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SPSC

SPS Commerce, Inc.

SPSC

SPS Commerce, Inc. • NASDAQ
$83.32 ▲ 1.23% (+1.01)
Market Cap $3.16 B
52w High $201.06
52w Low $73.05
Dividend Yield 0%
P/E 37.2
Volume 224.78K
Outstanding Shares 37.87M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $189.904M ▲ $100.781M ▼ $25.569M ▲ 13.464% ▲ $0.67 ▲ $47.298M ▲
Q2-2025 $187.4M ▲ $101.104M ▲ $19.733M ▼ 10.53% ▼ $0.52 ▼ $40.97M ▲
Q1-2025 $181.549M ▲ $98.679M ▲ $22.196M ▲ 12.226% ▲ $0.58 ▲ $39.501M ▲
Q4-2024 $170.907M ▲ $90.578M ▲ $17.559M ▼ 10.274% ▼ $0.47 ▼ $37.317M ▲
Q3-2024 $163.686M $86.491M $23.46M 14.332% $0.63 $36.674M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $133.725M ▲ $1.159B ▲ $199.74M ▲ $958.94M ▲
Q2-2025 $107.603M ▲ $1.121B ▲ $171.324M ▼ $949.78M ▲
Q1-2025 $94.921M ▼ $1.109B ▲ $188.129M ▲ $920.921M ▲
Q4-2024 $241.017M ▲ $1.031B ▲ $176.54M ▲ $854.69M ▲
Q3-2024 $205.773M $1.003B $173.935M $829.365M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $25.569M ▲ $60.613M ▲ $-6.058M ▲ $-28.425M ▼ $26.122M ▲ $54.555M ▲
Q2-2025 $19.733M ▼ $32.323M ▼ $-7.657M ▲ $-12.772M ▲ $12.682M ▲ $25.658M ▼
Q1-2025 $22.196M ▲ $39.983M ▼ $-147.786M ▼ $-38.954M ▼ $-146.096M ▼ $33.833M ▼
Q4-2024 $17.559M ▼ $40.562M ▼ $-227K ▲ $4.671M ▲ $42.175M ▲ $34.348M ▼
Q3-2024 $23.46M $53.33M $-98.298M $2.253M $-41.39M $48.09M

Five-Year Company Overview

Income Statement

Income Statement Revenue and profits have been climbing steadily over the past several years, showing a consistent, disciplined growth story rather than a volatile one. Gross profit has scaled nicely with revenue, suggesting the core service is high-margin and the company is managing costs well. Operating and EBITDA margins have remained healthy and gradually improved, which points to good operating leverage as the business grows. Net income dipped slightly a few years ago but has since rebounded to new highs, and earnings per share have trended upward over time. Overall, the income statement reflects a mature, profitable software business with stable, recurring-style economics rather than a boom‑and‑bust profile.

Balance Sheet

Balance Sheet The balance sheet looks conservative and strengthening. Total assets and shareholders’ equity have grown meaningfully over the period, indicating the company is building its asset base without overrelying on borrowing. Cash levels have increased over time and sit at a comfortable level relative to the very small amount of debt, which suggests low financial risk and good liquidity. Debt is minimal and has actually declined slightly, so leverage is not a major concern here. In simple terms, the company appears to be funding growth largely from its own operations and equity, with a solid financial cushion to handle shocks or invest further.

Cash Flow

Cash Flow Cash generation is a key strength. Operating cash flow has grown consistently along with earnings, showing that reported profits are backed by real cash inflows. Free cash flow has also risen over time and remains comfortably positive even after regular investment in the business. Capital spending is modest and stable, which fits the profile of a scalable software platform that does not require heavy physical investment. This combination of steady cash inflow and light capital needs gives the company ample flexibility to fund acquisitions, product development, or occasional shareholder returns, while still keeping a buffer for downturns.

Competitive Edge

Competitive Edge SPS Commerce occupies a strong niche at the center of the retail supply chain, acting as the data “interchange” layer between retailers, suppliers, distributors, logistics firms, and other partners. Its key advantage is the size and depth of its network: once many retailers and suppliers are connected, the platform becomes more valuable to everyone, making it harder for new entrants to break in. High switching costs also protect its position; once a customer has integrated systems and trading relationships through SPS, moving to another provider is disruptive and complex. The full‑service model—where SPS not only provides software but also manages the EDI complexity—differentiates it from more bare‑bones SaaS competitors. Mandated adoption by large retailers further reinforces its role as a default standard. The main risks around this position include dependence on the health of the retail sector, exposure to a relatively concentrated set of large retail partners, and ongoing competition from other integration and supply chain platforms, including offerings from large enterprise software vendors.

Innovation and R&D

Innovation and R&D Innovation is focused on deepening the value of the network rather than chasing unrelated ventures. The company started with cloud‑based EDI as a “connect once, access many” model and has layered on higher‑value tools such as analytics, product information management, and sourcing capabilities. Recent moves show a clear strategy: expand horizontally across the retail and e‑commerce ecosystem (for example, tools for Amazon sellers, invoice deduction management, vendor performance, and e‑invoicing in Europe) and vertically into adjacent segments like manufacturing supply chains. AI is becoming a bigger part of the roadmap, with applications aimed at better demand forecasting, faster onboarding, and more predictive analytics. Most of this is applied, customer‑facing innovation rather than speculative R&D. Key uncertainties are how quickly customers adopt the new AI‑enabled features, and how smoothly the company integrates multiple acquisitions into a single, coherent platform experience.

Summary

SPS Commerce presents as a financially solid, steadily growing software infrastructure company anchored in a powerful network effect within the retail supply chain. The income statement shows a pattern of rising revenue and profits with stable, attractive margins, while the balance sheet is conservative, cash‑rich, and lightly levered. Strong and growing free cash flow provides room to keep investing in the platform and pursuing acquisitions without stretching the balance sheet. Competitively, its entrenched network, full‑service model, and retailer mandates form a meaningful moat, though the company remains tied to the health and technology evolution of the retail and e‑commerce sectors. Innovation efforts are focused and strategic, especially around AI, analytics, and complementary acquisitions that broaden the platform’s scope. Future performance will depend heavily on maintaining network leadership, successfully integrating new capabilities, and continuing to convert that strong strategic position into durable, high‑quality cash flows.

NEWS

October 16, 2025 · 4:05 PM UTC

SPS Commerce Announces Date of Third Quarter 2025 Financial Results

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September 9, 2025 · 4:07 PM UTC

SPS Commerce to Host Investor Day on September 23, 2025

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