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E2open Parent Holdings (ETWO)
NYSE:ETWO
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E2open Parent Holdings (ETWO) AI Stock Analysis

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ETWO

E2open Parent Holdings

(NYSE:ETWO)

Rating:57Neutral
Price Target:
$3.50
▲(6.71%Upside)
The overall score reflects significant financial challenges and valuation concerns, counterbalanced by positive technical analysis and strategic initiatives, including the pending acquisition. Bullish momentum and strategic growth plans help offset some financial weaknesses.
Positive Factors
Acquisition Approval
E2open shareholders holding in the aggregate a majority of the voting power have approved the transaction by written consent.
Retention and Bookings
Retention and subscription bookings have improved year-over-year and sequentially, with Q1 being the low point for both.
Negative Factors
Professional Services Revenue
Professional services revenue was down 20% year-over-year, a downtick from Q2's 13%.
Stock Price 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)

E2open Parent Holdings Business Overview & Revenue Model

Company DescriptionE2open Parent Holdings (ETWO) is a leading provider of cloud-based, end-to-end supply chain management solutions. The company operates in the software and technology sector, offering a comprehensive suite of applications that enable businesses to optimize their supply chain operations. E2open's core products and services include supply chain planning, execution, collaboration, and data analytics, which help organizations enhance visibility, increase efficiency, and improve decision-making across their supply chain networks.
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:Jul 10, 2025
(Q1-2026)
|
% Change Since: 0.61%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlights E2open's return to subscription revenue growth and strong cash generation, alongside strategic plans for a pending acquisition by WiseTech Global. However, challenges remain with flat professional services revenue, a decline in gross profit margin, and continued net losses. Despite these challenges, the company is positioned for future growth and innovation.
Q1-2026 Updates
Positive Updates
Return to Subscription Revenue Growth
E2open achieved the first year-over-year growth in subscription revenue since mid-FY '24, with subscription revenue growing 1.1% year-over-year and 0.9% on a constant currency basis.
Strong Cash Generation
E2open ended Q1 with $230.2 million of cash, an increase of $33 million from the fourth quarter, marking another quarter of strong performance on cash generation.
Successful Client Retention and Innovation
Significant improvements in client retention and notable enhancements in software products, including new product launches and generative AI-driven tools.
Positive EBITDA Performance
Adjusted EBITDA for the first quarter was $52.2 million, a 34.2% margin compared to $50.7 million and a 33.6% margin in the prior year quarter.
Pending Acquisition by WiseTech Global
E2open announced a pending acquisition by WiseTech Global, expected to close by the end of the calendar year, with strategic benefits for both companies.
Negative Updates
Flat Professional Services Revenue
Professional services and other revenue in the fiscal first quarter was $19.7 million, a year-over-year decline of 0.1%.
Decline in Non-GAAP Gross Profit Margin
Non-GAAP gross margin was 67.1% in Q1, down from 67.8% in the prior year quarter due to lower PS gross margin.
Net Loss Reduction
Net loss for the fiscal first quarter of 2026 was $15.5 million, an improvement from a net loss of $42.8 million in the year-ago period, but still a loss.
Flat Full-Year Guidance
Subscription revenue and total revenue growth for FY '26 is expected to be between negative 1.0% to positive 1.0% and negative 1.3% to positive 1.7%, respectively, indicating a potentially flat performance.
Company Guidance
During the E2open First Quarter Fiscal Year 2026 Earnings Call, the company provided its full-year guidance, maintaining previous projections. Subscription revenue is expected to range between $525 million and $535 million, reflecting a year-over-year growth rate of -1.0% to 1.0%. Total revenue is anticipated to fall between $600 million and $618 million, with a growth rate of -1.3% to 1.7%. E2open forecasts a gross profit margin of 68% to 68.5% and adjusted EBITDA between $200 million and $210 million, translating to an EBITDA margin of 33% to 34%. Additionally, the company expects its adjusted operating cash flow as a percentage of adjusted EBITDA to align with FY '25, and a net leverage ratio of approximately 3.8x by year-end.

E2open Parent Holdings Financial Statement Overview

Summary
E2open Parent Holdings faces significant financial challenges with declining revenues and consistent net losses. The balance sheet shows moderate leverage, but the inability to generate net income significantly impacts return metrics. Cash flows are stable from operations, but profitability needs improvement.
Income Statement
35
Negative
E2open Parent Holdings shows a declining revenue trend with a negative net profit margin, indicating challenges in achieving profitability. The gross profit margin is moderate but is overshadowed by significant EBIT and EBITDA losses. The revenue decline from the previous year further accentuates the struggle in generating growth and profitability.
Balance Sheet
45
Neutral
The company has a moderate debt-to-equity ratio, reflecting some leverage but not excessively high. The equity ratio indicates a reasonable proportion of assets financed by equity. However, the negative return on equity highlights the challenges in generating returns for shareholders, primarily due to continued net losses.
Cash Flow
40
Negative
Operating cash flow remains positive, suggesting the ability to generate cash from core operations. However, free cash flow growth is modest, and the cash flow ratios indicate difficulty in translating operating efficiencies to net income. The reliance on external financing in prior periods may pose future liquidity risks.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Dec 2020
Income Statement
Total Revenue607.69M634.55M652.22M425.56M305.10M
Gross Profit299.68M317.69M330.28M202.59M184.04M
EBITDA-437.00M164.55M191.47M104.44M-3.89M
Net Income-659.83M-1.07B-720.20M-189.91M-72.70M
Balance Sheet
Total Assets2.37B3.14B4.40B5.41B3.84B
Cash, Cash Equivalents and Short-Term Investments197.35M134.48M93.03M155.48M194.72M
Total Debt1.06B1.08B1.08B985.78M518.62M
Total Liabilities1.49B1.56B1.67B1.92B1.36B
Stockholders Equity844.97M1.48B2.50B3.19B2.08B
Cash Flow
Free Cash Flow73.94M55.62M20.04M19.38M-12.79M
Operating Cash Flow99.14M84.87M68.10M51.15M-1.23M
Investing Cash Flow-25.20M-29.25M-228.73M-808.51M-414.00M
Financing Cash Flow-12.99M-14.02M90.44M710.71M415.69M

E2open Parent Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.28
Price Trends
50DMA
3.13
Positive
100DMA
2.64
Positive
200DMA
2.79
Positive
Market Momentum
MACD
0.05
Positive
RSI
67.72
Neutral
STOCH
88.89
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 3.28 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.13, and above the 200-day MA of 2.79, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 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 55 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$1.14B75.816.26%7.71%
69
Neutral
$869.80M-9.00%9.30%24.96%
69
Neutral
$868.42M461.134.15%30.64%
64
Neutral
$773.77M29.80%7.97%74.22%
63
Neutral
$34.55B5.25-11.40%1.91%5.47%-20.39%
57
Neutral
$1.14B-54.61%-2.63%20.26%
56
Neutral
$935.85M-93.00%-0.40%63.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ETWO
E2open Parent Holdings
3.28
-1.33
-28.85%
PRO
PROS Holdings
16.17
-9.92
-38.02%
DSP
Viant Technology
13.88
2.04
17.23%
BLND
Blend Labs
3.62
0.50
16.03%
VTEX
VTEX
6.28
-0.28
-4.27%
RSKD
Riskified
5.43
-0.67
-10.98%

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.Date of analysis: Jul 13, 2025