Full Transcript: Commerce.com Q2 2026 Earnings Call

com (NASDAQ: CMRC ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

1 million, exceeding guidance. 8 billion. Strategic initiatives include a focus on product intelligence, AI-driven commerce, and a controlled partner ecosystem to align with long-term value creation. Future guidance was revised down due to a deliberate focus on fewer strategic partnerships, targeted R&D investment, and AI infrastructure costs.

Operational highlights include strong momentum in BigCommerce Payments, expanded capabilities in Feedonomics and Makeswift, and continued strong B2B performance. Management emphasized the importance of product intelligence and AI in shaping future commerce strategies, with a focus on differentiated areas for investment. com's second quarter 2026 earnings call. I'd like to remind everyone that this call is being recorded and that all lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

com's second quarter 2026 earnings call. We will be discussing the results announced in our press release issued before today's market open. com's Chief Executive Officer, Travis Hess, and Chief Financial Officer and Chief Operating Officer, Daniel Lentz. Today's call will contain certain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include statements concerning financial and business trends, as well as our expected future business and financial performance, financial condition, and our guidance for both the third quarter of 2026 and the full year 2026. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, committed, will, or similar words. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements.

Forward-looking statements, by their nature, address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks and other disclosures contained in our filings with the Securities and Exchange Commission. During the call we will also discuss certain non-GAAP financial measures, which are not prepared in accordance with Generally Accepted Accounting Principles. com.

com. 1 million, above the high end of our guidance range of $4 million to $5 million. 8 billion. 8%.

These results reinforce the priority that we've discussed over the past several quarters: building a business with a more durable earnings profile. com for more sustainable long-term growth. As we look to the second half of the year, we are also making several deliberate decisions that affect our near-term outlook. com is headed over the long term.

Daniel will discuss the financial implications in more detail shortly. Before discussing the quarter further, I want to spend a few minutes on the broader context because it explains both our investment priorities and the decisions we are making today. Commerce is undergoing one of the most significant structural shifts in more than a decade. B2C re-platforming activity remains softer than we have seen historically, while AI is changing how merchants evaluate technology investments and delaying monetization across portions of the industry.

At the same time, product discovery is becoming increasingly distributed across marketplaces, retail media, AI, search, shopping agents, and other emerging buying experiences. Rather than beginning and ending on a merchant's website, we believe those changes require a different approach. Rather than optimizing for every possible source of near-term revenue, we are concentrating our investments where we believe we have the greatest differentiation, the strongest right to win, and the opportunity to create the most durable long-term value for merchants and shareholders. We believe one of those areas is product intelligence.

AI agents, marketplaces, retail media networks, search engines, and emerging buying experiences all depend on structured, enriched, and continuously optimized product data. As commerce becomes more distributed, we believe product intelligence is becoming foundational infrastructure for modern commerce. That is why Feedonomics has become such an important part of our strategy. Today, Feedonomics synthesizes and transforms more than 1 trillion product listings every month, giving us unique insight into how product information is structured, enriched, and optimized across the global commerce ecosystem.

We believe that scale positions us to play an increasingly important role as AI-driven discovery and agentic commerce continue to evolve. com around three complementary layers or control planes that reflect how we believe modern commerce is evolving. Feedonomics is our product intelligence layer, helping merchants structure, enrich, optimize, and distribute product information wherever discovery or emerging buying experiences occur. Makeswift is our experience layer, enabling merchants to create consistent content and brand experiences across an expanding number of digital touchpoints.

BigCommerce is our transaction layer, powering pricing, checkout, orders, APIs, and the operational workflows merchants rely on every day. Each layer is designed to operate independently through an open architecture. Our objective is not to replace everything a merchant already has. It is to allow merchants the flexibility to adapt the capabilities that create the most value while preserving flexibility across an increasingly distributed commerce ecosystem.

com undergoes structural change. We do not believe success comes from trying to participate in every opportunity. It comes from concentrating our capital, engineering resources, and partnerships where we have the greatest differentiation, the clearest right to win, and the opportunity to create the most durable long-term value. That philosophy has led us to make a series of deliberate decisions this year.

We have narrowed portions of our partner ecosystem, focused our embedded payment strategy around a smaller group of strategic partners, increased investment in product intelligence and AI, and deliberately kept merchant storefronts broadly accessible to AI agents, even though doing so creates an additional infrastructure cost today. Collectively, those decisions reduce certain near-term revenue opportunities and increase investment in others. com more effectively for where we believe the market is heading. Those trade-offs are reflected in the outlook Daniel will discuss shortly.

That operating philosophy is reflected across four priority investment areas. First, AI and agentic commerce momentum continued following Commerce Live 2026 as we expanded merchant distribution across leading AI assistants, commerce platforms, and payment ecosystems. We also continue to see growing adoption of Commerce companion within the BigCommerce platform, helping merchants automate workflows, analyze data, and become more productive. Looking ahead, we remain excited about several new capabilities launching in the second half of this year.

In Q3, we expect to introduce new data enrichment offerings across both Feedonomics and BigCommerce that improve and measure how products are discovered across traditional and AI-driven channels. In early Q4, we expect to launch the B2C brand agent and conversational search for BigCommerce. That sequencing is intentional. We believe intelligent commerce begins with high-quality product intelligence, and each of these capabilities becomes more valuable as the underlying catalog becomes richer, more complete, and better optimized.

Second, Feedonomics Surface and Makeswift Surface continue extending the power of Feedonomics to SMB and mid-market merchants through a self-serve experience, making enterprise-grade product intelligence accessible to a much broader segment of the market. We continue to see encouraging adoption and stronger GMV growth among Surface merchants, reinforcing our conviction that product intelligence should be accessible regardless of merchant size. Makeswift also remains on track for a year-end freemium launch within BigCommerce, bringing modern visual editing directly into the platform.

Together, Surface and Makeswift expand our addressable market, strengthen our product-led growth strategy, and create additional opportunities to increase customer adoption over time. S. launch earlier this year. Merchant adoption and payment volume continue to exceed our expectations.

K. launch later this year. Strategically, Payments represents much more than another product offering. com participates in the growing volume of commerce flowing across our platform.

As GMV grows, Payments creates an opportunity to deepen merchant relationships, increase monetization, and further strengthen the long-term economics of our business. Finally, B2B. We also continued investing in the capabilities that matter most for manufacturers, distributors, and other complex commerce businesses. B2B remains one of the areas where we believe we have a durable competitive advantage, and we continue to invest accordingly.

That leadership was recognized again this quarter as BigCommerce earned all 24 possible medals across the enterprise and mid-market editions of the 2026 Paradigm B2B Combine for the fourth consecutive year, including recognition for vision and strategy, ability to execute, and customer support. Taken together, these investments reflect a common theme. com has the strongest differentiation, the clearest right to win, and the greatest opportunity to create durable long-term value for both merchants and shareholders. Beyond our product roadmap, we also continue to see encouraging execution across the business.

Our strategic partnership with Accenture continued to build momentum during the quarter, including a product intelligence win with one of the world's largest branded footwear and apparel manufacturers. As we have said before, we believe our product intelligence and agentic suite create a significant long-term opportunity to expand our relationship with Accenture, and we look forward to sharing more as that partnership continues to evolve. We also announced a strategic distribution partnership with WP Engine that enables high-growth brands to add BigCommerce's commerce capabilities while preserving their existing WordPress content, SEO, and customer experiences.

We believe this is another strong example of the advantages of our open architecture, allowing merchants to modernize incrementally rather than forcing costly, disruptive platform replacements. Across the quarter, we continued adding global customers spanning B2B and consumer commerce, demonstrating the breadth of businesses our platform supports. While the industries and use cases vary considerably, they share a common need for flexibility, openness, and increasingly, product intelligence. com in the market.

Earlier this year, we introduced our updated pricing and packaging strategy, including BigCommerce Payments and a more focused embedded payments ecosystem. Those changes became effective on June 1 and remain aligned with the broader operating philosophy I've discussed today. This was never intended to be a broad-based price increase. com to participate in the growing payment volume flowing across our ecosystem.

As I step back, I believe the first half of 2026 demonstrates that our strategy continues to evolve in exactly the direction we've been discussing over the past several quarters. We are executing against our roadmap. com has the strongest differentiation and the clearest right to win. Some of these decisions affect our near-term outlook, but they do not change our strategy; they reinforce it.

com to create greater value over time. With that, I will turn the call over to Daniel. Daniel Lentz, CFO & COO Thanks, Travis. Let me start with some additional detail on our financial results in the quarter.

4 million. 1 million, above the high end of our guidance range of $4 million to $5 million. 6%, up nearly 400 basis points year over year. 8 million in the prior quarter.

We delivered positive GAAP net income for the second consecutive quarter, and we remain on track to deliver GAAP profitability for the full year 2026. Our balance sheet remains strong. We ended the quarter with just over $157 million in cash, cash equivalents, restricted cash, and marketable securities. This reflects significant improvement in cash generation in this business, with our net cash position up nearly $22 million year over year.

Our cash and investments continue to exceed our long-term debt outstanding, with no material debt maturities until 2028. 1 million, compared to $14 million and $9 million a year ago, respectively. 7 million a year ago as we fund our 2026 product investment. 8 billion over the prior four quarters.

We facilitated nearly $34 billion in GMV. B2B GMV growth was particularly strong, increasing 17% year over year. Our current GMV mix is weighted towards B2B, where card-based payment volume represents a smaller portion of transactions and generates less partner revenue share. As a result, platform activity is growing faster than revenue.

Narrowing that gap through payments monetization, product cross-sell, and higher attach rates remains a top priority for the business. 4% in Q1 2026. This marked our third consecutive quarter of sequential improvement in NRR for the total business. Remaining performance obligations and deferred revenue were up 11% and 25% year over year in Q2, respectively.

These remain important forward-looking indicators of contracted customer commitments and the quality and duration of our bookings. We continue to manage dilution and stock-based compensation responsibly as well. 7% in the same quarter last year and 7% for the full year 2025. 8 million fully diluted shares outstanding.