Commerce.com’s 2026 Q2 Call: Agentic Commerce Delays, Feedonomics Growth-Monetization Gap, and B2C Demand Softness Clash

Date of Call: Aug 6, 2026

Financials Results

• Revenue: $84.5M
• Gross Margin: 75.7%, down sequentially from 77.4% in Q1
• Operating Margin: 9.6%

Guidance:

• Q3 2026 revenue expected between $82.5M and $85.5M.
• Q3 2026 non-GAAP operating income expected between $3.3M and $5.3M.
• Full year 2026 revenue updated to $344.5M (prior $362.5M).
• Full year 2026 non-GAAP operating income updated to between $309M and $336.5M (prior $349M).

Business Commentary:

Revenue and Profitability Performance:

• Commerce's revenue for Q2 2026 was $84.5 million, with non-GAAP operating income at $8.1 million, exceeding the high end of their guidance range.
• The company's GMV grew by 14%, and net revenue retention improved by 1% year-over-year to 95.8%.
• This performance was driven by structural changes in the business, focusing on durable earnings and sustainable long-term growth, despite a challenging near-term outlook.

Strategic Shifts and Investment Priorities:

• Commerce is undergoing a significant structural shift, narrowing its partner ecosystem and focusing investments on areas like product intelligence, AI-driven discovery, and payments.
• The company's strategy is to concentrate resources on areas with the greatest differentiation and long-term value, even if it means forgoing some near-term revenue opportunities.
• This shift is in response to market realities and the belief that product intelligence is foundational infrastructure for modern commerce.

B2C Replatforming and Market Softness:

• The company is experiencing softer B2C replatforming activity, contributing to a more cautious view of second-half new account bookings.
• Increased evaluation periods and potential macroeconomic factors are causing longer decision cycles among merchants, particularly in the B2C segment.
• This softness is prompting Commerce to make deliberate decisions to strengthen the long-term quality of its business.

Growth in B2B Segment:

• B2B GMV growth was notable, with a 17% year-over-year increase, outpacing the overall GMV growth rate of 14%.
• The B2B segment is growing faster, with higher win rates and gross retention rates, attributed to the platform's ability to handle complex operational requirements.
• Commerce is focusing on closing the gap between platform growth and revenue growth, particularly in the B2B space.

Feedonomics and Product Intelligence:

• Feedonomics, a key part of Commerce's strategy, processes over 1 trillion product listings monthly, enhancing product intelligence and discovery.
• This focus on product intelligence is aimed at creating durable long-term value, as AI-driven discovery and agentic commerce become more prevalent.
• The growth in feedonomics is slightly faster than the overall business growth rate, indicating its importance in driving future commerce opportunities.

Sentiment Analysis:

Overall Tone: Positive

• Management highlights 'steady execution,' 'priority' structural changes improving business quality, and 'encouraging' execution. They note 'positive' GMV growth, sequential NRR improvement, and confidence in long-term strategy, despite near-term prudence.

Q&A:

• Question from Scott Berg (Needham): What's driving the lower re-platforming environment today versus nine months ago?
  Response: Increased evaluation time as merchants focus on AI-driven discovery and sequencing, with decisions pushing later; B2C replatforming remains a key softness area.

• Question from Scott Berg (Needham): What have you seen in terms of win rates and pipeline for BigCommerce payments?
  Response: Payments adoption and GMV are exceeding internal plans, with strong demand across B2B, product intelligence, and new account migrations; pipeline is healthy and momentum is ahead of schedule.

• Question from Ken Wong (Oppenheimer): Is there any churn or pricing-related pushback affecting new account bookings?
  Response: No material churn, win/loss rates unchanged; softness is specific to B2C replatforming due to macro and evaluation delays, not pricing changes.

• Question from DJ Heinz (Canaccord): How does Commerce's feedonomics differ from Shopify's catalog approach, and how fast is feedonomics growing?
  Response: Feedonomics serves global manufacturers/retailers, is agnostic and open-architecture, growing at a faster rate than overall business (~20% of ARR).

• Question from DJ Heinz (Canaccord): Why did PSR revenue decline sequentially despite GMV growth?
  Response: Decline driven by launch timing of BigCommerce Payments in Q1 and a strategic focus on fewer partners, affecting second-half revenue predictability.

• Question from John Peterson (Raymond James): What is the demand profile for B2B and early payments attachment?
  Response: B2B is the majority of new bookings, growing faster with higher win/gross retention rates, but has a lower credit card transaction mix affecting PSR monetization.

• Question from John Peterson (Raymond James): What's driving the strong performance in EMEA?
  Response: Strength due to platform capability in handling complex multi-geography/multi-storefront use cases, not FX benefit; win rates are consistent globally.

Contradiction Point 1

Timeline and Impact of Agentic Commerce on Replatforming

Contradiction on whether agentic commerce is a new factor slowing replatforming or a persistent trend.

Scott Berg (Needham) - Scott Berg (Needham)

2026Q2: Replatforming demand hasn't disappeared but is taking longer due to increased evaluation, particularly around AI and discovery. - Travis Hess(CFO)

What factors are contributing to the decrease in re-platforming activity over the past 90 days, and is this part of a long-term trend? - Brian Peterson (Raymond James & Associates, Inc.)

2025Q4: Agentic commerce impacted replatforming in 2025... It has not accelerated replatforming but has spawned new commercial models. - Christopher Hess(CEO)

Contradiction Point 2

Growth and Monetization Outlook for Feedonomics

Contradiction on whether Feedonomics is a new, fast-growing product or a stable, established one.

DJ Heinz (Canaccord Genuity) - DJ Heinz (Canaccord Genuity)

2026Q2: Feedonomics represents roughly 20% of ARR and is growing at a faster rate than the overall business, particularly in B2B. - Daniel Lentz(CFO)

How does Commerce's product intelligence (Feedonomics) differentiate from Shopify's catalog approach, and what is its growth rate? - Josh Baer (Morgan Stanley)

2025Q4: Feedonomics primarily serves enterprise customers... This is a high-class problem (strong growth but lower take rate due to payment mix). The company aims to close the monetization gap over time. - Daniel Lentz(CFO)

Contradiction Point 3

B2C Replatforming Demand Trend and Drivers

Contradiction on whether B2C replatforming demand is slowing due to a shift in focus or if it's a temporary cycle extension.

Scott Berg (Needham) asks about Q4 earnings results? - Scott Berg (Needham)

2026Q2: Replatforming demand hasn't disappeared but is taking longer... This is especially evident in B2C, where decisions are pushed out, and activity is softer. The timing is also affected by the seasonality... - Travis Hess(CEO)

What is driving the lower re-platforming activity today versus 90 days ago, and is this a multi-year trend? - Hoi-Fung Wong (Oppenheimer & Co. Inc.)

2025Q3: On the B2C side, most efforts are in discovery/data (Feedonomics), which will trickle into shopping. The B2B side continues its strong momentum... - Christopher Hess(CEO)

Contradiction Point 4

Monetization Model for BigCommerce Payments

Contradiction on the recognition method (net vs. gross) and margin profile for the new payments business.

Scott Berg (Needham) - Scott Berg (Needham)

2026Q2: BigCommerce Payments adoption and GMV are exceeding internal expectations... The focus is on expanding availability and evaluating the next phases of the payment roadmap... - Daniel Lentz(CFO)

Can you provide an update on the win rates and sales pipeline for BigCommerce Payments? - Scott Berg (Needham & Company, LLC)

2025Q3: Payments are a step towards monetization but will be recognized net on the P&L (not full fintech-style gross). It is expected to be a high-margin revenue stream... - Daniel Lentz(CFO)

Contradiction Point 5

Nature of Softness in New Account Bookings

Contradiction on whether the softness is due to macro factors or a direct result of a strategic pricing action.

Ken Wong (Oppenheimer) - Ken Wong (Oppenheimer)

2026Q2: The softness is specifically tied to longer cycles in B2C replatforming, not to churn, win/loss trends, or pricing changes. ... The pipeline softness is macro-driven... - Travis Hess(CEO) & Daniel Lentz(CFO)

Was the decline in new account bookings due to churn events or June 1st pricing changes? - Hoi-Fung Wong (Oppenheimer & Co. Inc.)

2025Q3: The decline reflects the company's stage in the year; net revenue retention this year is similar to prior years (around 98-99%). The focus is on existing customer expansion. - Daniel Lentz(CFO)