SPS Commerce (NASDAQ:SPSC) Announces Quarterly Earnings Results

SPS Commerce (NASDAQ:SPSC) announced its earnings results on Thursday. The software maker reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.14, FiscalAI reports. SPS Commerce had a return on equity of 12.84% and a net margin of 12.42%.The company had revenue of $192.65 million for the quarter, compared to analyst estimates of $193.60 million. During the same period in the prior year, the company posted $0.89 EPS. The firm’s quarterly revenue was up 12.7% compared to the same quarter last year. SPS Commerce updated its FY 2026 guidance to 4.420-4.500 EPS and its Q1 2026 guidance to 0.950-0.990 EPS.

Here are the key takeaways from SPS Commerce’s conference call:

• 100th consecutive quarter of revenue growth with FY2025 revenue up 18% to $751.5M and Q4 revenue of $192.7M (+13%), while adjusted EBITDA rose 22% in Q4 and 24% for the year, highlighting continued profitable momentum.
• Management guided FY2026 revenue of $798.5M–$806.9M (~7% growth) and adjusted EBITDA of $261M–$265.5M (13%–15% growth), and expects to drive ~2 percentage points of EBITDA margin expansion annually and high-single-digit organic revenue growth without acquisitions.
• Strategic product moves include the acquisition of Carbon6 to expand revenue-recovery capabilities and the launch of Max, an agentic AI layer embedded in the SPS network (beta live), which management expects to be a competitive differentiator and cross-sell/monetization opportunity.
• Strong capital allocation: $151M cash, $115M of share repurchases in 2025 (76% of free cash flow), and board authorization to increase the buyback program to a $300M total, underscoring shareholder-return focus.
• Near-term headwinds from macro/tariff-related spend scrutiny and recent Amazon policy changes weighed on revenue-recovery take rates and contributed to a 350 decline in 3P customers and softer revenue performance in Q4, with management saying these effects should be lapped by H2 2026.

SPS Commerce Price Performance

NASDAQ:SPSC opened at $61.92 on Friday. The firm’s fifty day moving average price is $87.34 and its 200 day moving average price is $96.96. The firm has a market cap of $2.33 billion, a price-to-earnings ratio of 25.27 and a beta of 0.56. SPS Commerce has a 1-year low of $61.28 and a 1-year high of $153.16.

SPS Commerce News Roundup

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Q4 EPS beat and solid profitability — SPS reported $1.14 EPS vs. $1.00 consensus and improved net margin/ROE, showing profitable growth that can support valuation. SPS Commerce (SPSC) Q4 Earnings Beat Estimates
• Positive Sentiment: FY 2026 EPS guidance well above street — management set FY EPS at $4.420–4.500 versus ~4.07 consensus, signaling confidence in full‑year profitability and underlying margin leverage. SPSC Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Board refresh — company appointed two independent directors (Michael McConnell and Fumbi Chima), a governance move that may be viewed neutrally to mildly positive over time. SPS Commerce Appoints New Independent Directors to the Board
• Neutral Sentiment: Q1 EPS guidance roughly inline — management gave Q1 EPS guidance of $0.950–0.990 vs. consensus ~0.970, so near‑term earnings expectations are broadly as anticipated. SPSC Q4 2025 Earnings Call Transcript
• Negative Sentiment: Quarterly revenue slightly missed estimates — Q4 revenue was $192.65M vs. $193.6M consensus, and while revenue grew 12.7% YoY this miss pressures top‑line momentum expectations. SPS Commerce Q4 Earnings (MarketBeat)
• Negative Sentiment: Q1 revenue guidance below street — management guided Q1 revenue $191.6M–$193.6M vs. ~$197M consensus, implying near‑term revenue softness that likely weighs on multiple and near‑term growth expectations. SPSC Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider selling — a director sold 1,000 shares at ~$79.92 recently; small in size but often read negatively by the market when combined with other soft top‑line signals. SPS Commerce Director Marty Reaume Sells 1,000 Shares

Insiders Place Their Bets

In other SPS Commerce news, Director Marty M. Reaume sold 1,732 shares of the company’s stock in a transaction on Wednesday, January 7th. The stock was sold at an average price of $92.26, for a total value of $159,794.32. Following the sale, the director owned 9,158 shares of the company’s stock, valued at approximately $844,917.08. This represents a 15.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.98% of the company’s stock.

Institutional Trading of SPS Commerce

A number of institutional investors and hedge funds have recently made changes to their positions in SPSC. State Street Corp grew its position in SPS Commerce by 0.6% in the fourth quarter. State Street Corp now owns 1,468,312 shares of the software maker’s stock valued at $130,871,000 after acquiring an additional 8,163 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its stake in SPS Commerce by 86.4% during the third quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after purchasing an additional 367,346 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in SPS Commerce by 69.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 661,610 shares of the software maker’s stock worth $58,969,000 after acquiring an additional 270,424 shares during the period. Northern Trust Corp lifted its holdings in shares of SPS Commerce by 0.7% in the 3rd quarter. Northern Trust Corp now owns 505,116 shares of the software maker’s stock worth $52,603,000 after purchasing an additional 3,394 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of SPS Commerce by 6.4% during the third quarter. Dimensional Fund Advisors LP now owns 482,969 shares of the software maker’s stock valued at $50,297,000 after acquiring an additional 28,869 shares during the period. 98.96% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have weighed in on SPSC. Stifel Nicolaus set a $65.00 price target on SPS Commerce and gave the stock a “hold” rating in a research report on Friday. Robert W. Baird set a $86.00 price target on shares of SPS Commerce in a research note on Friday. Citigroup reissued a “buy” rating and set a $84.00 price objective (down previously from $110.00) on shares of SPS Commerce in a research note on Friday. Morgan Stanley set a $95.00 price target on shares of SPS Commerce in a report on Friday. Finally, Wall Street Zen lowered shares of SPS Commerce from a “buy” rating to a “hold” rating in a report on Saturday, January 10th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $88.90.

About SPS Commerce

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company’s platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.