📊 CMRC Key Takeaways
Is Commerce.com, Inc. (CMRC) a Good Investment?
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.
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.
Why Buy Commerce.com, Inc. Stock? CMRC 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
- Healthy current ratio of 1.98x and adequate cash position of 44.3M provide near-term liquidity buffer
- 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
- 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
- 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 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
- Operating margin and interest coverage
- Revenue growth and free cash flow margin
Commerce.com, Inc. (CMRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.9% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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.
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMRC's key strengths?
Claude: 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. 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: 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. 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 $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?
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 rating reflects both perspectives for balanced insights.
Is CMRC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Commerce.com, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CMRC stock overvalued or undervalued?
Valuation metrics for CMRC: ROE of -49.1% (sector avg: 22%), net margin of -5.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy CMRC stock in 2026?
Our dual AI analysis gives Commerce.com, Inc. a combined SELL rating 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 $25.5M, with capital expenditures of $8.6M. FCF margin is 4.9%.
How does CMRC compare to other Technology stocks?
Vs Technology sector averages: Net margin -5.6% (avg: 18%), ROE -49.1% (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 3.99x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.98 suggests adequate short-term liquidity.