Start here if you're new
what it is
It gives merchants the software to build online stores, take payments, manage orders, and sell across marketplaces and stores.
how it gets paid
Last year Commerce made $342M in revenue. store design and hosting was the main engine at $92.3M, or 27% of sales.
why it's growing
Revenue grew 2.8% last year. Annual revenue was $342 million, up 2.8% vs. prior year, while gross margin reached 78.9%.
what just happened
The headline was simple: EPS improved to -$0.03 in Q4 2024 as losses kept shrinking.
At a glance
C++ balance sheet — some cracks in the foundation
40/100 earnings predictability — expect surprises
0.4x trailing p/e — the market's not buying it — or you found a deal
-$0.35 fy2024 eps est
$333M fy2024 rev est
xvary composite: 41/100 — below average
What they do
It gives merchants the software to build online stores, take payments, manage orders, and sell across marketplaces and stores.
Its edge is workflow lock-in. If your store design, checkout, shipping, and point-of-sale all run through one system, ripping it out means rebuilding the part of your business that touches every order. That shows up in a 78.9% gross margin from SEC filings — software sold once, reused many times, and painful for your team to replace.
How they make money
$342M
annual revenue · their business grew +2.8% last year
store design and hosting
$92.3M
+2.0%
checkout and cart software
$71.8M
+3.0%
order management tools
$61.6M
+1.0%
marketplace social and pos integrations
$65.0M
+4.0%
partner services and revenue share
$51.3M
+6.0%
The products that matter
merchant storefront software
Ecommerce Platform
$31.7B GMV · $274M subscription revenue
This is the center of gravity. It processed $31.7B in merchant sales in 2025 and generated $274M of subscription revenue. In human-speak: merchants do the selling, Commerce.com takes software fees.
core platform
services and merchant support
Services & Other
$68M · 20% of revenue mix
This bucket is smaller, but it helps merchants stay operational on the platform. $68M is not the main earnings lever. It is the supporting cast that can help retention if execution is solid.
support layer
search and checkout tooling
AI-Driven Discovery & Checkout
2026 priority · guide still 2%–8% growth
Management is pitching these tools as the next reason merchants spend more. The catch: current guidance still points to just 2%–8% revenue growth. The roadmap is there. The proof is not.
future test
Key numbers
$164M
long-term debt
Against a roughly $225M market cap, that debt load is the number you watch first because it shrinks your room for error.
78.9%
gross margin
Gross margin → money left after delivering the service → the software model is still strong even if profits are not.
4.7%
operating margin
Operating margin → profit after running the business → Commerce.com still loses money on the core operation.
$342M
annual revenue
Revenue grew 2.8% vs. prior year, which tells you the business is growing, just slowly.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $164M (42% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for CMRC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The headline was simple: EPS improved to -$0.03 in Q4 2024 as losses kept shrinking.
Annual revenue was $342 million, up 2.8% vs. prior year, while gross margin reached 78.9%. The quiet part: revenue growth stayed modest, so the story is still margin repair more than demand breakout.
$86M
revenue
$0.03
eps
78.9%
gross margin
the number that mattered
The key number was 78.9% gross margin because it says the product still has software economics even while the income statement looks messy.
source: company earnings report, 2026
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What could go wrong
the core risk is simple: a software business keeping 78.9% gross margin still lost $19.3M on a GAAP basis. until that contradiction narrows, every other part of the story stays on probation.
med
Losses keep outlasting the turnaround story
CMRC posted a $19.3M GAAP net loss in 2025. At 78.9% gross margin, investors expect more of the revenue dollar to survive the trip to net income.
If another year passes without visible GAAP improvement, the stock can stay cheap for a very rational reason.
med
Guidance is modest while the recovery story is ambitious
Management guided to 2%–8% revenue growth for 2026. The same snapshot references 90.8% annual earnings growth expectations. Those two numbers are not natural friends.
If revenue lands near the $347.5M low end, investors will ask whether the earnings recovery is cost-cutting math rather than a stronger business.
med
Merchant churn matters more than the GMV headline
$31.7B of GMV sounds enormous next to a $225M market cap. But shareholders do not own GMV. They own the fees Commerce.com captures from that activity, and subscription revenue was only $274M.
If merchants spend less, leave, or negotiate harder, the headline throughput number will not protect your downside.
med
Debt and volatility cut your margin for error
Long-term debt stands at $164M, or 42% of capital, while price stability scores just 10 / 100. That is a weak cushion paired with a stock that moves like one bad quarter matters.
You are not just underwriting the business model. You are underwriting a bumpy path to any improvement.
$31.7B of GMV, $342.3M of revenue, 78.9% gross margin, and still a $19.3M loss. That contrast is the whole risk case in one line.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
Q1 2026 earnings report
Expected May 14, 2026. Consensus sits at $0.10 EPS on $84.94M of revenue. Small-cap turnarounds live and die on prints like this.
guide
2026 revenue range
Management guided to $347.5M–$369.5M. Here's the thing: the range itself matters less than where results land inside it.
core metric
subscription revenue traction
Subscriptions produced $274M, about four times services and other. If the platform is actually getting stronger, this line should show it before the press release does.
profit test
non-GAAP income versus GAAP reality
The company is guiding to $34M–$44M of non-GAAP operating income after losing $19.3M on a GAAP basis last year. Watch the bridge, not just the headline.
Analyst rankings
earnings predictability
40 / 100
Low predictability means the quarterly numbers can jump around more than you want. In human-speak, analysts do not see this as a smooth compounding story yet.
risk rank
3
Safer than about 50% of stocks. That is not comfort. It is the market saying the business risk is middling while the stock behavior is much louder.
price stability
10 / 100
This stock trades like a small-cap repair project because that is what it is. If you own it, you should expect sharper swings than the average software name.
source: institutional data
Institutional activity
institutional ownership data for CMRC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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