E2open(ETWO) - 2025 Q4 - Annual Results

Revenue Performance - Q4 FY25 GAAP subscription revenue was $133.0 million, a decrease of 1.0% year-over-year, representing 87.0% of total revenue[3] - Total GAAP revenue for Q4 FY25 was $152.7 million, down 3.6% from the previous year[3] - For fiscal year 2025, GAAP subscription revenue was $528.0 million, a decrease of 1.6% from the prior year[6] - Total GAAP revenue for fiscal year 2025 was $607.7 million, down 4.2% from the previous fiscal year[6] - Total revenue for the fiscal year ended February 28, 2025, was $607,688,000, a decrease of 4.3% from $634,554,000 in the previous year[23] - Subscription revenue decreased to $527,958,000 from $536,792,000, reflecting a decline of 1.5% year-over-year[23] - Total GAAP Revenue for Q4 FY2025 was $152.7 million, a decrease of $5.8 million or 3.6% compared to Q4 FY2024[31] - GAAP Subscription Revenue decreased by $1.4 million or 1.0% year-over-year, totaling $133.0 million in Q4 FY2025[31] Profitability and Loss - GAAP net loss for Q4 FY25 was $268.5 million, compared to a net loss of $45.5 million in the same period last year[6] - Net loss attributable to E2open Parent Holdings, Inc. was $659,830,000, compared to a net loss of $1,070,024,000 in the prior year, indicating an improvement of 38.3%[23] - The company reported a net loss of $268.5 million in Q4 FY2025, compared to a loss of $45.5 million in Q4 FY2024[31] - For the fiscal fourth quarter of 2025, the GAAP net loss was $268.5 million, contributing to a total net loss of $725.8 million for the fiscal year[44] Adjusted Metrics - Adjusted EBITDA for Q4 FY25 was $56.3 million, an increase of 2.3% year-over-year, with an adjusted EBITDA margin of 36.9%[6] - The adjusted EBITDA for Q4 2025 was $56.3 million, with a total adjusted EBITDA of $215.5 million for FY2025[44] - The adjusted net income for Q4 2025 was $20.2 million, leading to an adjusted net income of $66.2 million for the entire fiscal year[44] - The adjusted earnings per share for Q4 2025 was $0.06, with a total of $0.19 for FY2025[44] - The adjusted free cash flow for Q4 2025 was $50.0 million, resulting in a total adjusted free cash flow of $86.2 million for FY2025[46] Expenses and Cash Flow - Total operating expenses for the fiscal year were $952,059,000, down from $1,511,299,000, a reduction of 37%[23] - Total operating expenses for FY2025 were $952.1 million, with a significant portion attributed to goodwill impairment[39] - The total operating expenses for Q4 2025 amounted to $322.3 million, with a significant goodwill impairment charge of $245 million[44] - The company reported a net cash provided by operating activities of $99,137,000, compared to $84,871,000 in the previous year, an increase of 16.8%[29] - The company reported a GAAP operating cash flow of $53.0 million for Q4 2025, contributing to a total of $99.1 million for FY2025[46] Goodwill and Assets - Goodwill decreased significantly to $1,213,794,000 from $1,843,477,000, a decline of 34.2%[27] - Goodwill impairment charge for Q4 FY2025 was $245.0 million, significantly impacting net income[36] Future Projections - The company expects GAAP subscription revenue for fiscal 2026 to be in the range of $525 million to $535 million, reflecting a 0.4% growth rate at the mid-point[7] - Total GAAP revenue for fiscal 2026 is projected to be between $600 million and $618 million, indicating a positive 0.2% growth rate at the mid-point[8] - Non-GAAP gross profit margin for fiscal 2026 is expected to be in the range of 68% to 68.5%[10] Operational Metrics - E2open expanded its multi-enterprise network to 500,000 connected enterprises and 18 billion annual supply chain transactions, up from 480,000 and 16 billion in FY24[12] - The company reported a gross profit of $299,684,000, down from $317,691,000, a decrease of 5.7%[23] - The gross profit for Q4 2025 was $76.6 million, representing a gross margin of 68.2%[42] - The total cost of revenue for Q4 2025 was $76.0 million, with subscription costs accounting for 25.0% of revenue[42] - Research and development expenses for Q4 2025 were $23.9 million, representing 11.8% of revenue[42] - Non-GAAP gross profit for Q4 FY2025 was $104.2 million, down $6.7 million or 6.1% from Q4 FY2024[31] - The weighted-average common shares outstanding increased to 308,268,000 from 303,751,000, reflecting a growth of 1.7%[23]