Commerce targets $60–80 million in annual savings and authorizes a buyback

Commerce.com ($CMRC) announced an operating plan designed to cut its annualized non-GAAP cost base by approximately $60–80 million. The company expects only a small initial benefit in 2026, with the full effect developing in 2027. It is targeting a non-GAAP operating margin of at least 20% in 2027 and expects most of the savings to translate into additional free cash flow.

The plan concentrates investment around areas including business-to-business commerce, payments and Feedonomics, while reducing spending outside its priorities. The board also authorized up to $50 million in share repurchases over two years. Savings targets should not be treated as completed cost reductions, and the buyback authorization does not obligate the company to purchase the entire amount. Restructuring expenses will also affect the timing of the plan’s financial benefits.

Sources:

• Commerce.com — operating plan and capital allocation