Commerce.com (CMRC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $86.8M, up 5–5.4% year-over-year, with GAAP net income of $3.7M, marking the first quarter of GAAP profitability as a public company and a turnaround from a prior net loss.

• Annualized revenue run-rate (ARR) was $359.8M–$360M as of March 31, 2026, with a 15% CAGR since IPO and stable YoY growth.

• Operating and free cash flow were $18.4M and $14.1M, respectively, with cash, cash equivalents, and marketable securities totaling $157M and no material debt maturities until 2028.

• Strategic rebranding unified core products under a single brand, supporting AI-driven, composable commerce and positioning the platform for agentic commerce.

• Major enterprise and B2B customer wins included H&M, The RealReal, Petco, Grainger, StatLab, Helix Linear, and Nunu Trading International.

Financial highlights

• Q1 revenue was $86.8M, up from $82.4M in Q1 2025, exceeding guidance.

• Subscription solutions revenue was $63.7M, partner and services revenue was $23.2M, with partner/services up 14.4% YoY.

• Non-GAAP operating income was $12.4M–$12M, with a 14.3% margin; adjusted EBITDA was $13.8M, up from $8.8M YoY.

• GMV for Q1 2026 was $8.3B–$8.9B, up 12–14% YoY; annual GMV reached $31.7B–$32.7B, up 14% YoY.

• Non-GAAP gross margin was 76.7–77% in Q1 2026.

Outlook and guidance

• Q2 2026 revenue expected between $84.5M and $85.5M; non-GAAP operating income between $4M and $5M.

• Full-year 2026 revenue guidance reaffirmed at $347.5M–$369.5M, with non-GAAP operating income of $34M–$53M and margin of 10–14%.

• Rule of 40 performance projected at 11–22% depending on execution.

• GAAP profitability expected for the full year for the first time.

• Management expects cost of revenue and gross margin percentage to remain consistent in future periods.