Commerce.com Inc: Termination of coverage of CMRC

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Commerce.com Inc: Termination of coverage of CMRC

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Commerce.com Inc

Termination of coverage of CMRC

Termination of Coverage: UNDERPERFORM | PO: 4.00 USD | Price: 2.72 USD

Terminating coverage of CMRC 15 May 2026

This is our final report on Commerce.com. We are terminating coverage due to a Equity

reallocation of resources. Our final investment opinion of Underperform reflects our

analysis as of the date of this report. Investors should no longer rely upon our previously

Key Changes

published reports, price objective, recommendations or estimates going forward.

(US$) Previous Current

2026E Rev (m) 348.1 352.3Improved growth profile needed as a catalyst

We forecast Commerce.com to grow total revenue by 3% y/y in CY26 versus the small 2027E Rev (m) 366.6 373.0

cap software peer average of 10%. Furthermore, we forecast non-GAAP operating profit 2028E Rev (m) 373.2 379.7

margin of 11%, versus peers at 15%. Thus, Commerce.com currently has a Rule-of-14 2026E EPS 0.44 0.45

profile (total revenue growth plus non-GAAP operating margins) which is well below its 2027E EPS 0.46 0.49

peers at a Rule-of-25. Additionally, Commerce.com’s net retention rate (NRR) is 95%, 2028E EPS 0.51 0.54

below 100%, meaning the installed base is collectively shrinking spend on the platform.

This stands out negatively among its software peers, where companies that show NRRs KojiResearchIkeda,AnalystCFA

of 110%+ as more ideal. Until its growth and profitability profile and underlying metrics BofAS

+1 415 913 2106

like NRR improve meaningfully, we believe performance of CMRC shares could trail its koji.ikeda@bofa.com

small cap software peers. George McGreehan

Research Analyst

1Q26 showing cost discipline, low growth hard to stomach BofAS+1 415 913 4315