E2open Parent Holdings, Inc., a provider of supply chain management software, reported its fiscal third quarter 2025 results, which ended on November 30, 2024. The company is currently experiencing a stabilization phase following prior periods of decline, especially in subscription revenue.

For the third quarter, E2open’s subscription revenue amounted to $132.0 million, which represents a year-over-year decline of 0.6%. This is an improvement from the previous quarter, where subscription revenue declined at a more significant rate. The total revenue for the quarter was recorded at $151.7 million, a decrease of 3.7% from the same period last year.

The company’s non-GAAP gross profit for the third quarter was $104.3 million, down 4.9% year-over-year, and the non-GAAP gross margin was 68.8%, compared to 69.6% for the prior year. E2open reported an adjusted EBITDA of $53.6 million, resulting in a margin of 35.3%. This was a small decrease from the adjusted EBITDA of $55.4 million and a margin of 35.1% in the year-ago quarter.

Despite a net loss of $381.6 million for the period—attributed partly to a non-cash goodwill impairment charge of $369.1 million—the company remains focused on improving its operational efficiencies. Year-to-date adjusted operating cash flow was reported at $54.7 million, with a cash balance of $151.2 million at the end of the quarter, up $40.9 million year-over-year.

For Q4 fiscal 2025, E2open has provided guidance for subscription revenue in the range of $131 million to $134 million, indicating a decline between 2.5% to 0.3% year-over-year. The full-year guidance for total subscription revenue is set between $526 million to $529 million, projecting a decline of 2.0% to 1.5% compared to the prior year. Total revenue guidance for the fiscal year is adjusted to a range of $607 million to $611 million, reflecting a decline of approximately 4.3% to 3.7%.

The revisions in guidance take into account the impact of U.S. dollar strengthening, which the company estimates at around $800,000 for Q4. E2open expects its non-GAAP gross profit margin to remain within the range of 68% to 70% for the fiscal year and anticipates adjusted EBITDA near the lower end of the range provided earlier, around $215 million to $225 million, with a projected EBITDA margin of approximately 35%.