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E2open Parent Holdings (ETWO)
NYSE:ETWO
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E2open Parent Holdings
(NYSE:ETWO)
54Neutral
Positive Factors
Client Interest
Greater uncertainty around US trade policy has driven an uptick in client interest in E2open’s Global Trade Management and Logistics applications according to management.
Strategic Acquisition
WiseTech is in talks to acquire E2open for up to approximately $2.2 billion USD.
Negative Factors
Leverage and Debt
E2open’s elevated leverage in a high-interest rate environment limits the company’s ability to pay down debt to meet its leverage targets.
Revenue Guidance
The midpoint of 4Q SaaS revenue guidance was below consensus and implies continued modest year-over-year declines.
Stock Performance
E2open's stock price dropped to an all-time low of $1.97 after a soft Q4 performance.
E2open Parent Holdings (ETWO) vs. S&P 500 (SPY)
Market Cap
$915.66M
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-4.50%
EPS Growth65.41%
CountryUS
Employees3,873
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.06
Shares Outstanding310,168,060
10 Day Avg. Volume1,461,087
30 Day Avg. Volume1,975,461
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.75
Price to Sales (P/S)0.00
P/FCF Ratio16.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.18Price Target Upside-19.56% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
E2open Parent Holdings Business Overview & Revenue Model
Company DescriptionE2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management SaaS platform in the Americas, Europe, and the Asia Pacific. The company's software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers. Its software combines networks, data, and applications to provide a platform that allows customers to optimize their supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management. It serves technology, consumer, industrial, transportation, and other industries. E2open Parent Holdings, Inc. was incorporated in 2020 and is headquartered in Austin, Texas.
How the Company Makes MoneyE2open makes money primarily through a subscription-based revenue model, where clients pay recurring fees to access their cloud-based software solutions. The company capitalizes on its extensive portfolio of applications by offering different subscription tiers that cater to various business sizes and needs. Additionally, E2open generates revenue from professional services, which include implementation, training, and consulting services to help clients effectively utilize their solutions. Key revenue streams also include strategic partnerships and alliances with major industry players, which enhance the platform's capabilities and expand its market reach, contributing significantly to the company's earnings.
E2open Parent Holdings Financial Statement Overview
Summary
E2open Parent Holdings faces significant profitability challenges, with ongoing net losses impacting income statement metrics. The balance sheet remains relatively stable, with moderate leverage and substantial equity financing. Cash flow generation is a positive highlight, although free cash flow growth remains a concern. Overall, financial health is below industry standards, driven by persistent losses and operational inefficiencies.Income Statement
The company has shown a decrease in revenue over the TTM period compared to the previous annual report. Gross profit margin remains moderate, but net profit margin is heavily negative due to substantial losses. EBIT and EBITDA margins are also negative, indicating operational challenges and high costs relative to revenue.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, reflecting manageable leverage. However, the return on equity is negative due to net losses, indicating profitability issues. The equity ratio is satisfactory, suggesting a decent proportion of assets financed by equity.55
Neutral
Cash Flow
The cash flow statement shows positive operating cash flow, but the free cash flow growth is negative, indicating potential cash flow constraints. The operating cash flow to net income ratio is positive, suggesting better cash generation than accounting profit.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 613.46M | 634.55M | 652.22M | 425.56M | 305.10M | 305.10M | Gross Profit |
| 283.49M | 317.69M | 330.28M | 202.59M | 184.04M | 184.04M | EBIT |
| -420.06M | -1.19B | -29.43M | -53.81M | -3.89M | -14.38M | EBITDA |
| -193.33M | 164.55M | 191.47M | 104.44M | -3.89M | 46.04M | Net Income Common Stockholders |
| -457.84M | -1.07B | -720.20M | -189.91M | -72.70M | -101.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 151.21M | 134.48M | 93.03M | 155.48M | 194.72M | 19.49M | Total Assets |
| 2.62B | 3.14B | 4.40B | 5.41B | 3.84B | 1.44B | Total Debt |
| 1.07B | 1.08B | 1.08B | 985.78M | 518.62M | 951.71M | Net Debt |
| 917.63M | 944.24M | 988.38M | 830.30M | 323.90M | 932.21M | Total Liabilities |
| 1.48B | 1.56B | 1.67B | 1.92B | 1.36B | 1.23B | Stockholders Equity |
| 1.09B | 1.48B | 2.50B | 3.19B | 2.08B | 214.59M |
| Cash Flow | Free Cash Flow | ||||
| 48.95M | 55.62M | 20.04M | 19.38M | -12.79M | -67.41M | Operating Cash Flow |
| 74.36M | 84.87M | 68.10M | 51.15M | -1.23M | -55.85M | Investing Cash Flow |
| -25.42M | -29.25M | -228.73M | -808.51M | -414.00M | -442.96M | Financing Cash Flow |
| -12.86M | -14.02M | 90.44M | 710.71M | 415.69M | 467.62M |
E2open Parent Holdings Technical Analysis
Positive
2.71
Price Trends
2.22
Positive
2.40
Positive
3.02
Negative
Market Momentum
0.17
Negative
64.04
Neutral
79.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETWO, the sentiment is Positive. The current price of 2.71 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.22, and below the 200-day MA of 3.02, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETWO.
E2open Parent Holdings Risk Analysis
E2open Parent Holdings disclosed 54 risk factors in its most recent earnings report. E2open Parent Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
E2open Parent Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $943.50M | 486.71 | 4.15% | ― | 30.64% | ― | |
71 Outperform | $1.16B | 77.02 | 6.26% | ― | 7.71% | ― | |
71 Outperform | $800.92M | ― | -9.00% | ― | 9.30% | 24.96% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% | |
59 Neutral | $862.30M | ― | 29.80% | ― | 7.97% | 74.22% | |
54 Neutral | $915.66M | ― | -56.65% | ― | -4.50% | 65.41% | |
51 Neutral | $943.61M | ― | -93.00% | ― | -0.40% | 63.36% |
* Technology Sector Average
Performance Comparison
ETWO
E2open Parent Holdings
2.71
-2.29
-45.80%
PRO
PROS Holdings
18.10
-13.38
-42.50%
DSP
Viant Technology
14.65
5.05
52.60%
BLND
Blend Labs
3.63
0.62
20.60%
VTEX
VTEX
6.37
-0.66
-9.39%
RSKD
Riskified
5.07
-0.97
-16.06%
E2open Parent Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2025)
| % Change Since: 29.05%|
Next Earnings Date:Jul 09, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted modest improvements in subscription revenue, client satisfaction, and retention, as well as strong cash flow and industry recognition. However, these positive aspects were offset by declines in overall revenue, significant net losses with goodwill impairments, and pressure on gross margins. The company is optimistic about its strategic direction and future growth potential, yet it acknowledges the challenges it faces in returning to positive growth.Q4-2025 Updates
Positive Updates
Subscription Revenue Improvement
Sequential growth in subscription revenue over the past three quarters, with Q4 year-over-year subscription growth rate, when adjusted for currency impacts, coming within a 0.5 percentage point of flat growth.
Client Satisfaction and Retention
Gross and net retention rates improved to 91% and 99%, respectively, representing about a 1 percentage point improvement in each compared to the end of FY 2024.
Industry Recognition
E2open was ranked a leader in 11 of the 16 industry quadrants across major functional areas and recognized by IDC and Gartner for leadership in supply chain planning and transformation management.
Cash Flow and Balance Sheet Strength
Ended the fiscal year with a cash balance of $197.4 million, an increase of $63 million year-over-year, highlighting robust cash generation capability.
Technological Advancements
Launched new AI tools across the Global Trade Technology suite to unlock higher productivity, shorter cycle times, and greater compliance assurance.
Negative Updates
Decline in Overall Revenue
Total revenue for the fiscal fourth quarter was $152.7 million, reflecting a decline of 3.6% over the prior year quarter. For full fiscal year 2025, total revenue was $607.7 million, reflecting a growth rate of negative 4.2% over the prior year.
Professional Services Revenue Decline
Professional Services and Other revenue in the fiscal fourth quarter was $19.7 million, a year-over-year decline of 18.3%. For full fiscal year 2025, Professional Services revenue was $79.7 million, a decline of 18.4%.
Net Loss and Goodwill Impairment
Net loss for the fiscal fourth quarter of 2025 was $268.5 million, including a non-cash goodwill impairment charge of $245 million. For the full fiscal 2025, net loss was $725.8 million, including a non-cash goodwill impairment charge of $614.1 million.
Gross Margin Pressure
Non-GAAP gross margin for full fiscal year 2025 was 68.5%, compared to 69.4% in the prior year, driven by lower subscription and PS revenue and investments in client satisfaction.
Company Guidance
During the E2open Fourth Quarter Fiscal Year 2025 Earnings Call, the company provided guidance for fiscal year 2026, projecting subscription revenue to range between $525 million and $535 million, indicating growth of -1.0% to 1.0% year-over-year. The first quarter of FY 2026 is expected to see subscription revenue between $129 million and $132 million, marking a -1.8% decline to a 0.5% increase compared to the previous year. Total FY 2026 revenue is forecasted to be between $600 million and $618 million, with total gross profit margins anticipated at 68% to 68.5%. Adjusted EBITDA for FY 2026 is projected to be in the range of $200 million to $210 million, reflecting a margin of 33% to 34%, with the expectation of a net leverage ratio declining to approximately 3.8 times by the end of FY 2026. The company emphasized continued focus on improving client retention, sales execution, and targeted investments in product development and commercial efforts to drive growth.E2open Parent Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
E2open Parent Holdings Announces Key Leadership Changes
Positive
Dec 20, 2024
E2open has announced significant leadership changes with the promotion of Pawan Joshi to Chief Strategy Officer and the appointment of Rachit Lohani as Chief Product and Technology Officer. These strategic roles aim to drive corporate growth, enhance client engagement, and foster innovation in E2open’s supply chain solutions. Joshi’s vast experience and leadership will help deepen the market understanding of E2open’s capabilities, while Lohani’s technical expertise will guide the evolution of the company’s SaaS platform to support client-centric growth and innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.