SPS Commerce Q3 2026 profit rises to $30.7M
SPS Commerce reported 17% third-quarter Adjusted EBITDA growth and expects a 34% Adjusted EBITDA margin at the midpoint of its 2026 guidance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
SPS Commerce reported third-quarter 2026 revenue of $197.6 million, up 4% year over year, and net income of $30.7 million versus $25.6 million. Diluted earnings per share were $0.85, compared with $0.67. Adjusted EBITDA increased 17% to $70.9 million; non-GAAP income was $50.2 million, or $1.39 per diluted share. The company repurchased $48.8 million of shares during the quarter.
Nine-month revenue was $587.6 million versus $558.9 million, while net income was $57.3 million versus $67.5 million; results included a $23.5 million loss on sale of business. Operating cash flow was $185.7 million versus $132.9 million. The 3P Revenue Recovery divestiture was completed June 30, 2026; guidance includes an approximately $10.5 million second-half revenue reduction, and the divestiture is expected to be neutral to second-half Adjusted EBITDA.
For Q4 2026, revenue is expected at $199.3 million to $201.3 million and Adjusted EBITDA at $72.0 million to $74.0 million. Full-year revenue is expected at $786.9 million to $788.9 million, representing approximately 5% growth over 2025. The midpoint of full-year Adjusted EBITDA guidance reflects a 34% margin, approximately 330 basis points above full-year 2025.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income was $30.7 million, compared with $25.6 million a year earlier.
- Moderate pointThird-quarter Adjusted EBITDA increased 17% to $70.9 million.
- Moderate pointNine-month operating cash flow was $185.7 million, compared with $132.9 million in the prior-year period.
Negative
- Moderate pointNine-month net income was $57.3 million, compared with $67.5 million in the prior-year period.
Filing Explained
For the first nine months of 2026, the company recorded
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $197.6 million
Net income: $30.7 million
Adjusted EBITDA: $70.9 million
+4 more
7 metrics
Revenue
$197.6 million
Third quarter 2026; 4% growth from the third quarter of 2025
Net income
$30.7 million
Third quarter 2026, compared with $25.6 million in the third quarter of 2025
Adjusted EBITDA
$70.9 million
Third quarter 2026; increased 17% from the third quarter of 2025
Net income
$57.3 million
Nine months ended September 30, 2026, compared with $67.5 million in 2025
Operating cash flow
$185.7 million
Nine months ended September 30, 2026, compared with $132.9 million in 2025
Share repurchases
$48.8 million
Third quarter 2026
2026 full-year revenue guidance
$786.9 million to $788.9 million
Expected; approximately 5% growth over 2025
Key Terms
Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP income per share
3 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the third quarter of 2026 increased 17% to $70.9 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EBITDA Margin financial
"Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
Earnings Snapshot
Revenue: $197.6 million · Guidance included
Third quarter ended September 30, 2026
Revenue
$197.6 million
4% growth compared with the third quarter of 2025
Net income
$30.7 million
Compared with $25.6 million in the third quarter of 2025
Net income per diluted share
$0.85
Compared with $0.67 in the third quarter of 2025
Adjusted EBITDA
$70.9 million
Increased 17% compared with the third quarter of 2025
Guidance
Q4 2026 revenue is expected to be $199.3 million to $201.3 million, net income per diluted share $0.74 to $0.79, non-GAAP income per diluted share $1.31 to $1.36, and Adjusted EBITDA $72.0 million to $74.0 million. Full-year 2026 revenue is expected to be $786.9 million to $788.9 million and Adjusted EBITDA $267.4 million to $269.4 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did SPS Commerce (SPSC) report in Q3 2026?
SPS Commerce reported $197.6 million in revenue for the third quarter of 2026, compared with $189.9 million in the third quarter of 2025, reflecting 4% growth.
What was SPS Commerce's Q3 2026 net income?
SPS Commerce reported $30.7 million in net income, or $0.85 per diluted share, for the third quarter of 2026. In the third quarter of 2025, net income was $25.6 million, or $0.67 per diluted share.
What EPS and Adjusted EBITDA ranges did SPS Commerce give for Q4 2026?
SPS Commerce expects Q4 2026 net income per diluted share of $0.74 to $0.79 and non-GAAP income per diluted share of $1.31 to $1.36. Adjusted EBITDA is expected to range from $72.0 million to $74.0 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported)
(Exact Name of Registrant as Specified in its Charter)
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
(612 ) 435-9400
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| The Nasdaq Stock Market LLC | ||||||||
( | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
☐
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, SPS Commerce, Inc. (the “Company”) issued a press release disclosing its results of operations and financial condition for our three and nine months ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this Current Report on Form 8-K may contain forward-looking statements within the meaning of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 including, but not limited to, the Company’s plans to repurchase shares of its common stock, the timing and amount of any share repurchases under the program, if any, the effects of the repurchase program on future results of operations or financial condition, and the timing and impact of the leadership transitions. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of the Company to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents the Company files with the Securities and Exchange Commission, including but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission. In addition, these forward-looking statements are subject to factors and uncertainties related to the leadership transitions, including disruptions and uncertainties related thereto, the ability of a successor to have the desired level of experience and expertise, the potential impact on the Company’s business and future strategic direction resulting from the officer transitions, and the Company’s ability to retain other key members of senior management. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results. The forward-looking statements included in this report are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Exhibit | ||||
99.1 | Press Release dated October 29, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SPS COMMERCE, INC. | ||||||||
| Date: October 29, 2026 | By: | /s/ JOSEPH DEL PRETO | ||||||
Joseph Del Preto | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
SPS Commerce Reports Strong Third Quarter 2026 Financial Results
Company advances agentic strategy while driving margin expansion
MINNEAPOLIS, October 29, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the third quarter ended September 30, 2026.
Financial Highlights
Third Quarter 2026 Financial Highlights
•Revenue was $197.6 million in the third quarter of 2026, compared to $189.9 million in the third quarter of 2025, reflecting 4% growth, which was partially offset by the divestiture of the 3P Revenue Recovery business completed in the second quarter of 2026, and variability in the 1P Revenue Recovery take rate model.
•Recurring revenue grew 4% from the third quarter of 2025.
•Net income was $30.7 million or $0.85 per diluted share, compared to net income of $25.6 million or $0.67 per diluted share in the third quarter of 2025.
•Non-GAAP income was $50.2 million or $1.39 per diluted share, compared to non-GAAP income of $43.0 million or $1.13 per diluted share in the third quarter of 2025.
•Adjusted EBITDA for the third quarter of 2026 increased 17% to $70.9 million compared to the third quarter of 2025.
•Share repurchases in the third quarter of 2026 totaled $48.8 million.
“The progress we have made to date with our agentic transformation initiatives – both across our product portfolio and internally – has exceeded my expectations. I want to recognize all of Team SPS for their agentic-first mindset and commitment to this transformation,” said Chad Collins, CEO of SPS Commerce. “With our agentic strategy advancing, we are uniquely positioned to deliver sustainable, profitable growth, backed by the combination of AI and SPS’ intelligent network – a powerful and durable competitive moat that no one else can match.”
“Our third quarter financial results clearly demonstrate the strong operating leverage embedded in our business model,” said Joe Del Preto, CFO of SPS Commerce. “Continued margin expansion underscores both our commitment to disciplined cost management and the tangible efficiency gains we're unlocking through agentic customer onboarding.”
Guidance
As a result of the divestiture of the 3P Revenue Recovery business on June 30, 2026, guidance factors in a reduction of approximately $10.5 million in revenue to the second half of 2026. The divestiture is expected to be neutral to Adjusted EBITDA in the second half of 2026.
Fourth Quarter 2026 Guidance
•Revenue is expected to be in the range of $199.3 million to $201.3 million.
•Net income per diluted share is expected to be in the range of $0.74 to $0.79, with fully diluted weighted average shares outstanding of 36.0 million shares.
•Non-GAAP income per diluted share is expected to be in the range of $1.31 to $1.36.
•Adjusted EBITDA is expected to be in the range of $72.0 million to $74.0 million.
•Non-cash, share-based compensation expense is expected to be $17.0 million, depreciation expense is expected to be $6.1 million, and amortization expense is expected to be $12.3 million.
Fiscal Year 2026 Guidance
•Revenue is expected to be in the range of $786.9 million to $788.9 million, representing approximately 5% growth over 2025.
•Net income per diluted share is expected to be in the range of $2.29 to $2.35, with fully diluted weighted average shares outstanding of 36.6 million shares.
•Non-GAAP income per diluted share is expected to be in the range of $5.05 to $5.11.
•Adjusted EBITDA is expected to be in the range of $267.4 million to $269.4 million, reflecting an Adjusted EBITDA margin of 34% at the midpoint, an increase of approximately 330 basis points compared to full year 2025.
•Non-cash, share-based compensation expense is expected to be $69.5 million, depreciation expense is expected to be $24.1 million, and amortization expense is expected to be $40.8 million.
The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.
Quarterly Conference Call
To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q3 2026 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com.
About SPS Commerce
SPS Commerce (NASDAQ: SPSC) is the leading intelligent supply chain network, connecting trading partners around the globe to optimize supply chain operations with all retail partners. Our AI-powered network connects 300,000+ trading relationships worldwide and moves more than 750M transactions and over $650B in gross merchandise value each year. From retailers and brands to manufacturers, distributors, and logistics providers, SPS is trusted by seven of the top ten largest retailers, and over two-thirds of today’s fastest growing brands. Our multi-solution portfolio orchestrates the data, decisions, and relationships that keep the world's supply chains moving forward. With nearly 3,000 employees and offices worldwide, SPS Commerce is headquartered in Minneapolis, Minnesota. For more information, visit www.spscommerce.com.
SPS-F
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.
Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.
Adjusted EBITDA Measures:
Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain from investments and foreign currency transactions, investment income, loss on sale of business, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended September 30, 2026 included asset disposals and for the nine months ended September 30, 2026, included the remeasurement of an acquired earn-out liability, asset disposals, and the net impact of divestiture-related exit and disposal activity. Net income is the most directly comparable GAAP measure of financial performance.
Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.
Non-GAAP Income Per Share Measure:
Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain from investments and foreign currency transactions, loss on sale of business, and other adjustments as necessary for a fair presentation, including for the three months ended September 30, 2026 asset disposals and for the nine months ended September 30, 2026, the remeasurement of an acquired earn-out liability, asset disposals, net impact of divestiture-related exit and disposal activity, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the most directly comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the fourth quarter and full year of 2026, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; In thousands, except shares)
September 30, 2026 | December 31, 2025 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 153,818 | $ | 151,355 | |||||||
Short-term investments | 29,683 | — | |||||||||
Accounts receivable | 74,477 | 75,295 | |||||||||
Allowance for credit losses | (8,302) | (7,129) | |||||||||
Accounts receivable, net | 66,175 | 68,166 | |||||||||
Deferred costs | 64,181 | 66,693 | |||||||||
Other assets | 33,164 | 49,090 | |||||||||
Total current assets | 347,021 | 335,304 | |||||||||
Property and equipment, net | 43,943 | 43,117 | |||||||||
Operating lease right-of-use assets | 5,656 | 5,025 | |||||||||
Goodwill | 539,089 | 541,719 | |||||||||
Intangible assets, net | 162,545 | 215,815 | |||||||||
Other assets | |||||||||||
Deferred costs, non-current | 19,996 | 20,719 | |||||||||
Deferred income tax assets | 492 | 493 | |||||||||
Other assets, non-current | 13,856 | 7,667 | |||||||||
Total assets | $ | 1,132,598 | $ | 1,169,859 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 9,881 | $ | 13,757 | |||||||
Accrued compensation | 47,459 | 47,577 | |||||||||
Accrued expenses | 16,059 | 13,074 | |||||||||
Deferred revenue | 79,342 | 75,590 | |||||||||
Operating lease liabilities | 1,232 | 4,353 | |||||||||
Total current liabilities | 153,973 | 154,351 | |||||||||
Other liabilities | |||||||||||
Deferred revenue, non-current | 3,910 | 5,288 | |||||||||
Operating lease liabilities, non-current | 5,392 | 2,839 | |||||||||
Deferred income tax liabilities | 36,166 | 33,201 | |||||||||
Other liabilities, non-current | 255 | 287 | |||||||||
Total liabilities | 199,696 | 195,966 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Common stock | 40 | 40 | |||||||||
Treasury stock | (328,155) | (177,949) | |||||||||
Additional paid-in capital | 778,767 | 722,737 | |||||||||
Retained earnings | 486,714 | 429,438 | |||||||||
Accumulated other comprehensive loss | (4,464) | (373) | |||||||||
Total stockholders’ equity | 932,902 | 973,893 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,132,598 | $ | 1,169,859 | |||||||
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in thousands, except per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenues | $ | 197,647 | $ | 189,904 | $ | 587,583 | $ | 558,853 | |||||||||||||||
Cost of revenues (1) | 57,101 | 57,932 | 175,346 | 174,672 | |||||||||||||||||||
Gross profit | 140,546 | 131,972 | 412,237 | 384,181 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing (1) | 43,474 | 42,322 | 132,144 | 127,390 | |||||||||||||||||||
Research and development (1) | 16,546 | 17,276 | 51,420 | 51,986 | |||||||||||||||||||
General and administrative (1) | 30,831 | 31,690 | 103,851 | 93,598 | |||||||||||||||||||
Amortization of intangible assets | 9,766 | 9,493 | 28,467 | 27,590 | |||||||||||||||||||
Loss on sale of business | — | — | 23,454 | — | |||||||||||||||||||
Total operating expenses | 100,617 | 100,781 | 339,336 | 300,564 | |||||||||||||||||||
Income from operations | 39,929 | 31,191 | 72,901 | 83,617 | |||||||||||||||||||
Other income, net | 1,372 | 1,260 | 4,774 | 4,240 | |||||||||||||||||||
Income before income taxes | 41,301 | 32,451 | 77,675 | 87,857 | |||||||||||||||||||
Income tax expense | 10,618 | 6,882 | 20,399 | 20,359 | |||||||||||||||||||
Net income | $ | 30,683 | $ | 25,569 | $ | 57,276 | $ | 67,498 | |||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | 0.85 | $ | 0.67 | $ | 1.56 | $ | 1.78 | |||||||||||||||
Diluted | $ | 0.85 | $ | 0.67 | $ | 1.56 | $ | 1.77 | |||||||||||||||
Weighted average common shares used to compute net income per share | |||||||||||||||||||||||
Basic | 35,900 | 37,895 | 36,599 | 37,939 | |||||||||||||||||||
Diluted | 36,209 | 37,993 | 36,740 | 38,070 | |||||||||||||||||||
(1) Amounts include stock-based compensation expense as follows: | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Cost of revenues | $ | 3,383 | $ | 3,171 | $ | 9,787 | $ | 9,610 | |||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing | 4,086 | 3,486 | 12,345 | 9,270 | |||||||||||||||||||
Research and development | 2,415 | 2,354 | 7,086 | 6,506 | |||||||||||||||||||
General and administrative | 5,809 | 5,442 | 23,244 | 17,932 | |||||||||||||||||||
Total stock-based compensation expense | $ | 15,693 | $ | 14,453 | $ | 52,462 | $ | 43,318 | |||||||||||||||
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
Nine Months Ended September 30, | |||||||||||
2026 | 2025 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 57,276 | $ | 67,498 | |||||||
Reconciliation of net income to net cash provided by operating activities | |||||||||||
Deferred income taxes | 890 | 12,583 | |||||||||
Depreciation and amortization of property and equipment | 18,056 | 15,302 | |||||||||
Amortization of intangible assets | 28,467 | 27,590 | |||||||||
Accretion of purchase discounts on investments | (257) | — | |||||||||
Provision for credit losses | 6,497 | 6,843 | |||||||||
Stock-based compensation | 52,462 | 43,318 | |||||||||
Loss on sale of business | 23,454 | — | |||||||||
Other, net | (1,280) | (343) | |||||||||
Changes in assets and liabilities, net of effects of acquisitions | |||||||||||
Accounts receivable | (6,536) | (16,301) | |||||||||
Deferred costs | 2,912 | 234 | |||||||||
Other assets and liabilities | 7,545 | (25,233) | |||||||||
Accounts payable | (2,837) | 2,925 | |||||||||
Accrued compensation | (2,808) | 1,035 | |||||||||
Accrued expenses | 259 | (2,226) | |||||||||
Deferred revenue | 2,772 | 1,051 | |||||||||
Operating leases | (1,208) | (1,357) | |||||||||
Net cash provided by operating activities | 185,664 | 132,919 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property and equipment | (21,246) | (18,873) | |||||||||
Purchases of investments | (34,444) | — | |||||||||
Maturities of investments | 5,000 | — | |||||||||
Proceeds from sale, net | 8,768 | — | |||||||||
Acquisition of business, net | — | (142,628) | |||||||||
Net cash used in investing activities | (41,922) | (161,501) | |||||||||
Cash flows from financing activities | |||||||||||
Repurchases of common stock | (147,205) | (89,556) | |||||||||
Net proceeds from exercise of options to purchase common stock | 1,035 | 3,481 | |||||||||
Net proceeds from employee stock purchase plan activity | 4,718 | 5,924 | |||||||||
Net cash used in financing activities | (141,452) | (80,151) | |||||||||
Effect of foreign currency exchange rate changes | 173 | 1,441 | |||||||||
Net increase (decrease) in cash and cash equivalents | 2,463 | (107,292) | |||||||||
Cash and cash equivalents at beginning of period | 151,355 | 241,017 | |||||||||
Cash and cash equivalents at end of period | $ | 153,818 | $ | 133,725 | |||||||
SPS COMMERCE, INC.
NON-GAAP RECONCILIATIONS
(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
Adjusted EBITDA | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net income | $ | 30,683 | $ | 25,569 | $ | 57,276 | $ | 67,498 | |||||||||||||||
Income tax expense | 10,618 | 6,882 | 20,399 | 20,359 | |||||||||||||||||||
Depreciation and amortization of property and equipment | 6,072 | 5,354 | 18,056 | 15,302 | |||||||||||||||||||
Amortization of intangible assets | 9,766 | 9,493 | 28,467 | 27,590 | |||||||||||||||||||
Stock-based compensation expense | 15,693 | 14,453 | 52,462 | 43,318 | |||||||||||||||||||
Realized loss (gain) from investments and foreign currency transactions | 13 | (205) | (509) | (678) | |||||||||||||||||||
Investment income | (1,611) | (1,076) | (3,973) | (3,613) | |||||||||||||||||||
Loss on sale of business | — | — | 23,454 | — | |||||||||||||||||||
Other | (366) | 10 | (201) | 1,129 | |||||||||||||||||||
Adjusted EBITDA | $ | 70,868 | $ | 60,480 | $ | 195,431 | $ | 170,905 | |||||||||||||||
Adjusted EBITDA Margin | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue | $ | 197,647 | $ | 189,904 | $ | 587,583 | $ | 558,853 | |||||||||||||||
Net income | 30,683 | 25,569 | 57,276 | 67,498 | |||||||||||||||||||
Margin | 16 | % | 13 | % | 10 | % | 12 | % | |||||||||||||||
Adjusted EBITDA | 70,868 | 60,480 | 195,431 | 170,905 | |||||||||||||||||||
Adjusted EBITDA Margin | 36 | % | 32 | % | 33 | % | 31 | % | |||||||||||||||
Non-GAAP Income per Share | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net income | $ | 30,683 | $ | 25,569 | $ | 57,276 | $ | 67,498 | |||||||||||||||
Stock-based compensation expense | 15,693 | 14,453 | 52,462 | 43,318 | |||||||||||||||||||
Amortization of intangible assets | 9,766 | 9,493 | 28,467 | 27,590 | |||||||||||||||||||
Realized loss (gain) from investments and foreign currency transactions | 13 | (205) | (509) | (678) | |||||||||||||||||||
Loss on sale of business | — | — | 23,454 | — | |||||||||||||||||||
Other | (366) | 10 | (201) | 1,129 | |||||||||||||||||||
Income tax effects of adjustments | (5,628) | (6,365) | (23,277) | (19,935) | |||||||||||||||||||
Non-GAAP income | $ | 50,161 | $ | 42,955 | $ | 137,672 | $ | 118,922 | |||||||||||||||
Shares used to compute net income and non-GAAP income per share | |||||||||||||||||||||||
Basic | 35,900 | 37,895 | 36,599 | 37,939 | |||||||||||||||||||
Diluted | 36,209 | 37,993 | 36,740 | 38,070 | |||||||||||||||||||
Net income per share, basic | $ | 0.85 | $ | 0.67 | $ | 1.56 | $ | 1.78 | |||||||||||||||
Non-GAAP adjustments to net income per share, basic | 0.55 | 0.46 | 2.20 | 1.35 | |||||||||||||||||||
Non-GAAP income per share, basic | $ | 1.40 | $ | 1.13 | $ | 3.76 | $ | 3.13 | |||||||||||||||
Net income per share, diluted | $ | 0.85 | $ | 0.67 | $ | 1.56 | $ | 1.77 | |||||||||||||||
Non-GAAP adjustments to net income per share, diluted | 0.54 | 0.46 | 2.19 | 1.35 | |||||||||||||||||||
Non-GAAP income per share, diluted | $ | 1.39 | $ | 1.13 | $ | 3.75 | $ | 3.12 | |||||||||||||||
The annual per share amounts may not cross-sum due to rounding.