E2open Parent 2026 Q1 Earnings Narrowed Net Loss by 63.7%

E2open Parent (ETWO) reported its fiscal 2026 Q1 earnings on July 10th, 2025. The company achieved results that showcased a significant narrowing of its net loss, with a 63.7% improvement compared to the previous fiscal year. Subscription revenue growth and strategic partnerships supported this positive shift. E2open reaffirmed its fiscal guidance, projecting stable subscription growth and total revenue increase. Analysts anticipated earnings of $0.04 per share, which the company narrowly missed, reporting a loss of $0.05 per share. The guidance remains in line with previous forecasts, reflecting a cautious yet optimistic outlook.

Revenue
E2open Parent's total revenue increased by 1.0% to $152.61 million in Q1 2026, up from $151.16 million in Q1 2025. The subscription segment led the revenue growth with $132.87 million, marking a notable increase. Professional services and other contributed $19.74 million to the total, while the amortization of acquired intangible assets registered zero revenue.

Earnings/Net Income
E2open Parent narrowed its losses to $0.05 per share in Q1 2026 from a loss of $0.13 per share in Q1 2025, marking a 61.5% improvement. The company significantly reduced its net loss to $15.52 million, a 63.7% improvement from the $42.79 million loss reported in Q1 2025. Despite these improvements, EPS indicates ongoing financial challenges.

Price Action
The stock price of E2open Parent has edged up 0.31% during the latest trading day and has shown a similar increase over the most recent full trading week, with a 0.93% rise month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing E2open Parent shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days has led to significant underperformance. Over the past three years, this tactic returned -41.52%, starkly contrasting the benchmark return of 32.67%. The approach faced a maximum drawdown of -68.03%, reflecting high risk and substantial losses. The negative Sharpe ratio of -0.39 further illustrates the strategy's unfavorable risk-to-return balance, emphasizing the need for revisiting investment strategies in volatile market conditions.

CEO Commentary
Andrew M. Appel, CEO & Director, expressed optimism about E2open's performance, noting stabilization and a return to growth. He highlighted a 1.1% year-over-year growth in subscription revenue and emphasized client retention and innovation. The strategic partnership with WiseTech Global was described as a key opportunity to enhance service offerings. Appel conveyed confidence in E2open's future growth potential.

Guidance
E2open confirmed its full-year fiscal 2026 guidance, expecting subscription revenue between $525 million and $535 million. Total revenue is anticipated to range from $600 million to $618 million, with a projected gross profit margin between 68% and 68.5%. Adjusted EBITDA is expected to be between $200 million and $210 million, maintaining a margin of 33% to 34%.

Additional News
E2open announced its acquisition by WiseTech Global, set at $2.1 billion, with stockholders receiving $3.30 per share. The acquisition aims to blend E2open’s supply chain solutions with WiseTech’s logistics software, promising enhanced global capabilities. This strategic move has received unanimous board approval and is expected to conclude by the end of 2025, transforming E2open's market positioning. There have been no recent major changes in C-level executives or dividend announcements as the company focuses on completing the acquisition process.