Latest news with #WiseTech
Herald Sun
3 days ago
- Business
- Herald Sun
Tech billionaire dragged into Mark Latham scandal
Don't miss out on the headlines from National. Followed categories will be added to My News. Former Labor leader Mark Latham joked with his ex-lover that billionaire Richard White owed her 'big money' and urged her to seek compensation for a non-disclosure agreement in new leaked texts. New messages exchanged between Mr Latham, 64, and his former fiancee Nathalie Matthews, 37, also reveal that the former Labor leader joked she should perform oral sex on Mr White. In the sordid text, he suggests she should do so to 'celebrate' after a series of board members quit the tech company in the wake of a sex scandal controversy. Mr White is not accused of any wrongdoing and does not suggest Ms Matthews and Mr White engaged in a sexual relationship, only that Mr Latham joked about his partner performing oral sex on the 70-year old billionaire. In new text messages published by The Australian, Mr Latham sent Ms Matthews a news article about the scandal engulfing the billionaire's company. 'He owes you big money,' Mr Latham wrote. Richard White, Nathalie Matthews and Mark Latham at a Cairns Conference in 2024. Picture: Supplied On October 24 – as Mr White prepared to resign as chief executive of WiseTech Global – Ms Matthews sent Mr Latham a screenshot purportedly of a message Mr White had sent her. 'Help,' Ms Matthews wrote to Mr Latham. Mr Latham replied: 'Get the compo NDA!!!' According to The Australian newspaper, Ms Matthews replied there were 'not really grounds'. 'I could kill my professional career,' she wrote. 'Remember I don't have a secure job.' The pair had a series of discussions about the billionaire with Mr Latham predicting Mr White 'coming back as CEO will make him a huge target'. On February 24, Mr Latham sent Ms Matthews a news article noting several WiseTech board members had quit. 'He will want you to suck his c**k to celebrate,' Mr Latham wrote. 'What an honour!!' He added a shocked face emoji. Mr Latham then suggested Mr White would soon be 'back as CEO' which would 'increase share price'. 'So buy 30k at 2pm today,' he wrote. 'Bargain.' When Ms Matthews jokingly questioned whether this was 'insider trading', Mr Latham replied: 'Insider f**king.' 'Haha,' he wrote. 'Not insider trading at all.' Nathalie May Matthews and Mark Latham. Picture: Instagram Ms Matthews sent Mr Latham a screenshot purportedly of a message Mr White had sent her and asked for 'Help'. Earlier today, the tech billionaire was dragged into the ugly split between Mr Latham and ex-lover Ms Matthews with a subpoena demanding both she and the Sydney businessman hand over any 'communications' that exist between them. Mr Latham's lawyer, Zali Burrows, who also acts for former Liberal staffer Bruce Lehrmann, has lodged a subpoena for 'communications' between the WiseTech co-founder and Ms Matthews in response to her domestic abuse allegations against the NSW independent MP. Ms Matthews has also been served with a subpoena for her communications with Mr White. Mr White is not accused of any wrongdoing. Mr Latham has emphatically denied his ex-girlfriend's abuse allegations, which include a claim he once defecated on her before sex, as 'comically false and ridiculous.' does not suggest these allegations are factual, only that they have been made against a serving NSW MP and a court will hear the application later this month. Mr White, Mr Latham, and Ms Matthews have been contacted for comment. Billionaire businessman Richard White. Picture: Supplied 'Invoices' for G-strings In a separate development, fresh claims have emerged that Mr Latham borrowed tens of thousands of dollars from Ms Matthews before complaining after the couple broke up and she requested the return of personal items that 'you bought those things when you lived in the house rent free.' There is no suggestion that Mr Latham did not return the money before the demise of the relationship. He has not been charged with any offence. In his only broadcast interview on the matter Mr Latham said that he was guilty of nothing more than being 'human' and 'male.' 'The big news is I had a private life. I had a sex life and I've got to say it was fantastic,'' Mr Latham said of the relationship. But the NSW MP has dismissed as an elaborate 'in-joke' other invoices he sent her that included references to G-strings and used the acronym for LETS ROOT. In Ms Matthew's AVO application she alleges Mr Latham borrowed $20,000 from her 'on four occasions without prompt repayment.' In one transaction Ms Matthews transferred $20,000 to Mr Latham on October 11 last year and it's also understood Ms Matthews also covered at least $15,000 worth of hotels and restaurants for the couple. Nathalie May Matthews The Daily Telegraph reported on Friday that that one email sent by Mr Latham in November 2023 to Ms Matthews titled: 'Latham Emergency Timely Storage Rental of Opportunists' Things', which serves as an acronym for 'LETS ROOT.' 'For: Services, Storage, Squatting, March-November 2023, itemised as follows…' the email from Mr Latham reads. '42 nights accommodation for Nathalie Matthews (naked), 29 mornings breakfast-inner and other personal services… @$50 per night = $2,100. 'Three months storage of: two large computer screens, keyboards and cords, 11 dresses, one 'It's a Latham Thing' sloppy joe, 6 boxes of shoes (non-shiny), 9 G-strings, assorted lingerie… assorted smalls and toiletries = $2,900' his email read. Mr Latham said there had to be payment 'within 21 days', otherwise stored materials would be 'thrown in the dam… or impounded permanently.' In September 2024 Ms Matthews wrote twice to Mr Latham requesting amounts totalling $9,000 be returned. But Mr Latham said on X on Friday that is was all an elaborate joke. 'Tele really have bottomed out with story today about Nathalie Matthews/Darrough/Abdullah/Bondi/Amber finances,'' he wrote. 'They are all of her aliases listed on this in-joke Invoice which, by the way, is numbered F*K0069.' 'Open relationship' claim Mr Latham has told The Daily Telegraph the couple were always in an 'open' sexual relationship and that she was having sex with other people during the entire two-year relationship that he has described a 'situationship.' 'It was never a monogamous relationship,'' Mr Latham said. Ms Matthews told friends last year that Mr Latham had proposed marriage and that the couple lived together in a de facto relationship. Nathalie May Matthews. Picture: Instagram 'Pig' attack Mr Latham was slammed as a 'pig' earlier this week after revelations he photographed female MPs at work and joked about having 'a threesome' with NSW Greens MP Abigail Boyd. In one Instagram message sent to his former partner, Mr Latham shared a photo of Ms Boyd in the parliamentary chamber, taken without her knowledge. He then shared a photo of Liberal MP Susan Carter taken from behind showing her full body and bottom, saying 'then it gets worse .... Grandma'. The disparaging comments, which were included in a trove of leaked text exchanges with his ex-lover, were condemned by colleagues on Thursday. 'Mark Latham is a pig,' Housing Minister Rose Jackson said at a press conference. She noted his previous attacks on campaigner Rosie Batty whose son was murdered in a domestic violence incident by his own father. 'This man has attacked Rosie Batty, telling her to grieve in private. This man is well known on the record, multiple times as a bigot – one of the biggest bigots in the state,' she said. 'It's extremely confronting for me to think that in a workplace there's someone who thinks it's acceptable to take photos of you and to share them with derogatory comments.' Mr Latham has not denied the text messages but insisted they were playful banter with his ex-partner. He has denied abusing Ms Matthews in any way, insisting all of their interactions were entirely consensual. She has lodged a legal application for an order to prohibit Mr Latham from contacting her claiming a sustained pattern of abuse and coercive control. Nathalie Matthews and Mark Latham. Picture: Instagram 'Pinched her bum' In another leaked text exchange, Mr Latham wrote that Liberal MP Eleni Petinos 'looked pregnant' and then claimed to have 'pinched her bum lightly'. But Ms Petinos told the Daily Telegraph that the incident never happened, and was 'an absolute fantasy'. 'That is not in the realms of possibility,' she said. 'Mark's attitude towards his colleagues is disgraceful - instead of showing respect he chooses to objectify and degrade. 'It's just grossly inappropriate - we don't walk around to be objectified everyday.' Mr Latham insisted that his message about pinching the bottom of Ms Petinos was an 'in-joke'. 'Freak off' claims Meanwhile, a Queensland sex worker claimed that Mr Latham and his then-girlfriend contacted her and even met with her at a ritzy event at Sydney's Randwick Racecourse. Carly Electric said she suspected she was contacted because the couple wanted to hire her for a threesome. In a message sent by Mr Latham to his now ex-girlfriend, he said Ms Electric was 'good rooter' and joked if she might want to be involved in a 'freak off' – the now infamous term used by Sean 'Diddy' Combs to describe threesomes where one person looks on. 'It was just implied … who comes to a sex worker and behaves this way?' Ms Electric said of the interactions. Mr Latham dismissed the discussions of freak offs as 'a prank joke.' 'Just as the Tele today ran cherry-picked messages between me and Nathalie Matthews, with no context, missing in-jokes and pranks, they are at it again,'' he said. 'Often enough between consenting adults there are 10-20 messages leading up to a prank joke. Haha.' Originally published as Mark Latham's leaked texts about billionaire Richard White
AU Financial Review
4 days ago
- Business
- AU Financial Review
Profit talks louder than scandals for White and Ellison
The appearance of the founder of logistics software company WiseTech Global at the top of the Rich Bosses list is becoming an annual event. This is the third consecutive year Richard White has been named the richest boss of an ASX 300 company. He has occupied one of the two top slots for at least the past seven years. This year his shares in WiseTech are worth $13.4 billion, up from $13 billion last time and $2.9 billion in 2019.
Yahoo
10-07-2025
- Business
- Yahoo
E2open Announces Fiscal 2026 First Quarter Financial Results
Q1-FY26 GAAP subscription revenue of $132.9 million, above high end of Q1 guidance range Continued strong cash generation in Q1-FY26 DALLAS, July 10, 2025--(BUSINESS WIRE)--E2open Parent Holdings, Inc. (NYSE: ETWO) ("e2open" or the "Company"), the connected supply chain SaaS platform with the largest multi-enterprise network, today announced financial results for its fiscal first quarter ended May 31, 2025. "Our first quarter results demonstrate that our core business continues to strengthen and underscore the progress we have made in putting e2open back on a sustainable growth path," said Andrew Appel, e2open chief executive officer. "Our entire e2open team remains focused on client satisfaction and retention, flawless delivery of our products, and value-added innovation. These efforts came to fruition in Q1 as we returned to year-over-year subscription revenue growth. I believe e2open is well positioned for the next chapter in the company's development, which is our pending acquisition by WiseTech Global as announced in late May. Our e2open team is excited by the opportunity to partner with WiseTech in bringing industry-leading supply chain management capabilities to our many clients." "In Q1 FY26, e2open delivered subscription revenue above the high end of our guidance, marking our first year-over-year subscription revenue growth since mid-FY24. We also continued our trend of strong adjusted EBITDA and cash flow," said Marje Armstrong, chief financial officer of e2open. "We are confirming all elements of our full-year guidance issued last quarter and want to thank all our employees for their support and dedication as we move forward with the WiseTech transaction, which we expect to close by the end of this calendar year." Fiscal First Quarter 2026 Financial Highlights Revenue GAAP subscription revenue for the first quarter of 2026 was $132.9 million, an increase of 1.1% from the year-ago comparable period and 87.0% of total revenue. Subscription revenue increased 0.9% on a constant currency basis. Total GAAP revenue for the first quarter of 2026 was $152.6 million, an increase of 1.0% from the year-ago comparable period. Total revenue increased 0.7% on a constant currency basis. GAAP gross profit for the first quarter of 2026 was $73.6 million, an increase of 1.3% from the year-ago comparable period. Non-GAAP gross profit was $102.4 million, a decrease of 0.2% and down 0.2% on a constant currency basis. GAAP gross margin for the first quarter of 2026 was 48.2% compared to 48.1% for the year-ago comparable period. Non-GAAP gross margin was 67.1% compared to 67.8% from the comparable year-ago period. GAAP net loss for the first quarter of 2026 was $15.5 million compared to a net loss of $42.8 million from the year-ago comparable period. Adjusted EBITDA for the first quarter of 2026 was $52.2 million, an increase of 3.0% from the comparable year-ago period. Adjusted EBITDA margin was 34.2% versus 33.6% from the comparable year-ago period. GAAP EPS for the first quarter of 2026 was a loss of $0.05. Adjusted EPS for the first quarter of 2026 was $0.05. Recent Business Highlights Announced acquisition by WiseTech Global, concluding e2open's strategic review. Closed new logo and cross-sell business with large, well-known global companies in diverse market segments including manufacturing, high-tech and electronics, consumer retail, apparel, consumer packaged goods, and food and beverage. These clients selected e2open solutions across the platform to increase productivity and efficiency, reduce risk, improve compliance, significantly reduce or eliminate manual processes, and enhance their ability to serve their own customers. Opened registration for Connect 2025 Global Supply Chain Summit, e2open's annual customer conference, which will be held October 14 to 16 in Amsterdam. Connect brings together clients, partners, and e2open leaders for a robust agenda covering industry trends and best practices, client use cases, product innovation, knowledge sharing, and networking. Among the wins in the first quarter was a large cross-sell expansion with a leading global active health and wellness company, which selected e2open as a strategic partner as part of its digital supply chain transformation. Building upon its use of e2open Transportation Management, Parcel, and Global Trade Management applications, the client added Demand Planning, Supply Planning, and Multi-Echelon Inventory Optimization (MEIO) applications to increase productivity and manage supply as the company prioritizes scalable solutions to navigate the complexities of growth. Among the customer go-lives in the first quarter was a large multinational manufacturer of frozen and fresh food products that expanded Transportation Management to its Mexico division, providing comprehensive controls and reporting capabilities for managing the entire North American transportation network. This advancement enhances user productivity in daily operations, streamlines workflows, and facilitates quicker decision-making. As a result, the division can better respond to demand fluctuations and optimize resource allocation, ultimately improving overall operational performance. Financial Outlook for Fiscal Year 2026 As of July 10, 2025, e2open is reiterating full year 2026 guidance previously provided on April 29, 2025, as follows: GAAP subscription revenue for fiscal 2026 is expected to be in the range of $525 million to $535 million, reflecting a 0.4% growth rate at the mid-point. Total GAAP revenue for fiscal 2026 is expected to be in the range of $600 million to $618 million, reflecting a positive 0.2% growth rate at the mid-point. Non-GAAP gross profit margin for fiscal 2026 is expected to be in the range of 68% to 68.5%. Adjusted EBITDA for fiscal 2026 is expected to be in the range of $200 million to $210 million with an implied adjusted EBITDA margin in the range of 33% to 34%. Quarterly Conference Call E2open will host a conference call today at 5:00 p.m. ET to review fiscal first quarter 2026 financial results and the Company's outlook for fiscal year 2026. To access this call, dial 888-506-0062 (domestic) or 973-528-0011 (international). The conference ID is 656761. A live webcast of the conference call will be accessible in the "Investor Relations" section of e2open's website at A replay of this conference call can also be accessed through July 10, 2026, at 877-481-4010 (domestic) or 919-882-2331 (international). The replay passcode is 52634. An archived webcast of this conference call will also be available after the completion of the call in the "Investor Relations" section of the Company's website at About e2open E2open is the connected supply chain software platform that enables the world's largest companies to transform the way they make, move, and sell goods and services. With the broadest cloud-native global platform purpose-built for modern supply chains, e2open connects more than 500,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 18 billion transactions annually. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste, and operate sustainably. Moving as one.™ Learn More: E2open and "Moving as one." are the registered trademarks of E2open, LLC. All other trademarks, registered trademarks and service marks are the property of their respective owners. Non-GAAP Financial Measures This press release includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") including non-GAAP revenue, non-GAAP subscription revenue, non-GAAP professional services and other revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, adjusted net income, non-GAAP gross margin, adjusted free cash flow, adjusted operating cash flow and adjusted earnings per share. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies. The Company believes these non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. NOTE: E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin, adjusted EBITD, or adjusted EBITDA margin without unreasonable effort, and therefore no reconciliation of certain forward-looking non-GAAP financial measures for non-GAAP gross profit margin, adjusted EBITDA, or adjusted EBITDA margin is included. Forward Looking Statement Disclaimer This press release contains "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed acquisition of e2open, anticipated future financial performance and results of e2open and expected timing of the closing of the proposed acquisition and other transactions contemplated by the merger agreement governing the transaction (the "Mergers"). These forward-looking statements are based on e2open management's beliefs and assumptions and on information currently available to e2open management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: uncertainties associated with the proposed Mergers; risk associated with the failure to complete the Mergers and its effect on our business and the market price of our shares of our Class A Common Stock; limitations on our ability to pursue alternatives to the Mergers under the merger agreement; restrictions imposed on the conduct of our business during the term of the proposed Mergers; potential litigation instituted against us challenging the proposed Mergers; the effect of the volatile, negative or uncertain macro-economic and political conditions, tariffs, inflation, changes in interest rates, fluctuations in foreign currency exchange rates and the potential effects of these factors on our business, our slowing growth rate, results of operations and financial condition as well as our clients' businesses and levels of business activity; the inability to realize the value of the goodwill and intangible assets, which could result in the incurrence of material charges related to the impairment of those assets; the inability to develop and market new product innovations and monetize our network; the slowing of our growth rate due to lower than anticipated new bookings and higher than expected churn; risks associated with our acquisitions, including churn, the ability to maintain client relationships and greater than expected liabilities; the inability to attract new clients or upsell/cross sell existing clients or the failure to renew existing client subscriptions on terms favorable to us; risks associated with our international operations, including the risks created by geopolitical instability; the failure of the market for cloud-based SCM solutions to develop as quickly as we expect or failure to compete successfully in a fragmented and competitive SCM market; the diversion of management's attention and consumption of resources as a result of the strategic alternatives process; failure to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; cyber-attacks and security vulnerabilities; and inability to attract or retain key employees. More information on factors that could cause our actual results or events to differ from those expressed in forward-looking statements are included from time to time in our reports filed with the SEC including in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, filed with the SEC on April 29, 2025 (2025 Form 10-K). The forward-looking statements included in this press release are made only as of the date hereof. Except as required by applicable law or regulation, e2open does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended May 31, (In thousands, except per share amounts) 2025 2024 Revenue Subscriptions $ 132,870 $ 131,404 Professional services and other 19,740 19,759 Total revenue 152,610 151,163 Cost of Revenue Subscriptions 38,385 37,099 Professional services and other 16,848 16,752 Amortization of acquired intangible assets 23,786 24,652 Total cost of revenue 79,019 78,503 Gross Profit 73,591 72,660 Operating Expenses Research and development 23,354 24,797 Sales and marketing 20,173 20,996 General and administrative 21,415 23,343 Acquisition-related expenses 5,485 283 Amortization of acquired intangible assets 5,611 20,086 Total operating expenses 76,038 89,505 Loss from operations (2,447 ) (16,845 ) Other income (expense) Interest and other expense, net (20,054 ) (25,373 ) Gain (loss) from change in tax receivable agreement liability 20,727 (3,974 ) Gain from change in fair value of warrant liability 479 3,761 Loss from change in fair value of contingent consideration (12,060 ) (2,280 ) Total other expense (10,908 ) (27,866 ) Loss before income tax provision (13,355 ) (44,711 ) Income tax (expense) benefit) (2,168 ) 1,923 Net loss (15,523 ) (42,788 ) Less: Net loss attributable to noncontrolling interest (1,397 ) (3,926 ) Net loss attributable to E2open Parent Holdings, Inc. $ (14,126 ) $ (38,862 ) Weighted-average common shares outstanding: Basic 310,513 306,732 Diluted 310,513 306,732 Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share: Basic $ (0.05 ) $ (0.13 ) Diluted $ (0.05 ) $ (0.13 ) E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) May 31, 2025 February 28, 2025 Assets Cash and cash equivalents $ 230,197 $ 197,350 Restricted cash 9,818 14,785 Accounts receivable, net 108,184 133,436 Prepaid expenses and other current assets 35,729 34,025 Total current assets 383,928 379,596 Goodwill 1,243,848 1,213,794 Intangible assets, net 647,513 673,026 Property and equipment, net 60,927 61,278 Operating lease right-of-use assets 12,869 14,977 Other noncurrent assets 28,724 28,364 Total assets $ 2,377,809 $ 2,371,035 Liabilities, Redeemable Share-Based Awards and Stockholders' Equity Accounts payable and accrued liabilities $ 85,372 $ 74,829 Channel client deposits payable 9,818 14,785 Deferred revenue 203,117 216,740 Current portion of tax receivable agreement liability 42,709 4,158 Current portion of notes payable 11,223 11,264 Current portion of operating lease obligations 5,807 6,146 Current portion of financing lease obligations 2,025 2,143 Income taxes payable 6,213 3,337 Total current liabilities 366,284 333,402 Long-term deferred revenue 3,026 1,536 Operating lease obligations 9,025 10,838 Financing lease obligations 2,740 3,170 Notes payable 1,029,604 1,031,180 Tax receivable agreement liability - 59,277 Warrant liability 103 582 Contingent consideration 17,188 5,128 Deferred taxes 48,369 48,104 Other noncurrent liabilities 646 648 Total liabilities 1,476,985 1,493,865 Commitments and Contingencies Redeemable share-based awards 167 191 Stockholders' Equity Class A common stock 31 31 Class V common stock — — Series B-1 common stock — — Series B-2 common stock — — Additional paid-in capital 3,452,223 3,444,584 Accumulated other comprehensive loss (32,273 ) (63,835 ) Accumulated deficit (2,547,659 ) (2,533,533 ) Treasury stock, at cost (2,473 ) (2,473 ) Total E2open Parent Holdings, Inc. equity 869,849 844,774 Noncontrolling interest 30,808 32,205 Total stockholders' equity 900,657 876,979 Total liabilities, redeemable share-based awards and stockholders' equity $ 2,377,809 $ 2,371,035 E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended May 31, (In thousands) 2025 2024 Cash flows from operating activities Net loss $ (15,523 ) $ (42,788 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 36,698 53,605 Amortization of deferred commissions 3,070 2,109 Provision for credit losses 272 151 Amortization of debt issuance costs 1,351 1,320 Amortization of operating lease right-of-use assets 1,400 1,722 Share-based compensation 11,251 11,787 Deferred income taxes (3,296 ) (5,972 ) Right-of-use assets impairment charge 305 — (Gain) loss from change in tax receivable agreement liability (20,727 ) 3,974 Gain from change in fair value of warrant liability (479 ) (3,761 ) Loss from change in fair value of contingent consideration 12,060 2,280 (Gain) loss on disposal of property and equipment (8 ) 79 Changes in operating assets and liabilities: Accounts receivable 24,980 50,047 Prepaid expenses and other current assets (1,639 ) (3,905 ) Other noncurrent assets (2,894 ) (2,544 ) Accounts payable and accrued liabilities 7,466 (10,702 ) Channel client deposits payable (4,967 ) 1,177 Deferred revenue (12,134 ) (26,403 ) Changes in other liabilities 4,609 3,740 Net cash provided by operating activities 41,795 35,916 Cash flows from investing activities Capital expenditures (7,326 ) (6,084 ) Net cash used in investing activities (7,326 ) (6,084 ) Cash flows from financing activities Repayments of indebtedness (2,813 ) (2,808 ) Repayments of financing lease obligations (547 ) (353 ) Proceeds from exercise of stock options — 155 Payments of debt issuance costs (536 ) — Net cash used in financing activities (3,896 ) (3,006 ) Effect of exchange rate changes on cash and cash equivalents (2,693 ) 76 Net increase in cash, cash equivalents and restricted cash 27,880 26,902 Cash, cash equivalents and restricted cash at beginning of period 212,135 149,038 Cash, cash equivalents and restricted cash at end of period $ 240,015 $ 175,940 E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF PRO FORMA INFORMATION TABLE I (in millions) Q1 Q1 $ Var % Var FY2026 FY2025 PRO FORMA REVENUE RECONCILIATION Total GAAP Revenue 152.6 151.2 1.5 1.0% Constant currency FX impact (1) (0.4) - (0.4) n/m Total non-GAAP revenue (constant currency basis) (2) $152.3 $151.2 $1.1 0.7% GAAP Subscription Revenue 132.9 131.4 1.5 1.1% Constant currency FX impact (1) (0.3) - (0.3) n/m Non-GAAP subscription revenue (constant currency basis) (2) $132.6 $131.4 $1.2 0.9% GAAP Professional Services and other revenue 19.7 19.8 (0.0) (0.1%) Constant currency FX impact (1) (0.1) - (0.1) n/m Non-GAAP professional services and other revenue (constant currency basis) (2) $19.7 $19.8 ($0.1) (0.4%) PRO FORMA GROSS PROFIT RECONCILIATION GAAP Gross profit 73.6 72.7 0.9 1.3% Depreciation and amortization 26.4 28.5 (2.1) (7.5%) Share-based compensation (3) 1.7 1.2 0.4 36.4% Non-recurring/non-operating costs (4) 0.8 0.2 0.6 300.0% Non-GAAP gross profit $102.4 $102.6 ($0.2) (0.2%) Non-GAAP Gross Margin % 67.1% 67.8% Constant currency FX impact (1) (0.1) - (0.1) n/m Total non-GAAP gross profit (constant currency basis) (2) $102.3 $102.6 ($0.3) (0.2%) Non-GAAP Gross Margin % (constant currency basis) (2) 67.2% 67.8% PRO FORMA ADJUSTED EBITDA RECONCILIATION Net income (loss) (15.5) (42.8) 27.3 n/m Interest expense, net 22.1 24.7 (2.6) (10.6%) Income tax expense (benefit) 2.2 (1.9) 4.1 n/m Depreciation and amortization 36.7 53.6 (16.9) (31.5%) EBITDA $45.4 $33.6 $11.8 35.2% Share-based compensation (3) 11.3 11.8 (0.5) (4.6%) Non-recurring/non-operating costs (4) (1.1) 2.6 (3.7) n/m Acquisition-related adjustments (5) 5.5 0.3 5.2 1,857.1% Change in tax receivable agreement liability (6) (20.7) 4.0 (24.7) n/m Change in fair value of warrant liability (7) (0.5) (3.8) 3.3 (87.2%) Change in fair value of contingent consideration (8) 12.1 2.3 9.8 428.9% Right-of-use assets impairment charge (9) 0.3 - 0.3 n/m Adjusted EBITDA $52.2 $50.7 $1.5 3.0% Adjusted EBITDA Margin % 34.2% 33.6% Constant currency FX impact (1) 0.1 - 0.1 n/m Total adjusted EBITDA (constant currency basis) (2) $52.3 $50.7 $1.6 3.2% Adjusted EBITDA Margin % (constant currency basis) (2) 34.4% 33.6% (1) Constant Currency refers to pro-forma amounts excluding the impact of translating foreign currencies into U.S. dollars. To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). (2) Constant Currency refers to pro forma amounts excluding translation and transactional impacts from foreign currency exchange rates. (3) Reflects non-cash, long-term share-based compensation expense. (4) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. (5) Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with the strategic review. (6) Represents the fair value adjustment at each balance sheet date for the Tax Receivable Agreement along with the associated interest. (7) Represents the fair value adjustment at each balance sheet date of the warrant liability related to our warrants. (8) Represents the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted B-2 common stock and Series 2 RCUs. (9) Represents the impairment on our operating lease ROU assets and leasehold improvements due to vacating certain facilities. E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF NON-GAAP EXPENSES TABLE II Fiscal First Quarter 2026 (in millions) GAAP Non-recurring(1) Depreciation&Amortization Share-BasedCompensation Non-GAAP(Adjusted) % ofRevenue ImpairmentCharges(2) COST OF GOODS Subscriptions 38.4 (0.7) - (2.4) (1.0) 34.2 25.7% Professional services and other 16.9 (0.1) - (0.1) (0.6) 16.0 81.2% Amortization of intangibles 23.8 - - (23.8) 0.0 - Total cost of revenue $79.0 ($0.8) - (26.4) (1.7) $50.2 32.9% Gross Profit $73.6 $0.8 - $26.4 $1.7 $102.4 67.1% OPERATING COSTS Research & development 23.4 (0.0) - (4.4) (1.4) 17.5 11.5% Sales & marketing 20.2 (0.1) - (0.2) (2.5) 17.5 11.4% General & administrative 21.4 (0.0) (0.3) (0.1) (5.7) 15.2 10.0% Acquisition related expenses 5.5 (5.5) - - - - Amortization of intangibles 5.6 - - (5.6) - - Total operating expenses $76.0 ($5.6) ($0.3) ($10.3) ($9.6) $50.2 32.9% (1) Primarily includes non-recurring expenses such as non-acquisition severance related to cost reduction initiatives and reorganizations, non-recurring consulting and advisory fees, and non-recurring expenses related to the strategic review.(2) Represents the right-of-use assets impairment charge taken in the first quarter of fiscal 2026. E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF ADJUSTED EARNINGS PER SHARE TABLE III Fiscal First Quarter 2026 (in millions, except per share amounts) Q1 26 GAAP Net income (loss) (15.5) Interest expense, net 22.1 Income taxes benefit 2.2 Depreciation & amortization 36.7 EBITDA $45.4 Share-based compensation 11.3 Non-recurring/non-operating costs (1.1) Acquisition-related adjustments 5.5 Change in tax receivable agreement liability (20.7) Change in fair value of warrant liability (0.5) Change in fair value of contingent consideration 12.1 Right-of-use assets impairment charge 0.3 Adjusted EBITDA $52.2 Depreciation (7.3) Interest and other expense, net (22.1) Normalized income taxes (1) (5.5) Adjusted Net Income $17.4 Adjusted basic shares outstanding 349.1 Adjusted earnings per share $0.05 (1) Income taxes calculated using 24% effective rate. E2OPEN PARENT HOLDINGS, INC. ADJUSTED FREE CASH FLOW TABLE IV Fiscal First Quarter 2026 (in millions) Q1 26 GAAP operating cash flow 41.8 Add: Non recurring cash payments (1) 1.3 Add: Change in channel client deposits payable (2) 5.0 Adjusted operating cash flow $48.0 Capital expenditures (7.3) Adjusted free cash flow $40.7 (1) Primarily includes non-recurring expenses such as non-acquisition related severance, systems integrations, legal entity rationalization, and non-recurring consulting and advisory fees. (2) Channel Client Deposits Payable represents client deposits for the incentive payment program associated with the Company's channel shaping application. The Company offers services to administer incentive payments to partners on behalf of the Company's clients. The Company's clients deposit these funds into a restricted cash account with an offset included as a liability in incentive program payable in the Consolidated Balance Sheets. E2OPEN PARENT HOLDINGS, INC. CONSOLIDATED CAPITAL TABLE V Fiscal First Quarter 2026 Description Shares(000's) Notes Shares outstanding as of May 31, 2025 312,397 Shares outstanding Common Units 30,692 Units issued in the Business Combination that have not been converted from common units to Class A common stock (Common units are represented by Class V shares). Series B-2 Shares (unvested) 3,372 Represents the right to acquire shares of Class A common stock when the 20-day VWAP reaches $15.00 per share. Restricted Common Units Series 2 (unvested) 2,628 Represents the right in E2open Holdings, LLC that converts into common units when the 20-day VWAP reaches $15.00. Upon conversion to common units, the holders can elect to convert the common units to Class A common stock. Adjusted Basic Shares 349,089 Warrants 29,080 Outstanding warrants with an exercise price of $11.50. Options (vested/unreleased and unvested) 6,177 Options issued to management under the long-term incentive plan. Restricted Shares (vested/unreleased and unvested) 19,578 Restricted shares issued to employees, management and directors under the long-term incentive plan. Fully Converted Shares 403,924 View source version on Contacts Investor Contact Russell JohnsonSVP Treasurer & Investor Relations, Media Contact 5W PR for e2opene2open@ 908-510-8009 Corporate Contact Kristin SeigworthVP Communications, pr@ Sign in to access your portfolio
Business Wire
10-07-2025
- Business
- Business Wire
E2open Announces Fiscal 2026 First Quarter Financial Results
DALLAS--(BUSINESS WIRE)-- E2open Parent Holdings, Inc. (NYSE: ETWO) ('e2open' or the 'Company'), the connected supply chain SaaS platform with the largest multi-enterprise network, today announced financial results for its fiscal first quarter ended May 31, 2025. 'Our first quarter results demonstrate that our core business continues to strengthen and underscore the progress we have made in putting e2open back on a sustainable growth path,' said Andrew Appel, e2open chief executive officer. 'Our entire e2open team remains focused on client satisfaction and retention, flawless delivery of our products, and value-added innovation. These efforts came to fruition in Q1 as we returned to year-over-year subscription revenue growth. I believe e2open is well positioned for the next chapter in the company's development, which is our pending acquisition by WiseTech Global as announced in late May. Our e2open team is excited by the opportunity to partner with WiseTech in bringing industry-leading supply chain management capabilities to our many clients.' 'In Q1 FY26, e2open delivered subscription revenue above the high end of our guidance, marking our first year-over-year subscription revenue growth since mid-FY24. We also continued our trend of strong adjusted EBITDA and cash flow,' said Marje Armstrong, chief financial officer of e2open. 'We are confirming all elements of our full-year guidance issued last quarter and want to thank all our employees for their support and dedication as we move forward with the WiseTech transaction, which we expect to close by the end of this calendar year.' Fiscal First Quarter 2026 Financial Highlights Revenue GAAP subscription revenue for the first quarter of 2026 was $132.9 million, an increase of 1.1% from the year-ago comparable period and 87.0% of total revenue. Subscription revenue increased 0.9% on a constant currency basis. Total GAAP revenue for the first quarter of 2026 was $152.6 million, an increase of 1.0% from the year-ago comparable period. Total revenue increased 0.7% on a constant currency basis. GAAP gross profit for the first quarter of 2026 was $73.6 million, an increase of 1.3% from the year-ago comparable period. Non-GAAP gross profit was $102.4 million, a decrease of 0.2% and down 0.2% on a constant currency basis. GAAP gross margin for the first quarter of 2026 was 48.2% compared to 48.1% for the year-ago comparable period. Non-GAAP gross margin was 67.1% compared to 67.8% from the comparable year-ago period. GAAP net loss for the first quarter of 2026 was $15.5 million compared to a net loss of $42.8 million from the year-ago comparable period. Adjusted EBITDA for the first quarter of 2026 was $52.2 million, an increase of 3.0% from the comparable year-ago period. Adjusted EBITDA margin was 34.2% versus 33.6% from the comparable year-ago period. GAAP EPS for the first quarter of 2026 was a loss of $0.05. Adjusted EPS for the first quarter of 2026 was $0.05. Recent Business Highlights Announced acquisition by WiseTech Global, concluding e2open's strategic review. Closed new logo and cross-sell business with large, well-known global companies in diverse market segments including manufacturing, high-tech and electronics, consumer retail, apparel, consumer packaged goods, and food and beverage. These clients selected e2open solutions across the platform to increase productivity and efficiency, reduce risk, improve compliance, significantly reduce or eliminate manual processes, and enhance their ability to serve their own customers. Opened registration for Connect 2025 Global Supply Chain Summit, e2open's annual customer conference, which will be held October 14 to 16 in Amsterdam. Connect brings together clients, partners, and e2open leaders for a robust agenda covering industry trends and best practices, client use cases, product innovation, knowledge sharing, and networking. Among the wins in the first quarter was a large cross-sell expansion with a leading global active health and wellness company, which selected e2open as a strategic partner as part of its digital supply chain transformation. Building upon its use of e2open Transportation Management, Parcel, and Global Trade Management applications, the client added Demand Planning, Supply Planning, and Multi-Echelon Inventory Optimization (MEIO) applications to increase productivity and manage supply as the company prioritizes scalable solutions to navigate the complexities of growth. Among the customer go-lives in the first quarter was a large multinational manufacturer of frozen and fresh food products that expanded Transportation Management to its Mexico division, providing comprehensive controls and reporting capabilities for managing the entire North American transportation network. This advancement enhances user productivity in daily operations, streamlines workflows, and facilitates quicker decision-making. As a result, the division can better respond to demand fluctuations and optimize resource allocation, ultimately improving overall operational performance. Financial Outlook for Fiscal Year 2026 As of July 10, 2025, e2open is reiterating full year 2026 guidance previously provided on April 29, 2025, as follows: GAAP subscription revenue for fiscal 2026 is expected to be in the range of $525 million to $535 million, reflecting a 0.4% growth rate at the mid-point. Total GAAP revenue for fiscal 2026 is expected to be in the range of $600 million to $618 million, reflecting a positive 0.2% growth rate at the mid-point. Non-GAAP gross profit margin for fiscal 2026 is expected to be in the range of 68% to 68.5%. Adjusted EBITDA for fiscal 2026 is expected to be in the range of $200 million to $210 million with an implied adjusted EBITDA margin in the range of 33% to 34%. Quarterly Conference Call E2open will host a conference call today at 5:00 p.m. ET to review fiscal first quarter 2026 financial results and the Company's outlook for fiscal year 2026. To access this call, dial 888-506-0062 (domestic) or 973-528-0011 (international). The conference ID is 656761. A live webcast of the conference call will be accessible in the 'Investor Relations' section of e2open's website at A replay of this conference call can also be accessed through July 10, 2026, at 877-481-4010 (domestic) or 919-882-2331 (international). The replay passcode is 52634. An archived webcast of this conference call will also be available after the completion of the call in the 'Investor Relations' section of the Company's website at About e2open E2open is the connected supply chain software platform that enables the world's largest companies to transform the way they make, move, and sell goods and services. With the broadest cloud-native global platform purpose-built for modern supply chains, e2open connects more than 500,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 18 billion transactions annually. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste, and operate sustainably. Moving as one.™ Learn More: E2open and 'Moving as one.' are the registered trademarks of E2open, LLC. All other trademarks, registered trademarks and service marks are the property of their respective owners. Non-GAAP Financial Measures This press release includes certain financial measures not presented in accordance with generally accepted accounting principles ('GAAP') including non-GAAP revenue, non-GAAP subscription revenue, non-GAAP professional services and other revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, adjusted net income, non-GAAP gross margin, adjusted free cash flow, adjusted operating cash flow and adjusted earnings per share. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies. The Company believes these non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. NOTE: E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin, adjusted EBITD, or adjusted EBITDA margin without unreasonable effort, and therefore no reconciliation of certain forward-looking non-GAAP financial measures for non-GAAP gross profit margin, adjusted EBITDA, or adjusted EBITDA margin is included. Forward Looking Statement Disclaimer This press release contains 'forward-looking' statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed acquisition of e2open, anticipated future financial performance and results of e2open and expected timing of the closing of the proposed acquisition and other transactions contemplated by the merger agreement governing the transaction (the 'Mergers'). These forward-looking statements are based on e2open management's beliefs and assumptions and on information currently available to e2open management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: uncertainties associated with the proposed Mergers; risk associated with the failure to complete the Mergers and its effect on our business and the market price of our shares of our Class A Common Stock; limitations on our ability to pursue alternatives to the Mergers under the merger agreement; restrictions imposed on the conduct of our business during the term of the proposed Mergers; potential litigation instituted against us challenging the proposed Mergers; the effect of the volatile, negative or uncertain macro-economic and political conditions, tariffs, inflation, changes in interest rates, fluctuations in foreign currency exchange rates and the potential effects of these factors on our business, our slowing growth rate, results of operations and financial condition as well as our clients' businesses and levels of business activity; the inability to realize the value of the goodwill and intangible assets, which could result in the incurrence of material charges related to the impairment of those assets; the inability to develop and market new product innovations and monetize our network; the slowing of our growth rate due to lower than anticipated new bookings and higher than expected churn; risks associated with our acquisitions, including churn, the ability to maintain client relationships and greater than expected liabilities; the inability to attract new clients or upsell/cross sell existing clients or the failure to renew existing client subscriptions on terms favorable to us; risks associated with our international operations, including the risks created by geopolitical instability; the failure of the market for cloud-based SCM solutions to develop as quickly as we expect or failure to compete successfully in a fragmented and competitive SCM market; the diversion of management's attention and consumption of resources as a result of the strategic alternatives process; failure to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; cyber-attacks and security vulnerabilities; and inability to attract or retain key employees. More information on factors that could cause our actual results or events to differ from those expressed in forward-looking statements are included from time to time in our reports filed with the SEC including in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, filed with the SEC on April 29, 2025 (2025 Form 10-K). The forward-looking statements included in this press release are made only as of the date hereof. Except as required by applicable law or regulation, e2open does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. E2OPEN PARENT HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) February 28, 2025 Assets Cash and cash equivalents $ 230,197 $ 197,350 Restricted cash 9,818 14,785 Accounts receivable, net 108,184 133,436 Prepaid expenses and other current assets 35,729 34,025 Total current assets 383,928 379,596 Goodwill 1,243,848 1,213,794 Intangible assets, net 647,513 673,026 Property and equipment, net 60,927 61,278 Operating lease right-of-use assets 12,869 14,977 Other noncurrent assets 28,724 28,364 Total assets $ 2,377,809 $ 2,371,035 Liabilities, Redeemable Share-Based Awards and Stockholders' Equity Accounts payable and accrued liabilities $ 85,372 $ 74,829 Channel client deposits payable 9,818 14,785 Deferred revenue 203,117 216,740 Current portion of tax receivable agreement liability 42,709 4,158 Current portion of notes payable 11,223 11,264 Current portion of operating lease obligations 5,807 6,146 Current portion of financing lease obligations 2,025 2,143 Income taxes payable 6,213 3,337 Total current liabilities 366,284 333,402 Long-term deferred revenue 3,026 1,536 Operating lease obligations 9,025 10,838 Financing lease obligations 2,740 3,170 Notes payable 1,029,604 1,031,180 Tax receivable agreement liability - 59,277 Warrant liability 103 582 Contingent consideration 17,188 5,128 Deferred taxes 48,369 48,104 Other noncurrent liabilities 646 648 Total liabilities 1,476,985 1,493,865 Commitments and Contingencies Redeemable share-based awards 167 191 Stockholders' Equity Class A common stock 31 31 Class V common stock — — Series B-1 common stock — — Series B-2 common stock — — Additional paid-in capital 3,452,223 3,444,584 Accumulated other comprehensive loss (32,273 ) (63,835 ) Accumulated deficit (2,547,659 ) (2,533,533 ) Treasury stock, at cost (2,473 ) (2,473 ) Total E2open Parent Holdings, Inc. equity 869,849 844,774 Noncontrolling interest 30,808 32,205 Total stockholders' equity 900,657 876,979 Total liabilities, redeemable share-based awards and stockholders' equity $ 2,377,809 $ 2,371,035 Expand E2OPEN PARENT HOLDINGS, INC. (Unaudited) Three Months Ended May 31, (In thousands) 2025 2024 Cash flows from operating activities Net loss $ (15,523 ) $ (42,788 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 36,698 53,605 Amortization of deferred commissions 3,070 2,109 Provision for credit losses 272 151 Amortization of debt issuance costs 1,351 1,320 Amortization of operating lease right-of-use assets 1,400 1,722 Share-based compensation 11,251 11,787 Deferred income taxes (3,296 ) (5,972 ) Right-of-use assets impairment charge 305 — (Gain) loss from change in tax receivable agreement liability (20,727 ) 3,974 Gain from change in fair value of warrant liability (479 ) (3,761 ) Loss from change in fair value of contingent consideration 12,060 2,280 (Gain) loss on disposal of property and equipment (8 ) 79 Changes in operating assets and liabilities: Accounts receivable 24,980 50,047 Prepaid expenses and other current assets (1,639 ) (3,905 ) Other noncurrent assets (2,894 ) (2,544 ) Accounts payable and accrued liabilities 7,466 (10,702 ) Channel client deposits payable (4,967 ) 1,177 Deferred revenue (12,134 ) (26,403 ) Changes in other liabilities 4,609 3,740 Net cash provided by operating activities 41,795 35,916 Cash flows from investing activities Capital expenditures (7,326 ) (6,084 ) Net cash used in investing activities (7,326 ) (6,084 ) Cash flows from financing activities Repayments of indebtedness (2,813 ) (2,808 ) Repayments of financing lease obligations (547 ) (353 ) Proceeds from exercise of stock options — 155 Payments of debt issuance costs (536 ) — Net cash used in financing activities (3,896 ) (3,006 ) Effect of exchange rate changes on cash and cash equivalents (2,693 ) 76 Net increase in cash, cash equivalents and restricted cash 27,880 26,902 Cash, cash equivalents and restricted cash at beginning of period 212,135 149,038 Cash, cash equivalents and restricted cash at end of period $ 240,015 $ 175,940 Expand E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF PRO FORMA INFORMATION TABLE I (in millions) Q1 Q1 $ Var % Var FY2026 FY2025 PRO FORMA REVENUE RECONCILIATION Total GAAP Revenue 152.6 151.2 1.5 1.0% Constant currency FX impact (1) (0.4) - (0.4) n/m Total non-GAAP revenue (constant currency basis) (2) $152.3 $151.2 $1.1 0.7% GAAP Subscription Revenue 132.9 131.4 1.5 1.1% Constant currency FX impact (1) (0.3) - (0.3) n/m Non-GAAP subscription revenue (constant currency basis) (2) $132.6 $131.4 $1.2 0.9% GAAP Professional Services and other revenue 19.7 19.8 (0.0) (0.1%) Constant currency FX impact (1) (0.1) - (0.1) n/m Non-GAAP professional services and other revenue (constant currency basis) (2) $19.7 $19.8 ($0.1) (0.4%) PRO FORMA GROSS PROFIT RECONCILIATION GAAP Gross profit 73.6 72.7 0.9 1.3% Depreciation and amortization 26.4 28.5 (2.1) (7.5%) Share-based compensation (3) 1.7 1.2 0.4 36.4% Non-recurring/non-operating costs (4) 0.8 0.2 0.6 300.0% Non-GAAP gross profit $102.4 $102.6 ($0.2) (0.2%) Non-GAAP Gross Margin % 67.1% 67.8% Constant currency FX impact (1) (0.1) - (0.1) n/m Total non-GAAP gross profit (constant currency basis) (2) $102.3 $102.6 ($0.3) (0.2%) Non-GAAP Gross Margin % (constant currency basis) (2) 67.2% 67.8% PRO FORMA ADJUSTED EBITDA RECONCILIATION Net income (loss) (15.5) (42.8) 27.3 n/m Interest expense, net 22.1 24.7 (2.6) (10.6%) Income tax expense (benefit) 2.2 (1.9) 4.1 n/m Depreciation and amortization 36.7 53.6 (16.9) (31.5%) EBITDA $45.4 $33.6 $11.8 35.2% Share-based compensation (3) 11.3 11.8 (0.5) (4.6%) Non-recurring/non-operating costs (4) (1.1) 2.6 (3.7) n/m Acquisition-related adjustments (5) 5.5 0.3 5.2 1,857.1% Change in tax receivable agreement liability (6) (20.7) 4.0 (24.7) n/m Change in fair value of warrant liability (7) (0.5) (3.8) 3.3 (87.2%) Change in fair value of contingent consideration (8) 12.1 2.3 9.8 428.9% Right-of-use assets impairment charge (9) 0.3 - 0.3 n/m Adjusted EBITDA $52.2 $50.7 $1.5 3.0% Adjusted EBITDA Margin % 34.2% 33.6% Constant currency FX impact (1) 0.1 - 0.1 n/m Total adjusted EBITDA (constant currency basis) (2) $52.3 $50.7 $1.6 3.2% Adjusted EBITDA Margin % (constant currency basis) (2) 34.4% 33.6% (1) Constant Currency refers to pro-forma amounts excluding the impact of translating foreign currencies into U.S. dollars. To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). (2) Constant Currency refers to pro forma amounts excluding translation and transactional impacts from foreign currency exchange rates. (3) Reflects non-cash, long-term share-based compensation expense. (4) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. (5) Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with the strategic review. (6) Represents the fair value adjustment at each balance sheet date for the Tax Receivable Agreement along with the associated interest. (7) Represents the fair value adjustment at each balance sheet date of the warrant liability related to our warrants. (8) Represents the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted B-2 common stock and Series 2 RCUs. Expand E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF ADJUSTED EARNINGS PER SHARE TABLE III Fiscal First Quarter 2026 (in millions, except per share amounts) Q1 26 GAAP Net income (loss) (15.5) Interest expense, net 22.1 Income taxes benefit 2.2 Depreciation & amortization 36.7 EBITDA $45.4 Share-based compensation 11.3 Non-recurring/non-operating costs (1.1) Acquisition-related adjustments 5.5 Change in tax receivable agreement liability (20.7) Change in fair value of warrant liability (0.5) Change in fair value of contingent consideration 12.1 Right-of-use assets impairment charge 0.3 Adjusted EBITDA $52.2 Depreciation (7.3) Interest and other expense, net (22.1) Normalized income taxes (1) (5.5) Adjusted Net Income $17.4 Adjusted basic shares outstanding 349.1 Adjusted earnings per share $0.05 (1) Income taxes calculated using 24% effective rate. Expand E2OPEN PARENT HOLDINGS, INC. ADJUSTED FREE CASH FLOW TABLE IV Fiscal First Quarter 2026 (in millions) Q1 26 GAAP operating cash flow 41.8 Add: Non recurring cash payments (1) 1.3 Add: Change in channel client deposits payable (2) 5.0 Adjusted operating cash flow $48.0 Capital expenditures (7.3) Adjusted free cash flow $40.7 (1) Primarily includes non-recurring expenses such as non-acquisition related severance, systems integrations, legal entity rationalization, and non-recurring consulting and advisory fees. (2) Channel Client Deposits Payable represents client deposits for the incentive payment program associated with the Company's channel shaping application. The Company offers services to administer incentive payments to partners on behalf of the Company's clients. The Company's clients deposit these funds into a restricted cash account with an offset included as a liability in incentive program payable in the Consolidated Balance Sheets. Expand E2OPEN PARENT HOLDINGS, INC. CONSOLIDATED CAPITAL TABLE V Fiscal First Quarter 2026 Description Shares (000's) Notes Shares outstanding as of May 31, 2025 312,397 Shares outstanding Common Units 30,692 Units issued in the Business Combination that have not been converted from common units to Class A common stock (Common units are represented by Class V shares). Series B-2 Shares (unvested) 3,372 Represents the right to acquire shares of Class A common stock when the 20-day VWAP reaches $15.00 per share. Restricted Common Units Series 2 (unvested) 2,628 Represents the right in E2open Holdings, LLC that converts into common units when the 20-day VWAP reaches $15.00. Upon conversion to common units, the holders can elect to convert the common units to Class A common stock. Adjusted Basic Shares 349,089 Warrants 29,080 Outstanding warrants with an exercise price of $11.50. Options (vested/unreleased and unvested) 6,177 Options issued to management under the long-term incentive plan. Restricted Shares (vested/unreleased and unvested) 19,578 Fully Converted Shares 403,924 Expand
The Age
02-07-2025
- Business
- The Age
The tech billionaire, the beautician and the backlash
Sitting up the front of the plane, an Oregon beautician took a selfie while on the 17-hour flight across the North Pacific Ocean to Hong Kong to rendezvous with an Australian billionaire. 'He better be worth it,' Kimberlee Cvitash wrote in a since-deleted Instagram post from May this year. The billionaire in question was Richard White, 70, a musician and former guitar repairer who founded global logistics software giant WiseTech in 1994. In the past year, White's complicated personal life, including multiple relationships with women, including WiseTech employees, has resulted in board upheaval following a number of complaints about inappropriate conduct, a number of which have been settled. Engineer Greg Williams, who met White decades ago while both were members of the Church of Scientology, and before they became band members, observed that the billionaire was 'insecure on his own' and, in recent years, he witnessed White requesting an employee, whom he named, to spend the night with him. Cvitash, whom White flew to Hong Kong to be with him in May, posted a not-so-subtle photo during their stay. The photo of a shopfront read: 'Billionaire Boys Club' – the luxury streetwear brand founded by American rapper Pharrell Williams. White is Australia's 15th-richest person, with a $10.6 billion fortune. 'Happy Freedom Day from Australia … I love my Bexley guitar player,' Cvitash posted during a visit to White's Bexley compound in July last year. An investigation by The Australian Financial Review, The Sydney Morning Herald and The Age can reveal that the controversial businessman is supporting Cvitash, who runs Skin Wise Academy in Portland. The beautician receives a sizable monthly allowance and has told friends that White picked up the $30,000 tab for her breast augmentation surgery and face work. White is also paying the $11,000 monthly rental for Cvitash's four-bedroom lakeside property on the outskirts of Portland. In February 2024, Cvitash posted a photo of 'my new little home' with the hashtag #welllovedwoman and the flags of Australia and the US linked by a love heart. White's multitude of property dealings for his paramours have resulted in a flurry of unwelcome publicity over the past year, and a slew of confidential settlements, which have been uncovered as part of ongoing investigations into allegations of inappropriate conduct, intimidation and bullying – all of which have been denied by White. In October last year, wellness entrepreneur Linda Rogan claimed White expected her to have sex with him in exchange for an investment in her business. The claims were made as part of a legal stoush in which Rogan sued White over a $92,000 furniture bill. Rogan claimed she was stuck with the bill after White's now-wife Zena Nasser, a former criminal lawyer, discovered the affair and kicked her rival out of the $13.1 million Vaucluse house White had secretly purchased for Rogan in September 2022. White, Nasser and Cvitash did not respond to questions. At the same time Nasser was brutally ending one of White's property deals, she was embroiling him in a new one with her ex-husband. Questionable loans Mark Merhi, who left Australia in mid-2022 with $80 million in corporate debts owed by his companies, recommended White finance three property developments in western Sydney, including one he'd sold to an associate on the cheap before his business collapsed. After a joint investigation by the Financial Review, the Herald and The Age revealed the existence of White's $70 million loan to Ahmad Ahmad, a nut roaster from Lakemba, the WiseTech founder publicly claimed he was calling in the loans and would move to sell the three sites if the money wasn't forthcoming. Five months later, the loans remain outstanding and White is down $70 million, plus interest. There has been no indication White has moved to take control of the properties and sell them. Meanwhile, his company RealWise Finance remains the lender to the developments, according to property records. Documents obtained during the joint investigation show that for more than a year, White had not bothered to formalise the loan agreement. White began lending money to Ahmad's companies in November 2022, starting with $5 million, followed by $3 million in May 2023. A formal loan agreement was finally drawn up in August 2023, which drastically increased White's loans to Ahmad's companies to $53 million. By March 2024, the loan increased to $70 million. Ahmad's companies bought one property – a former Aldi supermarket which had been owned by a Merhi company – for $13.5 million in September 2020. This was $5.5 million less than Merhi's company paid for it five years earlier. Helm Advisory liquidator Stephen Hathway told creditors the sale may have been an uncommercial transaction as the site 'had potential sale value of $23,300,000', in an October 2022 report. Privately, White's friends and associates have expressed dismay over his involvement with Merhi, who had a colourful history before moving to Dubai. Loading Merhi and his brother, Khalil, who were involved in various companies within the Merhi Group, were central figures in an inquest into four deliberately lit fires, all using stolen cars loaded with accelerants, which were crashed into the properties. Simon Turner, who was the compliance and safety manager for the group of companies run by Mark and Khalil, told the joint investigation that his bosses orchestrated the four firebombings between 2006 and 2010. Two of the fires were at a neighbouring property the Merhis had been trying to buy, he said. 'They drove a car through the security gates and the roller door and set it alight,' Turner said of the two fires at the Merhis' neighbouring premises in Seville Street, Fairfield. 'It was exactly the same as what happened at the CFMEU and Bellevue Hill.' Turner said the Merhis were at war with the construction union when they firebombed the CFMEU's Lidcombe office. The fourth fire was in Bellevue Hill. Turner recalls receiving a call from Khalil Merhi about the Bellevue Hill development site, where the Merhis were in dispute with the owner. 'That prick owes us money … get all the gear out of the office,' Khalil is alleged to have said. Turner said the original plan was to crash a 100-tonne crane onto the site but it was then decided to use a car loaded with accelerant. The fires were linked to organisations or people who'd had 'confrontations or disagreements with Khalil Merhi and/or Mark Merhi,' Coroner Michael Barnes found in 2016. On May 12, 2010, the day before the Lidcombe firebombing, Mark Merhi had a tense discussion with a CFMEU executive about his company's alleged breaches of employment and taxation laws. Later that day, in a phone call, Khalil threatened to 'take the union down', the coroner noted. A petrol-contaminated glove found at the CFMEU fire contained DNA which was matched to brothers Jalal and Emad Alameddine. According to the coroner's report, each of the four cars used in the firebombings had been stolen from the Punchbowl area. 'Both men have committed offences of car stealing and the vehicles used in each of the fires were stolen from an area close to where the two men lived,' the coroner found. Loading But, ultimately, there was not enough evidence to make a conclusive finding and no charges were laid. Land title records show that on Christmas Eve 2009, nine months after the second firebombing of the Seville Street premises, the owner gave in and sold to the Merhis. The transfer was witnessed by the Merhis' solicitor Zena Nasser, who had married Mark Merhi in October 2009. Once they'd bought it, the Merhis used it as their headquarters. Turner, who worked there, said Nasser had an office on the top floor and a parade of bikies Nasser was legally representing would troop up the stairs to see her. Earlier that year, The Daily Telegraph described Nasser, 29 at the time, as a 'Rolex-wearing Gucci shoe-clad daughter of a Lebanese developer' who represented a number of prominent bikie gang members. 'Her clients include members of the Notorious bikie gang and Kings Cross nightclub entrepreneur John Ibrahim and his brothers Michael and Sam, former head of the Nomads gang and now believed to be a key player behind Notorious,' the Telegraph reported. Nasser has previously distanced herself from her former husband, saying she was in a relationship with Merhi for less than 18 months 'and they went their separate ways in 2011, the same year their daughter was born'. She said she 'has been the sole carer and a single mother' since then. However, an entity owned by her former husband, Merhis Living, donated $700 to Nasser during a charity bike ride when she was working at major consulting firm EY in 2018. That same year, Merhi's company became a shareholder in a short-lived lingerie business, Alexa Intimates, founded by Nasser. Property records also reflect the dealings Nasser had with her former husband. Nasser bought two properties from his companies in 2014 and 2017. She acquired an apartment in Rickard Street, Bankstown, in 2017 from Rickard Apartments – a company Merhi founded – for $550,000. Nasser later sold this apartment at a $95,000 loss to former champion bodybuilder and convicted steroid dealer Sidique Tarawally in 2022. Merhi had also sold an apartment in a different building to Tarawally two years earlier. Police raided Tarawally's home in Bankstown, in Sydney's south-west, in March 2024. He was convicted but given a two-year community correction order this year, avoiding jail. There is no suggestion Nasser or White were aware of any of the illegal activities of Tarawally or Mark Chikarovski, who purchased the Vaucluse mansion, which was also sold at a substantial loss. Using a front company, White bought the Dalley Avenue house for $13.1 million in September 2022, watching the online auction under a pseudonym, Rick LeBlanc. However, just three weeks after Rogan collected the keys, White's now-wife Nasser discovered the relationship and kicked Rogan out of the home. Five months later, it was sold at a $1.6 million loss to Chikarovski, who was later convicted of running a lucrative drug business on the dark web under the username AusCokeKing. It turns out that wasn't the first house White had bought for a friend or lover and made a loss on. White bought a four-bedroom waterside house in the southern Sydney suburb of Oatley for another WiseTech employee he was in a relationship with for $1.8 million in 2018. Two years later, White sold the property for a $75,000 loss. In 2022, White forked out $1.6 million for a four-bedroom house in Narara, near Gosford on the NSW Central Coast. He offloaded it in May this year at a $500,000 loss. His mate Greg Williams, a fellow former Scientologist who was working for White, had been renting the place until the pair fell out in mid-2023. Loading Williams has theorised that White began using the name 'Wise' in his companies as a way of 'giving the middle finger' to the Scientology organisation they'd both once belonged to. The World Institute of Scientology Enterprises (WISE) was established by Scientology founder L. Ron Hubbard with the expectation that members would utilise WISE's principles in their own business organisations. Williams said he and White had fallen out over the Narara lease agreement and the purchase of a CB radio because of the lack of phone reception at White's holiday home at Sentry Rock. Williams had been supervising work at the luxury estate on the Hawkesbury River purchased by White for $12 million in 2020. 'I could crush you,' were White's parting words to him, Williams recalled. Witnessing the conversation at White's Bexley compound was another former Scientologist, Reg Kennedy, White's driver and gofer. Kennedy has frequently featured as a director for companies White has used in his property purchases. Kennedy resides in one of the six townhouses within the billionaire's Bexley compound. After returning to Oregon after a visit to White in July 2024, she posted a video showing a view from one of the townhouses. 'I miss the birds in Bexley and him,' Cvitash said.
