Commerce.com Reports $86.8 Million Revenue in Q1 2026, Achieves Net Income Turnaround

Commerce.com, Inc. reported a revenue of $86.8 million for the first quarter of 2026, marking a 5.4% increase from $82.4 million in the same period last year. The growth was driven by a rise in both subscription solutions and partner services revenue, with subscription solutions increasing by 2.5% to $63.7 million and partner services revenue rising by 14.4% to $23.2 million. The company achieved a net income of $3.7 million, a significant turnaround from a net loss of $353,000 in the prior year, reflecting improved operational efficiency and cost management.

The company's total operating expenses decreased by 10.2% to $60.9 million, down from $67.8 million in the previous year. This reduction was primarily attributed to lower sales and marketing expenses, which fell by 13.7% to $26.2 million, and a decrease in restructuring charges. The gross profit for the quarter was $66.7 million, resulting in a gross margin of 76.7%, down from 79.4% in the prior year, largely due to increased costs associated with software and web hosting.

In terms of operational metrics, Commerce.com reported a total customer count increase, with a notable rise in small business and enterprise customers. The company also launched new products, including the Feedonomics Surface, aimed at enhancing feed management for small and mid-sized businesses. The strategic rebranding initiative, which unified the company's core products under the Commerce brand, is expected to streamline operations and enhance customer engagement.

Geographically, revenue from the United States accounted for approximately 76% of total revenue, with notable growth in the EMEA region, which saw a 13.8% increase to $11.3 million. The company continues to focus on expanding its market presence and enhancing product adoption rates, particularly in international markets. As of March 31, 2026, Commerce.com had $157 million in cash, cash equivalents, and marketable securities, reflecting a strong liquidity position to support ongoing investments and operational needs.

Looking ahead, Commerce.com aims to continue its growth trajectory through product innovation, strategic partnerships, and a focus on AI-driven commerce solutions. The company plans to enhance its offerings to meet the evolving needs of its customers while maintaining a disciplined approach to operational efficiency and profitability.