E2open Parent Holdings, Inc. (ETWO) saw its shares surge 7.38% in the pre-market trading session on Friday, following the release of its fiscal third-quarter 2025 financial results.
While the company reported solid subscription revenue of $132 million and an adjusted EBITDA of $53.6 million, representing an adjusted EBITDA margin of 35.3%, it also took significant impairment charges. These included a $369.1 million goodwill impairment and a $10 million intangible asset impairment, which weighed down the company's net income.
Despite the impairment charges, investors seemed to focus on the strong subscription revenue growth and adjusted EBITDA performance, driving the pre-market rally. However, the mixed results left some uncertainty regarding the company's overall financial health and future prospects.