Sps Commerce Financials
Sps Commerce (SPSC) reported $751.5M in revenue for fiscal year 2025, up 17.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
SPS Commerce is scaling a high-gross-margin software model where cash generation outpaces reinvestment needs even as goodwill grows.
From FY2023 to FY2025, gross margin stepped higher by roughly 3 margin points while free cash flow margin stayed near20.0% , suggesting added revenue arrived without a matching rise in delivery cost or capital spending. That matters because FY2025 capex was only$26.5M against$152.3M of free cash flow, so expansion is being funded mainly by operating cash rather than heavy reinvestment.
The balance sheet remains conservative: FY2025 liabilities were only
Goodwill reached
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Sps Commerce's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Sps Commerce has an operating margin of 15.7%, meaning the company retains $16 of operating profit per $100 of revenue. This strong profitability earns a score of 86/100, reflecting efficient cost management and pricing power. This is up from 13.9% the prior year.
Sps Commerce's revenue surged 17.8% year-over-year to $751.5M, reflecting rapid business expansion. This strong growth earns a score of 80/100.
Sps Commerce carries a low D/E ratio of 0.20, meaning only $0.20 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 74/100, indicating a strong balance sheet with room for future borrowing.
Sps Commerce's current ratio of 2.17 indicates adequate short-term liquidity, earning a score of 62/100. The company can meet its near-term obligations, though with limited headroom.
Sps Commerce converts 20.3% of revenue into free cash flow ($152.3M). This strong cash generation earns a score of 87/100.
Sps Commerce earns a strong 9.6% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 79/100. This is up from 9.0% the prior year.
Sps Commerce scores 10.08, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($2.7B) relative to total liabilities ($196.0M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Sps Commerce passes 7 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Sps Commerce generates $1.92 in operating cash flow ($178.8M OCF vs $93.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Sps Commerce generated $751.5M in revenue in fiscal year 2025. This represents an increase of 17.8% from the prior year.
Sps Commerce's EBITDA was $139.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 29.5% from the prior year.
Sps Commerce reported $93.3M in net income in fiscal year 2025. This represents an increase of 21.1% from the prior year.
Sps Commerce earned $2.46 per diluted share (EPS) in fiscal year 2025. This represents an increase of 20.6% from the prior year.
Cash & Balance Sheet
Sps Commerce generated $152.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 10.9% from the prior year.
Sps Commerce held $151.4M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Sps Commerce's gross margin was 69.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.2 percentage points from the prior year.
Sps Commerce's operating margin was 15.7% in fiscal year 2025, reflecting core business profitability. This is up 1.8 percentage points from the prior year.
Sps Commerce's net profit margin was 12.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.3 percentage points from the prior year.
Sps Commerce's ROE was 9.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.6 percentage points from the prior year.
Capital Allocation
Sps Commerce invested $68.7M in research and development in fiscal year 2025. This represents an increase of 9.3% from the prior year.
Sps Commerce spent $114.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 204.2% from the prior year.
Sps Commerce invested $26.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 32.3% from the prior year.
SPSC Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $772.5M | $751.5M+17.8% | $637.8M+18.8% | $536.9M+19.1% | $450.9M+17.0% | $385.3M+23.2% | $312.6M+12.0% | $279.1M+12.4% | $248.2M+12.5% | $220.6M+14.1% | $193.3M+21.9% | $158.5M+23.9% | $127.9M+22.6% | $104.4M+35.4% | $77.1M+33.0% | $58.0M |
| Cost of Revenue | $233.1M | $231.6M+9.9% | $210.7M+15.7% | $182.1M+18.9% | $153.1M+16.2% | $131.7M+31.9% | $99.8M+8.2% | $92.2M+12.8% | $81.7M+11.0% | $73.6M+14.4% | $64.3M+28.6% | $50.0M+25.1% | $40.0M+25.8% | $31.8M+44.2% | $22.0M+43.4% | $15.4M |
| Gross Profit | $539.4M | $519.9M+21.7% | $427.1M+20.3% | $354.8M+19.2% | $297.8M+17.4% | $253.6M+19.2% | $212.8M+13.9% | $186.9M+12.2% | $166.5M+13.7% | $146.5M+13.7% | $128.8M+18.7% | $108.5M+23.3% | $88.0M+21.1% | $72.6M+31.9% | $55.1M+29.3% | $42.6M |
| R&D Expenses | $68.8M | $68.7M+9.3% | $62.8M+17.1% | $53.7M+17.3% | $45.7M+17.2% | $39.0M+25.8% | $31.0M+9.6% | $28.3M+28.2% | $22.1M-4.7% | $23.2M+5.5% | $22.0M+22.4% | $18.0M+33.1% | $13.5M+24.1% | $10.9M+33.1% | $8.2M+39.9% | $5.8M |
| SG&A Expenses | $137.7M | $126.6M+23.0% | $102.9M+21.3% | $84.9M+26.1% | $67.3M+9.8% | $61.3M+22.3% | $50.1M+12.1% | $44.7M+6.8% | $41.9M+11.7% | $37.5M+30.0% | $28.8M+16.2% | $24.8M+22.7% | $20.2M+17.7% | $17.2M+27.1% | $13.5M+21.3% | $11.2M |
| Operating Income | $98.8M | $118.3M+33.1% | $88.9M+15.1% | $77.2M+8.5% | $71.2M+29.2% | $55.1M+9.8% | $50.2M+30.6% | $38.4M+43.7% | $26.7M+167.8% | $10.0M+56.3% | $6.4M-9.1% | $7.0M+60.2% | $4.4M+147.3% | $1.8M+12.7% | $1.6M+38.5% | $1.1M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | $1.1M-62.6% | $2.9M+26.5% | $2.3M+125.7% | $1.0M+71.7% | $601K+205.1% | $197K+5.3% | $187K+67.0% | $112K+314.8% | $27K | $0 |
| Income Tax | $26.8M | $30.5M+36.0% | $22.4M+13.6% | $19.7M+21.9% | $16.2M+81.0% | $8.9M+26.1% | $7.1M-15.1% | $8.4M+87.1% | $4.5M-56.8% | $10.3M+275.4% | $2.8M+13.1% | $2.4M+73.0% | $1.4M+105.2% | $686K+466.9% | $121K+101.0% | -$12.6M |
| Net Income | $78.0M | $93.3M+21.1% | $77.1M+17.1% | $65.8M+19.4% | $55.1M+23.6% | $44.6M-2.2% | $45.6M+35.2% | $33.7M+41.2% | $23.9M+6701.1% | $351K-92.9% | $5.0M+7.0% | $4.6M+71.6% | $2.7M+157.3% | $1.1M-14.0% | $1.2M-91.1% | $13.7M |
| EPS (Diluted) | — | $2.46+20.6% | $2.04+15.9% | $1.76+18.1% | $1.49+23.1% | $1.21-4.0% | $1.26+34.0% | $0.94 | $0.68+6700.0% | $0.01 | $0.29+7.4% | $0.27+68.8% | $0.16+128.6% | $0.07-22.2% | $0.09-91.7% | $1.08 |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
SPSC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.2B+13.4% | $1.0B+25.2% | $823.8M+22.4% | $672.9M+9.3% | $615.8M+17.0% | $526.5M+17.7% | $447.4M+15.9% | $386.1M+13.7% | $339.7M+13.9% | $298.4M+14.0% | $261.7M+7.4% | $243.8M+9.2% | $223.3M+40.3% | $159.2M+105.1% | $77.6M |
| Current Assets | $335.3M-12.2% | $381.9M-4.9% | $401.4M+24.4% | $322.8M-8.4% | $352.4M+29.9% | $271.4M-6.9% | $291.6M+16.8% | $249.6M+11.3% | $224.3M+20.7% | $185.9M+11.5% | $166.8M+2.8% | $162.2M+3.9% | $156.1M+70.6% | $91.5M+89.7% | $48.2M |
| Cash & Equivalents | $151.4M-37.2% | $241.0M+10.0% | $219.1M+34.5% | $162.9M-21.5% | $207.6M+38.7% | $149.7M-16.5% | $179.3M+33.9% | $133.9M+8.7% | $123.1M+6.3% | $115.9M-4.7% | $121.5M-7.1% | $130.8M-0.4% | $131.3M+98.8% | $66.0M+106.5% | $32.0M |
| Accounts Receivable | $68.2M+31.0% | $52.0M+11.1% | $46.8M+18.8% | $39.4M+14.1% | $34.6M+2.9% | $33.6M+6.5% | $31.5M+14.7% | $27.5M+10.4% | $24.9M+20.0% | $20.7M+17.8% | $17.6M+14.2% | $15.4M+32.8% | $11.6M+6.1% | $10.9M+37.5% | $8.0M |
| Goodwill | $541.7M+35.7% | $399.2M+60.2% | $249.2M+26.3% | $197.3M+37.3% | $143.7M+6.5% | $134.9M+75.5% | $76.8M+10.3% | $69.7M+35.0% | $51.6M+3.7% | $49.8M+47.1% | $33.8M-2.9% | $34.9M+36.8% | $25.5M0.0% | $25.5M+335.5% | $5.9M |
| Total Liabilities | $196.0M+11.0% | $176.5M+12.9% | $156.4M+15.1% | $135.8M+3.2% | $131.6M+24.4% | $105.7M+14.2% | $92.6M+37.8% | $67.1M+30.1% | $51.6M+5.2% | $49.1M+24.2% | $39.5M+2.2% | $38.7M+26.6% | $30.6M+25.3% | $24.4M+35.0% | $18.1M |
| Current Liabilities | $154.4M+5.2% | $146.7M+12.3% | $130.7M+18.1% | $110.6M+7.6% | $102.9M+28.4% | $80.1M+17.8% | $68.0M+20.4% | $56.5M+28.6% | $43.9M+36.6% | $32.2M+32.7% | $24.2M-1.3% | $24.6M+29.8% | $18.9M+30.7% | $14.5M+26.2% | $11.5M |
| Total Equity | $973.9M+13.9% | $854.7M+28.0% | $667.5M+24.3% | $537.1M+10.9% | $484.3M+15.1% | $420.7M+18.6% | $354.9M+11.3% | $319.0M+10.7% | $288.1M+11.8% | $257.8M+11.4% | $231.4M+12.8% | $205.1M+6.4% | $192.8M+43.0% | $134.8M+126.4% | $59.6M |
| Retained Earnings | $429.4M+27.8% | $336.1M+29.7% | $259.0M+34.1% | $193.2M+39.9% | $138.1M+47.7% | $93.5M+90.9% | $49.0M+220.9% | $15.3M+277.2% | -$8.6M+74.5% | -$33.7M+14.5% | -$39.4M+10.5% | -$44.1M+5.8% | -$46.8M+2.2% | -$47.8M+2.5% | -$49.1M |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
SPSC Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $228.1M | $178.8M+13.6% | $157.4M+19.0% | $132.3M+32.2% | $100.1M-11.4% | $112.9M+27.5% | $88.6M+23.4% | $71.8M+30.5% | $55.0M+77.2% | $31.1M+65.5% | $18.8M+30.1% | $14.4M-14.1% | $16.8M-8.0% | $18.2M+167.1% | $6.8M+52.3% | $4.5M |
| Capital Expenditures | $29.4M | $26.5M+32.3% | $20.0M+1.4% | $19.8M-0.6% | $19.9M+1.5% | $19.6M+19.0% | $16.5M+21.2% | $13.6M-1.2% | $13.8M+89.1% | $7.3M-9.2% | $8.0M-8.6% | $8.8M+15.5% | $7.6M+33.0% | $5.7M-4.7% | $6.0M+131.5% | $2.6M |
| Free Cash Flow | $198.7M | $152.3M+10.9% | $137.4M+22.1% | $112.5M+40.4% | $80.2M-14.1% | $93.3M+29.4% | $72.1M+23.9% | $58.2M+41.1% | $41.3M+73.5% | $23.8M+121.1% | $10.8M+89.7% | $5.7M-38.4% | $9.2M-26.6% | $12.5M+1382.5% | $846K-55.5% | $1.9M |
| Investing Cash Flow | -$20.7M | -$169.2M-53.1% | -$110.5M-19.2% | -$92.6M+17.9% | -$112.8M-141.5% | -$46.7M+61.2% | -$120.5M-741.7% | -$14.3M+64.6% | -$40.5M-78.9% | -$22.6M+33.8% | -$34.2M | N/A | N/A | -$5.7M+82.3% | -$32.2M-140.2% | -$13.4M |
| Financing Cash Flow | -$142.3M | -$100.8M-337.9% | -$23.0M-244.2% | $16.0M+150.5% | -$31.6M-278.3% | -$8.4M-459.1% | $2.3M+119.2% | -$12.1M-221.6% | -$3.8M-52.7% | -$2.5M-124.5% | $10.1M | N/A | N/A | $52.7M-11.4% | $59.5M+13059.5% | $452K |
| Share Buybacks | $153.1M | $114.3M+204.2% | $37.6M | $0-100.0% | $43.2M+111.5% | $20.4M+7.8% | $18.9M-8.1% | $20.6M+3.8% | $19.9M+241.6% | $5.8M | N/A | N/A | N/A | N/A | N/A | $0 |
Not reported in any period shown, so not listed: Dividends Paid.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
SPSC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.2%+2.2pp | 67.0%+0.9pp | 66.1%0.0pp | 66.0%+0.2pp | 65.8%-2.2pp | 68.1%+1.1pp | 67.0%-0.1pp | 67.1%+0.7pp | 66.4%-0.2pp | 66.6%-1.8pp | 68.4%-0.3pp | 68.7%-0.8pp | 69.6%-1.9pp | 71.4%-2.1pp | 73.5% |
| Operating Margin | 15.7%+1.8pp | 13.9%-0.5pp | 14.4%-1.4pp | 15.8%+1.5pp | 14.3%-1.7pp | 16.0%+2.3pp | 13.8%+3.0pp | 10.8%+6.2pp | 4.5%+1.2pp | 3.3%-1.1pp | 4.4%+1.0pp | 3.4%+1.7pp | 1.7%-0.3pp | 2.0%+0.1pp | 2.0% |
| Net Margin | 12.4%+0.3pp | 12.1%-0.2pp | 12.3%0.0pp | 12.2%+0.7pp | 11.6%-3.0pp | 14.6%+2.5pp | 12.1%+2.5pp | 9.6%+9.5pp | 0.2%-2.4pp | 2.6%-0.4pp | 2.9%+0.8pp | 2.1%+1.1pp | 1.0%-0.6pp | 1.6%-22.1pp | 23.6% |
| Return on Equity | 9.6%+0.6pp | 9.0%-0.8pp | 9.9%-0.4pp | 10.3%+1.1pp | 9.2%-1.6pp | 10.8%+1.3pp | 9.5%+2.0pp | 7.5%+7.4pp | 0.1%-1.8pp | 1.9%-0.1pp | 2.0%+0.7pp | 1.3%+0.8pp | 0.5%-0.4pp | 0.9%-22.1pp | 23.0% |
| Return on Assets | 8.0%+0.5pp | 7.5%-0.5pp | 8.0%-0.2pp | 8.2%+0.9pp | 7.2%-1.4pp | 8.7%+1.1pp | 7.5%+1.4pp | 6.2%+6.1pp | 0.1%-1.6pp | 1.7%-0.1pp | 1.8%+0.7pp | 1.1%+0.6pp | 0.5%-0.3pp | 0.8%-16.9pp | 17.6% |
| Current Ratio | 2.17-0.4x | 2.60-0.5x | 3.07+0.2x | 2.92-0.5x | 3.430.0x | 3.39-0.9x | 4.29-0.1x | 4.42-0.7x | 5.10-0.7x | 5.78-1.1x | 6.88+0.3x | 6.60-1.6x | 8.25+1.9x | 6.32+2.1x | 4.21 |
| Debt-to-Equity | 0.200.0x | 0.210.0x | 0.230.0x | 0.250.0x | 0.270.0x | 0.250.0x | 0.26+0.1x | 0.210.0x | 0.180.0x | 0.190.0x | 0.170.0x | 0.190.0x | 0.160.0x | 0.18-0.1x | 0.30 |
| FCF Margin | 20.3%-1.3pp | 21.5%+0.6pp | 21.0%+3.2pp | 17.8%-6.4pp | 24.2%+1.2pp | 23.1%+2.2pp | 20.8%+4.2pp | 16.6%+5.8pp | 10.8%+5.2pp | 5.6%+2.0pp | 3.6%-3.6pp | 7.2%-4.8pp | 12.0%+10.9pp | 1.1%-2.2pp | 3.3% |
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Where Sps Commerce Ranks
Frequently Asked Questions
What is Sps Commerce's annual revenue?
Sps Commerce (SPSC) reported $751.5M in total revenue for fiscal year 2025. This represents a 17.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Sps Commerce's revenue growing?
Sps Commerce (SPSC) revenue grew by 17.8% year-over-year, from $637.8M to $751.5M in fiscal year 2025.
Is Sps Commerce profitable?
Yes, Sps Commerce (SPSC) reported a net income of $93.3M in fiscal year 2025, with a net profit margin of 12.4%.
What is Sps Commerce's EBITDA?
Sps Commerce (SPSC) had EBITDA of $139.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Sps Commerce's gross margin?
Sps Commerce (SPSC) had a gross margin of 69.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Sps Commerce's operating margin?
Sps Commerce (SPSC) had an operating margin of 15.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Sps Commerce's net profit margin?
Sps Commerce (SPSC) had a net profit margin of 12.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Sps Commerce's return on equity (ROE)?
Sps Commerce (SPSC) has a return on equity of 9.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Sps Commerce's free cash flow?
Sps Commerce (SPSC) generated $152.3M in free cash flow during fiscal year 2025. This represents a 10.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Sps Commerce's operating cash flow?
Sps Commerce (SPSC) generated $178.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Sps Commerce's total assets?
Sps Commerce (SPSC) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Sps Commerce's capital expenditures?
Sps Commerce (SPSC) invested $26.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Sps Commerce spend on research and development?
Sps Commerce (SPSC) invested $68.7M in research and development during fiscal year 2025.
What is Sps Commerce's current ratio?
Sps Commerce (SPSC) had a current ratio of 2.17 as of fiscal year 2025, which is generally considered healthy.
What is Sps Commerce's debt-to-equity ratio?
Sps Commerce (SPSC) had a debt-to-equity ratio of 0.20 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Sps Commerce's return on assets (ROA)?
Sps Commerce (SPSC) had a return on assets of 8.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Sps Commerce's Altman Z-Score?
Sps Commerce (SPSC) has an Altman Z-Score of 10.08, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Sps Commerce's Piotroski F-Score?
Sps Commerce (SPSC) has a Piotroski F-Score of 7 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Sps Commerce's earnings high quality?
Sps Commerce (SPSC) has an earnings quality ratio of 1.92x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Sps Commerce?
Sps Commerce (SPSC) scores 78 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.