Bigcommerce Q2 Earnings Call Highlights

Bigcommerce (NASDAQ:BIGC), which operates under the Commerce brand, reported second-quarter 2026 revenue of $84.5 million and non-GAAP operating income of $8.1 million, exceeding its prior operating-income guidance range of $4 million to $5 million. The company also revised its full-year outlook lower, citing a more concentrated partner strategy, targeted product investment and continued softness in B2C replatforming activity.

Chief Executive Officer Travis Hess said the company generated positive GAAP net income for the second consecutive quarter and improved net revenue retention for a third straight quarter. Net revenue retention reached 95.8%, up from 95.4% in the first quarter, while gross merchandise value rose 14% year over year to $8.8 billion.

Profitability and cash generation improve

Subscription solutions revenue totaled $63.1 million in the second quarter, while partner and services revenue was $21.4 million. Non-GAAP operating margin was 9.6%, an improvement of nearly 400 basis points from a year earlier.

Chief Financial Officer and Chief Operating Officer Daniel Lentz said annual recurring revenue ended the quarter at $360.5 million, compared with $359.8 million in the prior quarter. The company ended June with more than $157 million in cash equivalents, restricted cash and marketable securities. Its net cash position increased by nearly $22 million from a year earlier, according to Lentz.

For the first half of 2026, Commerce generated operating cash flow of $23.5 million and free cash flow of $14.1 million, compared with $14 million and $9 million, respectively, in the prior-year period. Second-quarter operating cash flow was $5.1 million and free cash flow was $0.1 million, as capital expenditures rose to $5 million from $1.7 million a year earlier to support product investment.

The company said it remains on track to achieve GAAP profitability for the full year.

Company shifts focus toward product intelligence and AI

Hess described a changing commerce environment in which product discovery is increasingly spread across marketplaces, retail media networks, AI search, shopping agents and other channels rather than occurring only through a merchant’s website.

Commerce is organizing its strategy around three “control planes”: Feedonomics for product intelligence, Makeswift for digital experiences and BigCommerce for transactions and operational workflows. Feedonomics processes and transforms more than one trillion product listings each month, Hess said.

The company plans to introduce data-enrichment offerings across Feedonomics and BigCommerce in the third quarter, intended to improve and measure product discovery across conventional and AI-driven channels. In early fourth quarter, it expects to launch a B2C brand agent and conversational search capabilities for BigCommerce.

Hess said Commerce is also preparing a year-end freemium launch of Makeswift within BigCommerce. Feedonomics Surface, a self-service product-intelligence offering for small and mid-market merchants, continued to see adoption and stronger GMV growth among its users, he said.

Commerce has also expanded BigCommerce Payments following its U.S. launch earlier this year. Lentz said payment GMV has been running more than 30% ahead of internal plans, while adoption has included both new customers and existing accounts. The company expects to launch the offering in the U.K. later this year.

B2B strength contrasts with slower B2C replatforming

B2B GMV increased 17% year over year, ahead of the platform-wide 14% GMV growth rate. Management said B2B pipeline, win rates and gross retention were stronger than those of the broader business.

However, the company noted that B2B transaction volumes tend to include fewer card-based payments, resulting in less partner revenue share than B2C activity. Lentz said closing the gap between GMV growth and revenue growth through payments, cross-selling and improved product attach rates remains a priority.

Management said B2C replatforming demand has remained subdued, with customer decision cycles taking longer as merchants consider AI’s effect on their technology choices. Hess told analysts that the company has not observed a material change in win rates or losses, characterizing the trend as more of a delay in decision-making than a broad loss of opportunities.

The company said its June pricing and packaging changes were not a broad price increase and have not affected pipeline activity or conversion rates. Lentz said the changes primarily affected smaller business plans and the company’s payments approach, while negotiated agreements representing most of its ARR were not affected.

Outlook lowered on partner decisions and investment

Commerce updated its full-year 2026 outlook to revenue of $336.5 million to $344.5 million and non-GAAP operating income of $28 million to $34 million. At the midpoint, the revenue forecast is $18 million below the company’s previous outlook, while the non-GAAP operating-income midpoint is lower by $12.5 million.

For the third quarter, the company forecast revenue of $82.5 million to $85.5 million and non-GAAP operating income of $3.3 million to $5.3 million.

Lentz said the revised outlook reflects an approximately even contribution from two factors:

• A decision to reduce exposure to portions of the partner ecosystem in favor of a smaller set of deeper strategic relationships.
• A more cautious outlook for new account bookings during the second half, particularly in B2C replatforming.

The reduced operating-income outlook also incorporates higher research-and-development spending and increased infrastructure costs related to AI-driven discovery. Non-GAAP gross margin declined sequentially to 75.7% from 77.4% in the first quarter, largely because of higher hosting costs from AI crawlers and agents accessing merchant storefronts.

Hess said the company intends to keep merchant storefronts broadly accessible to AI agents despite the added near-term costs, arguing that the traffic reflects growing demand from AI-based discovery surfaces. Commerce said it is redirecting operating efficiencies toward product intelligence, payments, B2B, Makeswift and AI-related capabilities as it seeks to improve long-term monetization.

About Bigcommerce (NASDAQ:BIGC)

BigCommerce Holdings, Inc (NASDAQ: BIGC) is a software-as-a-service (SaaS) company that provides a cloud-based e-commerce platform designed to help merchants create, manage and scale online stores. Its platform offers a suite of tools including storefront design and customization, shopping cart functionality, payment gateway integrations, order management, shipping and tax solutions, and security features. The open architecture of its API-driven platform enables businesses to connect with a wide range of third-party applications, marketplaces and digital channels.

The company was founded in 2009 by Eddie Machaalani and Mitchell Harper and is headquartered in Austin, Texas, with additional offices in San Francisco and Sydney.

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