefit for income taxes.

Acquisition related costs include contingent compensation arrangements entered into in connection with acquisitions and achieved earnout related to an acquisition.

Restructuring charges include severance benefits, right-of-use asset impairments, lease termination gain, software impairments, accelerated depreciation and amortization, and professional services costs.

Depreciation includes depreciation expenses related to the Company's fixed assets.

The most directly comparable GAAP measure is net loss.

Non-GAAP Operating Income (Loss)

We define Non-GAAP Operating Income (Loss) as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, and restructuring charges. The most directly comparable GAAP measure is our loss from operations.

Non-GAAP Net Income (Loss)

We define Non-GAAP Net Income (Loss) as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, restructuring charges, and gain on convertible notes extinguishment. The most directly comparable GAAP measure is our net loss.

Non-GAAP Basic and Dilutive Net Income (Loss) per Share

We define Non-GAAP Basic and Dilutive Net Income (Loss) per Share as our Non-GAAP net income (loss), defined above, divided by our basic and diluted GAAP weighted average shares outstanding. The most directly comparable GAAP measure is our basic net loss per share.

Free Cash Flow

We define Free Cash Flow as our GAAP cash flow provided by operating activities less our cash paid for website domain name and GAAP purchases of property, equipment, leasehold improvements and capitalized internal-use software (Capital Expenditures). The most directly comparable GAAP measure is our cash flow provided by operating activities.

BigCommerce,® the Commerce logo, and other brands are the trademarks or registered trademarks of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owner.

Media Relations Contact	Investor Relations Contact
Brad Hem	Tyler Duncan
PR@Commerce.com	InvestorRelations@Commerce.com

Commerce.com, Inc. Condensed Consolidated Balance Sheets (in thousands)
		September 30,				December 31,
		2025				2024
		(unaudited)
Assets
Current assets
Cash and cash equivalents		$	49,912			$	88,877
Restricted cash			1,164				1,479
Marketable securities			92,114				89,283
Accounts receivable, net			48,234				48,117
Prepaid expenses and other assets, net			17,720				14,641
Deferred commissions			6,808				8,822
Total current assets			215,952				251,219
Property and equipment, net			11,196				9,128
Operating lease, right-of-use-assets			7,470				1,993
Prepaid expenses and other assets, net of current portion			6,181				3,146
Deferred commissions, net of current portion			3,733				5,559
Intangible assets, net			13,006				17,317
Goodwill			51,927				51,927
Total assets		$	309,465			$	340,289
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		$	9,530			$	7,018
Accrued liabilities			4,485				3,194
Deferred revenue			59,179				46,590
Operating lease liabilities			1,540				2,438
Other liabilities			26,258				28,766
Total current liabilities			100,992				88,006
Convertible notes			157,298				216,466
Operating lease liabilities, net of current portion			7,047				1,680
Other liabilities, net of current portion			1,293				768
Total liabilities			266,630				306,920
Stockholders’ equity
Common stock			7				7
Additional paid-in capital			675,285				654,905
Accumulated other comprehensive income			209				145
Accumulated deficit			(632,666	)			(621,688	)
Total stockholders’ equity			42,835				33,369
Total liabilities and stockholders’ equity		$	309,465			$	340,289

Commerce.com, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
		For the three months ended September 30,								For the nine months ended September 30,
		2025				2024				2025				2024
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Cost of revenue (1)			18,595				19,863				53,318				58,113
Gross profit			67,434				63,847				199,514				187,786
Operating expenses:
Sales and marketing(1)			36,281				33,140				101,718				99,997
Research and development(1)			17,464				20,841				54,980				61,116
General and administrative(1)			12,141				16,435				41,640				46,800
Amortization of intangible assets			1,900				2,434				6,755				7,353
Acquisition related costs			0				334				444				1,001
Restructuring charges			83				9,880				3,609				12,452
Total operating expenses			67,869				83,064				209,146				228,719
Loss from operations			(435	)			(19,217	)			(9,632	)			(40,933	)
Gain on convertible note extinguishment			0				12,110				3,931				12,110
Interest income			1,184				2,433				3,655				8,807
Interest expense			(2,478	)			(1,908	)			(7,543	)			(3,348	)
Other expense			(302	)			(142	)			(432	)			(585	)
Loss before provision for income taxes			(2,031	)			(6,724	)			(10,021	)			(23,949	)
Provision for income taxes			(212	)			(269	)			(957	)			(691	)
Net loss		$	(2,243	)		$	(6,993	)		$	(10,978	)		$	(24,640	)
Basic net loss per share		$	(0.03	)		$	(0.09	)		$	(0.14	)		$	(0.32	)
Shares used to compute basic net loss per share			80,756				77,869				79,911				77,319

⁽¹⁾ Amounts include stock-based compensation expense and associated payroll tax costs, as follows:

		For the three months ended September 30,								For the nine months ended September 30,
		2025				2024				2025				2024
Cost of revenue		$	577			$	1,114			$	2,043			$	2,798
Sales and marketing			1,718				3,327				5,313				8,332
Research and development			2,046				3,766				7,828				10,515
General and administrative			2,104				2,685				4,005				7,859

Commerce.com, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
	Three months ended September 30,								Nine months ended September 30,
	2025				2024				2025				2024
Cash flows from operating activities
Net loss	$	(2,243	)		$	(6,993	)		$	(10,978	)		$	(24,640	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense		2,725				3,484				10,851				10,482
Amortization of discount on convertible notes		167				344				519				1,338
Amortization of premium on convertible notes		(414	)			(240	)			(1,224	)			(240	)
Stock-based compensation expense		6,327				10,159				18,772				28,556
Provision for expected credit losses		(229	)			1,289				2,299				3,002
Real estate and internal-use software charges		0				3,031				0				3,031
Gain on lease modification		0				(988	)			0				(988	)
Gain on convertible notes extinguishment		0				(12,110	)			(3,931	)			(12,110	)
Changes in operating assets and liabilities:
Accounts receivable		3,740				445				(2,245	)			(8,933	)
Prepaid expenses and other assets		(3,359	)			2,041				(6,284	)			979
Deferred commissions		1,158				389				3,840				198
Accounts payable		1,012				1,022				2,134				(223	)
Accrued and other liabilities		(1,772	)			(235	)			(1,831	)			(668	)
Deferred revenue		3,441				3,935				12,589				14,110
Net cash provided by operating activities		10,553				5,573				24,511				13,894
Cash flows from investing activities:
Cash paid for website domain name		0				0				(2,444	)			0
Cash paid for acquisition		0				0				0				(100	)
Purchase of property, equipment, leasehold improvements and capitalized internal-use software		(2,967	)			(1,064	)			(5,443	)			(2,934	)
Maturity of marketable securities		40,500				59,670				82,079				151,635
Purchase of marketable securities		(44,329	)			(49,355	)			(84,846	)			(85,957	)
Net cash provided by (used in) investing activities		(6,796	)			9,251				(10,654	)			62,644
Cash flows from financing activities:
Proceeds from exercise of stock options		440				238				3,509				1,483
Taxes paid related to net share settlement of stock options		(550	)			(1,086	)			(1,901	)			(2,411	)
Payment of convertible note issuance costs		0				(2,520	)			(217	)			(2,520	)
Repayment of convertible notes and financing obligation		0				(108,709	)			(54,528	)			(108,980	)
Net cash used in financing activities		(110	)			(112,077	)			(53,137	)			(112,428	)
Net change in cash and cash equivalents and restricted cash		3,647				(97,253	)			(39,280	)			(35,890	)
Cash and cash equivalents and restricted cash, beginning of period		47,429				134,208				90,356				72,845
Cash and cash equivalents and restricted cash, end of period	$	51,076			$	36,955			$	51,076			$	36,955
Supplemental cash flow information:
Cash paid for interest	$	0			$	2,018			$	5,685			$	2,463
Cash paid for taxes	$	84			$	93			$	563			$	275
Noncash investing and financing activities:
Capital additions, accrued but not paid	$	805			$	106			$	805			$	224
Fair value of shares issued as consideration for acquisition	$	0			$	0			$	0			$	248
Right-of-use asset obtained in exchange for new operating lease liability	$	698			$	0			$	6,213			$	0
Principal amount of 2028 Convertible Notes exchanged	$	0			$	150,000			$	0			$	150,000

Commerce.com, Inc.

Disaggregation of Revenue

Disaggregated Revenue:

		Three months ended September 30,								Nine months ended September 30,
(in thousands)		2025				2024				2025				2024
Subscription solutions		$	64,703			$	62,826			$	190,473			$	185,582
Partner and services			21,326				20,884				62,359				60,317
Revenue		$	86,029			$	83,710			$	252,832			$	245,899

Revenue by Geography:

		Three months ended September 30,								Nine months ended September 30,
(in thousands)		2025				2024				2025				2024
Revenue:
United States		$	65,199			$	63,682			$	192,019			$	187,249
EMEA			10,597				9,709				30,566				28,182
APAC			6,220				6,426				18,373				19,023
Rest of World			4,013				3,893				11,874				11,445
Revenue		$	86,029			$	83,710			$	252,832			$	245,899

Commerce.com, Inc

Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share amounts)
(unaudited)

Reconciliation of loss from operations to Non-GAAP operating income:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Loss from operations		$	(435	)		$	(19,217	)		$	(9,632	)		$	(40,933	)
Plus:
Stock-based compensation expense and associated payroll tax costs			6,445				10,892				19,189				29,504
Amortization of intangible assets			1,900				2,434				6,755				7,353
Acquisition related costs			0				334				444				1,001
Restructuring charges			83				9,880				3,609				12,452
Non-GAAP operating income		$	7,993			$	4,323			$	20,365			$	9,377
Non-GAAP operating income as a percentage of revenue			9.3	%			5.2	%			8.1	%			3.8	%

Reconciliation of net loss & basic net loss per share to Non-GAAP net income & Non-GAAP basic and diluted net income per share:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Net loss		$	(2,243	)		$	(6,993	)		$	(10,978	)		$	(24,640	)
Plus:
Stock-based compensation expense and associated payroll tax costs			6,445				10,892				19,189				29,504
Amortization of intangible assets			1,900				2,434				6,755				7,353
Acquisition related costs			0				334				444				1,001
Restructuring charges			83				9,880				3,609				12,452
Gain on convertible notes extinguishment			0				(12,110	)			(3,931	)			(12,110	)
Non-GAAP net income		$	6,185			$	4,437			$	15,088			$	13,560
Basic net loss per share		$	(0.03	)		$	(0.09	)		$	(0.14	)		$	(0.32	)
Non-GAAP basic net income per share		$	0.08			$	0.06			$	0.19			$	0.18
Non-GAAP diluted net income per share		$	0.08			$	0.06			$	0.19			$	0.17
Shares used to compute basic net loss per share and basic Non-GAAP net income per share			80,756				77,869				79,911				77,319
Shares used to compute diluted Non-GAAP net income per share			81,311				79,401				80,901				79,184
Non-GAAP net income as a percentage of revenue			7.2	%			5.3	%			6.0	%			5.5	%

Reconciliation of net loss to adjusted EBITDA:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Net loss		$	(2,243	)		$	(6,993	)		$	(10,978	)		$	(24,640	)
Plus:
Stock-based compensation expense and associated payroll tax costs			6,445				10,892				19,189				29,504
Amortization of intangible assets			1,900				2,434				6,755				7,353
Acquisition related costs			0				334				444				1,001
Restructuring charges			83				9,880				3,609				12,452
Depreciation			825				1,050				3,015				3,129
Gain on convertible notes extinguishment			0				(12,110	)			(3,931	)			(12,110	)
Interest income			(1,184	)			(2,433	)			(3,655	)			(8,807	)
Interest expense			2,478				1,908				7,543				3,348
Other expenses			302				142				432				585
Provision for income taxes			212				269				957				691
Adjusted EBITDA		$	8,818			$	5,373			$	23,380			$	12,506
Adjusted EBITDA as a percentage of revenue			10.3	%			6.4	%			9.2	%			5.1	%

Reconciliation of Cost of revenue to Non-GAAP cost of revenue:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Cost of revenue		$	18,595			$	19,863			$	53,318			$	58,113
Less:
Stock-based compensation expense and associated payroll tax costs			577				1,114				2,043				2,798
Non-GAAP cost of revenue		$	18,018			$	18,749			$	51,275			$	55,315
As a percentage of revenue			20.9	%			22.4	%			20.3	%			22.5	%

Reconciliation of Sales and marketing expense to Non-GAAP sales and marketing expense:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Sales and marketing		$	36,281			$	33,140			$	101,718			$	99,997
Less:
Stock-based compensation expense and associated payroll tax costs			1,718				3,327				5,313				8,332
Non-GAAP sales and marketing		$	34,563			$	29,813			$	96,405			$	91,665
As a percentage of revenue			40.2	%			35.6	%			38.1	%			37.3	%

Reconciliation of Research and development expense to Non-GAAP research and development expense:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
Research and development		$	17,464			$	20,841			$	54,980			$	61,116
Less:
Stock-based compensation expense and associated payroll tax costs			2,046				3,766				7,828				10,515
Non-GAAP research and development		$	15,418			$	17,075			$	47,152			$	50,601
As a percentage of revenue			17.9	%			20.4	%			18.6	%			20.6	%

Reconciliation of General and administrative expense to Non-GAAP general and administrative expense:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Revenue		$	86,029			$	83,710			$	252,832			$	245,899
General & administrative		$	12,141			$	16,435			$	41,640			$	46,800
Less:
Stock-based compensation expense and associated payroll tax costs			2,104				2,685				4,005				7,859
Non-GAAP general & administrative		$	10,037			$	13,750			$	37,635			$	38,941
As a percentage of revenue			11.7	%			16.4	%			14.9	%			15.8	%

Reconciliation of net cash provided by operating activities to free cash flow:

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
(in thousands)
Net cash provided by operating activities		$	10,553			$	5,573			$	24,511			$	13,894
Cash paid for website domain name			0				0				(2,444	)			0
Purchase of property, equipment, leasehold improvements and capitalized internal-use software			(2,967	)			(1,064	)			(5,443	)			(2,934	)
Free cash flow		$	7,586			$	4,509			$	16,624			$	10,960

FAQ

What were Commerce (CMRC) Q3 2025 total revenue and ARR?

Q3 2025 total revenue was $86.0M (up 3% YoY) and ARR was $355.7M (up 2% YoY).

How did Commerce (CMRC) profitability change in Q3 2025?

GAAP gross margin rose to 78%, Non‑GAAP operating income was $8.0M, and Adjusted EBITDA was $8.8M.

What guidance did Commerce (CMRC) give for Q4 2025 revenue?

Commerce expects Q4 2025 total revenue between $87.8M and $92.8M.

What cash position did Commerce (CMRC) report at September 30, 2025?

Cash, cash equivalents, restricted cash and marketable securities totaled $143.2M as of September 30, 2025.

What product and partnership updates did Commerce (CMRC) announce on Nov 6, 2025?

The company announced Feedonomics Surface, two Feedonomics Shopify apps, a PayPal‑powered payments solution (U.S. launch 2026) and agentic checkout pilots.

How did Commerce (CMRC) perform by region in Q3 2025?

U.S. revenue grew 2% YoY, EMEA grew 9% YoY, and APAC declined 3% YoY.