How has the initial traction for BigCommerce Payments been, and is it improving pipeline or competitive positioning, especially with smaller customers?

Payments traction has exceeded expectations, running 30% ahead of internal GMV targets. It's seeing good adoption from new and existing accounts, including some larger ones. The overall pipeline is healthy and concentrated in investment areas like B2B, payments, Surface, and product intelligence. While monetization speed is still uncertain, the underlying platform growth is strong, and payments are key to closing the monetization gap. “payments specifically, that has exceeded our expectations, quite frankly. Excited about that. I think we've been pretty deliberate about sort of a crawl, walk, run approach there that we've been transparent about since we launched it at the end of Q1.”

Is the cautious bookings commentary a push-out of deals rather than lost deals? Have win rates changed, and is there any correlation with the recent pricing tweak?

Win rates have not materially changed, and in some segments, they have ticked up. The softness in B2C replatforming is more about longer evaluation cycles and push-outs, not lost deals. The pricing tweak, effective June 1st, had no material impact on pipeline or conversion, as it primarily affected small business plans and not the majority of ARR under negotiated agreements. “As far as win rates, close rates, no. I would say it's actually ticked up in some segments, but no. There's been nothing material there.”

How does Feedonomics differentiate from Shopify's catalog initiatives, and what are the growth rate and size of the Feedonomics business?

Feedonomics primarily serves larger brand manufacturers and retailers, focusing on data and merchant sovereignty, operating as an agnostic product intelligence layer independent of architecture. This allows merchants flexibility across various protocols and services. Feedonomics represents roughly 20% of the company's ARR and is growing faster than the overall business, driven by demand for product enrichment and intelligence. “The primary install base for feedonomics are, again, I think we're working with 30% of the So, a lot of large brand manufacturers and retailers globally.”

CMRC

Commerce.com (CMRC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 6, 2026

Source: earnings call transcript

Executive summary

Commerce.com Q2 FY26 — Strategic Investments and AI-Driven Shift Amidst B2C Softness

Commerce.com delivered a quarter of steady execution, marked by strong GMV growth and improved profitability, while strategically shifting investments towards product intelligence and AI. The company made deliberate decisions to concentrate its partner ecosystem and increase R&D in AI, impacting near-term revenue guidance due to B2C replatforming softness and a cautious outlook on new account bookings. Despite these trade-offs, management remains confident in the long-term quality and monetization potential of the business, particularly in B2B and payments.

Highlights

Revenue of $84.5 million was within the guidance range.
Non-GAAP operating income reached $8.1 million, exceeding the high end of guidance ($4M-$5M).
GMV grew 14% year-over-year to nearly $8.8 billion.
Net revenue retention improved sequentially for the third consecutive quarter to 95.8%.
The company delivered positive GAAP net income for the second consecutive quarter.
Cash and investments balance stood at $157 million, reflecting a $22 million year-over-year increase in net cash position.
B2B GMV demonstrated strong growth, increasing 17% year-over-year.

Concerns

Full-year 2026 revenue guidance was revised down by $18 million at the midpoint.
Full-year 2026 non-GAAP operating income guidance was reduced by $12.5 million at the midpoint.
B2C replatforming activity remains softer than historically seen, leading to a more cautious view on new account bookings.
Non-GAAP gross margin declined sequentially from 77.4% to 75.7% due to higher hosting costs from AI crawlers.
Strategic decisions, including partner ecosystem concentration, reduce certain near-term revenue opportunities.
The broader software spending environment remains measured, with scrutinized sales cycles.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$82.5 million to $85.5 million high materiality	Q3 FY26	High
Non-GAAP operating income	$3.3 million to $5.3 million high materiality	Q3 FY26	High
Revenue	$336.5 million to $344.5 million high materiality	Full Year FY26	High
Non-GAAP operating income	$28 million to $34 million high materiality	Full Year FY26	High
GAAP profitability	On track to deliver GAAP profitability medium materiality	Full Year FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
B2B B2B GMV growth was particularly strong, increasing 17% year-over-year. This segment shows better pipeline growth, GMV growth, win rates, and gross retention rates. However, it has fewer credit card transactions, impacting partner revenue share. GMV growth: 17% YoYPipeline growth: Faster rateWin rates: HigherGross retention rates: Higher	—	17%	—	—

Orderbook & backlog

Remaining performance obligations Up 11% Q2 FY26

YoY

Important forward-looking indicator of contracted customer commitments.

Deferred revenue Up 25% Q2 FY26

YoY

Important forward-looking indicator of contracted customer commitments and booking quality/duration.

Product announcements

Product	Type	Timeline
New data enrichment offerings	launch	Q3 FY26
B2C brand agent and conversational search	launch	Early Q4 FY26
MakeSwift	launch	Year-end FY26
BigCommerce Payments	expansion	Later this year (FY26)

Deals & partnerships

Accenture Strategic partnership focused on product intelligence

Secured a product intelligence win with one of the world's largest branded footwear and apparel manufacturers. The partnership is expected to expand with the company's product intelligence and agentic suite.

WP Engine Strategic distribution partnership

Enables high-growth brands to add BigCommerce's commerce capabilities while preserving their existing WordPress content, SEO, and customer experiences, leveraging an open architecture approach.

Capital programs

2026 Product Investment underway

Period spend: $5 million

Capital expenditures stepped up to $5 million in Q2 FY26 from $1.7 million a year ago to fund product investments.

Risks & headwinds

B2C replatforming activity softness Current

Softer than historically seen

Mitigation:Concentrating investments in areas of differentiation like product intelligence and B2B, while adapting to longer decision cycles.

AI delaying monetization and technology evaluations Near-term

Delaying monetization across portions of the industry

Mitigation:Focusing on product intelligence as foundational infrastructure for AI-driven discovery and agentic commerce, making deliberate investment decisions.

Distributed product discovery Ongoing

Product discovery becoming increasingly distributed across marketplaces, retail media, AI search, shopping agents

Mitigation:Organizing around three complementary layers (E-Dynomics, MakeSwift, BigCommerce) with an open architecture to adapt to expanding digital touchpoints.

Partner ecosystem concentration impact on near-term revenue Near-term

Forego some partner revenue

Mitigation:Deliberate management decision to focus on a smaller number of deeper, healthier technology partner relationships for more durable aligned economics and long-term quality of revenue.

Cautious view of second-half new account bookings H2 FY26

Reflecting continued softness and B2C replatforming activity and a broader software spending environment that remains measured

Mitigation:Updated outlook is prudent, providing a foundation to execute. Investments are targeted at specific parts of the roadmap (B2B, payments, AI, MakeSwift, Feedonomics Surface) to drive attach rates, retention, and monetization.

Higher hosting costs from AI crawlers Q2 FY26

Non-GAAP gross margin came down sequentially from 77.4% in Q1 to 75.7% in Q2

Mitigation:Keeping access open for AI traffic is viewed as a right long-term decision, particularly given operational efficiencies generated elsewhere in the business, allowing absorption of incremental costs.

GMV mix weighted towards B2B Ongoing

Card-based payment volume represents a smaller portion of transactions and generates less partner revenue share

Mitigation:Platform activity is growing faster than revenue; narrowing that gap through payments, monetization, product cross-sell, and higher attach rates remains a top priority.

What to watch in Q3 FY26

B2C replatforming activity

Next quarter (Q3 FY26)

Current Softer than historically seen, longer cycles

Target Improvement in aggression/speed of decisions

Why it matters

Indicates broader market demand for core platform services and impacts new account bookings.

We've seen some softness in B2C replatforming for a while for us. And we're seeing longer, a bit longer cycles there with evidence that, again, evaluations are taking a little bit longer.

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Q&A highlights

What is driving the current softness in B2C replatforming, and how is AI influencing this trend, causing longer decision cycles?

The softness is primarily due to longer decision cycles, with AI being a leading factor. Merchants are taking more time to evaluate how AI will impact their technology decisions, focusing on discoverability and agentic products, which sometimes delays replatforming rather than canceling it. The upcoming holiday season also contributes to prudence in the outlook.

“I think AI most notably, what we're seeing in increased demand and some of the adjacent demand, agentically oriented products, I think is a leading factor to what's making maybe folks deliberate a little bit longer in some of the replatforming.”

asked by Scott Berg · answered by Daniel Lentz

2 min read 6 chapters

Detailed narrative

Strategic Shift to Product Intelligence and AI

Commerce is undergoing a significant structural shift, with B2C replatforming activity softening and AI influencing merchant technology evaluations. The company is concentrating investments in areas of differentiation, particularly product intelligence, which is becoming foundational infrastructure for modern, distributed commerce. Feedonomics, processing over 1 trillion product listings monthly, is central to this strategy, providing insights into product data optimization across the global ecosystem.

Three Complementary Layers of Commerce

The company has organized its offerings into three layers: E-Dynomics for product intelligence, MakeSwift for experience management, and BigCommerce for transaction processing. This open architecture allows merchants flexibility to adopt specific capabilities without replacing existing systems, adapting to an increasingly distributed commerce ecosystem. This framework guides capital allocation and engineering resources towards areas with the strongest right to win.

Key Investment Priorities and Product Roadmap

Commerce is prioritizing investments in AI and agentic commerce, expanding merchant distribution across AI assistants and payment ecosystems, and growing adoption of Commerce Companion. Upcoming launches include new data enrichment offerings in Q3 and the B2C brand agent and conversational search in early Q4.

Other key areas are Feedonomics Surface for SMB/mid-market, MakeSwift's year-end freemium launch, BigCommerce Payments expansion (including a UK launch), and continued investment in B2B capabilities, where the company holds a competitive advantage.

Partnerships and Global Customer Growth

Strategic partnerships are building momentum, including a product intelligence win with a major footwear and apparel manufacturer through Accenture. A new distribution partnership with WP Engine enables high-growth brands to integrate BigCommerce capabilities with existing WordPress content. The platform continues to attract global customers across B2B and consumer segments, demonstrating its breadth and the value of its flexibility, openness, and product intelligence capabilities.

Updated Pricing and Financial Discipline

The updated pricing and packaging strategy, effective June 1st, is designed to deepen alignment with embedded payment partners and improve long-term economics, rather than being a broad price increase. This change has not impacted pipeline or conversion. The company maintains operational strength, identifying efficiencies to redirect savings towards strategic investments, absorbing incremental costs associated with AI-driven discovery while preserving long-term financial objectives.

B2B Strength and Monetization Gap

B2B continues to be a significant area of strength, with 17% GMV growth year-over-year, higher win rates, and gross retention. The platform's capabilities are well-suited for complex B2B requirements. However, the B2B mix, with fewer card-based transactions, creates a monetization gap where platform activity grows faster than revenue.

The company is actively working to close this gap through payment strategies and product cross-sell, acknowledging that B2B monetization will always differ from B2C.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.