Commerce.com Stock Surges 8% on Cost-Cutting Plan and $50 Million Buyback

Shares of Commerce.com, Inc. (NASDAQ:CMRC) jumped 8% on Thursday after the company unveiled a new strategic operating plan aimed at accelerating its path to profitability and enhancing free cash flow.

The Profitability Plan

Commerce.com announced a plan expected to generate $60 million to $80 million in annualized cost savings, which translates to between $0.73 and $0.97 on a per-diluted-share basis. The company stated these savings will primarily come from reductions in operating costs, including staffing, professional services, software, and infrastructure.

The Austin-based firm expects to realize approximately $3 million, or 4%, of these savings in the current fiscal year, with the full annualized benefit anticipated in 2027. As part of this strategic shift, Commerce.com is targeting a long-term non-GAAP operating margin of at least 20% beginning in 2027.

Updated Guidance and Restructuring Costs

Ad

Alongside the cost-cutting measures, Commerce.com updated its financial outlook for the full year 2026. The company reaffirmed its revenue forecast of $336.5 million to $344.5 million but raised its non-GAAP operating income guidance by $3 million to a new range of $31.0 million to $37.0 million.

To implement the plan, the company anticipates incurring one-time restructuring expenses. It projects charges of $4.2 million to $8.8 million in the third quarter and $4.3 million to $17.5 million in the fourth quarter of fiscal 2026. The majority of actions are scheduled for completion by the end of the fourth quarter, with the plan expected to be substantially complete by the second quarter of 2027.

Shareholder Returns

In a move signaling confidence in its financial future, the company's Board of Directors also authorized a new share repurchase program. The plan allows for the buyback of up to $50 million of its common stock over a two-year period, effective from September 10, 2026, through September 10, 2028. Such programs are often used to return capital to shareholders and can indicate that management believes the company's stock is undervalued.