Commerce.com, Inc.

What they do

The company's SaaS platform is anchored by three core products: BigCommerce (transaction layer), Feedonomics (product data optimization and syndication), and Makeswift (visual storefront/experience builder). It integrates with a curated ecosystem of partners for payments, tax, shipping, CRM, and AI marketing, prioritizing interoperability over a closed technology stack.

Revenue drivers

• Subscription Solutions — Q2 2026 subscription revenue was $63.1 million, down 1% year-over-year, and represents the majority of total revenue (75% in Q2 2026). Recurring fees from merchants using the platform.
• Gross Merchandise Volume (GMV) — GMV was $8.8 billion in Q2 2026, up 14% year-over-year, indicating growing transaction activity on the platform, though not directly proportional to revenue.
• Geographic Expansion — EMEA revenue grew 12% year-over-year in Q2 2026, helping offset a 1% decline in U.S. revenue and a 4% decline in APAC. International markets contribute to ARR of $360.5 million.
• Net Revenue Retention (NRR) — NRR improved to 95.8% in Q2 2026, up from 94.5% a year ago and 95.4% in Q1 2026, reflecting better expansion and retention among existing customers.

Recent performance

Q2 2026 total revenue was $84.5 million, up 0.1% year-over-year. The company reported GAAP net income of $1.1 million, compared to a net loss of $8.4 million in Q2 2025, its second consecutive quarter of positive GAAP net income. Non-GAAP operating income was $8.1 million (9.6% margin), and adjusted EBITDA was $9.7 million. Operating cash flow was $5.1 million, and free cash flow was $0.1 million. ARR stood at $360.5 million as of June 30, 2026, up 2% year-over-year.

Strategy

Management plans to invest in strategic B2B, B2C, and small business offerings while simplifying the business and reallocating resources to highest-value initiatives. The company is building scalable infrastructure for AI-enabled and agentic commerce use cases, emphasizing product intelligence, open architecture, and partnership expansion. It aims to grow by acquiring new customers, expanding usage among existing customers, and reducing churn, all while maintaining a disciplined focus on operating efficiency, profitability, and cash flow.

Risks

• Revenue Growth Stagnation — Total revenue grew only 0.1% year-over-year in Q2 2026, and subscription solutions revenue declined 1%, indicating potential market saturation or competitive pressure.
• Historical Net Losses and Debt — The company has recorded net losses every year since at least 2021 ($19.3 million in FY2025) and carries $156.5 million in long-term debt against $57.2 million in cash and equivalents.
• Dependence on Partner Ecosystem — The open, partner-centric architecture relies on third-party integrations for payments, tax, shipping, and AI marketing; disruptions or partner attrition could impair platform functionality.
• AI-Driven Commerce Transition — The shift to AI-powered discovery and agentic commerce surfaces is still developing; if adoption fails to materialize or competitors adapt faster, the company's investments may not yield expected returns.

Outlook

Management expects to continue investing in product innovation and strategic partnerships, particularly in AI-driven commerce solutions, while simplifying operations and focusing on high-value initiatives. The company aims to improve net revenue retention and achieve sustained operating efficiency, profitability, and positive cash flow. Guidance includes growing through new customer acquisition, expansion with existing merchants, and selective market entry into new geographies.