Will Improved Q1 Results and 2026 Guidance Change E2open’s (ETWO) Narrative?

Simply Wall St
  • E2open Parent Holdings, Inc. recently reported its first quarter 2025 results, showing revenue of US$152.61 million and a significant reduction in net loss to US$14.13 million compared to the prior year.
  • Alongside improved financial performance, the company affirmed its full-year 2026 revenue guidance, providing stakeholders with greater visibility and confidence in its operational outlook.
  • We'll explore how the company's continuation of annual guidance, despite current subscription revenue challenges, impacts its longer-term investment narrative.

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E2open Parent Holdings Investment Narrative Recap

To be a shareholder in E2open Parent Holdings, I need to believe in the company’s ability to stabilize and grow its subscription revenue, while improving operational efficiency and controlling costs. The recent earnings report showed a modest revenue increase and a sizeable reduction in net loss, but subscription revenue growth remains challenged, so the most important short-term catalyst, consistent improvement in core recurring revenue, was not materially changed by the news. The biggest risk remains ongoing difficulty growing subscription revenues amid past issues with churn.

The reaffirmed full-year 2026 guidance stands out as the most relevant recent announcement. By maintaining its revenue targets despite flat subscription revenue growth, E2open offers a degree of predictability for investors who look for clear signals about management’s confidence and operational execution. This consistency will be closely watched as it relates to the company’s progress toward long-term growth targets.

Yet, while guidance is steady, investors should be aware that challenges with subscription revenue growth could still...

Read the full narrative on E2open Parent Holdings (it's free!)

E2open Parent Holdings' outlook anticipates $634.5 million in revenue and $76.4 million in earnings by 2028. This projection is based on a 1.1% annual revenue growth rate and an earnings increase of about $534 million from the current earnings of -$457.8 million.

Uncover how E2open Parent Holdings' forecasts yield a $2.84 fair value, a 13% downside to its current price.

Exploring Other Perspectives

ETWO Earnings & Revenue Growth as at Jul 2025

Simply Wall St Community estimates put E2open’s fair value between US$2.84 and US$4.36, based on two distinct investor models. Against a cautious backdrop for subscription revenue growth, these differing viewpoints show how diverging expectations can shape your broader opinion of the company’s outlook.

Explore 2 other fair value estimates on E2open Parent Holdings - why the stock might be worth 13% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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