📊 CMRC Key Takeaways
Is Commerce.com, Inc. (CMRC) a Good Investment?
Commerce.com operates a fundamentally sound software business with exceptional 76.7% gross margins and strong free cash flow generation (16.2% FCF margin), but is severely constrained by excessive leverage (3.34x D/E) and weak interest coverage (2.3x) that limits financial flexibility. Stagnant net income growth and modest revenue growth of 2.8% YoY indicate a mature business without meaningful expansion drivers, while poor returns on capital (8.0% ROE, 1.2% ROA) suggest capital is being deployed inefficiently.
Commerce.com shows a high-margin software model with positive operating cash flow and free cash flow, but weak revenue growth and continued operating and net losses point to limited earnings quality. Financial risk is elevated by high leverage, thin equity, and negative interest coverage, which leave little room for operational missteps despite adequate near-term liquidity.
Commerce.com, Inc. Key Strengths (CMRC)
- Exceptional gross margin of 76.7% demonstrates strong product differentiation and pricing power in software market
- Robust free cash flow generation of $14.1M with 16.2% FCF margin indicates efficient conversion of revenue to cash
- Adequate liquidity position with current ratio of 1.98x and $57.2M cash provides near-term debt service capacity
- High gross margin of 78.7% indicates strong software economics
- Positive operating cash flow of $25.49M and free cash flow of $16.89M support near-term flexibility
- Current and quick ratios of 1.98x suggest solid short-term liquidity
CMRC Stock Risks: Commerce.com, Inc. Investment Risks
- Excessive financial leverage with 3.34x debt-to-equity ratio ($156.8M debt vs $46.9M equity) creates structural vulnerability
- Critically weak interest coverage of 2.3x leaves minimal margin for operational deterioration or market disruption
- Stagnant net income (0% YoY growth) despite 2.8% revenue growth indicates margin compression and operational challenges
- Anemic returns on capital (8.0% ROE, 1.2% ROA) signal inefficient capital deployment and value destruction
- Operating margin of -4.7% and net margin of -5.6% show the business is still unprofitable
- Debt-to-equity of 3.99x and long-term debt of $157.05M create substantial balance-sheet risk
- Revenue growth of only 2.8% raises concern about growth durability and scaling leverage
Key Metrics to Watch
- Operating margin expansion and net income growth trajectory relative to revenue
- Debt reduction progress and debt-to-equity ratio improvement toward sustainable 2.0x level
- Interest coverage ratio recovery and free cash flow allocation toward deleveraging vs dividends
- Operating margin and interest coverage
- Revenue growth and free cash flow margin
Commerce.com, Inc. (CMRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Commerce.com, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CMRC Profit Margin, ROE & Profitability Analysis
CMRC vs Technology Sector: How Commerce.com, Inc. Compares
How Commerce.com, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Commerce.com, Inc. Stock Overvalued? CMRC Valuation Analysis 2026
Based on fundamental analysis, Commerce.com, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Commerce.com, Inc. Balance Sheet: CMRC Debt, Cash & Liquidity
CMRC Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CMRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $82.4M | -$353.0K | $0.00 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Commerce.com, Inc. Dividends, Buybacks & Capital Allocation
CMRC SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of C from Claude (B) and ChatGPT (C) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMRC's key strengths?
Claude: Exceptional gross margin of 76.7% demonstrates strong product differentiation and pricing power in software market. Robust free cash flow generation of $14.1M with 16.2% FCF margin indicates efficient conversion of revenue to cash. ChatGPT: High gross margin of 78.7% indicates strong software economics. Positive operating cash flow of $25.49M and free cash flow of $16.89M support near-term flexibility.
What are the risks of investing in CMRC?
Claude: Excessive financial leverage with 3.34x debt-to-equity ratio ($156.8M debt vs $46.9M equity) creates structural vulnerability. Critically weak interest coverage of 2.3x leaves minimal margin for operational deterioration or market disruption. ChatGPT: Operating margin of -4.7% and net margin of -5.6% show the business is still unprofitable. Debt-to-equity of 3.99x and long-term debt of $157.05M create substantial balance-sheet risk.
What is CMRC's revenue and growth?
Commerce.com, Inc. reported revenue of $86.8M.
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 $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CMRC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Commerce.com, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CMRC stock overvalued or undervalued?
Valuation metrics for CMRC: ROE of 8.0% (sector avg: 22%), net margin of 4.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CMRC's AI grade for 2026?
Our dual AI analysis gives Commerce.com, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CMRC's free cash flow?
Commerce.com, Inc.'s operating cash flow is $18.4M, with capital expenditures of $4.3M. FCF margin is 16.2%.
How does CMRC compare to other Technology stocks?
Vs Technology sector averages: Net margin 4.3% (avg: 18%), ROE 8.0% (avg: 22%), current ratio 1.98 (avg: 2.5).
Is Commerce.com, Inc. carrying too much debt?
CMRC has a debt-to-equity ratio of 3.34x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.98 suggests adequate short-term liquidity.