E2open Parent Holdings, Inc. is a connected supply chain software platform that serves a diverse range of enterprises, providing solutions for optimizing supply chain management, logistics, and operations. The company is currently on an upward trajectory, reflecting signs of recovery after a challenging period marked by previous declines.

In its first fiscal quarter for 2026, E2open reported subscription revenue of $132.9 million, which represents a 1.1% increase year-over-year and exceeded guidance expectations set between $129 million and $132 million. Total revenue for the quarter was $152.6 million, reflecting a year-over-year increase of 1.0%. The company noted that professional services and other revenue remained stable at $19.7 million, a slight decline of 0.1% from the same period last year.

E2open’s non-GAAP gross profit for Q1 FY26 was documented at $102.4 million, with a non-GAAP gross margin of 67.1%, down from 67.8% in the prior year. The first quarter adjusted EBITDA reached $52.2 million, maintaining a robust adjusted EBITDA margin of 34.2%, up from 33.6% in the previous year. Though the cash flow situation improved, the company reported a net loss of $15.5 million, an improvement when compared to a net loss of $42.8 million from the same quarter last year.

On the cash front, E2open’s adjusted operating cash flow was $48.0 million in the fiscal first quarter, bolstered by effective management of receivables and working capital. Additionally, total cash at the end of Q1 was $230.2 million, marking an increase of $33 million from the preceding quarter.

Looking forward, E2open reiterated its full-year fiscal 2026 guidance, which includes subscription revenue anticipated to fall between $525 million and $535 million, indicating a modest growth rate between negative 1.0% to positive 1.0%. Total revenue is projected to range from $600 million to $618 million, suggesting similar growth projections.

The company’s gross margin for fiscal 2026 is expected to be between 68% and 68.5%, and adjusted EBITDA is projected at $200 million to $210 million, resulting in an adjusted EBITDA margin forecast of 33% to 34%. E2open anticipates maintaining its adjusted operating cash flow percentage in alignment with the previous fiscal year, with a net leverage ratio projected to be around 3.8x by year-end.

Overall, E2open’s financial data reveals stabilization and slight growth across various metrics, though the company faces challenges in maintaining or improving margins as it aligns operational efficiencies with its recovery strategy.