E2open Announces Fiscal 2025 Fourth Quarter and Full Year Financial Results

Q4-FY25 GAAP subscription revenue of $133.0 million, above midpoint of Q4 guidance range

Strong cash generation in Q4-FY25 and full year FY25

DALLAS--(BUSINESS WIRE)--April 29, 2025-- 

E2open Parent Holdings, Inc. (NYSE: ETWO) ("e2open" or the "Company"), the connected supply chain SaaS platform with the largest multi-enterprise network, today announced financial results for its fiscal fourth quarter and full year ended February 28, 2025.

"Our fourth quarter results showed continued stabilization in our core business and highlight the meaningful progress we made this fiscal year in repositioning e2open for future growth," said Andrew Appel, e2open chief executive officer. "During the fourth quarter, our commercial team executed solidly by winning important new business with clients across multiple industries, and our ending FY25 gross and net retention metrics improved compared to the end of last fiscal year. Looking ahead to FY26, tariff-related uncertainty is showcasing the distinctive value of e2open's end-to-end platform that gives our clients a unified view of demand, supply, logistics, and global trade. In a world where constant change is the norm, e2open is proud to be a much-needed source of supply chain adaptability and resilience for the world's leading global companies."

"In Q4 FY25, e2open delivered subscription revenue above the mid-point of our guidance along with strong adjusted EBITDA and record-high cash flow," said Marje Armstrong, chief financial officer of e2open. "As reflected in our guidance, in FY26 we expect our business to gradually return to revenue growth, driven by continued improvements in retention and sales productivity. As we work to complete our strategic review, we are on track to putting e2open back on a sustainable growth trajectory."

Fiscal Fourth Quarter 2025 Financial Highlights

Revenue

   -- GAAP subscription revenue for the fourth quarter of 2025 was $133.0 
      million, a decrease of 1.0% from the year-ago comparable period and 87.0% 
      of total revenue. Subscription revenue decreased 0.5% on a constant 
      currency basis. 
 
          -- Total GAAP revenue for the fourth quarter of 2025 was $152.7 
             million, a decrease of 3.6% from the year-ago comparable period. 
             Total revenue decreased 3.1% on a constant currency basis. 
 
          -- GAAP gross profit for the fourth quarter of 2025 was $76.6 million, 
             a decrease of 4.8% from the year-ago comparable period. Non-GAAP 
             gross profit was $104.2 million, down 6.1% and a decrease of 5.8% 
             on a constant currency basis. 
 
   -- GAAP gross margin for the fourth quarter of 2025 was 50.2% compared to 
      50.8% for the year-ago comparable period. Non-GAAP gross margin was 68.2% 
      compared to 70.0% from the comparable year-ago period. 
 
   -- GAAP net loss for the fourth quarter of 2025 was $268.5 million compared 
      to a net loss of $45.5 million from the year-ago comparable period. 
      Adjusted EBITDA for the fourth quarter of 2025 was $56.3 million, an 
      increase of 2.3% and 1.7% on a constant currency basis from the year-ago 
      comparable period. Adjusted EBITDA margin was 36.9% versus 34.8% from the 
      comparable year-ago period. 
 
   -- GAAP EPS for the fourth quarter of 2025 was a loss of $0.79. Adjusted EPS 
      for the fourth quarter of 2025 was $0.06. 

Fiscal Year 2025 Financial Highlights

   -- Revenue 
 
          -- GAAP subscription revenue for fiscal 2025 was $528.0 million, a 
             decrease of 1.6% from the prior fiscal year and 87% of total 
             revenue. Subscription revenue decreased 1.6% on a constant 
             currency basis. 
 
          -- Total GAAP revenue for fiscal 2025 was $607.7 million, a decrease 
             of 4.2% from the prior fiscal year. Total revenue decreased 4.2% 
             on a constant currency basis. 
 
   -- GAAP gross profit for fiscal 2025 was $299.7 million, a decrease of 5.7% 
      from the prior fiscal year. Non-GAAP gross profit was $416.0 million, 
      down 5.6% and 5.6% on a constant currency basis. 
 
   -- GAAP gross margin for fiscal 2025 was 49.3% compared to 50.1% for the 
      prior fiscal year. Non-GAAP gross margin was 68.5% compared to 69.4% from 
      the comparable year-ago period. 
 
   -- GAAP net loss for fiscal year 2025 was $725.8 million compared to a net 
      loss of $1,185.1 million from the prior fiscal year. Adjusted EBITDA for 
      fiscal year 2025 was $215.5 million, a decrease of 2.2% and 2.5% on a 
      constant currency basis from the prior fiscal year. Adjusted EBITDA 
      margin was 35.5% versus 34.7% from prior fiscal year. 
 
   -- GAAP EPS for fiscal year 2025 was a loss of $2.14. Adjusted EPS for 
      fiscal year 2025 was $0.19. 
 
   -- Cash flow 
 
          -- GAAP operating cash flow for fiscal 2025 was $99.1 million 
             compared to $84.9 million, or growth of 16.7%, from the year-ago 
             comparable period, inclusive of non-recurring expenses. 
 
          -- Adjusted operating cash flow for fiscal 2025, exclusive of 
             non-recurring expenses, was $111.4 million. This compares to 
             $116.0 million from the year ago comparable period and represents 
             51.7% of fiscal 2025 adjusted EBITDA. 

Recent Business Highlights

   -- Launched innovations in global trade compliance technology to help 
      companies address new and evolving challenges. The new AI capabilities 
      and enhancements to e2open's proven Global Trade software are designed to 
      ease compliance and increase productivity for clients by streamlining 
      classifications, global trade content, due diligence, and unstructured 
      document processing. 
 
   -- Selected by a global active health and wellness company as strategic 
      partner for its digital supply chain transformation. Building upon its 
      use of e2open Transportation Management, Parcel, and Global Trade 
      Management applications, this client with products distributed in more 
      than 125 countries has added Demand Planning, Supply Planning, and 
      Multi-Echelon Inventory Optimization (MEIO) applications to increase 
      productivity and ensure supply as the company prioritizes a connected 
      supply chain platform with scalable solutions to manage the complexities 
      of growth. 
 
   -- A major Europe-based global freight forwarder and existing e2open 
      Transportation Management customer signed on for a significant expansion 
      of our relationship. The expanded relationship will allow this highly 
      strategic customer to further optimize operations across multiple modes 
      of transportation, reduce freight and operational costs, and broaden and 
      accelerate its global rollout of TMS functionality. 
 
   -- A major U.S. manufacturer and distributor of branded food and beverage 
      products selected e2open to add significant additional software-based 
      logistics and support services to our existing relationship. This win 
      demonstrates e2open's strong competitive position with clients in the 
      consumer-packaged goods industry. 
 
   -- Named a Leader in the 2025 Gartner$(R)$ Magic Quadrant$(TM)$ for 
      Transportation Management Systems for the third consecutive year. 
      E2open's cloud-based, multi-tenant TMS solution provides a seamless 
      interface across transportation modes and built-in access to an expansive 
      carrier network, enabling logistics teams to be lean, efficient and 
      responsive. 
 
   -- Named a Leader in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled 
      Direct Spend Vendor Assessment, a comprehensive new report evaluating 
      vendors in the direct materials sourcing and spend software application 
      market. The research highlighted e2open's "ability to integrate the 
      procurement process from planning, execution, and tracking. This strength 
      is complemented by a flexible solution platform built to support a myriad 
      of business processes." 
 
   -- Expanded e2open's world-class multi-enterprise network to 500,000 
      connected enterprises and 18 billion annual supply chain transaction from 
      480,000 and 16 billion, respectively, in FY24. This growing network scale 
      demonstrates e2open's profound impact on global supply chains and 
      empowers our clients to benefit from greater efficiency, cost-saving 
      opportunities, optimized operations, and further digital maturity in 
      their supply chains. 

Financial Outlook for Fiscal Year 2026

As of April 29, 2025, e2open is providing guidance for fiscal year 2026, which ends February 28, 2026, as follows:

Fiscal 2026 Subscription Revenue

   -- GAAP subscription revenue for fiscal 2026 is expected to be in the range 
      of $525 million to $535 million, reflecting a 0.4% growth rate at the 
      mid-point. 

Fiscal 2026 Total GAAP Revenue

   -- Total GAAP revenue for fiscal 2026 is expected to be in the range of $600 
      million to $618 million, reflecting a positive 0.2% growth rate at the 
      mid-point. 

Fiscal First Quarter 2026 GAAP Subscription Revenue

   -- GAAP subscription revenue for the fiscal first quarter of 2026 is 
      expected to be in the range of $129 million to $132 million, reflecting a 
      negative 0.7% growth rate at the mid-point. 

Fiscal 2026 Non-GAAP Gross Profit Margin

   -- Non-GAAP gross profit margin for fiscal 2026 is expected to be in the 
      range of 68% to 68.5%. 

Fiscal 2026 Adjusted EBITDA

   -- Adjusted EBITDA for fiscal 2026 is expected to be in the range of $200 
      million to $210 million with an implied adjusted EBITDA margin in the 
      range of 33% to 34%. 

Quarterly Conference Call

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April 29, 2025 16:17 ET (20:17 GMT)