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1. Company Snapshot

1.a. Company Description

E2open Parent Holdings, Inc.provides cloud-based and end-to-end supply chain management SaaS platform in the Americas, Europe, and the Asia Pacific.The company's software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers.


Its software combines networks, data, and applications to provide a platform that allows customers to optimize their supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management.It serves technology, consumer, industrial, transportation, and other industries.E2open Parent Holdings, Inc.


was incorporated in 2020 and is headquartered in Austin, Texas.

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1.b. Last Insights on ETWO

E2open Parent Holdings' recent performance was driven by strong Q4 earnings, with revenue of $151.7 million, down 3.6% year-over-year, but subscription revenue holding strong at 87% of total revenue. Adjusted EBITDA rose 2.3% to $56.3 million, and operating cash flow increased 16.7% to $99.1 million, showcasing positive financial trends. The company's strategic review process concluded with a definitive agreement to be acquired by WiseTech Global Limited for $2.1 billion, marking a significant development in the company's future.

1.c. Company Highlights

2. E2open Delivers Steady Q1 Performance Amid Pending Acquisition

E2open reported its Q1 FY2026 earnings, showcasing a modest but positive financial performance. Subscription revenue grew 1.1% year-over-year to $132.9 million, marking the first annual increase since mid-FY2024. Total revenue followed suit, rising 1% to $152.6 million. The company also demonstrated improved profitability, with gross profit reaching $102.4 million, representing a 67.1% margin. Adjusted EBITDA came in at $52.2 million, with a strong 34.2% margin. Notably, the net loss narrowed significantly to $15.5 million from $42.8 million in the same period last year, reflecting cost optimization efforts. The company ended the quarter with a healthy cash balance of $230.2 million, underscoring its strong cash flow generation.

Publication Date: Jul -13

📋 Highlights
  • Subscription Revenue Growth: Subscription revenue rose 1.1% YoY to $132.9M, marking the first year-over-year growth since mid-FY2024.

Management Highlights: Customer Focus and Acquisition Synergies

CEO Andrew Appel emphasized the company's focus on customer satisfaction and retention, which has been a key driver of its recent performance. As Appel noted, "We've enhanced our products and launched new solutions, driving strong demand." This strategic focus has not only stabilized the business but also positioned it for growth ahead of the pending acquisition by WiseTech Global. The deal, expected to close by year-end, is expected to complement E2open's supply chain capabilities with WiseTech's logistics expertise, creating a more comprehensive offering for customers.

Pending Acquisition and Full-Year Outlook

Despite the pending acquisition, E2open maintained its full-year FY2026 guidance, reflecting confidence in its current trajectory. The company expects subscription revenue of $525 million to $535 million and total revenue of $600 million to $618 million for the fiscal year. Gross margin is projected to remain stable at 68% to 68.5%, while adjusted EBITDA is expected to range between $200 million and $210 million. Cash flow is also anticipated to remain in line with FY2025 levels, further bolstering the company's financial health.

Valuation and Analyst Expectations

From a valuation standpoint, E2open's current metrics suggest a mixed picture. The company's price-to-sales (P/S) ratio of 1.67 indicates a reasonable valuation given its growth prospects, while the EV/EBITDA ratio of -4.31 reflects the challenges posed by the net loss. The free cash flow yield of 7.73% stands out as a positive signal, highlighting the company's ability to generate cash. Analysts have set modest expectations for the next fiscal year, with revenue growth projected at 0.2%. The actual EPS of $0.05, slightly above estimates of $0.04, suggests E2open is executing well despite macroeconomic uncertainties.

3. NewsRoom

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E2open Kicks Off Connect 2025 Global Supply Chain Summit

Oct -15

Source: businesswire.com

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E2open Parent Holdings, Inc. (ETWO) Q1 Earnings and Revenues Beat Estimates

Jul -10

Source: zacks.com

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E2open Parent Holdings, Inc. (ETWO) Q1 2026 Earnings Call Transcript

Jul -10

Source: seekingalpha.com

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Top Wall Street Forecasters Revamp E2open Expectations Ahead Of Q1 Earnings

Jul -03

Source: benzinga.com

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Shareholder Alert: The Ademi Firm Investigates Whether E2open Is Obtaining a Fair Price for Its Public Shareholders

May -27

Source: businesswire.com

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Johnson Fistel Investigates Fairness of Proposed Sale of E2open

May -27

Source: businesswire.com

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WiseTech Accelerates Strategy With $2.1 Billion Move for e2open

May -26

Source: wsj.com

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Australia's WiseTech to takeover US cloud firm E2open for $2.1 billion

May -25

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Subscriptions

Expected Growth: 4%

E2open's subscription growth is driven by increasing adoption of cloud-based supply chain management solutions, expansion into new industries, and strategic acquisitions. The company's platform provides real-time visibility, enabling customers to optimize their supply chains and improve operational efficiency. Additionally, the growing need for digital transformation and resilience in the face of global disruptions is fueling demand for E2open's subscription-based services.

Professional Services and Other

Expected Growth: 4%

E2open's Professional Services and Other segment growth is driven by increasing adoption of cloud-based supply chain management solutions, expansion of existing customer relationships, and strategic acquisitions. Additionally, growing demand for digital transformation and visibility in global supply chains, coupled with the company's investments in innovation and customer success, contribute to the 4% growth rate.

7. Detailed Products

Channel Shipment Tracker

A cloud-based platform that provides real-time visibility and tracking of shipments across multiple carriers and modes of transportation.

Inventory Management

A solution that enables companies to manage their inventory levels, track stock movements, and optimize inventory allocation across multiple warehouses and distribution centers.

Order Collaboration

A platform that enables real-time collaboration and visibility across the order lifecycle, from order receipt to fulfillment and delivery.

Supply Chain Visibility

A solution that provides real-time visibility into supply chain operations, enabling companies to track and manage their shipments, inventory, and orders across multiple tiers of suppliers.

Quality and Compliance

A platform that enables companies to manage quality and compliance processes, including audits, inspections, and certifications.

Sourcing and Procurement

A solution that enables companies to manage their sourcing and procurement processes, including supplier selection, contract management, and procurement analytics.

8. E2open Parent Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for E2open Parent Holdings, Inc. is medium due to the presence of alternative supply chain management solutions. However, the company's comprehensive platform and strong customer relationships mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong relationships with its clients and the customized nature of its solutions, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for certain components and services. However, the company's strong relationships with its suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the supply chain management industry, including the need for significant investments in technology and infrastructure.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the supply chain management industry, leading to a competitive landscape.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.08%
Debt Cost 5.65%
Equity Weight 57.92%
Equity Cost 5.65%
WACC 5.65%
Leverage 72.66%

11. Quality Control: E2open Parent Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cepton

A-Score: 4.8/10

Value: 8.4

Growth: 4.1

Quality: 5.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
E2open

A-Score: 3.9/10

Value: 7.5

Growth: 3.2

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cerence

A-Score: 3.7/10

Value: 7.0

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Digital Turbine

A-Score: 3.4/10

Value: 6.0

Growth: 3.4

Quality: 1.6

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
LivePerson

A-Score: 3.3/10

Value: 10.0

Growth: 2.3

Quality: 6.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Upland Software

A-Score: 3.0/10

Value: 7.6

Growth: 3.1

Quality: 2.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.3$

Current Price

3.3$

Potential

-0.00%

Expected Cash-Flows