Commerce Announces Third Quarter 2025 Financial Results

Core Insights - Commerce.com, Inc. reported a total revenue of $86.0 million for Q3 2025, reflecting a 3% increase compared to the same period in 2024. The total annual revenue run-rate (ARR) reached $355.7 million, up 2% year-over-year [1][6] - The company emphasized its focus on sustainable growth through strategic partnerships with AI leaders and adapting to changing buyer behavior, which is driving momentum in both B2B and B2C sectors [2] Financial Highlights - Subscription solutions revenue was $64.7 million, a 3% increase from Q3 2024 [6] - Enterprise ARR was $269.2 million, marking a 5% increase from the previous year, with enterprise accounts constituting 76% of total ARR [6] - GAAP gross margin improved to 78%, up from 76% in Q3 2024, while non-GAAP gross margin rose to 79% from 78% [6] - The number of enterprise accounts decreased by 2% to 5,751, but the average revenue per account (ARPA) increased by 7% to $46,806 [6] - GAAP net loss narrowed to $2.2 million from $7.0 million in Q3 2024, while non-GAAP net income increased to $6.2 million, representing 7% of revenue [6] Cash Flow and Outlook - Cash, cash equivalents, and marketable securities totaled $143.2 million as of September 30, 2025. Net cash provided by operating activities was $10.6 million, compared to $5.6 million in Q3 2024 [10] - The company expects Q4 2025 revenue to be between $87.8 million and $92.8 million, with full-year revenue projected between $340.6 million and $345.6 million [10][11] Business Developments - Commerce.com announced the launch of Feedonomics Surface, a new solution aimed at optimizing product catalogs for advertising channels [10] - A new embedded payment processing solution, BigCommerce Payments, is set for a U.S. launch in 2026, with plans for international expansion [10] - The company introduced new applications in the Shopify App Store to enhance cross-platform operations for merchants [10]