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, | December 31, | ||||||||||
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 | |||||||||||
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 | |||||||||||
Total liabilities | 199,696 | 195,966 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Common stock | |||||||||||
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 | ||||||||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||||
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 | 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 | ||||||||||
Other assets and liabilities | 7,545 | (25,233) | |||||||||
Accounts payable | (2,837) | 2,925 | |||||||||
Accrued compensation | (2,808) | 1,035 | |||||||||
Accrued expenses | (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 | 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 | Nine Months Ended | ||||||||||||||||||||||
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 | (205) | (509) | (678) | ||||||||||||||||||||
Investment income | (1,611) | (1,076) | (3,973) | (3,613) | |||||||||||||||||||
Loss on sale of business | — | — | 23,454 | — | |||||||||||||||||||
Other | (366) | (201) | 1,129 | ||||||||||||||||||||
Adjusted EBITDA | $ | 70,868 | $ | 60,480 | $ | 195,431 | $ | 170,905 | |||||||||||||||
Adjusted EBITDA Margin | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue | $ | 197,647 | $ | 189,904 | $ | 587,583 | $ | 558,853 | |||||||||||||||
Net income | 30,683 | 25,569 | 57,276 | 67,498 | |||||||||||||||||||
Margin | % | % | % | % | |||||||||||||||||||
Adjusted EBITDA | 70,868 | 60,480 | 195,431 | 170,905 | |||||||||||||||||||
Adjusted EBITDA Margin | % | % | % | % | |||||||||||||||||||
Non-GAAP Income per Share | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
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 | (205) | (509) | (678) | ||||||||||||||||||||
Loss on sale of business | — | — | 23,454 | — | |||||||||||||||||||
Other | (366) | (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.