E2open Parent (ETWO) Q1 2026 earnings summary

Executive summary

• Achieved first year-over-year growth in subscription revenue since mid-FY2024, with Q1 FY26 GAAP subscription revenue of $132.9 million, exceeding guidance and signaling improved client retention.

• Total Q1 FY26 revenue reached $152.6 million, up 1.0% year-over-year, driven by stable subscription and professional services revenue.

• Adjusted EBITDA for Q1 was $52.2 million (34.2% margin), up 3% year-over-year, reflecting ongoing cost discipline and operational improvements.

• Net loss for Q1 narrowed significantly to $14.1 million–$15.5 million from $38.9 million–$42.8 million in the prior year.

• Announced pending acquisition by WiseTech Global, with shareholders to receive $3.30 per share in cash and closing expected by year-end 2025.

Financial highlights

• Q1 FY26 subscription revenue was $132.9 million, up 1.1% year-over-year and above guidance; professional services revenue was $19.7 million, flat year-over-year.

• Total Q1 revenue reached $152.6 million, a 1.0% increase over the prior year quarter.

• Non-GAAP gross profit for Q1 was $102.4 million (67.1% margin); GAAP gross profit was $73.6 million (48% margin).

• Adjusted EBITDA for Q1 was $52.2 million (34.2% margin), up from $50.7 million (33.6% margin) year-over-year.

• Cash and cash equivalents increased to $230.2 million as of May 31, 2025; adjusted operating cash flow for Q1 was $48.0 million.

Outlook and guidance

• FY2026 subscription revenue expected between $525 million–$535 million, with year-over-year growth of -1.0% to +1.0%.

• FY2026 total revenue guidance is $600 million–$618 million, representing -1.3% to +1.7% growth.

• FY2026 non-GAAP gross profit margin projected at 68%–68.5%.

• FY2026 adjusted EBITDA forecasted at $200 million–$210 million (33%–34% margin); net leverage ratio expected at 3.8x.

• No forward-looking financial guidance provided due to pending transaction.