Commerce.com Revenue Turns Down After Two Quarters of Growth

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue was $84.2 million, down 2.1% from a year earlier, as the company posted a $3.2 million GAAP net loss and launched a cost-cutting plan.

Commerce.com, Inc. (CMRC), the open commerce ecosystem that owns BigCommerce, Feedonomics and Makeswift, reported third-quarter revenue of $84.2 million, down 2.1% from a year earlier, reversing a 0.1% year-over-year increase in the second quarter and a 5% increase in the first.

Total annual revenue run-rate was $357.6 million as of September 30, 2026, up 0.5% from a year earlier, after a 2% year-over-year increase at June 30 and a 3% increase at March 31. Subscription solutions revenue was $64.7 million, up 0.1% from the year-ago quarter.

Gross merchandise volume was $9.0 billion, up 14% from the three months ended September 30, 2025, matching the 14% year-over-year growth reported in both the second and first quarters. Sequential GMV growth slowed to 2.8% from 6.3% in the prior quarter. Net revenue retention was 94.7% for the trailing twelve months as of September 30, down 1.1 percentage points from 95.8% at June 30, after sequential NRR had improved in the two prior quarters.

GAAP results swung to a loss from operations of ($1.8) million and a net loss of ($3.2) million, or ($0.04) a share, after GAAP operating income of $2.7 million and net income of $1.1 million in the second quarter. Restructuring charges were $4.0 million in the quarter, versus $83 thousand a year earlier. Non-GAAP operating income was $8.0 million, or a 9.5% margin, compared with $8.0 million and a 9.3% margin a year earlier. Adjusted EBITDA was $9.9 million, or 11.7% of revenue.

GAAP gross margin compressed to 74% from 75% in the second quarter and 77% in the first. Non-GAAP gross margin was 75%. U.S. revenue declined 3% versus the year-ago quarter, after a 1% year-over-year decline in the second quarter and a 5% increase in the first. EMEA revenue grew 7% and APAC revenue declined 9%.

Cash, cash equivalents, restricted cash and marketable securities totaled $162.8 million as of September 30. Net cash provided by operating activities was $9.4 million; free cash flow was $5.7 million.

In September the company announced a strategic operating plan designed to reduce costs and increase profitability and free cash flow. It provided a target of full-year non-GAAP operating margin of at least 20% beginning in 2027 and estimated annualized non-GAAP operating cost reductions of $60 million to $80 million under the plan. Chief Executive Travis Hess said the plan is driving greater efficiency while protecting investments in product intelligence, AI-driven agentic commerce and open architecture.

Commerce also said Chief Financial Officer and Chief Operating Officer Daniel Lentz will depart effective November 13, 2026. Tyler Duncan, senior vice president of finance and investor relations, will serve as interim chief financial officer; other leaders will assume Lentz’s chief operating officer duties while the board evaluates permanent candidates.

For the fourth quarter of 2026, the company currently expects total revenue between $83.4 million and $86.4 million and non-GAAP operating income between $6.8 million and $8.8 million. For the full year 2026, it currently expects total revenue between $339.0 million and $342.0 million and non-GAAP operating income between $35.3 million and $37.3 million.