Commerce.com, Inc.

Previous wording

AI has become a core component of our strategic and operational framework, supporting key initiatives across product development, customer experience, and go-to-market execution. We continue to advance our AI strategy, which is focused on delivering practical, merchant-facing outcomes like improved product discoverability, optimized pricing, and more intelligent storefront experiences. Building on foundational investments in sales and marketing automation, onboarding workflow, and developer tools, we expanded our AI integration across our platform and partner ecosystem.

Current wording

AI has become a core component of our strategic and operational framework, supporting key initiatives across product development, customer experience, and go-to-market execution. We continue to advance our AI strategy with a focus on delivering practical, merchant-facing outcomes like improved product discoverability, optimized pricing, and more intelligent storefront experiences. Building on foundational investments in sales and marketing automation, onboarding workflow, and developer tools, we expanded our AI integration across our platform and partner ecosystem.

Previous wording

Our partnerships with leading AI-focused companies also continue to deepen. These partnerships are enhancing our ability to deliver structured and enriched product data into AI-powered search and answer engines, thereby improving merchant discoverability. Our AI initiatives aim to accelerate time-to-market, reduce operational complexity, and enhance revenue performance for merchants of all sizes. Our focus remains on embedding AI deeply and responsibly across the commerce lifecycle, in ways that drive merchant outcomes and align with our broader platform evolution.

Current wording

Our partnerships with leading AI-focused companies further extend these capabilities by enabling structured and enriched product data to flow into AI-powered search and answer engines, improving merchant visibility and performance. These initiatives are designed to accelerate time-to-market, reduce operational complexity, and enhance revenue performance for merchants of all sizes. Our focus remains on embedding AI deeply and responsibly across the commerce lifecycle, ensuring merchants remain discoverable, performant, and in control of their customer experience as the industry transitions toward an AI and agent led era of commerce.

Previous wording

We remain committed to growing our presence across both B2B and B2C commerce. The rapid growth in ecommerce adoption is driven by digital transformation, the rise of AI-powered discovery, and shifts in buyer behavior is prompting companies to adopt platforms like Commerce.com to create branded ecommerce stores and power cross-channel connections to online marketplaces, social networks, and offline point of sale ("POS") systems.

Current wording

We remain committed to growing our presence across both B2B and B2C commerce. The rapid growth in ecommerce adoption is driven by digital transformation, the rise of AI-powered discovery, and shifts in buyer behavior are prompting companies to adopt platforms like Commerce.com to create branded ecommerce stores and power cross-channel connections to online marketplaces, social networks, and offline point of sale ("POS") systems.

Previous wording

We are advancing initiatives to expand platform capabilities and support revenue growth. We initiated a beta launch of Feedonomics self-serve and plan to broaden its availability with additional paid features.

Current wording

We are advancing initiatives to expand platform capabilities and support revenue growth.

Previous wording

Our new branded payments offering remains on track for a fiscal year 2026 launch, which will be an optional payments offering for small and medium-sized customers looking for a stream-lined, integrated offering with competitive processing rates. This offering aims to improve our overall monetization and retention rates in the BigCommerce platform business.

Current wording

Our new branded payments offering will launch in fiscal year 2026, which will be an optional payments offering for small and medium-sized customers looking for a stream lined, integrated offering with competitive processing rates. This offering is designed to enhance our overall monetization and alignment with merchants, while improving customer retention and introducing modern payments capabilities in a scalable, capital-efficient manner.

Previous wording

While we are not directly involved in manufacturing or logistics, many of our customers operate across borders and within affected supply chains. We are closely monitoring how shifting trade policies and increased tariffs may impact international sellers and brands sourcing from affected regions. Although we have not observed a material impact on our performance to date, we remain cautious and continue to partner with our customers to provide flexible solutions that support their agility in a dynamic macroeconomic environment.

Current wording

While we are not directly involved in manufacturing or logistics, many of our customers operate across borders and within affected supply chains. We are closely monitoring how shifting trade policies and tariffs may impact international sellers and brands sourcing from affected regions. Although we have not observed a material impact on our performance to date, we remain cautious and continue to partner with our customers to provide flexible solutions that support their agility in a dynamic macroeconomic environment.

Previous wording

We review the following business metrics to measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Increases or decreases in our business metrics may not correspond with increases or decreases in our revenue. As an example, some of our business metrics include annual revenue run-rate ("ARR"), subscription annual revenue run-rate ("Subscription ARR") , average revenue per account ("ARPA"), and others are calculated as of the end of the last month of the reporting period.

Current wording

We review the following business metrics to measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Increases or decreases in our business metrics may not correspond with increases or decreases in our revenue. As an example, some of our business metrics include annual revenue run-rate ("ARR"), subscription annual revenue run-rate ("Subscription ARR"), and average revenue per account ("ARPA").

Previous wording

The composition of our revenue by geographic region during the three and six months ended June 30, 2025 and June 30, 2024 were as follows:

Current wording

The composition of our revenue by geographic region during the three and nine months ended September 30, 2025 and September 30, 2024 were as follows:

Previous wording

Comparison of the three and six months ended June 30, 2025 and June 30, 2024

Current wording

Comparison of the three and nine months ended September 30, 2025 and September 30, 2024

Previous wording

Total revenue increased for the three months ended June 30, 2025, from the three months ended June 30, 2024, as a result of increases in both subscription solutions and partner and services revenue. Subscription solutions revenue increased primarily due to increases in enterprise and mid-market activity. Partner and services revenue increased primarily as a result of increases in revenue share activity.

Current wording

Total revenue increased for the three months ended September 30, 2025, from the three months ended September 30, 2024, as a result of increases in both subscription solutions and partner and services revenue. Subscription solutions revenue increased primarily due to increases in enterprise and mid-market activity. Partner and services revenue increased primarily as a result of increases in stand ready activity.

Previous wording

Total revenue increased for the six months ended June 30, 2025, from the six months ended June 30, 2024, as a result of increases in both subscription solutions and partner and services revenue. Subscription solutions revenue increased primarily due to growth in enterprise, mid-market, and Feedonomics activity. Partner and services revenue increased primarily as a result of increases in revenue share activity offset by decreases in stand ready and integration activity.

Current wording

Total revenue increased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024, as a result of increases in both subscription solutions and partner and services revenue. Subscription solutions revenue increased primarily due to growth in enterprise, mid-market, and Feedonomics activity. Partner and services revenue increased primarily as a result of increases in revenue share activity offset by decreases in stand ready activity.

Previous wording

Cost of revenue decreased for the three months ended June 30, 2025, from the three months ended June 30, 2024. The decrease in expense is primarily attributable to the recording of certain expenses in sales and marketing in the second quarter of 2025 while prior years expenses of $1.4 million were recorded in cost of revenue as certain employees were moved from customer support roles to sales and marketing roles in connection with our restructuring initiatives. The remaining changes relate to payroll costs and share-based compensation expense of $1.2 million, partially offset by increases in other expenses including software costs and professional services of $0.7 million.

Current wording

Cost of revenue decreased for the three months ended September 30, 2025, from the three months ended September 30, 2024. The decrease in expense was primarily attributable to the recording of certain expenses in sales and marketing in the third quarter of 2025 while prior years expenses of $1.4 million were recorded in cost of revenue as certain employees were moved from customer support roles to sales and marketing roles in connection with our restructuring initiatives. The remaining changes relate to reductions in payroll costs and share-based compensation expense of $1.7 million, offset by increases in web hosting of $0.8 million, $0.6 million of IT related costs, and other expenses such as professional services and depreciation of $0.4 million.

Previous wording

Cost of revenue decreased for the six months ended June 30, 2025, from the six months ended June 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the second quarter of 2025 while in prior years expenses of $2.8 million were recorded in cost of revenue due to changes in employee roles. The remaining change was primarily due to decreases in payroll costs and share-based compensation expense of $1.9 million, partially offset by increases in other expenses such as software costs and professional services of $1.2 million.

Current wording

Cost of revenue decreased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the third quarter of 2025 while in prior years expenses of $4.3 million were recorded in cost of revenue due to changes in employee roles. The remaining change was primarily due to decreases in payroll costs and share-based compensation expense of $3.5 million, partially offset by increases in IT related costs of $1.6 million, web hosting costs of $0.8 million, and $0.6 million of professional service costs.

Previous wording

Sales and marketing expenses increased for the three months ended June 30, 2025 from the three months ended June 30, 2024. The period over period increase was related to the recording of certain expenses in sales and marketing in the second quarter of 2025 while in the prior year these expenses of $2.0 million were recorded in cost of revenue and general and administrative as certain employees were moved from customer support and general and administrative roles to sales and marketing roles in connection with our restructuring initiatives. Excluding the impact of these expenses, the period over period decrease of $1.5 million was primarily driven by reductions in variable marketing spend of $1.8 million, partially offset by increases in professional services costs of $0.2 million.

Current wording

Sales and marketing expenses increased for the three months ended September 30, 2025 from the three months ended September 30, 2024. The period over period increase was largely related to the recording of certain expenses in sales and marketing in the third quarter of 2025 while in the prior year these expenses of $2.0 million were recorded in cost of revenue and general and administrative as certain employees were moved from customer support and general and administrative roles to sales and marketing roles in connection with our restructuring initiatives. Excluding the impact of these expenses, the period over period increase of $1.1 million was primarily driven by increases in software and professional service costs.

Previous wording

Sales and marketing expenses decreased for the six months ended June 30, 2025, from the six months ended June 30, 2024. A portion of the period over period change was related to the recording of certain expenses in sales and marketing in the second quarter of 2025 while in prior years expenses of $3.8 million were recorded in cost of revenue and general and administrative due to changes in employee roles. The change of roles increase was offset by the period over period decrease of $5.3 million which was primarily due to lower variable marketing costs and professional services costs of $5.1 million, decreased share-based compensation expense of $1.8 million driven by the 2024 Restructure of certain executives, partially offset by an increase of $1.5 million of salaries and benefits due to increased headcount related to investment in go-to-market organization.

Current wording

Sales and marketing expenses increased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024. A portion of the period over period increase was related to the recording of certain expenses in sales and marketing in the nine months ended September 30, 2025 while in prior years expenses of $5.9 million were recorded in cost of revenue and general and administrative due to changes in employee roles. The impact of change of roles increase was offset by the period over period decrease of $4.2 million which was primarily due to lower marketing spend of $4.7 million, miscellaneous expenses of $0.4 million, and $0.2 million of depreciation and facilities, partially offset by an increase of $1.1 million of software costs.

Previous wording

We expect that sales and marketing expenses will increase in absolute dollars and may slightly increase as a percentage of revenue for the remainder of the fiscal year as we reinvest in our go-to-market organization and new brand launching.

Current wording

We expect that sales and marketing expenses will increase in absolute dollars and remain consistent as a percentage of revenue for the remainder of the fiscal year.

Previous wording

Research and development expenses decreased for the three months ended June 30, 2025 from the three months ended June 30, 2024, primarily due to a decrease in salaries and share-based compensation expense of $1.7 million primarily due to the 2024 Restructure, and decrease of $0.3 million in professional services costs.

Current wording

Research and development expenses decreased for the three months ended September 30, 2025 from the three months ended September 30, 2024, primarily due to a decrease in salaries and share-based compensation expense of $2.7 million primarily due to the

Previous wording

Research and development expenses decreased for the six months ended June 30, 2025, from the six months ended June 30, 2024, primarily due to a decrease in salaries and share-based compensation expense of $2.3 million drive by the 2024 Restructure, and reductions in software costs and professional services costs of $0.6 million.

Current wording

Research and development expenses decreased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024, primarily due to a decrease in salaries and share-based compensation expense of $5.0 million driven by the 2024 Restructure and reductions in software costs of $1.5 million, partially offset by increases in professional services costs of $0.4 million.

Previous wording

We expect research and development expenses as a percentage of revenue to increase slightly as we continue to prioritize investment in our core offerings throughout the remaining fiscal year 2025 and into 2026.

Current wording

We expect research and development expenses as a percentage of revenue to increase as we continue to prioritize investment in our core offerings throughout the remaining fiscal year 2025 and into 2026.

Previous wording

General and administrative expenses decreased for the three months ended June 30, 2025 from the three months ended June 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the second quarter of 2025 while in prior years expenses of $0.6 million were recorded in general and administrative due to changes in employee roles. The remaining changes were primarily due to a $1.3 million decrease in salaries and share-based compensation expense, offset by a $1.6 million increase in professional services.

Current wording

General and administrative expenses decreased for the three months ended September 30, 2025 from the three months ended September 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the third quarter of 2025 while in prior years expenses of $0.6 million were recorded in general and administrative due to changes in employee roles. The remaining changes were primarily due to a $1.5 million decrease in bad debt expense, a reduction of $1.5 million in professional services costs, decreases in other expenses such as depreciation and insurance of $0.7 million, and decrease in salaries and share-based compensation expense of $0.4 million. These reductions in costs were offset by an increase in IT related costs of $0.4 million.

Previous wording

General and administrative expenses decreased for the six months ended June 30, 2025, from the six months ended June 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the second quarter of 2025 while in prior years expenses of $1.0 million were recorded in general and administrative due to changes in employee roles. The remaining change was related to a $3.5 million decrease in salaries and share-based compensation expense, offset by a $4.0 million increase in professional services.

Current wording

General and administrative expenses decreased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024. A portion of the decrease is attributable to the recording of certain expenses in sales and marketing in the nine months ended September 30, 2025 while in prior years expenses of $1.6 million were recorded in general and administrative due to changes in employee roles. The remaining change was primarily related to decreases in salaries and share-based compensation expense of $4.0 million, other expenses such as depreciation and insurance of $1.2 million, decrease in bad debt expense of $0.9 million. These reductions in costs were offset by an increase in professional services costs of $2.5 million.

Previous wording

Acquisition related expense decreased for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024 primarily attributable to the amortization of deferred compensation for the Makeswift acquisition.

Current wording

Acquisition related expense decreased for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024 primarily attributable to the amortization of deferred compensation for the Makeswift acquisition.

Previous wording

Restructuring charges decreased for the three months ended June 30, 2025 from the three months ended June 30, 2024. For the three months ended June 30, 2025, restructuring charges included severance and related charges for a reduction in workforce, consulting costs associated with changes in go-to-market approach, and accelerated depreciation of leasehold improvements associated with relocation of the Austin headquarters.

Current wording

Restructuring charges decreased for the nine months ended September 30, 2025, from the nine months ended September 30, 2024. For the nine months ended September 30, 2025, restructuring charges included severance and related charges for a reduction in workforce, consulting costs associated with changes in go-to-market approach, and accelerated depreciation of leasehold improvements associated with relocation of the Austin headquarters.

Previous wording

Gain on convertible note extinguishment was $3.9 million for the six months ended June 30, 2025. The gain on convertible note extinguishment consisted of a $3.9 million gain on the repurchase of 2026 Convertible Notes.

Current wording

Gain on convertible note extinguishment was $3.9 million for the nine months ended September 30, 2025. The gain on convertible note extinguishment consisted of a $3.9 million gain on the repurchase of 2026 Convertible Notes.

Previous wording

Interest income decreased for the three and six months ended June 30, 2025 from three and six months ended June 30, 2024. This decrease was due to lower yields on our cash equivalents and marketable securities in 2024 primarily as a result of less cash, cash equivalents, and marketable securities during the period.

Current wording

Interest income decreased for the three and nine months ended September 30, 2025 from three and nine months ended September 30, 2024. This decrease was due to lower yields on our cash equivalents and marketable securities in 2024 primarily as a result of less cash, cash equivalents, and marketable securities during the period.

Previous wording

Interest expense increased for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024 This increase was the due to the exchange of 2026 Convertible Notes for 2028 Convertible Notes in the third quarter of 2024 at a higher effective interest rate.

Current wording

Interest expense increased for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024 This increase was the due to the exchange of 2026 Convertible Notes for 2028 Convertible Notes in the third quarter of 2024 at a higher effective interest rate.

Previous wording

Other expenses decreased for the three and six months ended June 30, 2025 from three and six months ended June 30, 2024. This decrease was due to the impact of foreign currency exchange rates.

Current wording

Other expenses decreased for the three and nine months ended September 30, 2025 from three and nine months ended September 30, 2024. This decrease was due to the impact of foreign currency exchange rates.

Previous wording

Our provision for income taxes increased approximately $0.1 million for the three months ended June 30, 2025 from June 30, 2024, and increased $0.3 million for the six months ended June 30, 2025 from the six months ended June 30, 2024. This increase was primarily due to increases in foreign activities and the Company's tax reserves.

Current wording

Our provision for income taxes increased $0.3 million for the nine months ended September 30, 2025 from the nine months ended September 30, 2024. This increase was primarily due to changes in the Company's tax reserves.

Previous wording

As of June 30, 2025, we had $47.4 million in cash, cash equivalents, and restricted cash, a decrease of $86.8 million compared to $134.2 million as of June 30, 2024. Cash and cash equivalents consist of highly-liquid investments with original maturities of less than ninety days. Our restricted cash balance of $1.2 million and $1.1 million at June 30, 2025 and 2024 respectively, consists of security deposits for future chargebacks and amounts on deposit with certain financial institutions. Our marketable securities balance of $88.2 million and $142.7 million at June 30, 2025 and 2024 respectively, consists of investments in corporate and US treasury securities . We maintain cash account balances in excess of Federal Deposit Insurance Corporation (FDIC) insured limits.

Current wording

As of September 30, 2025, we had $51.1 million in cash, cash equivalents, and restricted cash, an increase of $14.1 million compared to $37.0 million as of September 30, 2024. Cash and cash equivalents consist of highly-liquid investments with original maturities of less than ninety days. Our restricted cash balance of $1.2 million and $1.5 million at September 30, 2025 and 2024 respectively, consists of security deposits for future chargebacks and amounts on deposit with certain financial institutions. Our marketable securities balance of $92.1 million and $133.0 million at September 30, 2025 and 2024 respectively, consists of investments in corporate and US treasury securities . We maintain cash account balances in excess of Federal Deposit Insurance Corporation (FDIC) insured limits.

Previous wording

Net cash provided by operating activities for the three months ended June 30, 2025 and 2024 was $13.6 million and $11.7 million, respectively. This consisted primarily of our net losses adjusted for certain non-cash items including depreciation, stock-based compensation, debt discount amortization, debt premium amortization, amortization of intangible assets, bad debt expense, and the effect of changes in our working capital accounts.

Current wording

Net cash provided by operating activities for the three months ended September 30, 2025 and 2024 was $10.6 million and $5.6 million, respectively. This consisted primarily of our net losses adjusted for certain non-cash items including depreciation, stock-based compensation, debt discount amortization, debt premium amortization, amortization of intangible assets, bad debt expense, and the effect of changes in our working capital accounts.

Previous wording

Net cash provided by operating activities for the six months ended June 30, 2025 and 2024 was $14.0 million and $8.3 million, respectively. This consisted primarily of our net losses adjusted for certain non-cash items including depreciation, stock-based compensation, debt discount amortization, debt premium amortization, amortization of intangible assets, bad debt expense, gain on convertible note extinguishment, and the effect of changes in our working capital accounts.

Current wording

Net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 was $24.5 million and $13.9 million, respectively. This consisted primarily of our net losses adjusted for certain non-cash items including depreciation, stock-based compensation, debt discount amortization, debt premium amortization, amortization of intangible assets, bad debt expense, gain on convertible note extinguishment, and the effect of changes in our working capital accounts.

Previous wording

Net cash provided by (used in) investing activities during the three months ended June 30, 2025 and 2024 was ($21.2) million and $60.3 million, respectively. In the three months ended June 30, 2025, this consists primarily of the purchase of marketable securities of $32.6 million and the cash paid for the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $1.7 million offset by the sale and maturity of marketable securities of $13.0 million. In the three months ended June 30, 2024, this consists primarily of the sale and maturity of marketable securities of $62.5 million offset by the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $1.1 million and the purchase of marketable securities of $1.0 million.

Current wording

Net cash provided by (used in) investing activities during the three months ended September 30, 2025 and 2024 was ($6.8) million and $9.3 million, respectively. In the three months ended September 30, 2025, this consists primarily of the purchase of marketable securities of $44.3 million and the cash paid for the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $3.0 million offset by the sale and maturity of marketable securities of $40.5 million. In the three months ended September 30, 2024, this consists primarily of the sale and maturity of marketable securities of $59.7 million offset by the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $1.1 million and the purchase of marketable securities of $49.4 million.

Previous wording

Net cash provided by (used in) investing activities during the six months ended June 30, 2025 and 2024 was ($3.9) million and $53.4 million, respectively. In the six months ended June 30, 2025, this consists primarily of the purchase of marketable securities of $40.5 million, the cash paid for the website domain name of $2.4 million, and purchase of property, equipment, leasehold improvements and capitalized internal-use software of 2.5 million offset by the sale and maturity of marketable securities of $41.6 million . In the six months ended June 30, 2024, consists primarily of the sale and maturity of marketable securities of $92.0 million offset by the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $1.9 million and the purchase of marketable securities of $36.6 million.

Current wording

Net cash provided by (used in) investing activities during the nine months ended September 30, 2025 and 2024 was ($10.7) million and $62.6 million, respectively. In the nine months ended September 30, 2025, this consists primarily of the purchase of marketable securities of $84.8 million, the cash paid for the website domain name of $2.4 million, and purchase of property, equipment, leasehold improvements and capitalized internal-use software of 5.4 million offset by the sale and maturity of marketable securities of $82.1 million. In the nine months ended September 30, 2024, consists primarily of the sale and maturity of marketable securities of $151.6 million offset by the purchase of property, equipment, leasehold improvements and capitalized internal-use software of $2.9 million and the purchase of marketable securities of $86.0 million.

Previous wording

Net cash used in financing activities during the six months ended June 30, 2025 and 2024 was $53.0 million and $0.4 million, respectively. In the six months ended June 30, 2025, this consists primarily of repayment of convertible notes of $54.5 million and taxes paid related to net share settlement of stock options of $1.4 million offset by the proceeds from exercise of stock options of $3.1 million. In the six months ended June 30, 2024, consists primarily of exercise of taxes paid related to net share settlement of stock options of $1.3 million and repayments of debt of $0.1 million offset by the proceeds from exercise of stock options of $1.2 million.

Current wording

Net cash used in financing activities during the three months ended September 30, 2025 and 2024 was $0.1 million and $112.1 million respectively. In the three months ended September 30, 2025, this was attributable to the taxes paid related to net share settlement of stock options of $0.5 million offset by the proceeds from exercise of stock options of $0.4 million. In the three months ended September 30, 2024, this was attributable to repayment of convertible notes and financing obligations of $108.7 million, payments of convertible note issuance and related third-party costs of $2.5 million, and taxes paid related to the settlement of stock options and restricted stock units of $1.1 million, partially offset by proceeds from exercise of stock options of $0.2 million.