Commerce.com, Inc. provides an artificial intelligence-driven commerce ecosystem across the United States, Europe, the Middle East, Africa, the Asia Pacific, and other international markets. Its software-as-a-service platform lets merchants orchestrate digital commerce experiences across owned and third-party channels, supporting B2B, B2C, and small business use cases. The company also offers BigCommerce, a flexible and open commerce engine; Feedonomics, an AI-powered product data optimization and syndication platform; and Makeswift, a visual editor for building and managing storefront and content experiences. Formerly known as BigCommerce Holdings, Inc., it changed its name to Commerce.com, Inc. in July 2025, was founded in 2009, and is headquartered in Austin, Texas.
Commerce Authorizes $50 Million Buyback, Targets 20% Operating Margin by 2027
Commerce, the e-commerce software company trading on Nasdaq under CMRC, announced a strategic operating plan to cut costs and improve profitability and authorized a $50 million share repurchase program, sending its shares up 19.4% in the afternoon session. The company said it aims to reach full-year non-GAAP operating margins of at least 20% starting in 2027, with the initiative expected to generate $60 million to $80 million in annualized cost savings, equal to $0.73 to $0.97 per diluted share based on its June 30, 2026 share count, of which approximately $3 million will be realized in 2026. The savings will come primarily from reductions in staffing, professional services, facilities, software, and infrastructure. Alongside the plan, Commerce reaffirmed its full-year 2026 revenue outlook of $336.5 million to $344.5 million and raised its non-GAAP operating income guidance by $3 million to a range of $31.0 million to $37.0 million. The newly authorized $50 million stock repurchase program will remain effective through September 10, 2028.
Commerce.com Cuts Full-Year Guidance on Partner Focus and AI Investment
Commerce.com reported second-quarter revenue of $84.5 million, up 0.1% year over year, and non-GAAP operating income of $8.1 million, above its guidance range, but lowered its full-year 2026 revenue outlook by $18 million at the midpoint to between $336.5 million and $344.5 million. The company cited a deliberate strategy to concentrate its partner ecosystem, increased R&D investment in AI and product intelligence, and a more cautious view of second-half new account bookings amid soft B2C replatforming activity. Gross merchandise volume grew 14% to $8.8 billion, with B2B GMV up 17%, and net revenue retention improved sequentially for the third straight quarter to 95.8%. Full-year non-GAAP operating income guidance was reduced by $12.5 million at the midpoint to between $28 million and $34 million, reflecting targeted investments and higher infrastructure costs from AI-driven traffic. The company ended the quarter with $157.5 million in cash and marketable securities and remains on track for full-year GAAP profitability.
Commerce.com Fair Value Cut to $4.40 After Revenue Guidance Lowered
The fair value estimate for Commerce.com has been reduced from $5.05 to $4.40 following a cut in full-year revenue guidance. Canaccord moved the stock to Hold from Buy and lowered its price target to $3 from $6, noting that the company reduced the midpoint of its full-year revenue guidance by $18 million, pointing to a modest revenue growth decline for the current year. UBS maintains a Neutral rating with a $3.50 price target, citing intense competition, slower monetization, and limited near-term revenue catalysts. The revised fair value reflects a revenue growth assumption lowered from 4.43% to 2.57%, a net profit margin assumption trimmed from 11.83% to 11.45%, a future P/E multiple adjusted from 13.0x to 12.8x, and a discount rate increased from 10.92% to 11.90%.
Health Catalyst, Commerce, and Paycom Shares Fall Amid Tech Selloff
Shares of Health Catalyst, Commerce, and Paycom declined in afternoon trading as tech stocks faced pressure from rising oil prices and an unwinding of retail leverage. Health Catalyst fell 2.2%, Commerce dropped 1.5%, and Paycom slid 2.8%. The selloff was driven by a reinstated U.S. naval blockade on Iran that pushed Brent crude above $85 a barrel, fueling expectations the Federal Reserve will hold rates in the 3.50%–3.75% range and raising the cost of capital for software firms. Paycom, which is down 3.5% year-to-date and trading 38.4% below its 52-week high, saw its move considered meaningful but not fundamentally business-altering by the market.
E-commerce software stocks post mixed Q1, shares fall 17.4% on average
E-commerce software stocks reported mixed first-quarter results, with aggregate revenues beating analyst consensus by 1.7% but next-quarter revenue guidance coming in 0.5% below expectations. GoDaddy posted revenue of $1.27 billion, up 6.1% year on year and in line with estimates, while Commerce exceeded expectations with $86.84 million in revenue, a 5.4% increase. Wix reported $541.2 million, up 14.3% and matching estimates, and Shopify led with $3.17 billion, a 34.3% jump that beat forecasts by 2.5%. Despite the beats, share prices across the group have fallen an average of 17.4% since reporting, with Wix down 44.5%, Shopify down 12.2%, GoDaddy down 8.4%, and Commerce down 4.7%.
CMRC · Capital · Negative Commerce beat revenue estimates but shares fell 4.7% post-report, reflecting market disappointment with the sector's mixed results and weak guidance.
GDDY · Capital · Negative GoDaddy reported in-line revenue but shares fell 8.4% post-report, dragged down by sector-wide selloff on weak forward guidance.
SHOP · Capital · Negative Shopify beat revenue estimates but shares fell 12.2% post-report, as sector-wide guidance miss and negative sentiment weighed.
Asana, Commerce, and Five9 Stocks Fall Amid AI-Driven Software Selloff
Shares of Asana, Commerce, and Five9 declined in afternoon trading as a broader selloff hit the software sector, driven by fears that AI agents will erode traditional subscription models. Asana fell 4.7%, Commerce dropped 5.1%, and Five9 slid 5.6%, with the weakness compounded by a nearly 6% decline in Alphabet and a slip in Microsoft. The market's anxiety was reinforced by Accenture's near-20% single-day drop the previous week after it cut its growth outlook and cited AI compressing demand for IT services. Five9, which is down 1.3% year-to-date and trading 36.3% below its 52-week high, also faced pressure from the release of new Anthropic AI models and geopolitical tensions after a US Apache helicopter went down near Oman.
Commerce.com Board Rejects Rezolve AI Merger Proposal Twice
Commerce.com, Inc. has twice rejected an all-stock merger proposal from Rezolve AI. The initial offer of one Rezolve share for each Commerce.com share was unanimously turned down by the board, as was a revised offer of one Rezolve share for two Commerce.com shares. Rezolve AI criticized the board for failing to protect shareholder value, noting that Commerce.com shares have lost more than 96% of their value under current leadership and that annual recurring revenue growth has slowed to 3% year over year, with the board forecasting 1.5% growth.
Three Software Stocks Face Trouble Amid Industry Decline
StockStory identifies Commerce, Health Catalyst, and Teradata as software stocks that may face trouble. Commerce posted underwhelming annual recurring revenue growth of 2.5% and projected sales growth of 3.3%, with its free cash flow margin expected to shrink by 3.2 percentage points. Health Catalyst saw flat billings and a gross margin of 50.4%, one of the worst among software companies, alongside long payback periods on sales and marketing. Teradata recorded average billings growth of 3.7% and a 7.2 percentage point drop in operating margin, with its free cash flow margin projected to decline by 20.2 percentage points next year.
CMRC · Capital · Negative Underwhelming ARR growth of 2.5%, projected sales growth of 3.3%, and expected free cash flow margin shrinkage of 3.2 percentage points.
HCAT · Capital · Negative Flat billings, gross margin of 50.4% (one of worst among software companies), and long payback periods on sales and marketing.
TDC · Capital · Negative Average billings growth of 3.7%, 7.2 percentage point drop in operating margin, and projected free cash flow margin decline of 20.2 percentage points next year.
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