- **Revenue recovery**: Q1 subscription revenue growth of 1.1% YoY marks return to growth after multi-year decline.
- **AI innovation driving differentiation**: Generative AI tools for transportation/logistics highlight strategic investment in next-gen capabilities.
- **Strategic acquisition**: Pending WiseTech merger positions E2open to become part of global supply chain OS, with closing expected by end-2025.
- **Financial stability**: Strong cash generation ($48M Q1) and cautious FY '26 guidance reflecting cautious outlook despite acquisition.

**【CEO Summary Section】**
- **Return to growth**: Achieved first year-over-year subscription revenue growth since mid-FY '24, driven by improved client retention and product innovation.
- **Client retention focus**: Shifted from short-term gains to long-term partnerships, stabilizing the business.
- **AI and product innovation**: Launched generative AI tools for transportation and trade solutions, with more products planned for FY '26.
- **Pending WiseTech acquisition**: Expected to close by end-2025, combining E2open's supply chain suite with WiseTech's logistics expertise. New entity will serve full value chain from sourcing to end customer.
- **Employee and customer value**: WiseTech acquiring E2open for its product suite, employee expertise, and customer base; E2open team remains focused on execution until close.

**【CFO Financial Commentary】**
- **Q1 FY '26 Results**:
  - Subscription revenue: $132.9M (+1.1% YoY), above guidance range
  - Total revenue: $152.6M (+1.0% YoY)
  - Adjusted EBITDA: $52.2M (34.2% margin, +0.6ppt YoY)
  - Cash flow: $48.0M, ending Q1 with $230.2M cash
- **Gross margin**: 67.1% (-0.7ppt YoY) due to lower PS margins, but expects improvement in FY '26
- **Full Year FY '26 Guidance**:
  - Subscription revenue: $525-535M (-1.0% to +1.0% YoY)
  - Total revenue: $600-618M (-1.3% to +1.7% YoY)
  - Gross margin: 68.0-68.5%
  - Adjusted EBITDA: $200-210M (33-34% margin)
  - Cash flow as % of EBITDA: ~FY '25 levels

E2open Parent Holdings, Inc. (ETWO) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ETWO(Delisted)

ETWO fundamentals

You can ask Aime