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
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® Magic Quadrant™ 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.™ 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 Holdings, Inc. |
$ |
(659,830 |
) |
$ |
(1,070,024 |
) |
||
|
||||||||
Weighted-average common shares outstanding: |
||||||||
Basic |
|
308,268 |
|
|
303,751 |
|
||
Diluted |
|
308,268 |
|
|
303,751 |
|
||
Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share: |
||||||||
Basic |
$ |
(2.14 |
) |
$ |
(3.52 |
) |
||
Diluted |
$ |
(2.14 |
) |
$ |
(3.52 |
) |
||
E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Fourth Quarter 2025 |
||||||||
Three Months Ended |
||||||||
(In thousands, except per share amounts) |
February 28, 2025 |
February 29, 2024 |
||||||
(Unaudited) |
||||||||
Revenue |
||||||||
Subscriptions |
$ |
132,999 |
|
$ |
134,355 |
|
||
Professional services and other |
|
19,679 |
|
|
24,094 |
|
||
Total revenue |
|
152,678 |
|
|
158,449 |
|
||
Cost of Revenue |
||||||||
Subscriptions |
|
36,612 |
|
|
35,993 |
|
||
Professional services and other |
|
15,896 |
|
|
17,235 |
|
||
Amortization of acquired intangible assets |
|
23,533 |
|
|
24,690 |
|
||
Total cost of revenue |
|
76,041 |
|
|
77,918 |
|
||
Gross Profit |
|
76,637 |
|
|
80,531 |
|
||
Operating Expenses |
||||||||
Research and development |
|
23,920 |
|
|
25,672 |
|
||
Sales and marketing |
|
16,454 |
|
|
24,042 |
|
||
General and administrative |
|
20,446 |
|
|
22,634 |
|
||
Acquisition-related expenses |
|
2,366 |
|
|
1,664 |
|
||
Amortization of acquired intangible assets |
|
5,605 |
|
|
20,141 |
|
||
Goodwill impairment |
|
245,000 |
|
|
— |
|
||
Intangible asset impairment |
|
8,500 |
|
|
— |
|
||
Total operating expenses |
|
322,291 |
|
|
94,153 |
|
||
Loss from operations |
|
(245,654 |
) |
|
(13,622 |
) |
||
Other income (expense) |
||||||||
Interest and other expense, net |
|
(23,397 |
) |
|
(26,574 |
) |
||
Impairment of cost method investment |
|
(5,500 |
) |
|
— |
|
||
(Loss) gain from change in tax receivable agreement liability |
|
4,101 |
|
|
(6,165 |
) |
||
Gain (loss) from change in fair value of warrant liability |
|
1,078 |
|
|
(3,883 |
) |
||
Gain (loss) from change in fair value of contingent consideration |
|
4,440 |
|
|
(3,840 |
) |
||
Total other expense |
|
(19,278 |
) |
|
(40,462 |
) |
||
Loss before income tax provision |
|
(264,932 |
) |
|
(54,084 |
) |
||
Income tax (expense) benefit |
|
(3,568 |
) |
|
8,549 |
|
||
Net loss |
|
(268,500 |
) |
|
(45,535 |
) |
||
Less: Net loss attributable to noncontrolling interest |
|
(24,305 |
) |
|
(3,334 |
) |
||
Net loss attributable to E2open Parent Holdings, Inc. |
$ |
(244,195 |
) |
$ |
(42,201 |
) |
||
|
||||||||
Weighted-average common shares outstanding: |
||||||||
Basic |
|
309,410 |
|
|
305,454 |
|
||
Diluted |
|
309,410 |
|
|
305,454 |
|
||
Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share: |
||||||||
Basic |
$ |
(0.79 |
) |
$ |
(0.14 |
) |
||
Diluted |
$ |
(0.79 |
) |
$ |
(0.14 |
) |
||
E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) |
February 28, 2025 |
February 29, 2024 |
||||||
(Unaudited) |
||||||||
Assets |
||||||||
Cash and cash equivalents |
$ |
197,350 |
|
$ |
134,478 |
|
||
Restricted cash |
|
14,785 |
|
|
14,560 |
|
||
Accounts receivable, net |
|
133,436 |
|
|
161,556 |
|
||
Prepaid expenses and other current assets |
|
34,025 |
|
|
28,843 |
|
||
Total current assets |
|
379,596 |
|
|
339,437 |
|
||
Goodwill |
|
1,213,794 |
|
|
1,843,477 |
|
||
Intangible assets, net |
|
673,026 |
|
|
841,031 |
|
||
Property and equipment, net |
|
61,278 |
|
|
67,177 |
|
||
Operating lease right-of-use assets |
|
14,977 |
|
|
21,299 |
|
||
Other noncurrent assets |
|
28,364 |
|
|
29,234 |
|
||
Total assets |
$ |
2,371,035 |
|
$ |
3,141,655 |
|
||
Liabilities, Redeemable Share-Based Awards and Stockholders' Equity |
||||||||
Accounts payable and accrued liabilities |
$ |
78,987 |
|
$ |
90,594 |
|
||
Channel client deposits payable |
|
14,785 |
|
|
14,560 |
|
||
Deferred revenue |
|
216,740 |
|
|
213,138 |
|
||
Current portion of notes payable |
|
11,264 |
|
|
11,272 |
|
||
Current portion of operating lease obligations |
|
6,146 |
|
|
7,378 |
|
||
Current portion of financing lease obligations |
|
2,143 |
|
|
1,448 |
|
||
Income taxes payable |
|
3,337 |
|
|
584 |
|
||
Total current liabilities |
|
333,402 |
|
|
338,974 |
|
||
Long-term deferred revenue |
|
1,536 |
|
|
2,077 |
|
||
Operating lease obligations |
|
10,838 |
|
|
17,372 |
|
||
Financing lease obligations |
|
3,170 |
|
|
3,626 |
|
||
Notes payable |
|
1,031,180 |
|
|
1,037,623 |
|
||
Tax receivable agreement liability |
|
59,277 |
|
|
67,927 |
|
||
Warrant liability |
|
582 |
|
|
14,713 |
|
||
Contingent consideration |
|
5,128 |
|
|
18,028 |
|
||
Deferred taxes |
|
48,104 |
|
|
55,586 |
|
||
Other noncurrent liabilities |
|
648 |
|
|
602 |
|
||
Total liabilities |
|
1,493,865 |
|
|
1,556,528 |
|
||
Commitments and Contingencies |
||||||||
Redeemable share-based awards |
|
191 |
|
|
— |
|
||
Stockholders' Equity |
||||||||
Class A common stock |
|
31 |
|
|
31 |
|
||
Class V common stock |
|
— |
|
|
— |
|
||
Series B-1 common stock |
|
— |
|
|
— |
|
||
Series B-2 common stock |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
3,444,584 |
|
|
3,407,694 |
|
||
Accumulated other comprehensive loss |
|
(63,835 |
) |
|
(46,835 |
) |
||
Accumulated deficit |
|
(2,533,533 |
) |
|
(1,873,703 |
) |
||
Treasury stock, at cost |
|
(2,473 |
) |
|
(2,473 |
) |
||
Total E2open Parent Holdings, Inc. equity |
|
844,774 |
|
|
1,484,714 |
|
||
Noncontrolling interest |
|
32,205 |
|
|
100,413 |
|
||
Total stockholders' equity |
|
876,979 |
|
|
1,585,127 |
|
||
Total liabilities, redeemable share-based awards and stockholders' equity |
$ |
2,371,035 |
|
$ |
3,141,655 |
|
||
E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
Fiscal Year Ended |
||||||||
(In thousands) |
February 28, 2025 |
February 29, 2024 |
||||||
(Unaudited) |
||||||||
Cash flows from operating activities |
||||||||
Net loss |
$ |
(725,785 |
) |
$ |
(1,185,079 |
) |
||
Adjustments to reconcile net loss to net cash from operating activities: |
||||||||
Depreciation and amortization |
|
181,975 |
|
|
214,727 |
|
||
Amortization of deferred commissions |
|
9,810 |
|
|
6,269 |
|
||
Provision for credit losses |
|
1,995 |
|
|
3,870 |
|
||
Amortization of debt issuance costs |
|
5,281 |
|
|
5,281 |
|
||
Amortization of operating lease right-of-use assets |
|
6,299 |
|
|
7,419 |
|
||
Share-based compensation |
|
44,468 |
|
|
27,171 |
|
||
Deferred income taxes |
|
(10,454 |
) |
|
(87,790 |
) |
||
Right-of-use assets impairment charge |
|
576 |
|
|
659 |
|
||
Goodwill impairment charge |
|
614,100 |
|
|
1,097,741 |
|
||
Indefinite-lived intangible asset impairment charge |
|
18,500 |
|
|
34,000 |
|
||
Impairment of cost method investment |
|
5,500 |
|
|
— |
|
||
Gain from change in tax receivable agreement liability |
|
(5,565 |
) |
|
(2,190 |
) |
||
Gain from change in fair value of warrant liability |
|
(14,131 |
) |
|
(14,903 |
) |
||
Gain from change in fair value of contingent consideration |
|
(12,900 |
) |
|
(11,520 |
) |
||
Gain on operating lease termination |
|
(126 |
) |
|
(187 |
) |
||
Loss on disposal of property and equipment |
|
227 |
|
|
526 |
|
||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
|
26,125 |
|
|
9,382 |
|
||
Prepaid expenses and other current assets |
|
(7,502 |
) |
|
(2,087 |
) |
||
Other noncurrent assets |
|
(14,440 |
) |
|
(9,844 |
) |
||
Accounts payable and accrued liabilities |
|
(21,697 |
) |
|
(8,816 |
) |
||
Channel client deposits payable |
|
225 |
|
|
3,249 |
|
||
Deferred revenue |
|
3,062 |
|
|
8,884 |
|
||
Changes in other liabilities |
|
(6,406 |
) |
|
(11,891 |
) |
||
Net cash provided by operating activities |
|
99,137 |
|
|
84,871 |
|
||
Cash flows from investing activities |
||||||||
Capital expenditures |
|
(25,201 |
) |
|
(29,252 |
) |
||
Net cash used in investing activities |
|
(25,201 |
) |
|
(29,252 |
) |
||
Cash flows from financing activities |
||||||||
Repayments of indebtedness |
|
(11,238 |
) |
|
(11,168 |
) |
||
Repayments of financing lease obligations |
|
(1,908 |
) |
|
(2,852 |
) |
||
Proceeds from exercise of stock options |
|
155 |
|
|
— |
|
||
Net cash used in financing activities |
|
(12,991 |
) |
|
(14,020 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
2,152 |
|
|
3,097 |
|
||
Net increase in cash, cash equivalents and restricted cash |
|
63,097 |
|
|
44,696 |
|
||
Cash, cash equivalents and restricted cash at beginning of year |
|
149,038 |
|
|
104,342 |
|
||
Cash, cash equivalents and restricted cash at end of year |
$ |
212,135 |
|
$ |
149,038 |
|
||
E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF PRO FORMA INFORMATION TABLE I |
||||||||
(in millions) |
Q4 |
Q4 |
$ Var |
% Var |
FY |
FY |
$ Var |
% Var |
FY2025 |
FY2024 |
FY2025 |
FY2024 |
|||||
PRO FORMA REVENUE RECONCILIATION |
|
|
|
|
|
|
|
|
Total GAAP Revenue |
152.7 |
158.5 |
(5.8) |
(3.6%) |
607.7 |
634.6 |
(26.9) |
(4.2%) |
Constant currency FX impact(1) |
0.8 |
- |
0.8 |
n/m |
0.3 |
- |
0.3 |
n/m |
Total non-GAAP revenue (constant currency basis)(2) |
$153.5 |
$158.5 |
($4.9) |
(3.1%) |
$608.0 |
$634.6 |
($26.6) |
(4.2%) |
|
|
|
|
|
|
|
|
|
GAAP Subscription Revenue |
133.0 |
134.4 |
(1.4) |
(1.0%) |
528.0 |
536.8 |
(8.8) |
(1.6%) |
Constant currency FX impact(1) |
0.7 |
- |
0.7 |
n/m |
0.2 |
- |
0.2 |
n/m |
Non-GAAP subscription revenue (constant currency basis)(2) |
$133.7 |
$134.4 |
($0.7) |
(0.5%) |
$528.2 |
$536.8 |
($8.6) |
(1.6%) |
|
|
|
|
|
|
|
|
|
GAAP Professional Services and other revenue |
19.7 |
24.1 |
(4.4) |
(18.3%) |
79.7 |
97.8 |
(18.0) |
(18.4%) |
Constant currency FX impact(1) |
0.1 |
- |
0.1 |
n/m |
0.1 |
- |
0.1 |
n/m |
Non-GAAP professional services and other revenue (constant currency basis)(2) |
$19.8 |
$24.1 |
($4.3) |
(17.8%) |
$79.8 |
$97.8 |
($18.0) |
(18.4%) |
|
|
|
|
|
|
|
|
|
PRO FORMA GROSS PROFIT RECONCILIATION |
|
|
|
|
|
|
|
|
GAAP Gross profit |
76.6 |
80.5 |
(3.9) |
(4.8%) |
299.7 |
317.7 |
(18.0) |
(5.7%) |
Depreciation and amortization |
26.4 |
28.8 |
(2.5) |
(8.5%) |
110.1 |
114.9 |
(4.8) |
(4.2%) |
Share-based compensation(3) |
1.1 |
1.2 |
(0.1) |
(8.3%) |
5.6 |
4.3 |
1.4 |
31.6% |
Non-recurring/non-operating costs(4) |
0.0 |
0.3 |
(0.3) |
(87.9%) |
0.6 |
3.6 |
(3.0) |
(82.8%) |
Non-GAAP gross profit |
$104.2 |
$110.9 |
($6.7) |
(6.1%) |
$416.0 |
$440.5 |
($24.5) |
(5.6%) |
Non-GAAP Gross Margin % |
68.2% |
70.0% |
|
|
68.5% |
69.4% |
|
|
Constant currency FX impact(1) |
0.3 |
- |
0.3 |
n/m |
(0.1) |
- |
(0.1) |
n/m |
Total non-GAAP gross profit (constant currency basis)(2) |
$104.5 |
$110.9 |
($6.4) |
(5.8%) |
$416.0 |
$440.5 |
($24.5) |
(5.6%) |
Non-GAAP Gross Margin % (constant currency basis)(2) |
68.1% |
70.0% |
|
|
68.4% |
69.4% |
|
|
|
|
|
|
|
|
|
|
|
PRO FORMA ADJUSTED EBITDA RECONCILIATION |
|
|
|
|
|
|
|
|
Net income (loss) |
(268.5) |
(45.5) |
(223.0) |
n/m |
(725.8) |
(1,185.1) |
459.3 |
n/m |
Interest expense, net |
21.8 |
24.7 |
(2.8) |
(11.5%) |
94.4 |
98.6 |
(4.1) |
(4.2%) |
Income tax benefit |
3.6 |
(8.6) |
12.1 |
n/m |
1.2 |
(82.4) |
83.5 |
n/m |
Depreciation and amortization |
37.1 |
54.0 |
(16.9) |
(31.3%) |
182.0 |
214.7 |
(32.8) |
(15.3%) |
EBITDA |
($206.0) |
$24.6 |
($230.6) |
n/m |
($448.2) |
($954.2) |
$505.9 |
n/m |
Share-based compensation(3) |
9.3 |
8.4 |
0.9 |
10.7% |
44.5 |
27.2 |
17.3 |
63.6% |
Non-recurring/non-operating costs(4) |
1.2 |
6.5 |
(5.3) |
(81.1%) |
8.6 |
23.7 |
(15.1) |
(63.7%) |
Acquisition-related adjustments(5) |
2.4 |
1.7 |
0.7 |
42.8% |
4.6 |
2.1 |
2.5 |
119.2% |
Change in tax receivable agreement liability(6) |
(4.1) |
6.2 |
(10.3) |
n/m |
(5.6) |
(2.2) |
(3.4) |
n/m |
Change in fair value of warrant liability(7) |
(1.1) |
3.9 |
(5.0) |
n/m |
(14.1) |
(14.9) |
0.8 |
n/m |
Change in fair value of contingent consideration(8) |
(4.4) |
3.8 |
(8.3) |
n/m |
(12.9) |
(11.5) |
(1.4) |
12.0% |
Impairment of Cost Method Investments(9) |
5.5 |
- |
5.5 |
n/m |
5.5 |
- |
5.5 |
n/m |
Goodwill impairment(10) |
245.0 |
- |
245.0 |
n/m |
614.1 |
1,097.7 |
(483.6) |
(44.1%) |
Intangible asset impairment charge(11) |
8.5 |
- |
8.5 |
n/m |
18.5 |
34.0 |
(15.5) |
(45.6%) |
Right-of-use assets impairment charge(12) |
- |
- |
- |
n/m |
0.6 |
0.7 |
(0.1) |
(12.1%) |
Legal settlement(13) |
- |
- |
- |
n/m |
- |
17.8 |
(17.8) |
n/m |
Adjusted EBITDA |
$56.3 |
$55.1 |
$1.2 |
2.3% |
$215.5 |
$220.3 |
($4.9) |
(2.2%) |
Adjusted EBITDA Margin % |
36.9% |
34.8% |
|
|
35.5% |
34.7% |
|
|
Constant currency FX impact(1) |
(0.3) |
- |
(0.3) |
n/m |
(0.6) |
- |
(0.6) |
n/m |
Total adjusted EBITDA (constant currency basis)(2) |
$56.0 |
$55.1 |
$0.9 |
1.7% |
$214.9 |
$220.3 |
($5.5) |
(2.5%) |
Adjusted EBITDA Margin % (constant currency basis)(2) |
36.5% |
34.8% |
|
|
35.3% |
34.7% |
|
|
|
|
|
|
|
|
|
|
|
(1) Constant Currency refers to pro-forma amounts excluding the impact of translating foreign currencies into U.S. dollars. To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). |
||||||||
(2) Constant Currency refers to pro forma amounts excluding translation and transactional impacts from foreign currency exchange rates. |
||||||||
(3) Reflects non-cash, long-term share-based compensation expense. |
||||||||
(4) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. |
||||||||
(5) Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with the strategic review. |
||||||||
(6) Represents the fair value adjustment at each balance sheet date for the Tax Receivable Agreement along with the associated interest. |
||||||||
(7) Represents the fair value adjustment at each balance sheet date of the warrant liability related to our warrants. |
||||||||
(8) Represents the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted B-2 common stock and Series 2 RCUs. |
||||||||
(9) Represents the impairment taken in the fourth quarter of fiscal 2025 on our cost method investment. |
||||||||
(10) Represents the goodwill impairment taken of $245.0M in Q4 FY25, $369.1M in Q3 FY25, $687.7M in Q3 FY24, $410.0M in Q1 FY24. |
||||||||
(11) The company recognized an intangible impairment charge of $8.5M in Q4 FY25, $10.0M in Q3 FY25, $30.0M in Q3 FY24 and $4.0M in Q1 FY24. |
||||||||
(12) Represents the impairment on our operating lease ROU assets and leasehold improvements due to vacating certain facilities. |
||||||||
(13) Represents the $17.8 million litigation settlement for the unfavorable arbitration ruling related to the Kewill customer case. |
||||||||
E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF NON-GAAP EXPENSES TABLE II |
|||||||
Fiscal Year Ended February 28, 2025 |
|
|
|
|
|
|
|
(in millions) |
GAAP |
Non-recurring(1) |
|
Depreciation
|
Share-Based
|
Non-GAAP
|
% of
|
Impairment
|
|||||||
COST OF GOODS |
|
|
|
|
|
|
|
Subscriptions |
145.7 |
(0.2) |
- |
(12.8) |
(3.4) |
129.3 |
24.5% |
Professional services and other |
65.7 |
(0.4) |
- |
(0.7) |
(2.2) |
62.4 |
78.2% |
Amortization of intangibles |
96.6 |
- |
- |
(96.6) |
- |
- |
|
Total cost of revenue |
$308.0 |
($0.6) |
- |
($110.1) |
($5.6) |
$191.6 |
31.5% |
|
|
|
|
|
|
|
|
Gross Profit |
$299.7 |
$0.6 |
- |
$110.1 |
$5.6 |
$416.0 |
68.5% |
|
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
|
Research & development |
98.0 |
(0.9) |
- |
(18.7) |
(6.7) |
71.7 |
11.8% |
Sales & marketing |
79.3 |
(1.1) |
- |
(1.0) |
(6.7) |
70.5 |
11.6% |
General & administrative |
86.2 |
(1.1) |
(0.6) |
(0.7) |
(25.5) |
58.4 |
9.6% |
Acquisition related expenses |
4.6 |
(4.6) |
- |
- |
- |
- |
|
Amortization of intangibles |
51.5 |
- |
- |
(51.5) |
- |
- |
|
Intangible impairment charge |
18.5 |
- |
(18.5) |
- |
- |
- |
|
Goodwill impairment |
614.1 |
- |
(614.1) |
- |
- |
- |
|
Total operating expenses |
$952.1 |
($7.6) |
($633.2) |
($71.9) |
($38.9) |
$200.6 |
33.0% |
|
|
|
|
|
|
|
|
(1) Primarily includes other non-recurring expenses such as non-acquisition related severance, systems integrations, legal entity rationalization, and non-recurring consulting and advisory fees. |
|||||||
(2) Represents the impairment on our operating lease ROU assets and leasehold improvements due to vacating certain facilities, the goodwill impairment taken in the third and fourth quarter of fiscal 2025 and intangible impairment charge in third and fourth quarter of fiscal 2025. |
|||||||
E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF NON-GAAP EXPENSES TABLE II |
|||||||
Fiscal Fourth Quarter 2025 |
|
|
|
|
|
|
|
(in millions) |
GAAP |
Non-recurring(1) |
|
Depreciation
|
Share-Based
|
Non-GAAP
|
% of
|
Impairment
|
|||||||
COST OF GOODS |
|
|
|
|
|
|
|
Subscriptions |
36.6 |
- |
- |
(2.7) |
(0.7) |
33.2 |
25.0% |
Professional services and other |
15.9 |
- |
- |
(0.2) |
(0.5) |
15.3 |
77.6% |
Amortization of intangibles |
23.5 |
- |
- |
(23.5) |
- |
- |
|
Total cost of revenue |
$76.0 |
- |
- |
(26.4) |
(1.1) |
$48.5 |
31.8% |
|
|
|
|
|
|
|
|
Gross Profit |
$76.6 |
- |
- |
$26.4 |
$1.1 |
$104.2 |
68.2% |
|
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
|
Research & development |
23.9 |
- |
- |
(4.7) |
(1.2) |
18.0 |
11.8% |
Sales & marketing |
16.5 |
- |
- |
(0.2) |
(1.1) |
15.2 |
9.9% |
General & administrative |
20.5 |
0.3 |
- |
(0.2) |
(5.9) |
14.7 |
9.6% |
Acquisition related expenses |
2.4 |
(2.4) |
- |
- |
- |
- |
|
Amortization of intangibles |
5.6 |
- |
- |
(5.6) |
- |
- |
|
Intangible impairment charge |
8.5 |
- |
(8.5) |
- |
- |
- |
|
Goodwill impairment |
245.0 |
- |
(245.0) |
- |
- |
- |
|
Total operating expenses |
$322.3 |
($2.0) |
($253.5) |
($10.7) |
($8.2) |
$47.9 |
31.3% |
|
|
||||||
(1) Primarily includes other non-recurring expenses related to the strategic review and non-recurring consulting and advisory fees.
|
|||||||
E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF ADJUSTED EARNINGS PER SHARE TABLE III |
|||||
Fiscal Fourth Quarter 2025 |
|||||
(in millions, except per share amounts) |
Q1 25 |
Q2 25 |
Q3 25 |
Q4 25 |
FY2025 |
GAAP Net income (loss) |
(42.8) |
(32.9) |
(381.6) |
(268.5) |
(725.8) |
Interest expense, net |
24.7 |
24.5 |
23.4 |
21.8 |
94.4 |
Income taxes benefit |
(1.9) |
2.0 |
(2.4) |
3.6 |
1.2 |
Depreciation & amortization |
53.6 |
53.5 |
37.8 |
37.1 |
182.0 |
EBITDA |
$33.6 |
$47.0 |
($322.8) |
($206.0) |
($448.2) |
Share-based compensation |
11.8 |
12.9 |
10.4 |
9.3 |
44.5 |
Non-recurring/non-operating costs |
2.6 |
2.0 |
2.8 |
1.2 |
8.6 |
Acquisition-related adjustments |
0.3 |
1.7 |
0.2 |
2.4 |
4.6 |
Change in tax receivable agreement liability |
4.0 |
(2.9) |
(2.5) |
(4.1) |
(5.6) |
Change in fair value of warrant liability |
(3.8) |
(4.4) |
(4.9) |
(1.1) |
(14.1) |
Change in fair value of contingent consideration |
2.3 |
(2.0) |
(8.7) |
(4.4) |
(12.9) |
Impairment of Cost Method Investments |
- |
- |
- |
5.5 |
5.5 |
Goodwill impairment |
- |
- |
369.1 |
245 |
614.1 |
Intangible asset impairment charge |
- |
- |
10.0 |
8.5 |
18.5 |
Right-of-use assets impairment charge |
- |
0.6 |
- |
- |
0.6 |
Adjusted EBITDA |
$50.7 |
$54.9 |
$53.6 |
$56.3 |
$215.5 |
Depreciation |
(8.9) |
(8.6) |
(8.5) |
(7.9) |
(33.9) |
Interest and other expense, net |
(24.7) |
(24.5) |
(23.4) |
(21.8) |
(94.4) |
Normalized income taxes(1) |
(4.1) |
(5.2) |
(5.2) |
(6.4) |
(20.9) |
Adjusted Net Income |
$13.0 |
$16.6 |
$16.5 |
$20.2 |
$66.2 |
Adjusted basic shares outstanding |
344.4 |
345.3 |
345.9 |
346.6 |
346.6 |
Adjusted earnings per share |
$0.04 |
$0.05 |
$0.05 |
$0.06 |
$0.19 |
(1) Income taxes calculated using 24% effective rate. |
|||||
E2OPEN PARENT HOLDINGS, INC. ADJUSTED FREE CASH FLOW TABLE IV |
|||||
(in millions) |
Q1 25 |
Q2 25 |
Q3 25 |
Q4 25 |
FY25 |
GAAP operating cash flow |
35.9 |
(7.5) |
17.7 |
53.0 |
99.1 |
|
|
|
|
|
|
Add: Non recurring cash payments(1) |
4.3 |
2.9 |
4.0 |
1.3 |
12.5 |
Add: Change in channel client deposits payable(2) |
(1.2) |
(0.9) |
(0.6) |
2.4 |
(0.2) |
Adjusted operating cash flow |
$39.1 |
($5.5) |
$21.1 |
$56.7 |
$111.4 |
|
|
|
|
|
|
Capital expenditures |
(6.1) |
(6.2) |
(6.2) |
(6.7) |
(25.2) |
Adjusted free cash flow |
$33.0 |
($11.6) |
$14.9 |
$50.0 |
$86.2 |
(1) Primarily includes non-recurring expenses such as non-acquisition related severance, systems integrations, legal entity rationalization, and non-recurring consulting and advisory fees. |
|||||
(2) Channel Client Deposits Payable represents client deposits for the incentive payment program associated with the Company's channel shaping application. The Company offers services to administer incentive payments to partners on behalf of the Company’s clients. The Company’s clients deposit these funds into a restricted cash account with an offset included as a liability in incentive program payable in the Consolidated Balance Sheets. |
|||||
E2OPEN PARENT HOLDINGS, INC. CONSOLIDATED CAPITAL TABLE V |
|||
Description |
Shares (000's) |
Notes |
|
Shares outstanding as of February 28, 2025 |
309,922 |
|
Shares outstanding |
Common Units |
30,692 |
Units issued in the Business Combination that have not been converted from common units to Class A common stock (Common units are represented by Class V shares). |
|
Series B-2 Shares (unvested) |
3,372 |
|
Represents the right to acquire shares of Class A common stock when the 20-day VWAP reaches $15.00 per share. |
Restricted Common Units Series 2 (unvested) |
2,628 |
Represents the right in E2open Holdings, LLC that converts into common units when the 20-day VWAP reaches $15.00. Upon conversion to common units, the holders can elect to convert the common units to Class A common stock. |
|
Adjusted Basic Shares |
346,614 |
|
|
|
|||
Warrants |
29,080 |
|
Outstanding warrants with an exercise price of $11.50. |
Options (vested/unreleased and unvested) |
6,177 |
Options issued to management under the long-term incentive plan. |
|
Restricted Shares (vested/unreleased and unvested) |
17,585 |
|
Restricted shares issued to employees, management and directors under the long-term incentive plan. |
Fully Converted Shares |
399,456 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250429317515/en/
Contacts
Investor Contact
Russell Johnson
SVP Treasurer & Investor Relations, e2open
russell.johnson@e2open.com
investor.relations@e2open.com
Media Contact
5W PR for e2open
e2open@5wpr.com
908-433-3334
Corporate Contact
Kristin Seigworth
VP Communications, e2open
kristin.seigworth@e2open.com
pr@e2open.com