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E2open Parent Holdings (ETWO)
NYSE:ETWO
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E2open Parent Holdings
(NYSE:ETWO)
Rating:58Neutral
Price Target:
$3.50
▲(8.36%Upside)
Positive Factors
Acquisition
E2open announced it has entered into a definitive agreement to be acquired by WiseTech Global, a leading provider of logistics execution software solutions.
Stock Premium
WiseTech will acquire all outstanding ETWO shares at $3.30 per share, a 68% premium over the unaffected price.
Strategic Asset
E2open is seen as a potential strategic asset given its durable core enterprise customer base and high gross retention rate.
Negative Factors
Professional Services Revenue
Professional services revenue was down 20% year-over-year, a downtick from Q2's 13%.
Revenue Guidance
The high-end of FY25 revenue guidance was lowered to $607-611 million from $607-617 million prior.
Stock Performance
E2open's stock price dropped to an all-time low of $1.97 after a soft Q4 performance.
E2open Parent Holdings (ETWO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)12.27M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-4.23%
EPS Growth39.42%
CountryUS
Employees3,873
SectorTechnology
Sector Strength79
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.06
Shares Outstanding311,186,770
10 Day Avg. Volume8,277,731
30 Day Avg. Volume12,268,729
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.75
Price to Sales (P/S)0.00
P/FCF Ratio93.43
Enterprise Value/Market Cap2.57
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit10.23
Enterprise Value/Ebitda-9.59
Forecast
1Y Price Target
$2.48Price Target Upside-23.22% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
E2open Parent Holdings Business Overview & Revenue Model
Company DescriptionE2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management SaaS platform in the Americas, Europe, and the Asia Pacific. The company's software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers. Its software combines networks, data, and applications to provide a platform that allows customers to optimize their supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management. It serves technology, consumer, industrial, transportation, and other industries. E2open Parent Holdings, Inc. was incorporated in 2020 and is headquartered in Austin, Texas.
How the Company Makes MoneyE2open Parent Holdings generates revenue primarily through the sale of its software-as-a-service (SaaS) solutions, which are offered on a subscription basis. This model provides a steady stream of recurring revenue as customers pay periodic fees to access and utilize E2open's suite of supply chain management applications. Additionally, the company may earn revenue from professional services, including implementation, training, and support, which are ancillary to its software offerings. E2open's earnings are further bolstered by strategic partnerships and collaborations with large enterprises and supply chain leaders, which help expand its market reach and customer base.
E2open Parent Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2025)
| % Change Since: 53.81%|
Next Earnings Date:Jul 09, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted modest improvements in subscription revenue, client satisfaction, and retention, as well as strong cash flow and industry recognition. However, these positive aspects were offset by declines in overall revenue, significant net losses with goodwill impairments, and pressure on gross margins. The company is optimistic about its strategic direction and future growth potential, yet it acknowledges the challenges it faces in returning to positive growth.Q4-2025 Updates
Positive Updates
Subscription Revenue Improvement
Sequential growth in subscription revenue over the past three quarters, with Q4 year-over-year subscription growth rate, when adjusted for currency impacts, coming within a 0.5 percentage point of flat growth.
Client Satisfaction and Retention
Gross and net retention rates improved to 91% and 99%, respectively, representing about a 1 percentage point improvement in each compared to the end of FY 2024.
Industry Recognition
E2open was ranked a leader in 11 of the 16 industry quadrants across major functional areas and recognized by IDC and Gartner for leadership in supply chain planning and transformation management.
Cash Flow and Balance Sheet Strength
Ended the fiscal year with a cash balance of $197.4 million, an increase of $63 million year-over-year, highlighting robust cash generation capability.
Technological Advancements
Launched new AI tools across the Global Trade Technology suite to unlock higher productivity, shorter cycle times, and greater compliance assurance.
Negative Updates
Decline in Overall Revenue
Total revenue for the fiscal fourth quarter was $152.7 million, reflecting a decline of 3.6% over the prior year quarter. For full fiscal year 2025, total revenue was $607.7 million, reflecting a growth rate of negative 4.2% over the prior year.
Professional Services Revenue Decline
Professional Services and Other revenue in the fiscal fourth quarter was $19.7 million, a year-over-year decline of 18.3%. For full fiscal year 2025, Professional Services revenue was $79.7 million, a decline of 18.4%.
Net Loss and Goodwill Impairment
Net loss for the fiscal fourth quarter of 2025 was $268.5 million, including a non-cash goodwill impairment charge of $245 million. For the full fiscal 2025, net loss was $725.8 million, including a non-cash goodwill impairment charge of $614.1 million.
Gross Margin Pressure
Non-GAAP gross margin for full fiscal year 2025 was 68.5%, compared to 69.4% in the prior year, driven by lower subscription and PS revenue and investments in client satisfaction.
Company Guidance
During the E2open Fourth Quarter Fiscal Year 2025 Earnings Call, the company provided guidance for fiscal year 2026, projecting subscription revenue to range between $525 million and $535 million, indicating growth of -1.0% to 1.0% year-over-year. The first quarter of FY 2026 is expected to see subscription revenue between $129 million and $132 million, marking a -1.8% decline to a 0.5% increase compared to the previous year. Total FY 2026 revenue is forecasted to be between $600 million and $618 million, with total gross profit margins anticipated at 68% to 68.5%. Adjusted EBITDA for FY 2026 is projected to be in the range of $200 million to $210 million, reflecting a margin of 33% to 34%, with the expectation of a net leverage ratio declining to approximately 3.8 times by the end of FY 2026. The company emphasized continued focus on improving client retention, sales execution, and targeted investments in product development and commercial efforts to drive growth.E2open Parent Holdings Financial Statement Overview
Summary
E2open Parent Holdings faces significant profitability and operational challenges, evidenced by negative profit margins and high net losses. Although cash flow management shows some positive signs, with a Free Cash Flow Growth Rate of 32.9%, the overall financial health is weak due to negative returns on equity and deeply negative EBIT and EBITDA margins.Income Statement
E2open Parent Holdings has shown significant revenue fluctuations with a negative trend in profitability. The Gross Profit Margin for the TTM is 46.0%, but the Net Profit Margin is notably negative at -108.6%, highlighting profitability issues. Revenue growth has been inconsistent, with a decline in the latest period. EBIT and EBITDA margins are deeply negative, indicating operational challenges.45
Neutral
Balance Sheet
The company's balance sheet reflects a Debt-to-Equity Ratio of 1.26, suggesting moderate leverage. The Equity Ratio for the TTM is 35.6%, indicating a reasonable level of equity financing. However, Return on Equity is negative due to substantial net losses, which raises concerns about shareholder returns.55
Neutral
Cash Flow
Cash flow analysis reveals some positive aspects, such as a Free Cash Flow Growth Rate of 32.9% and a positive Operating Cash Flow to Net Income Ratio of 0.15, indicating cash generation despite net losses. However, the Free Cash Flow to Net Income Ratio remains low, reflecting challenges in converting income into cash flow.50
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 607.69M | 634.55M | 652.22M | 425.56M | 305.10M | Gross Profit |
| 299.68M | 317.69M | 330.28M | 202.59M | 184.04M | EBIT |
| -652.38M | -1.19B | -29.43M | -53.81M | -3.89M | EBITDA |
| -437.00M | 164.55M | 191.47M | 104.44M | -3.89M | Net Income Common Stockholders |
| -659.83M | -1.07B | -720.20M | -189.91M | -72.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 197.35M | 134.48M | 93.03M | 155.48M | 194.72M | Total Assets |
| 2.37B | 3.14B | 4.40B | 5.41B | 3.84B | Total Debt |
| 1.06B | 1.08B | 1.08B | 985.78M | 518.62M | Net Debt |
| 867.39M | 944.24M | 988.38M | 830.30M | 323.90M | Total Liabilities |
| 1.49B | 1.56B | 1.67B | 1.92B | 1.36B | Stockholders Equity |
| 844.97M | 1.48B | 2.50B | 3.19B | 2.08B |
| Cash Flow | Free Cash Flow | |||
| 73.94M | 55.62M | 20.04M | 19.38M | -12.79M | Operating Cash Flow |
| 99.14M | 84.87M | 68.10M | 51.15M | -1.23M | Investing Cash Flow |
| -25.20M | -29.25M | -228.73M | -808.51M | -414.00M | Financing Cash Flow |
| -12.99M | -14.02M | 90.44M | 710.71M | 415.69M |
E2open Parent Holdings Technical Analysis
Positive
3.23
Price Trends
2.54
Positive
2.48
Positive
2.93
Positive
Market Momentum
0.20
Positive
73.47
Negative
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETWO, the sentiment is Positive. The current price of 3.23 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 2.54, and above the 200-day MA of 2.93, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 73.47 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETWO.
E2open Parent Holdings Risk Analysis
E2open Parent Holdings disclosed 54 risk factors in its most recent earnings report. E2open Parent Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
E2open Parent Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.21B | 78.11 | 6.26% | ― | 7.71% | ― | |
65 Neutral | $841.52M | 435.88 | 4.15% | ― | 30.64% | ― | |
63 Neutral | $804.13M | ― | -9.00% | ― | 9.30% | 24.96% | |
62 Neutral | $11.97B | 10.08 | -7.46% | 2.96% | 7.37% | -8.22% | |
58 Neutral | $1.12B | ― | -56.65% | ― | -4.23% | 39.42% | |
58 Neutral | $914.46M | ― | 29.80% | ― | 7.97% | 74.22% | |
57 Neutral | $928.10M | ― | -93.00% | ― | -0.40% | 63.36% |
* Technology Sector Average
Performance Comparison
ETWO
E2open Parent Holdings
3.23
-1.27
-28.22%
PRO
PROS Holdings
15.78
-10.86
-40.77%
DSP
Viant Technology
12.63
3.09
32.39%
BLND
Blend Labs
3.23
0.78
31.84%
VTEX
VTEX
6.46
-0.27
-4.01%
RSKD
Riskified
4.71
-1.34
-22.15%
E2open Parent Holdings Corporate Events
M&A TransactionsBusiness Operations and Strategy
E2open Parent Holdings Acquired by WiseTech Global
Positive
May 27, 2025
E2open Parent Holdings announced its acquisition by WiseTech Global, concluding a strategic review process. The acquisition, valued at $2.1 billion, offers E2open stockholders $3.30 per share in cash, marking a 68% premium over its previous stock price. The transaction, approved by a majority of E2open’s shareholders, is expected to close in the second half of 2025, subject to regulatory approvals. This merger is anticipated to enhance E2open’s market position by combining its supply chain capabilities with WiseTech’s logistics software solutions, potentially benefiting stakeholders through improved service offerings and operational synergies.
The most recent analyst rating on (ETWO) stock is a Sell with a $3.75 price target. To see the full list of analyst forecasts on E2open Parent Holdings stock, see the ETWO Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
E2open Parent Holdings Releases Investor Presentation Update
Positive
Apr 30, 2025
On April 30, 2025, E2open Parent Holdings released an investor presentation to update the investment community about its business operations and financial performance. The presentation highlighted the company’s strategic focus on addressing increasing supply chain complexities and the growing demand for data-driven, integrated supply chain solutions. E2open reported a total revenue of $608 million for FY25 and emphasized its role in transforming global supply chains by providing scalable, interconnected software solutions that anticipate disruptions and optimize operations. The company sees significant market opportunities in the expanding supply chain management software sector, projecting a market size of $92 billion by 2027.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.