E2open Parent (ETWO) Q4 2025 earnings summary

Executive summary

• Achieved sequential growth in subscription revenue for three consecutive quarters, with Q4 FY25 subscription revenue reaching $133.0M, above guidance midpoint, and improved retention metrics.

• Client satisfaction increased, as evidenced by a 60% reduction in aged support tickets and improved Net Promoter Scores.

• Upselling upon renewal, strong Q4 bookings, and strategic wins across industries contributed to business stabilization.

• Recognized as a leader in multiple industry analyst reports, with continued innovation in AI and global trade solutions.

• Strategic review ongoing, aiming for sustainable growth in FY26 amid tariff-related uncertainty.

Financial highlights

• Q4 FY25 subscription revenue was $133.0 million, down 1.0% year-over-year; on a constant currency basis, down 0.5%.

• Full-year FY25 subscription revenue was $528.0 million, down 1.6% year-over-year.

• Q4 total revenue was $152.7 million, down 3.6% year-over-year; full-year total revenue was $607.7 million, down 4.2%.

• Q4 adjusted EBITDA was $56.3 million (36.9% margin), up 2.3% year-over-year; full-year adjusted EBITDA was $215.5 million (35.5% margin), down 2.2%.

• Q4 net loss was $268.5 million, including a $245 million non-cash goodwill impairment; full-year net loss was $725.8 million, including $614.1 million in impairment charges.

• FY25 GAAP operating cash flow was $99.1M, up 16.7% year-over-year; adjusted operating cash flow was $111.4M.

Outlook and guidance

• FY26 subscription revenue guidance: $525–$535 million, representing -1.0% to 1.0% year-over-year growth; total revenue guidance: $600–$618 million, with 0.2% growth at the midpoint.

• FY26 adjusted EBITDA guidance: $200–$210 million (33–34% margin); gross margin expected at 68–68.5%.

• Net leverage ratio expected to decline from 4.0x to 3.8x adjusted EBITDA by year-end.

• Q1 FY26 subscription revenue guidance: $129–$132 million, representing a 1.8% decline to a 0.5% increase year-over-year.