Commerce.com's Revenue Growth Stalls After First-Quarter Rebound
Second-quarter revenue was $84.5 million, up 0.1% from a year earlier, after 5% growth in the first quarter, as subscription solutions turned negative.
Commerce.com, Inc. (CMRC), a data-centric provider of an open, AI-driven commerce ecosystem, reported second-quarter revenue of $84.5 million, up 0.1% from the three months ended June 30, 2025, after 5% year-over-year growth in the first quarter.
The stall in top-line growth was the quarter’s defining turn. Subscription solutions, the larger of the two reportable lines, were $63.1 million, down 1% from a year earlier, reversing 3% year-over-year growth in the first quarter. Partner and services revenue was $21.4 million.
Gross merchandise volume was $8.8 billion, up 14% from a year earlier, matching the 14% year-over-year GMV growth reported for the first quarter. Total annual revenue run rate was $360.5 million as of June 30, 2026, up 2% from a year earlier, after 3% year-over-year growth as of March 31, 2026.
Net revenue retention was 95.8% for the trailing twelve months as of June 30, 2026, a third consecutive quarter of sequential improvement from 95.4% at March 31, 2026, and 95.2% at December 31, 2025. Chief Executive Travis Hess said the quarter showed “a third consecutive quarter of sequential improvement in net revenue retention.”
Geography split the difference. United States revenue declined 1% from a year earlier, reversing 5% year-over-year growth in the first quarter. EMEA revenue grew 12% after 14% growth. APAC revenue declined 4% after being largely unchanged.
Profitability remained positive but compressed. GAAP income from operations was $2.7 million, compared with a loss of $6.8 million a year earlier. Non-GAAP operating income was $8.1 million, or a 9.6% margin, versus $4.8 million and 5.7% a year earlier. GAAP net income was $1.1 million, or $0.01 a share, versus a net loss of $8.4 million, or $0.10 a share, a year earlier. Non-GAAP net income was $6.5 million, or 8% of revenue, versus $3.2 million, or 4% of revenue, a year earlier. Adjusted EBITDA was $9.7 million.
GAAP gross margin was 75%, down from 79% a year earlier. Non-GAAP gross margin was 76%. Sales and marketing expense was $27.5 million. Research and development was $17.7 million. General and administrative expense was $14.2 million. Restructuring charges were $5,000.
Cash generation slowed. Net cash provided by operating activities was $5.1 million, compared with $13.6 million a year earlier. Free cash flow was $0.1 million. Cash, cash equivalents, restricted cash, and marketable securities totaled $157.5 million as of June 30, 2026.
The company is investing in product intelligence, AI-driven commerce, and open architecture. In April, Commerce said merchants, including Dell, are syndicating catalog data to agentic discovery channels including OpenAI and Google Gemini through Feedonomics Agentic Catalog Exports. In May, the company announced product updates spanning multi-language capabilities, promotions management, catalog filtering, faster checkout, and backorder support. In July, it announced a strategic partnership with WP Engine.
For the third quarter of 2026, Commerce currently expects total revenue between $82.5 million and $85.5 million and non-GAAP operating income between $3.3 million and $5.3 million. For the full year 2026, it currently expects total revenue between $336.5 million and $344.5 million and non-GAAP operating income between $28.0 million and $34.0 million.