Commerce.com, Inc. (Nasdaq: CMRC) announced a strategic operating plan on Sept. 10, 2026, aimed at reducing costs and increasing profitability and free cash flow, according to a press release from the Austin, Texas-based company.

The plan is expected to generate $60 million to $80 million in annualized cost savings, equivalent to $0.73 to $0.97 per diluted share based on the share count as of June 30, 2026. The company targets non-GAAP operating margins of at least 20% beginning in 2027. Only approximately $3 million, or about 4%, of the projected savings is expected to be realized during 2026, with the full annualized benefit reflected in 2027.

Cost reductions will primarily come from staffing, professional services, facilities, software, and infrastructure. The company also expects efficiency gains through expanded internal use of AI. Most actions are expected to be implemented by the end of fiscal fourth quarter 2026, with the plan substantially complete by fiscal second quarter 2027.

Commerce expects to incur $4.2 million to $8.8 million in restructuring and one-time expenses in the third quarter ending Sept. 30, 2026, and $4.3 million to $17.5 million in restructuring expenses in fiscal fourth quarter 2026.

The company's board authorized the repurchase of up to $50 million of common stock over two years, from Sept. 10, 2026 through Sept. 10, 2028. The authorization does not obligate the company to repurchase any specific amount and may be modified or discontinued at any time.

Commerce updated its full-year 2026 guidance, reaffirming total revenue of $336.5 million to $344.5 million while raising non-GAAP operating income guidance by $3 million to a range of $31.0 million to $37.0 million. Third-quarter 2026 guidance was unchanged, with total revenue expected between $82.5 million and $85.5 million and non-GAAP operating income between $3.3 million and $5.3 million.

The company also noted approximately $353 million in total net operating loss carryforwards and other tax attributes as of June 30, 2026, which it expects to reduce cash taxes on incremental earnings.