Commerce.com (CMRC) AI Stock Analysis

• Market Cap: $336.43M
• Dividend Yield: N/A
• Average Volume (3M): 584.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 2.97%
• EPS Growth: 53.53%
• Country: US
• Employees: 1,161
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 81,263,340
• 10 Day Avg. Volume: 599,524
• 30 Day Avg. Volume: 584,207
• PEG Ratio: 0.30
• Price to Book (P/B): 14.23
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 21.08
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 32.87
• 1Y Price Target: $7.33
• Price Target Upside: 77.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $4.00 ▼(-3.38% Downside)

The score is held back primarily by weak financial quality (net losses and high leverage/negative ROE) and a technically weak trend (below key moving averages with negative MACD). The latest earnings call provides partial support via an operating-income beat and raised profitability guidance, but enterprise ARR/customer declines and cautious Q4 guidance, plus restructuring cash costs, limit upside.

Positive Factors

High gross margins and strong revenue growth

Sustained gross margin near 78% combined with ~69% TTM revenue growth indicates scalable unit economics and strong product-market fit. Over 2–6 months this supports reinvestment in product and marketing while preserving margin leverage as volumes scale.

Strategic AI integrations and platform partnerships

Deep partnerships with major payments and cloud players plus AI-driven product launches strengthen distribution channels and technology moat. These integrations increase merchant stickiness, expand addressable use cases, and create recurring revenue opportunities over the medium term.

Improved liquidity and materially lower net debt

A large cash balance and an 86% reduction in net debt materially improve financial flexibility. This lowers refinancing risk, supports continued product investment and M&A optionality, and provides a buffer against cyclical revenue volatility over coming quarters.

Negative Factors

Heavy leverage on the balance sheet

A debt-to-equity ratio above 4 increases interest and refinancing risk and constrains strategic flexibility. Over the next several months high leverage makes the company more sensitive to cash-flow swings and limits its ability to fund growth without additional financing.

Persistent unprofitability and negative operating margins

Negative net and EBIT margins despite strong gross margins imply elevated operating costs or investment intensity. Sustained unprofitability pressures free cash flow conversion and means management must deliver durable cost improvements to reach consistent profitability.

Declining enterprise ARR and fewer enterprise customers

A sequential drop in enterprise ARR and a decline in enterprise customers signals weakening retention or bookings in the high-value segment. This undermines recurring revenue stability and makes medium-term growth less predictable absent stronger enterprise commercial execution.

Commerce.com Business Overview & Revenue Model

Company Description

Commerce.com, Inc. operates a software-as-a-service e-commerce platform for brands and retailers in the United States, North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company provides a platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services, such as payments, shipping, and accounting. It serves stores in various sizes, product categories, and purchase types comprising business-to-consumer and business-to-business. Commerce.com, Inc. was formerly known as BigCommerce Holdings, Inc. and changed its name to Commerce.com, Inc. in July 2025. The company was founded in 2009 and is headquartered in Austin, Texas.

How the Company Makes Money

Commerce.com generates revenue through several key streams. The primary source of income comes from transaction fees charged to merchants for each sale made through its platform. Additionally, the company earns money by offering premium subscription plans that provide merchants with enhanced features such as advanced analytics, marketing tools, and priority customer support. CMRC also partners with third-party logistics providers to offer shipping solutions, taking a percentage of the shipping fees as revenue. Furthermore, the company generates supplementary income through advertising services, allowing brands to promote their products on the site. These diverse revenue streams contribute to the overall profitability of Commerce.com.

Commerce.com Financial Statement Overview

Summary

Commerce.com demonstrates strong revenue growth and gross profit margins, but struggles with profitability and high leverage. The company is improving its cash flow position, yet the high debt levels and negative return on equity present significant financial risks. Continued focus on reducing debt and enhancing profitability is essential for long-term stability.

Income Statement

Commerce.com shows a strong gross profit margin of 78.06% in TTM, indicating effective cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -5.37% and EBIT margin of -2.02%. Revenue growth is robust at 68.7% TTM, but consistent net losses highlight ongoing challenges in achieving profitability.

Balance Sheet

The company's balance sheet is heavily leveraged, with a high debt-to-equity ratio of 4.28 in TTM, which poses a significant financial risk. The return on equity is negative at -52.06%, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, indicating a reliance on debt financing.

Cash Flow

Commerce.com has shown improvement in cash flow, with a free cash flow growth rate of 12.25% in TTM. The operating cash flow to net income ratio is 0.32, suggesting some ability to convert income into cash. However, the free cash flow to net income ratio of 0.79 indicates that cash flow generation is still a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	339.86M	332.93M	309.39M	279.07M	219.85M	152.37M
Gross Profit	267.07M	255.34M	235.19M	209.09M	171.38M	118.24M
EBITDA	12.95M	-7.10M	-43.28M	-127.14M	-70.31M	-31.35M
Net Income	-13.37M	-27.03M	-64.67M	-139.92M	-76.68M	-37.56M
Balance Sheet
Total Assets	309.46M	340.29M	444.06M	474.06M	555.46M	276.63M
Cash, Cash Equivalents and Short-Term Investments	142.03M	178.16M	270.13M	303.51M	399.88M	219.45M
Total Debt	165.88M	220.58M	350.31M	350.11M	348.41M	15.85M
Total Liabilities	266.63M	306.92M	418.52M	428.38M	417.17M	59.87M
Stockholders Equity	42.84M	33.37M	25.53M	45.67M	138.29M	216.76M
Cash Flow
Free Cash Flow	28.20M	22.53M	-28.42M	-94.55M	-43.60M	-28.49M
Operating Cash Flow	36.87M	26.25M	-24.24M	-89.36M	-40.30M	-26.53M
Investing Cash Flow	32.00M	105.29M	2.82M	-116.53M	-186.88M	-1.96M
Financing Cash Flow	-54.74M	-114.04M	1.24M	209.00K	305.27M	239.95M

Commerce.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMRC, the sentiment is Negative. The current price of 4.14 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.51, and below the 200-day MA of 4.86, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 55.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMRC.

Commerce.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.12B	8.76	20.19%	―	5.80%	12.20%
SEMR	73 Outperform	$1.80B	-387.30	-1.68%	―	19.87%	-136.93%
VTEX	66 Neutral	$652.11M	98.73	6.53%	―	3.62%	-20.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	57 Neutral	$989.44M	38.48	―	―	-2.13%	―
CMRC	46 Neutral	$336.43M	-24.73	-37.23%	―	2.97%	53.53%

Commerce.com Corporate Events

Commerce.com Announces Workforce Realignment and Cost Optimization

On December 31, 2025, Commerce.com committed to a workforce realignment plan aimed at better aligning staffing with its ongoing cost structure and improving operational efficiency in fiscal 2026 to support profitable revenue growth. The company recorded approximately $7.4 million in related expenses in the fourth quarter of fiscal 2025 and expects an additional $6.5 million in fiscal 2026, largely tied to severance and professional services, with anticipated operating cash outflows of about $3.4 million in the first quarter and $12.2 million over fiscal 2026; the charges, which may differ from current estimates, will be excluded from Commerce.com’s non-GAAP financial measures, underscoring a near-term hit to cash flow while signaling a longer-term cost-optimization strategy.

The most recent analyst rating on (CMRC) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Commerce.com stock, see the CMRC Stock Forecast page.

Commerce.com Announces CCO Retirement and Leadership Change

On October 6, 2025, Commerce.com announced that Russell Klein, the Chief Commercial Officer, will retire effective November 1, 2025. Michaela Weber, Senior Vice President, Payments & Global Business Development, will take over his responsibilities, potentially impacting the company’s strategic direction and stakeholder relations.

The most recent analyst rating on (CMRC) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Commerce.com stock, see the CMRC Stock Forecast page.