📊 CMRC Key Takeaways
Investment Thesis
Commerce.com faces significant fundamental challenges despite strong revenue growth and positive free cash flow. The company is unprofitable with negative operating income of -16.2M and a concerning debt-to-equity ratio of 3.99x, indicating heavy leverage relative to equity cushion. Operating losses coupled with minimal revenue growth of only 2.8% YoY and negative returns on equity (-49.1%) suggest operational inefficiencies that are not being addressed.
CMRC Strengths
- Strong gross margin of 78.7% indicates pricing power and operational efficiency in core product delivery
- Positive free cash flow of 16.9M demonstrates ability to generate cash despite operating losses
- Healthy current ratio of 1.98x and adequate cash position of 44.3M provide near-term liquidity buffer
CMRC Risks
- Persistent operating losses and negative net income of -19.3M indicate business model is not yet profitable at operating level
- Excessive leverage with debt-to-equity ratio of 3.99x and long-term debt of 157.0M creates financial distress risk with negative interest coverage of -1.6x
- Anemic revenue growth of 2.8% YoY combined with unprofitability suggests company lacks growth momentum to justify debt burden
Key Metrics to Watch
- Operating margin improvement trajectory - must reach profitability
- Revenue growth acceleration - current 2.8% growth insufficient for debt service demands
- Debt reduction progress and debt-to-equity ratio decline - critical to reduce leverage
CMRC Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.9% FCF margin may limit capital allocation flexibility.
CMRC Profitability Ratios
CMRC vs Technology Sector
How Commerce.com, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CMRC Balance Sheet & Liquidity
CMRC 5-Year Financial Trend
5-Year Trend Summary: Commerce.com, Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.86 indicates the company is currently unprofitable.
CMRC Growth Metrics (YoY)
CMRC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $83.7M | -$353.0K | $-0.03 |
| Q2 2025 | $81.8M | -$353.0K | $-0.10 |
| Q1 2025 | $80.4M | -$353.0K | $0.00 |
| Q3 2024 | $78.0M | -$6.4M | $-0.09 |
| Q2 2024 | $75.4M | -$6.4M | $-0.15 |
| Q1 2024 | $71.8M | -$6.4M | $-0.08 |
| Q3 2023 | $72.4M | -$19.1M | $-0.27 |
| Q2 2023 | $68.2M | -$19.1M | $-0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CMRC Capital Allocation
CMRC SEC Filings
Access official SEC EDGAR filings for Commerce.com, Inc. (CIK: 0001626450)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CMRC
What is the AI rating for CMRC?
Commerce.com, Inc. (CMRC) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMRC's key strengths?
Strong gross margin of 78.7% indicates pricing power and operational efficiency in core product delivery. Positive free cash flow of 16.9M demonstrates ability to generate cash despite operating losses.
What are the risks of investing in CMRC?
Persistent operating losses and negative net income of -19.3M indicate business model is not yet profitable at operating level. Excessive leverage with debt-to-equity ratio of 3.99x and long-term debt of 157.0M creates financial distress risk with negative interest coverage of -1.6x.
What is CMRC's revenue and growth?
Commerce.com, Inc. reported revenue of $342.3M.
Does CMRC pay dividends?
Commerce.com, Inc. pays dividends, with $12.8M distributed to shareholders in the trailing twelve months.
Where can I find CMRC SEC filings?
Official SEC filings for Commerce.com, Inc. (CIK: 0001626450) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMRC's EPS?
Commerce.com, Inc. has a diluted EPS of $-0.24.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.