E2open Parent Holdings Inc (ETWO) Q2 2025: Etwo

Executive Summary

E2open Parent Holdings Inc (ETWO) recorded total revenue of $152.2 million in Q2 2025, reflecting a year-over-year decline of 4.0% driven largely by subscription revenue decreasing by 2.3%. **Management acknowledged early signs of stabilization**, indicating a continuous focus on operational improvements and client satisfaction as they adapt to market conditions. With a commitment to growth through strategic client engagement and improved sales productivity, management noted that while quarterly subscription bookings experienced an uptick, large deal closures took longer than expected due to extended customer evaluation periods. Although **deferred revenue and higher churn remain challenges**, management expressed optimism about their evolving strategies aimed at returning to a trajectory of sustainable organic growth.

Key Performance Indicators

Revenue

152.19M

QoQ: 0.68% | YoY:-3.97%

Gross Profit

74.65M

49.05% margin

QoQ: 41.98% | YoY:-5.71%

Operating Income

-15.10M

QoQ: 8.82% | YoY:41.67%

Net Income

-29.86M

QoQ: 23.16% | YoY:14.36%

EPS

-0.10

QoQ: 25.46% | YoY:19.25%

Revenue Trend

Margin Analysis

Key Insights

Total Revenue: $152.2 million (â†“4.0% YoY)
Subscription Revenue: $131.6 million (â†“2.3% YoY)
Professional Services Revenue: $20.6 million (â†“13.1% YoY)
Gross Profit: $105.0 million (49.0% gross margin)
EBITDA: $54.9 million (36.1% EBITDA margin)

Financial Highlights

1. Revenue Trends:
- Total Revenue: $152.2 million (â†“4.0% YoY)
- Subscription Revenue: $131.6 million (â†“2.3% YoY)
- Professional Services Revenue: $20.6 million (â†“13.1% YoY)

2. Profitability Metrics:
- Gross Profit: $105.0 million (49.0% gross margin)
- EBITDA: $54.9 million (36.1% EBITDA margin)
- Operating Income: -$15.1 million
- Net Income: -$29.9 million; EPS: -$0.0969

3. Cash Flow:
- Operating Cash Flow: -$5.5 million (Q2 typical low due to seasonal patterns)
- Cash Balance: $142.2 million, reflecting a decline of $18.0 million from Q1 due to seasonal reductions in customer collections and annual compensation payments.

4. Financial Ratios:
- Current Ratio: 1.03
- Quick Ratio: 1.03
- Net Debt: $930.2 million with a net leverage of approximately 4.0x projected by year-end FY25.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	152.19M	-3.97%	0.68%
Gross Profit	74.65M	-5.71%	41.98%
Operating Income	-15.10M	41.67%	8.82%
Net Income	-29.86M	14.36%	23.16%
EPS	-0.10	19.25%	25.46%

Key Financial Ratios

currentRatio

1.03

grossProfitMargin

49%

operatingProfitMargin

-9.92%

netProfitMargin

-19.6%

returnOnAssets

-0.99%

returnOnEquity

-2.06%

debtEquityRatio

0.74

operatingCashFlowPerShare

$-0.02

freeCashFlowPerShare

$-0.04

priceToBookRatio

0.95

priceEarningsRatio

-11.55

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
ETWO Focus	49.05%	-9.92%	-2.06%	-11.55%
BLKB	56.30%	16.10%	3.78%	44.32%
ENFN	67.70%	5.47%	2.84%	106.24%
MODN	55.00%	-4.03%	-1.01%	-195.56%
CVT	59.30%	-15.40%	-1.98%	-17.66%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	152.61	-0.05	+1.0%	View
Q4 2025	152.68	-0.79	-3.6%	View
Q3 2025	151.66	-1.12	-3.7%	View
Q2 2025	152.19	-0.10	-4.0%	View
Q1 2025	151.16	-0.13	-5.6%	View

E2open Parent Holdings (ETWO) Q2 2025 Earnings Report

Earnings Highlights

E2open Parent Holdings Inc (ETWO) Q2 2025 Financial Results: Signs of Stabilization Amidst Continued Challenges

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

E2open Parent Holdings (ETWO) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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