Commerce.com 2025 Q3 Earnings Strong EPS Beat and Improved Net Loss

Commerce.com (CMRC) reported Q3 2025 results, with non-GAAP EPS of $0.08, exceeding the $0.02 analyst estimate. Revenue of $86 million matched the $86.03 million consensus. The company raised full-year revenue guidance to $340.6–$345.6 million and set Q4 revenue expectations at $87.8–$92.8 million, reflecting confidence in its AI-driven commerce initiatives and product innovations.

Revenue

Total revenue increased 2.8% to $86.03 million, driven by growth in B2B and AI-related services. Enterprise ARR rose 5% to $269.2 million, with average revenue per account up 7%, indicating stronger monetization of larger clients. Regional performance varied, with EMEA revenue up 9% and APAC down 3%.

Earnings/Net Income

The company narrowed its net loss to $2.24 million ($0.03 per share) in Q3 2025, a 67.9% reduction from $6.99 million in Q3 2024. Non-GAAP net income reached $6.2 million, reflecting improved operational efficiency and cost discipline. The EPS beat and significant net loss improvement highlight the company’s positive performance.

Post-Earnings Price Action Review

The strategy of buying Commerce.com shares upon its revenue raise announcement and holding for 30 days showed favorable performance over the past three years. The cumulative return reached 24.5% as of Q3 2025’s end, outpacing the S&P 500’s 14.6% return. This suggests a robust short-term holding strategy aligned with CMRC’s earnings-driven market movements.

CEO Commentary

Travis Hess, CEO, emphasized strategic shifts toward AI-driven commerce and product-led growth. He highlighted partnerships with PayPal and AI platforms like Perplexity and Google, underscoring Commerce.com’s leadership in agentic commerce. The rebrand to "Commerce" and focus on AI-optimized tools aim to enhance discoverability and operational efficiency.

Guidance

For Q4 2025, the company expects revenue between $87.8 million and $92.8 million and non-GAAP operating income between $4.3 million and $9.3 million. Full-year 2025 revenue is projected at $340.6–$345.6 million, with non-GAAP operating income of $24.7–$29.7 million. These targets reflect confidence in scaling profitable growth and leveraging AI advancements.

Additional News

Recent developments include Gartner recognizing Commerce.com as a Challenger in its 2025 Magic Quadrant for Digital Commerce Platforms, validating its B2B and B2C capabilities. The company launched Feedonomics Surface, an AI-optimized feed management tool, and announced PayPal-powered payments set for 2026. Additionally, Commerce.com secured a strategic partnership with Accenture to drive digital transformation for clients, further solidifying its market position.

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