AUSTIN, Texas, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Commerce.com, Inc. (Nasdaq: CMRC) (formerly BigCommerce Holdings, Inc.), a provider of an open, intelligent ecosystem of technology solutions that empower businesses to unlock data potential and deliver seamless, personalized experiences at scale, today announced financial results for its third quarter ended September 30, 2025.
"The third quarter marked another strong step forward in our transformation, with revenue in line with guidance and profitability and cash flow exceeding expectations," said Travis Hess, CEO of Commerce. "We are now squarely in execution mode, scaling sustainable growth across core offerings and leaning into strategic partnerships with AI leaders like Perplexity, Google, and PayPal to power agentic commerce. As buyer behavior shifts, our differentiated approach, flexible platform, enriched data and AI-enabled experiences, are driving real momentum across B2B and B2C."
Third Quarter Financial Highlights:
-- Total revenue was $86.0 million, up 3% compared to the three months ended
September 30, 2024.
-- Total annual revenue run-rate ("ARR") as of September 30, 2025 was $355.7
million, up 2% compared to September 30, 2024.
-- Subscription solutions revenue was $64.7 million, up 3% compared to the
three months ended September 30, 2024.
-- ARR from accounts with at least one enterprise plan ("Enterprise
Accounts") was $269.2 million as of September 30, 2025, up 5% from
September 30, 2024.
-- ARR from Enterprise Accounts as a percent of total ARR was 76% as of
September 30, 2025, compared to 74% as of September 30, 2024.
-- GAAP gross margin was 78%, compared to 76% in the three months ended
September 30,2024. Non-GAAP gross margin was 79%, compared to 78% in the
three months ended September 30, of 2024.
Other Key Business Metrics
-- Number of enterprise accounts was 5,751, down 2% compared to the three
months ended September 30, 2024.
-- Average revenue per account ("ARPA") of enterprise accounts was $46,806,
up 7% compared to the three months ended September 30, 2024.
-- Revenue in the United States grew by 2% compared to the three months
ended September 30, 2024.
-- Revenue in EMEA grew by 9% and revenue in APAC declined by 3% compared to
the three months ended September 30, 2024.
Loss from Operations and Non-GAAP Operating Income
-- GAAP loss from operations was ($0.4) million, compared to ($19.2) million
in the three months ended September 30, 2024.
-- Non-GAAP operating income was $8.0 million, compared to $4.3 million in
the three months ended September 30, 2024.
GAAP Net Loss, Non-GAAP Net Income and Earnings Per Share
-- GAAP net loss was ($2.2) million, compared to ($7.0) million in the three
months ended September 30, 2024.
-- Non-GAAP net income was $6.2 million or 7% of revenue, compared to $4.4
million or 5% of revenue in the three months ended September 30, 2024.
-- GAAP basic net loss per share was ($0.03) based on 80.8 million shares of
weighted average shares outstanding, compared to ($0.09) based on 77.9
million shares of weighted average shares outstanding in the three months
ended September 30, 2024.
-- Non-GAAP basic net income per share was $0.08 based on 80.8 million
shares of weighted average shares outstanding, compared to $0.06 based on
77.9 million shares of weighted average shares outstanding in the three
months ended September 30, 2024.
Adjusted EBITDA
-- Adjusted EBITDA was $8.8 million, compared to $5.4 million in the three
months ended September 30, 2024.
Cash
-- Cash, cash equivalents, restricted cash, and marketable securities
totaled $143.2 million as of September 30, 2025.
-- In the three months ended September 30, 2025, net cash provided by
operating activities was $10.6 million, compared to $5.6 million provided
by operating activities for the same period in 2024. We reported free
cash flow of $7.6 million in the three months ended September 30, 2025.
Business Highlights:
Corporate Highlights
-- The Company announced the availability of Feedonomics Surface, a new
solution that simplifies and automates the process of connecting product
catalogs to important advertising channels like Google Shopping and Meta.
Feedonomics Surface provides Feedonomics' powerful data optimization and
automation tools directly to merchants so they can improve their return
on advertising spending with a stronger data feed.
-- The Company announced a new embedded payment processing solution
available exclusively to BigCommerce merchants. Powered by PayPal,
BigCommerce Payments is slated for a U.S. launch in 2026, with
international expansion planned in subsequent phases.
-- The Company announced a new agentic commerce feature with seamless
agentic checkout through Commerce's integration with PayPal, enabling
pilot merchants to participate in seamless agentic checkout experiences.
-- The Company announced it is releasing two new Feedonomics applications in
the Shopify App Store: Feedonomics for Advertising and Feedonomics for
Listings & Orders. These apps provide a robust, formalized foundation
that empowers merchants and partners to manage complex, cross-platform
operations and scale their business with greater ease.
Customer Highlights
-- Mountain Warehouse, a leading outdoor clothing and equipment retailer,
launched its European Union storefront with additional storefronts
planned. Mountain Warehouse built a composable storefront with Catalyst
and featuring multi-storefront, custom checkout and multi-language
functionality.
-- LCA Franchising, a laser, skin care & cosmetic clinic, launched four
Catalyst storefronts across Australia, New Zealand, UK and Canada,
leveraging BigCommerce agency partner Aligent.
-- F&C Distributors launched its first B2B ecommerce store, updating its
operations which had previously been done entirely offline. They
integrated with Quickbooks using Webgility and are now working on
launching two B2C stores.
-- DriveDen, one of the UK's leading retailers of premium car travel
accessories, has become one of the first businesses in the country to
launch an ecommerce site on Catalyst, the next generation storefront
technology from leading ecommerce platform BigCommerce. The project was
delivered in partnership with Nottingham-based digital agency Rusty
Monkey.
Q4 and 2025 Financial Outlook:
For the fourth quarter of 2025, we currently expect:
-- Total revenue between $87.8 million to $92.8 million.
-- Non-GAAP operating income is expected to be between $4.3 million to $9.3
million.
For the full year 2025, we currently expect:
-- Total revenue between $340.6 million and $345.6 million. -- Non-GAAP operating income between $24.7 million and $29.7 million.
Our fourth quarter and 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.
We do not provide guidance for loss from operations , the most directly comparable GAAP measure to Non-GAAP operating income, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating income and Non-GAAP income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.
Conference Call Information
The financial results and business highlights will be discussed on a conference call and webcast scheduled at 7:00 a.m. CT (8:00 a.m. ET) on Thursday, November 6, 2025. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the "Commerce conference call." The live webcast of the conference call can be accessed from Commerce's investor relations website at http://investors.commerce.com.
Following the completion of the call through 11:59 p.m. ET on Thursday, November 13, 2025, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 6059610. A webcast replay will also be available at http://investors.commerce.com for 12 months.
About Commerce
Commerce (Nasdaq: CMRC) empowers businesses to innovate, grow, and thrive by providing an open, AI-driven commerce ecosystem. As the parent company of BigCommerce, Feedonomics, and Makeswift, Commerce connects the tools and systems that power growth, enabling businesses to unlock the full potential of their data, deliver seamless and personalized experiences across every channel, and adapt swiftly to an ever-changing market. Trusted by leading businesses like Coldwater Creek, Cole Haan, Harvey Nichols, King Arthur Baking Co., Mizuno, Perry Ellis, SportsShoes and Uplift Desk, Commerce delivers the storefront control, optimized data, and AI-ready tools businesses need to grow, serve diverse buyers, and operate with confidence in an increasingly intelligent, multi-surface world. For more information, visit commerce.com or follow us on X and LinkedIn.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "outlook," "may, " "might," "plan," "project," "will," "would," "should," "could," "can," "predict," "potential," "strategy, "target," "explore," "continue," or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our ability to successfully execute our rebranding initiative, our increased focus on AI enablement, market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q3 and fiscal 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2024 and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Commerce at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Commerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
Use of Non-GAAP Financial Measures
We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Our management uses these Non-GAAP financial measures internally in analyzing our financial results and believes that use of these Non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar Non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical Non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Annual Revenue Run-Rate
We calculate annual revenue run-rate at the end of each month as the sum of: (1) contractual monthly recurring revenue at the end of the period, which includes platform subscription fees, invoiced growth adjustments, feed management subscription fees, recurring professional services revenue, and other recurring revenue, multiplied by twelve to prospectively annualize recurring revenue, and (2) the sum of the trailing twelve-month non-recurring and variable revenue, which includes one-time partner integrations, one-time fees, payments revenue share, and any other revenue that is non-recurring and variable.
Enterprise Account Metrics
To measure the effectiveness of our ability to execute against our growth strategy, we calculate ARR attributable to Enterprise Accounts. We define Enterprise Accounts as accounts with at least one unique Enterprise plan subscription or an enterprise level feed management subscription (collectively "Enterprise Accounts"). These accounts may have more than one Enterprise plan or a combination of Enterprise plans and non-enterprise plans.
Average Revenue Per Account
We calculate average revenue per account ("ARPA") for accounts in the Enterprise cohort at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, where applicable. We allocate partner revenue, where applicable, primarily based on each customer's share of gross merchandise volume ("GMV") processed through that partner's solution. For partner revenue that is not directly linked to customer usage of a partner's solution, we allocate such revenue based on each customer's share of total platform GMV. Each account's partner revenue allocation is calculated by taking the account's trailing twelve-month partner revenue, then dividing by twelve to create a monthly average to apply to the applicable period in order to normalize ARPA for seasonality.
Adjusted EBITDA
We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, restructuring charges, depreciation, gain on convertible notes extinguishment, interest income, interest expense, other expense, and our provision or benefit for income taxes.
Acquisition related costs include contingent compensation arrangements entered into in connection with acquisitions and achieved earnout related to an acquisition.
Restructuring charges include severance benefits, right-of-use asset impairments, lease termination gain, software impairments, accelerated depreciation and amortization, and professional services costs.
Depreciation includes depreciation expenses related to the Company's fixed assets.
The most directly comparable GAAP measure is net loss.
Non-GAAP Operating Income (Loss)
We define Non-GAAP Operating Income (Loss) as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, and restructuring charges. The most directly comparable GAAP measure is our loss from operations.
Non-GAAP Net Income (Loss)
We define Non-GAAP Net Income (Loss) as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax costs, amortization of intangible assets, acquisition related costs, restructuring charges, and gain on convertible notes extinguishment. The most directly comparable GAAP measure is our net loss.
Non-GAAP Basic and Dilutive Net Income (Loss) per Share
We define Non-GAAP Basic and Dilutive Net Income (Loss) per Share as our Non-GAAP net income (loss), defined above, divided by our basic and diluted GAAP weighted average shares outstanding. The most directly comparable GAAP measure is our basic net loss per share.
Free Cash Flow
We define Free Cash Flow as our GAAP cash flow provided by operating activities less our cash paid for website domain name and GAAP purchases of property, equipment, leasehold improvements and capitalized internal-use software (Capital Expenditures). The most directly comparable GAAP measure is our cash flow provided by operating activities.
BigCommerce,$(R)$ the Commerce logo, and other brands are the trademarks or registered trademarks of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owner.
Media Relations Contact Investor Relations Contact
Brad Hem Tyler Duncan
PR@Commerce.com InvestorRelations@Commerce.com
Commerce.com, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2025 2024
--------------- --------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 49,912 $ 88,877
Restricted cash 1,164 1,479
Marketable securities 92,114 89,283
Accounts receivable, net 48,234 48,117
Prepaid expenses and other
assets, net 17,720 14,641
Deferred commissions 6,808 8,822
----------- ----------
Total current assets 215,952 251,219
Property and equipment, net 11,196 9,128
Operating lease,
right-of-use-assets 7,470 1,993
Prepaid expenses and other assets,
net of current portion 6,181 3,146
Deferred commissions, net of
current portion 3,733 5,559
Intangible assets, net 13,006 17,317
Goodwill 51,927 51,927
----------- ----------
Total assets $ 309,465 $ 340,289
=========== ==========
Liabilities and stockholders'
equity
Current liabilities
Accounts payable $ 9,530 $ 7,018
Accrued liabilities 4,485 3,194
Deferred revenue 59,179 46,590
Operating lease liabilities 1,540 2,438
Other liabilities 26,258 28,766
----------- ----------
Total current liabilities 100,992 88,006
Convertible notes 157,298 216,466
Operating lease liabilities, net of
current portion 7,047 1,680
Other liabilities, net of current
portion 1,293 768
----------- ----------
Total liabilities 266,630 306,920
Stockholders' equity
Common stock 7 7
Additional paid-in capital 675,285 654,905
Accumulated other comprehensive
income 209 145
Accumulated deficit (632,666) (621,688)
----------- ----------
Total stockholders' equity 42,835 33,369
----------- ----------
Total liabilities and stockholders'
equity $ 309,465 $ 340,289
=========== ==========
Commerce.com, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the three For the nine months
months ended ended September
September 30, 30,
------------------ -------------------
2025 2024 2025 2024
------- -------- -------- --------
Revenue $86,029 $ 83,710 $252,832 $245,899
Cost of revenue (1) 18,595 19,863 53,318 58,113
------ ------- ------- -------
Gross profit 67,434 63,847 199,514 187,786
------ ------- ------- -------
Operating expenses:
Sales and
marketing((1) 36,281 33,140 101,718 99,997
Research and
development((1) 17,464 20,841 54,980 61,116
General and
administrative((1) 12,141 16,435 41,640 46,800
Amortization of
intangible assets 1,900 2,434 6,755 7,353
Acquisition related
costs 0 334 444 1,001
Restructuring
charges 83 9,880 3,609 12,452
------ ------- ------- -------
Total operating
expenses 67,869 83,064 209,146 228,719
------ ------- ------- -------
Loss from operations (435) (19,217) (9,632) (40,933)
Gain on convertible
note
extinguishment 0 12,110 3,931 12,110
Interest income 1,184 2,433 3,655 8,807
Interest expense (2,478) (1,908) (7,543) (3,348)
Other expense (302) (142) (432) (585)
------ ------- ------- -------
Loss before
provision for
income taxes (2,031) (6,724) (10,021) (23,949)
Provision for income
taxes (212) (269) (957) (691)
------ ------- ------- -------
Net loss $(2,243) $ (6,993) $(10,978) $(24,640)
====== ======= ======= =======
Basic net loss per
share $ (0.03) $ (0.09) $ (0.14) $ (0.32)
====== ======= ======= =======
Shares used to
compute basic net
loss per share 80,756 77,869 79,911 77,319
====== ======= ======= =======
(1) Amounts include stock-based compensation expense and associated payroll tax costs, as follows:
For the three For the nine
months ended months ended
September 30, September 30,
------------------ ------------------
2025 2024 2025 2024
------ ---------- ------ ----------
Cost of revenue $ 577 $ 1,114 $2,043 $ 2,798
Sales and
marketing 1,718 3,327 5,313 8,332
Research and
development 2,046 3,766 7,828 10,515
General and
administrative 2,104 2,685 4,005 7,859
Commerce.com, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2025 2024 2025 2024
-------- --------- -------- ---------
Cash flows from
operating
activities
Net loss $ (2,243) $ (6,993) $(10,978) $ (24,640)
Adjustments to
reconcile net
loss to net cash
provided by (used
in) operating
activities:
Depreciation
and
amortization
expense 2,725 3,484 10,851 10,482
Amortization of
discount on
convertible
notes 167 344 519 1,338
Amortization of
premium on
convertible
notes (414) (240) (1,224) (240)
Stock-based
compensation
expense 6,327 10,159 18,772 28,556
Provision for
expected
credit losses (229) 1,289 2,299 3,002
Real estate and
internal-use
software
charges 0 3,031 0 3,031
Gain on lease
modification 0 (988) 0 (988)
Gain on
convertible
notes
extinguishment 0 (12,110) (3,931) (12,110)
Changes in
operating
assets and
liabilities:
Accounts
receivable 3,740 445 (2,245) (8,933)
Prepaid
expenses and
other assets (3,359) 2,041 (6,284) 979
Deferred
commissions 1,158 389 3,840 198
Accounts
payable 1,012 1,022 2,134 (223)
Accrued and
other
liabilities (1,772) (235) (1,831) (668)
Deferred
revenue 3,441 3,935 12,589 14,110
------- -------- ------- --------
Net cash
provided by
operating
activities 10,553 5,573 24,511 13,894
------- -------- ------- --------
Cash flows from
investing
activities:
Cash paid for
website domain
name 0 0 (2,444) 0
Cash paid for
acquisition 0 0 0 (100)
Purchase of
property,
equipment,
leasehold
improvements and
capitalized
internal-use
software (2,967) (1,064) (5,443) (2,934)
Maturity of
marketable
securities 40,500 59,670 82,079 151,635
Purchase of
marketable
securities (44,329) (49,355) (84,846) (85,957)
------- -------- ------- --------
Net cash
provided by
(used in)
investing
activities (6,796) 9,251 (10,654) 62,644
------- -------- ------- --------
Cash flows from
financing
activities:
Proceeds from
exercise of
stock options 440 238 3,509 1,483
Taxes paid
related to net
share settlement
of stock
options (550) (1,086) (1,901) (2,411)
Payment of
convertible note
issuance costs 0 (2,520) (217) (2,520)
Repayment of
convertible
notes and
financing
obligation 0 (108,709) (54,528) (108,980)
------- -------- ------- --------
Net cash used
in financing
activities (110) (112,077) (53,137) (112,428)
------- -------- ------- --------
Net change in
cash and cash
equivalents and
restricted cash 3,647 (97,253) (39,280) (35,890)
Cash and cash
equivalents and
restricted cash,
beginning of
period 47,429 134,208 90,356 72,845
------- -------- ------- --------
Cash and cash
equivalents and
restricted cash,
end of period $ 51,076 $ 36,955 $ 51,076 $ 36,955
======= ======== ======= ========
Supplemental cash
flow
information:
Cash paid for
interest $ 0 $ 2,018 $ 5,685 $ 2,463
======= ======== ======= ========
Cash paid for
taxes $ 84 $ 93 $ 563 $ 275
======= ======== ======= ========
Noncash investing
and financing
activities:
Capital
additions,
accrued but
not paid $ 805 $ 106 $ 805 $ 224
======= ======== ======= ========
Fair value of
shares issued
as
consideration
for
acquisition $ 0 $ 0 $ 0 $ 248
======= ======== ======= ========
Right-of-use
asset obtained
in exchange
for new
operating
lease
liability $ 698 $ 0 $ 6,213 $ 0
======= ======== ======= ========
Principal
amount of 2028
Convertible
Notes
exchanged $ 0 $ 150,000 $ 0 $ 150,000
======= ======== ======= ========
Commerce.com, Inc.
Disaggregation of Revenue
Disaggregated Revenue:
Three months ended Nine months ended
September 30, September 30,
------------------- --------------------
(in thousands) 2025 2024 2025 2024
------- ---------- -------- ----------
Subscription
solutions $64,703 $ 62,826 $190,473 $ 185,582
Partner and
services 21,326 20,884 62,359 60,317
------ --------- ------- ---------
Revenue $86,029 $ 83,710 $252,832 $ 245,899
====== ========= ======= =========
Revenue by Geography:
Three months ended Nine months ended
September 30, September 30,
------------------- --------------------
(in thousands) 2025 2024 2025 2024
------- ---------- -------- ----------
Revenue:
United States $65,199 $ 63,682 $192,019 $ 187,249
EMEA 10,597 9,709 30,566 28,182
APAC 6,220 6,426 18,373 19,023
Rest of World 4,013 3,893 11,874 11,445
------ --------- ------- ---------
Revenue $86,029 $ 83,710 $252,832 $ 245,899
====== ========= ======= =========
Commerce.com, Inc
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
Reconciliation of loss from operations to Non-GAAP operating income:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Loss from
operations $ (435) $ (19,217) $ (9,632) $ (40,933)
Plus:
Stock-based
compensation
expense and
associated
payroll tax
costs 6,445 10,892 19,189 29,504
Amortization of
intangible
assets 1,900 2,434 6,755 7,353
Acquisition
related costs 0 334 444 1,001
Restructuring
charges 83 9,880 3,609 12,452
------ --------- ------- ---------
Non-GAAP
operating
income $ 7,993 $ 4,323 $ 20,365 $ 9,377
====== ========= ======= =========
Non-GAAP
operating
income as a
percentage of
revenue 9.3% 5.2% 8.1% 3.8%
Reconciliation of net loss & basic net loss per share to Non-GAAP net income & Non-GAAP basic and diluted net income per share:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Net loss $(2,243) $ (6,993) $(10,978) $ (24,640)
Plus:
Stock-based
compensation
expense and
associated
payroll tax
costs 6,445 10,892 19,189 29,504
Amortization of
intangible
assets 1,900 2,434 6,755 7,353
Acquisition
related costs 0 334 444 1,001
Restructuring
charges 83 9,880 3,609 12,452
Gain on
convertible
notes
extinguishment 0 (12,110) (3,931) (12,110)
------ --------- ------- ---------
Non-GAAP net
income $ 6,185 $ 4,437 $ 15,088 $ 13,560
====== ========= ======= =========
Basic net loss
per share $ (0.03) $ (0.09) $ (0.14) $ (0.32)
Non-GAAP basic
net income per
share $ 0.08 $ 0.06 $ 0.19 $ 0.18
Non-GAAP diluted
net income per
share $ 0.08 $ 0.06 $ 0.19 $ 0.17
Shares used to
compute basic
net loss per
share and basic
Non-GAAP net
income per
share 80,756 77,869 79,911 77,319
Shares used to
compute diluted
Non-GAAP net
income per
share 81,311 79,401 80,901 79,184
Non-GAAP net
income as a
percentage of
revenue 7.2% 5.3% 6.0% 5.5%
Reconciliation of net loss to adjusted EBITDA:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Net loss $(2,243) $ (6,993) $(10,978) $ (24,640)
Plus:
Stock-based
compensation
expense and
associated
payroll tax
costs 6,445 10,892 19,189 29,504
Amortization of
intangible
assets 1,900 2,434 6,755 7,353
Acquisition
related costs 0 334 444 1,001
Restructuring
charges 83 9,880 3,609 12,452
Depreciation 825 1,050 3,015 3,129
Gain on
convertible
notes
extinguishment 0 (12,110) (3,931) (12,110)
Interest income (1,184) (2,433) (3,655) (8,807)
Interest expense 2,478 1,908 7,543 3,348
Other expenses 302 142 432 585
Provision for
income taxes 212 269 957 691
------ --------- ------- ---------
Adjusted EBITDA $ 8,818 $ 5,373 $ 23,380 $ 12,506
====== ========= ======= =========
Adjusted EBITDA
as a percentage
of revenue 10.3% 6.4% 9.2% 5.1%
Reconciliation of Cost of revenue to Non-GAAP cost of revenue:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Cost of revenue $18,595 $ 19,863 $ 53,318 $ 58,113
Less:
Stock-based
compensation
expense and
associated
payroll tax
costs 577 1,114 2,043 2,798
------ --------- ------- ---------
Non-GAAP cost of
revenue $18,018 $ 18,749 $ 51,275 $ 55,315
====== ========= ======= =========
As a percentage
of revenue 20.9% 22.4% 20.3% 22.5%
Reconciliation of Sales and marketing expense to Non-GAAP sales and marketing expense:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Sales and
marketing $36,281 $ 33,140 $101,718 $ 99,997
Less:
Stock-based
compensation
expense and
associated
payroll tax
costs 1,718 3,327 5,313 8,332
------ --------- ------- ---------
Non-GAAP sales
and marketing $34,563 $ 29,813 $ 96,405 $ 91,665
====== ========= ======= =========
As a percentage
of revenue 40.2% 35.6% 38.1% 37.3%
Reconciliation of Research and development expense to Non-GAAP research and development expense:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
Research and
development $17,464 $ 20,841 $ 54,980 $ 61,116
Less:
Stock-based
compensation
expense and
associated
payroll tax
costs 2,046 3,766 7,828 10,515
------ --------- ------- ---------
Non-GAAP
research and
development $15,418 $ 17,075 $ 47,152 $ 50,601
====== ========= ======= =========
As a percentage
of revenue 17.9% 20.4% 18.6% 20.6%
Reconciliation of General and administrative expense to Non-GAAP general and administrative expense:
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2025 2024 2025 2024
------- ---------- -------- ----------
(in thousands)
Revenue $86,029 $ 83,710 $252,832 $ 245,899
General &
administrative $12,141 $ 16,435 $ 41,640 $ 46,800
Less:
Stock-based
compensation
expense and
associated
payroll tax
costs 2,104 2,685 4,005 7,859
------ --------- ------- ---------
Non-GAAP general
&
administrative $10,037 $ 13,750 $ 37,635 $ 38,941
====== ========= ======= =========
As a percentage
of revenue 11.7% 16.4% 14.9% 15.8%
Reconciliation of net cash provided by operating activities to free cash flow:
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2025 2024 2025 2024
------- ---------- ------- ----------
(in thousands)
Net cash
provided by
operating
activities $10,553 $ 5,573 $24,511 $ 13,894
Cash paid for
website domain
name 0 0 (2,444) 0
Purchase of
property,
equipment,
leasehold
improvements
and capitalized
internal-use
software (2,967) (1,064) (5,443) (2,934)
------ --------- ------ ---------
Free cash flow $ 7,586 $ 4,509 $16,624 $ 10,960
====== ========= ====== =========
(END) Dow Jones Newswires
November 06, 2025 07:00 ET (12:00 GMT)