E2open Announces Fiscal 2025 Fourth Quarter and Full Year Financial Results

Q4-FY25 GAAP subscription revenue of $133.0 million, above midpoint of Q4 guidance range

Strong cash generation in Q4-FY25 and full year FY25

DALLAS--(BUSINESS WIRE)--April 29, 2025-- 

E2open Parent Holdings, Inc. (NYSE: ETWO) ("e2open" or the "Company"), the connected supply chain SaaS platform with the largest multi-enterprise network, today announced financial results for its fiscal fourth quarter and full year ended February 28, 2025.

"Our fourth quarter results showed continued stabilization in our core business and highlight the meaningful progress we made this fiscal year in repositioning e2open for future growth," said Andrew Appel, e2open chief executive officer. "During the fourth quarter, our commercial team executed solidly by winning important new business with clients across multiple industries, and our ending FY25 gross and net retention metrics improved compared to the end of last fiscal year. Looking ahead to FY26, tariff-related uncertainty is showcasing the distinctive value of e2open's end-to-end platform that gives our clients a unified view of demand, supply, logistics, and global trade. In a world where constant change is the norm, e2open is proud to be a much-needed source of supply chain adaptability and resilience for the world's leading global companies."

"In Q4 FY25, e2open delivered subscription revenue above the mid-point of our guidance along with strong adjusted EBITDA and record-high cash flow," said Marje Armstrong, chief financial officer of e2open. "As reflected in our guidance, in FY26 we expect our business to gradually return to revenue growth, driven by continued improvements in retention and sales productivity. As we work to complete our strategic review, we are on track to putting e2open back on a sustainable growth trajectory."

Fiscal Fourth Quarter 2025 Financial Highlights

Revenue

   -- GAAP subscription revenue for the fourth quarter of 2025 was $133.0 
      million, a decrease of 1.0% from the year-ago comparable period and 87.0% 
      of total revenue. Subscription revenue decreased 0.5% on a constant 
      currency basis. 
 
          -- Total GAAP revenue for the fourth quarter of 2025 was $152.7 
             million, a decrease of 3.6% from the year-ago comparable period. 
             Total revenue decreased 3.1% on a constant currency basis. 
 
          -- GAAP gross profit for the fourth quarter of 2025 was $76.6 million, 
             a decrease of 4.8% from the year-ago comparable period. Non-GAAP 
             gross profit was $104.2 million, down 6.1% and a decrease of 5.8% 
             on a constant currency basis. 
 
   -- GAAP gross margin for the fourth quarter of 2025 was 50.2% compared to 
      50.8% for the year-ago comparable period. Non-GAAP gross margin was 68.2% 
      compared to 70.0% from the comparable year-ago period. 
 
   -- GAAP net loss for the fourth quarter of 2025 was $268.5 million compared 
      to a net loss of $45.5 million from the year-ago comparable period. 
      Adjusted EBITDA for the fourth quarter of 2025 was $56.3 million, an 
      increase of 2.3% and 1.7% on a constant currency basis from the year-ago 
      comparable period. Adjusted EBITDA margin was 36.9% versus 34.8% from the 
      comparable year-ago period. 
 
   -- GAAP EPS for the fourth quarter of 2025 was a loss of $0.79. Adjusted EPS 
      for the fourth quarter of 2025 was $0.06. 

Fiscal Year 2025 Financial Highlights

   -- Revenue 
 
          -- GAAP subscription revenue for fiscal 2025 was $528.0 million, a 
             decrease of 1.6% from the prior fiscal year and 87% of total 
             revenue. Subscription revenue decreased 1.6% on a constant 
             currency basis. 
 
          -- Total GAAP revenue for fiscal 2025 was $607.7 million, a decrease 
             of 4.2% from the prior fiscal year. Total revenue decreased 4.2% 
             on a constant currency basis. 
 
   -- GAAP gross profit for fiscal 2025 was $299.7 million, a decrease of 5.7% 
      from the prior fiscal year. Non-GAAP gross profit was $416.0 million, 
      down 5.6% and 5.6% on a constant currency basis. 
 
   -- GAAP gross margin for fiscal 2025 was 49.3% compared to 50.1% for the 
      prior fiscal year. Non-GAAP gross margin was 68.5% compared to 69.4% from 
      the comparable year-ago period. 
 
   -- GAAP net loss for fiscal year 2025 was $725.8 million compared to a net 
      loss of $1,185.1 million from the prior fiscal year. Adjusted EBITDA for 
      fiscal year 2025 was $215.5 million, a decrease of 2.2% and 2.5% on a 
      constant currency basis from the prior fiscal year. Adjusted EBITDA 
      margin was 35.5% versus 34.7% from prior fiscal year. 
 
   -- GAAP EPS for fiscal year 2025 was a loss of $2.14. Adjusted EPS for 
      fiscal year 2025 was $0.19. 
 
   -- Cash flow 
 
          -- GAAP operating cash flow for fiscal 2025 was $99.1 million 
             compared to $84.9 million, or growth of 16.7%, from the year-ago 
             comparable period, inclusive of non-recurring expenses. 
 
          -- Adjusted operating cash flow for fiscal 2025, exclusive of 
             non-recurring expenses, was $111.4 million. This compares to 
             $116.0 million from the year ago comparable period and represents 
             51.7% of fiscal 2025 adjusted EBITDA. 

Recent Business Highlights

   -- Launched innovations in global trade compliance technology to help 
      companies address new and evolving challenges. The new AI capabilities 
      and enhancements to e2open's proven Global Trade software are designed to 
      ease compliance and increase productivity for clients by streamlining 
      classifications, global trade content, due diligence, and unstructured 
      document processing. 
 
   -- Selected by a global active health and wellness company as strategic 
      partner for its digital supply chain transformation. Building upon its 
      use of e2open Transportation Management, Parcel, and Global Trade 
      Management applications, this client with products distributed in more 
      than 125 countries has added Demand Planning, Supply Planning, and 
      Multi-Echelon Inventory Optimization (MEIO) applications to increase 
      productivity and ensure supply as the company prioritizes a connected 
      supply chain platform with scalable solutions to manage the complexities 
      of growth. 
 
   -- A major Europe-based global freight forwarder and existing e2open 
      Transportation Management customer signed on for a significant expansion 
      of our relationship. The expanded relationship will allow this highly 
      strategic customer to further optimize operations across multiple modes 
      of transportation, reduce freight and operational costs, and broaden and 
      accelerate its global rollout of TMS functionality. 
 
   -- A major U.S. manufacturer and distributor of branded food and beverage 
      products selected e2open to add significant additional software-based 
      logistics and support services to our existing relationship. This win 
      demonstrates e2open's strong competitive position with clients in the 
      consumer-packaged goods industry. 
 
   -- Named a Leader in the 2025 Gartner$(R)$ Magic Quadrant$(TM)$ for 
      Transportation Management Systems for the third consecutive year. 
      E2open's cloud-based, multi-tenant TMS solution provides a seamless 
      interface across transportation modes and built-in access to an expansive 
      carrier network, enabling logistics teams to be lean, efficient and 
      responsive. 
 
   -- Named a Leader in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled 
      Direct Spend Vendor Assessment, a comprehensive new report evaluating 
      vendors in the direct materials sourcing and spend software application 
      market. The research highlighted e2open's "ability to integrate the 
      procurement process from planning, execution, and tracking. This strength 
      is complemented by a flexible solution platform built to support a myriad 
      of business processes." 
 
   -- Expanded e2open's world-class multi-enterprise network to 500,000 
      connected enterprises and 18 billion annual supply chain transaction from 
      480,000 and 16 billion, respectively, in FY24. This growing network scale 
      demonstrates e2open's profound impact on global supply chains and 
      empowers our clients to benefit from greater efficiency, cost-saving 
      opportunities, optimized operations, and further digital maturity in 
      their supply chains. 

Financial Outlook for Fiscal Year 2026

As of April 29, 2025, e2open is providing guidance for fiscal year 2026, which ends February 28, 2026, as follows:

Fiscal 2026 Subscription Revenue

   -- GAAP subscription revenue for fiscal 2026 is expected to be in the range 
      of $525 million to $535 million, reflecting a 0.4% growth rate at the 
      mid-point. 

Fiscal 2026 Total GAAP Revenue

   -- Total GAAP revenue for fiscal 2026 is expected to be in the range of $600 
      million to $618 million, reflecting a positive 0.2% growth rate at the 
      mid-point. 

Fiscal First Quarter 2026 GAAP Subscription Revenue

   -- GAAP subscription revenue for the fiscal first quarter of 2026 is 
      expected to be in the range of $129 million to $132 million, reflecting a 
      negative 0.7% growth rate at the mid-point. 

Fiscal 2026 Non-GAAP Gross Profit Margin

   -- Non-GAAP gross profit margin for fiscal 2026 is expected to be in the 
      range of 68% to 68.5%. 

Fiscal 2026 Adjusted EBITDA

   -- Adjusted EBITDA for fiscal 2026 is expected to be in the range of $200 
      million to $210 million with an implied adjusted EBITDA margin in the 
      range of 33% to 34%. 

Quarterly Conference Call

E2open will host a conference call today at 5:00 p.m. ET to review fiscal fourth quarter and full fiscal year 2025 financial results, in addition to discussing the Company's outlook for the full fiscal year 2026. To access this call, dial 888-506-0062 (domestic) or 973-528-0011 (international). The conference ID is 790911. A live webcast of the conference call will be accessible in the "Investor Relations" section of e2open's website at www.e2open.com. A replay of this conference call can also be accessed through May 13, 2026, at 877-481-4010 (domestic) or 919-882-2331 (international). The replay passcode is 52240. An archived webcast of this conference call will also be available after the completion of the call in the "Investor Relations" section of the Company's website at www.e2open.com.

About e2open

E2open is the connected supply chain software platform that enables the world's largest companies to transform the way they make, move, and sell goods and services. With the broadest cloud-native global platform purpose-built for modern supply chains, e2open connects more than 500,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 18 billion transactions annually. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste, and operate sustainably. Moving as one.(TM) Learn More: www.e2open.com.

E2open and "Moving as one." are the registered trademarks of E2open, LLC. All other trademarks, registered trademarks and service marks are the property of their respective owners.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") including non-GAAP revenue, non-GAAP subscription revenue, non-GAAP professional services and other revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, adjusted net income, non-GAAP gross margin, adjusted free cash flow, adjusted operating cash flow and adjusted earnings per share. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies.

The Company believes these non-GAAP measure provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.

NOTE: E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA without unreasonable effort, and therefore no reconciliation of certain forward-looking non-GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA is included.

Forward Looking Statement Disclaimer

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.

Please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the annual report filed on Form 10-K, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this press release. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 
                      E2OPEN PARENT HOLDINGS, INC. 
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                            Fiscal Year 2025 
 
                                           Fiscal Year Ended 
                               ----------------------------------------- 
(In thousands, except per 
share amounts)                 February 28, 2025     February 29, 2024 
----------------------------   ------------------  --------------------- 
                                  (Unaudited) 
Revenue 
         Subscriptions          $        527,958    $         536,792 
         Professional 
          services and other              79,730               97,762 
                                   -------------       -------------- 
                Total revenue            607,688              634,554 
Cost of Revenue 
       Subscriptions                     145,668              146,006 
       Professional services 
        and other                         65,725               72,249 
       Amortization of 
        acquired intangible 
        assets                            96,611               98,608 
                                   -------------       -------------- 
                Total cost of 
                 revenue                 308,004              316,863 
                                   -------------       -------------- 
Gross Profit                             299,684              317,691 
Operating Expenses 
        Research and 
         development                      97,955              101,420 
        Sales and marketing               79,304               87,734 
        General and 
         administrative                   86,199              108,048 
        Acquisition-related 
         expenses                          4,556                2,080 
        Amortization of 
         acquired intangible 
         assets                           51,445               80,276 
        Goodwill impairment              614,100            1,097,741 
        Intangible asset 
         impairment                       18,500               34,000 
                                   -------------       -------------- 
                Total 
                 operating 
                 expenses                952,059            1,511,299 
                                   -------------       -------------- 
Loss from operations                    (652,375)          (1,193,608) 
Other income (expense) 
        Interest and other 
         expense, net                    (99,343)            (102,460) 
        Impairment of cost 
         method investment                (5,500)                  -- 
        (Loss) gain from 
         change in tax 
         receivable agreement 
         liability                         5,565                2,190 
        Gain (loss) from 
         change in fair value 
         of warrant 
         liability                        14,131               14,903 
        Gain (loss) from 
         change in fair value 
         of contingent 
         consideration                    12,900               11,520 
                                   -------------       -------------- 
                Total other 
                 expense                 (72,247)             (73,847) 
                                   -------------       -------------- 
Loss before income tax 
 provision                              (724,622)          (1,267,455) 
Income tax (expense) benefit              (1,163)              82,376 
                                   -------------       -------------- 
        Net loss                        (725,785)          (1,185,079) 
        Less: Net loss 
         attributable to 
         noncontrolling 
         interest                        (65,955)            (115,055) 
                                   -------------       -------------- 
        Net loss attributable 
         to E2open Parent 

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