Commerce.com Q3 2026: Revenue Dips 2% as AI Shopping Push Grows

Commerce.com, the company behind the BigCommerce ecommerce platform and the Feedonomics product-feed service, reported a 2.1% fall in third-quarter 2026 revenue to $84.2 million on November 5, 2026. Merchants on its platforms sold more, with gross merchandise volume up 14% to $9.0 billion, but that has not yet turned into revenue growth. The company is cutting costs and betting that AI shopping agents will make its product-data tools more valuable.

What did Commerce.com report?

For the quarter ended September 30, 2026, Commerce.com reported:

• Revenue: $84.2 million, down 2.1% year over year.
• Subscription revenue: $64.7 million, up 0.1%.
• Annual revenue run-rate (ARR): $357.6 million, up 0.5%.
• Gross merchandise volume (GMV): $9.0 billion, up 14%.
• Net revenue retention: 94.7%, compared with 95.8% in the second quarter and 94.5% a year earlier.
• Gross margin: 74% on a GAAP basis, down from 78%.
• Operating result: a GAAP operating loss of $1.8 million, including $4.0 million of restructuring charges, and non-GAAP operating income of $8.0 million, a 9.5% margin.
• Net result: a GAAP net loss of $3.2 million and non-GAAP net income of $6.6 million, or $0.08 per share.
• Adjusted EBITDA: $9.9 million, up from $8.8 million.
• Free cash flow: $5.7 million, down from $7.6 million.

By region, US revenue fell 3%, EMEA rose 7% and Asia-Pacific fell 9%. The company ended the quarter with $162.8 million in cash and marketable securities, against about $156.3 million of convertible notes.

Why is revenue falling when merchant sales are rising?

GMV measures what merchants sell; revenue is what Commerce.com earns, mostly from subscriptions. A net revenue retention rate below 100% means existing customers, as a group, are paying slightly less than a year ago, through downgrades or departures. That outweighed the growth in merchant sales.

What is the agentic commerce strategy?

Commerce.com says its AI work is built around making product data ready for AI shopping assistants and agents:

• Feedonomics Enrichment and BigCommerce Catalog Enrichment turn merchants’ catalogs into AI-ready product data. The company calls these the cornerstone of its agentic commerce offering.
• A Cloudflare partnership lets AI agents shop BigCommerce stores from a customer’s browser. It is switched on by default for eligible merchants.
• Feedonomics merchants got early access to Amazon’s Shop Direct programme. The Agile Brand Guide reported that Feedonomics was listed in Amazon’s Shop Direct Merchant Workspace, which we covered in our Amazon Shop Direct story.
• Makeswift powered a headless storefront for UK retailer Simply Thank You.

BigCommerce was also named a Challenger in Gartner’s 2026 Magic Quadrant for Digital Commerce Platforms, its seventh year in the report.

Chief executive Travis Hess said the quarter showed “another period of disciplined execution,” with the company’s operating plan improving efficiency while protecting growth investments.

What is the outlook?

Commerce.com guided to:

• Q4 2026 revenue: $83.4 million to $86.4 million, with non-GAAP operating income of $6.8 million to $8.8 million.
• Full-year 2026 revenue: $339.0 million to $342.0 million, with non-GAAP operating income of $35.3 million to $37.3 million.
• From 2027: a target of at least a 20% full-year non-GAAP operating margin, supported by an estimated $60 million to $80 million a year in cost reductions.

Who is leaving?

Chief financial officer and chief operating officer Daniel Lentz will leave on November 13, 2026. Tyler Duncan, senior vice president of finance and investor relations, becomes interim CFO, and other leaders will take on the COO duties while the board searches for permanent replacements.

Why it matters

Commerce.com is a test of whether mid-sized ecommerce platforms can compete as AI reshapes online shopping. Larger rival Shopify grew revenue 32% in the same quarter, partly on the back of traffic from AI assistants. Commerce.com’s bet is that clean, structured product data will become essential as shoppers increasingly let AI agents search and buy for them, and that its Feedonomics business is well placed to supply it.

What happens next

The company reports fourth-quarter results in early 2027. Investors will watch whether net revenue retention climbs back towards 100%, whether the cost plan delivers the promised margin improvement, and who is appointed as permanent CFO and COO.