Cash flow generation remains erratic, with a notable $7.8 million contribution from working capital changes in 2026Q1 masking underlying operational instability and a history of high stock-based compensation.
| Cash from Operations | 45.37M | 27.4M | 26.25M | -24.24M | -89.36M | -40.3M | -26.53M | -39.97M | -30.59M |
| Operating CF Margin % | - | 8% | 7.89% | -7.84% | -32.02% | -18.33% | -17.41% | -35.65% | -33.3% |
| Operating CF Growth % | 4510.27% | 4.37% | 208.3% | 72.87% | -121.73% | -51.91% | 33.63% | -30.66% | - |
| Net Income | -15.26M | -8.36M | -27.03M | -64.67M | -139.92M | -76.68M | -37.56M | -42.59M | -38.88M |
| Depreciation & Amortization | 12.44M | 14.35M | 13.81M | 12.48M | 11.42M | 6.15M | 3.08M | 2.57M | 1.84M |
| Stock-Based Compensation | 12.04M | 23.58M | 35.38M | 41.19M | 42.33M | 25.42M | 11.06M | 3.16M | 2.07M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 151K |
| Other Non-Cash Items | 12.56M | -12.47M | -5.44M | 16.54M | 17.54M | 4.05M | -2.04M | 973K | 49K |
| Working Capital Changes | 23.59M | 10.3M | 9.54M | -29.78M | -20.73M | 754K | -1.07M | -4.08M | 4.17M |
| Change in Receivables | -8.58M | -5.54M | -14.21M | -3.88M | -20.34M | -17.28M | -9.3M | -6.3M | -4.63M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.06M |
| Change in Payables | 679K | 2.24M | -895K | 962K | -1.2M | 2.14M | 1.91M | -1.58M | 291K |
| Cash from Investing | -41.27M | -18.52M | 105.29M | 2.82M | -116.53M | -186.88M | -1.96M | 17.87M | -26.52M |
| Capital Expenditures | -12.06M | -8.6M | -3.72M | -4.18M | -5.2M | -3.3M | -1.96M | -5.58M | -3.33M |
| CapEx % of Revenue | 3.48% | 2.51% | 1.12% | 1.35% | 1.86% | 1.5% | 1.29% | 4.98% | 3.62% |
| Acquisitions | 0 | 0 | -100K | -7.89M | -696K | -81.07M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -2.44M | 0 | 0 | 0 | 0 | 0 | 0 | -23.19M |
| Cash from Financing | 1.75M | -53.08M | -114.04M | 1.24M | 209K | 305.27M | 239.95M | 17.35M | 64.24M |
| Debt Issued (Net) | -217K | -54.53M | -109.12M | 687K | 0 | 334.96M | 13.24M | 16.45M | 0 |
| Equity Issued (Net) | -192K | 3.63M | -741K | 3.85M | 209K | 5.88M | 239.52M | 0 | 63.63M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -12.81M | 0 | 0 |
| Share Repurchases | -731K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.15M | -1.96M | -4.18M | -3.29M | 0 | -35.57M | 0 | 901K | 607K |
| Net Change in Cash | 5.84M | -44.19M | 17.51M | -20.18M | -205.67M | 274.6M | 14.96M | -4.75M | 7.13M |
| Free Cash Flow | 33.31M | 18.8M | 22.53M | -28.42M | -94.55M | -43.6M | -28.49M | -45.55M | -33.92M |
| FCF Margin % | 9.61% | 5.49% | 6.77% | -9.19% | -33.88% | -19.83% | -18.7% | -40.63% | -36.92% |
| FCF Growth % | 39.46% | -16.56% | 179.28% | 69.94% | -116.84% | -53.03% | 37.44% | -34.29% | - |
| FCF per Share | 0.40 | 0.23 | 0.29 | -0.38 | -1.29 | -0.61 | -0.41 | -0.68 | -0.60 |
| FCF Conversion (FCF/Net Income) | -2.18x | -1.42x | -0.97x | 0.37x | 0.64x | 0.53x | 0.71x | 0.94x | 0.79x |
| Interest Paid | 0 | 0 | 2.47M | 894K | 903K | 0 | 0 | 1.63M | 0 |
| Taxes Paid | 343K | 0 | 381K | 583K | 32K | 0 | 0 | 0 | 0 |
Liquidity and cash burn
As reported in recent financial statements, CMRC exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio reaching 4.93 in 2026Q1, suggesting that reported earnings are significantly bolstered by non-cash items rather than core operational efficiency.
The consistent gap between net losses and positive operating cash flow indicates that the company relies heavily on non-cash adjustments to maintain a semblance of liquidity. Investors should monitor whether this divergence is sustainable or if it masks an underlying inability to convert revenue into actual cash generation.
Based on CMRC's reported figures, free cash flow trajectory remains highly erratic, swinging from a negative $2.9 million in 2025Q1 to a positive $14.1 million in 2026Q1, which highlights the instability of the company's cash generation capabilities in the current enterprise-focused business model.
This volatility suggests that the company's cash flow is highly sensitive to the timing of large enterprise contract renewals and working capital fluctuations. The lack of a consistent upward trend in FCF margins warrants further investigation into the predictability of the firm's long-term cash generation.
According to recent SEC filings, CMRC's capital expenditure as a percentage of revenue has fluctuated between 0.9% and 4.9%, indicating that the firm is managing its infrastructure investments cautiously while attempting to support its headless commerce platform architecture.
While the capital intensity appears relatively low, the recent uptick to 4.9% in 2026Q1 may indicate a need for increased investment in hosting or platform scalability. Analysts should consider whether this spending is sufficient to maintain competitive parity with larger, better-capitalized peers.
As indicated by quarterly data, working capital changes have frequently served as a primary source of operating cash, with a notable $7.8 million contribution in 2026Q1, suggesting that the company is effectively managing its payables and receivables to bridge its operational funding gaps.
The reliance on working capital management to bolster cash flow may indicate that the company is stretching its payment cycles to preserve liquidity. This strategy appears to be a temporary measure that may not be sustainable if vendor relationships or customer payment terms tighten.
Based on the provided data, stock-based compensation remains a significant non-cash expense, peaking at $10.2 million in 2024Q3, which effectively obscures the true cash burn rate and complicates the assessment of the company's underlying economic profitability for long-term shareholders.
The persistent use of equity-based incentives suggests that the company is compensating for its inability to generate sufficient cash to attract and retain talent. This practice may lead to future dilution and masks the true cost of operations, which investors should account for when valuing the firm.
Quick answers to the most common questions about buying CMRC stock.
Commerce.com, Inc. (CMRC) generated $27.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Commerce.com, Inc. (CMRC) generated $18.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Commerce.com, Inc. (CMRC) spent $8.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.