E2open Reports $152.6 Million Revenue with Improved Losses and Merger Agreement

E2open Parent Holdings, Inc. reported a total revenue of $152.6 million for the three months ended May 31, 2025, reflecting a slight increase of 1% from $151.2 million in the same period last year. The company's subscription revenue, which constitutes 87% of total revenue, rose to $132.9 million, up from $131.4 million, primarily due to stabilization in customer churn and new bookings. However, professional services revenue remained flat at $19.7 million compared to $19.8 million in the prior year. The gross profit for the quarter was $73.6 million, yielding a gross margin of 48%, consistent with the previous year.

In terms of operational efficiency, E2open's total operating expenses decreased significantly to $76.0 million from $89.5 million year-over-year, driven by lower research and development, sales and marketing, and general administrative costs. The company reported a loss from operations of $2.4 million, a notable improvement from a loss of $16.8 million in the prior year. The net loss attributable to E2open's shareholders was $14.1 million, or $(0.05) per share, compared to a net loss of $38.9 million, or $(0.13) per share, in the same quarter last year.

E2open's balance sheet showed total assets of $2.38 billion as of May 31, 2025, with cash and cash equivalents increasing to $230.2 million from $197.4 million at the end of February 2025. The company also reported a decrease in total liabilities to $1.48 billion from $1.49 billion, with a notable reduction in the current portion of the tax receivable agreement liability, which was $42.7 million, reflecting a significant adjustment due to the pending merger with WiseTech Global Limited.

Strategically, E2open announced a merger agreement with WiseTech on May 25, 2025, under which E2open shareholders will receive $3.30 per share in cash. This transaction is subject to customary closing conditions and is expected to close by the end of calendar 2025. The merger is anticipated to enhance E2open's market position and operational capabilities, although it also introduces uncertainties related to regulatory approvals and potential litigation. The company incurred $5.5 million in acquisition-related expenses during the quarter, reflecting the costs associated with the merger process.

Looking ahead, E2open's management expressed optimism about future growth, driven by the anticipated benefits of the merger and ongoing demand for its cloud-based supply chain solutions. However, they acknowledged potential risks, including market volatility and the challenges of integrating operations post-merger. The company remains focused on leveraging its technology to enhance customer engagement and expand its market share in the competitive supply chain management sector.