Executive Summary
E2open Parent Holdings Inc's Q1 2026 financial results reveal a company on the path to stabilizing its operations and returning to growth after a challenging period. The total revenue for the quarter hit $152.6 million, marking a year-over-year growth of 1.0%, driven by a slight increase in subscription revenue, which rose 1.1% year-over-year to $132.9 million. The management highlighted significant improvements in client retention and operational efficiencies, as they navigate through the pending acquisition by WiseTech Global. The upcoming merger is anticipated to enhance E2open's capabilities and market positioning in the competitive supply chain software industry.
Key Performance Indicators
Key Insights
**Revenue Performance:** Q1 2026 revenue reached $152.6 million, representing a 1.0% increase YoY but a slight decline of 0.04% QoQ. The moderation in revenue reflects the company's transition phase as it prepares for the WiseTech acquisition.
**Profitability:** Gross profit totaled $73.6 million with a gross margin of 48.2%. Operating income recorded a loss of $2.4 million, an improvement from the previous year's loss, highlighting better management of operating expenses (down to $7...
Financial Highlights
Revenue Performance: Q1 2026 revenue reached $152.6 million, representing a 1.0% increase YoY but a slight decline of 0.04% QoQ. The moderation in revenue reflects the company's transition phase as it prepares for the WiseTech acquisition.
Profitability: Gross profit totaled $73.6 million with a gross margin of 48.2%. Operating income recorded a loss of $2.4 million, an improvement from the previous year's loss, highlighting better management of operating expenses (down to $76.0 million).
Net Income: The net loss for Q1 2026 was $15.5 million, an improvement from a $42.8 million loss in the same quarter the previous year, indicating strides in financial health despite ongoing challenges.
Cash Flow: E2open generated $48.0 million in adjusted operating cash flow, driven by strong customer collections. Cash at the end of the quarter rose to $230.2 million, reflecting effective management of working capital.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
152.61M |
0.96% |
-0.04% |
| Gross Profit |
73.59M |
39.98% |
-3.97% |
| Operating Income |
-2.45M |
85.23% |
99.00% |
| Net Income |
-14.13M |
63.65% |
94.22% |
| EPS |
-0.05 |
65.00% |
94.24% |
Management Commentary
1. Acquisition Strategy: Andrew Appel, CEO: "...the exciting opportunities for our customers and employees presented by our company's pending acquisition by WiseTech ... I am confident they are acquiring E2open not only for the highly complementary software application but also for our deep base of knowledgeable and highly experienced employees."
2. Growth & Innovation: Marje Armstrong, CFO: "Our return to subscription revenue growth in the first quarter was driven by progress on retention and bookings in the second half of FY '25... adjustments in our offerings, such as generative AI-driven tools, and improved client relationships are fostering our growth trajectory."
"...through the focused efforts and singular commitment of our global E2open teams, we have succeeded in stabilizing our business and putting it back on a growth trajectory."
— Andrew Appel, CEO
"I continue to be impressed by the fact that each and every quarter, we win strategic new logo business and expand our high-value relationships with meaningful existing customers."
— Andrew Appel, CEO
Forward Guidance
Management has confirmed full year FY 2026 guidance for total revenue in the range of $600 million to $618 million, projecting minimal growth of –1.3% to +1.7%. For subscription revenue, they expect $525 million to $535 million, suggesting stabilization following recent improvements. Management's focus on client satisfaction and innovation, combined with the upcoming merger with WiseTech, positions E2open for a potential upswing post-acquisition, contingent on successful integration.