SPS Commerce, Inc.
- Open
- 59.76
- Day high
- 59.93
- Day low
- 58.47
- Prev close
- 57.17
- Volume
- 378K
- Mkt cap
- $2.1B
- P/E (TTM)
- 24.3
- EPS (TTM)
- $2.41
- P/B
- 2.2
- P/S
- 2.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$115K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions mixed (13F)
SPS Commerce, Inc. (SPSC) is a Technology company listed on NASDAQ. The stock is down 59% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
SPS Commerce, Inc. (SPSC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SPSC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.97 | $1.10 | +13.4% | $192M | -0.2% |
| Feb 12, 2026 | $1.00 | $1.14 | +14.0% | $193M | -2.5% |
| Oct 30, 2025 | $0.99 | $1.13 | +14.1% | $190M | -1.9% |
| Jul 30, 2025 | $0.90 | $1.00 | +11.1% | $187M | +0.8% |
| Apr 24, 2025 | $0.84 | $1.00 | +19.0% | $182M | +1.4% |
| Oct 24, 2024 | $0.83 | $0.92 | +10.8% | $164M | -3.3% |
| Jul 25, 2024 | $0.76 | $0.80 | +5.3% | $154M | +1.1% |
| Apr 25, 2024 | $0.73 | $0.86 | +17.8% | $150M | +2.1% |
| Feb 8, 2024 | $0.69 | $0.75 | +8.7% | $145M | +1.3% |
| Oct 26, 2023 | $0.66 | $0.75 | +13.6% | $136M | +1.1% |
| Jul 27, 2023 | $0.62 | $0.69 | +11.3% | $130M | +1.2% |
| Feb 9, 2023 | $0.53 | $0.63 | +18.9% | $122M | +1.0% |
SPSC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 1, 2026 | Gaurav Razatdirector | Grant | 3,736 | — |
| Jun 1, 2026 | Chima Fumbi F.director | Grant | 3,736 | — |
| Jun 1, 2026 | Reller Tamidirector | Grant | 3,736 | — |
| Jun 1, 2026 | McConnell Michael Jdirector | Grant | 3,736 | — |
| Jun 1, 2026 | SORAN PHILIPdirector | Grant | 3,736 | — |
| Jun 1, 2026 | Reaume Marty Mdirector | Grant | 3,736 | — |
| Jun 1, 2026 | Ward Anne Sempowskidirector | Grant | 3,736 | — |
| Jun 1, 2026 | Partin Markdirector | Grant | 3,736 | — |
| May 11, 2026 | THINGELSTAD JAMIEofficer: EVP, Chief Technology Officer | Grant | 39,433 | — |
| May 11, 2026 | Del Preto Josephofficer: EXECUTIVE VP AND CFO | Grant | 33,240 | — |
| May 11, 2026 | Reaume Marty Mdirector | Option | 1,000 | $51.80 |
| May 11, 2026 | Del Preto Josephofficer: EXECUTIVE VP AND CFO | Grant | 108,467 | — |
| May 11, 2026 | Reaume Marty Mdirector | Sell | 1,000 | $57.03 |
| Apr 9, 2026 | Reaume Marty Mdirector | Sell | 1,000 | $57.90 |
| Apr 9, 2026 | Reaume Marty Mdirector | Option | 1,000 | $51.80 |
Source: SPSC SEC Form 4 filings, latest Jun 1, 2026. For informational purposes only — not investment advice.
See the full SPSC insider & 13F page →SPS Commerce, Inc. company profile
Overview
SPS Commerce, Inc. (NASDAQ:SPSC) is a Minneapolis-based technology company founded in 1987 that provides cloud-based supply chain management solutions. Originally incorporated as St. Paul Software, Inc., the company rebranded to SPS Commerce in 2001 and went public in 2010. Today, SPS Commerce operates as a leading provider of supply chain network solutions, connecting over 50,000 trading partners including retailers, suppliers, distributors, and logistics firms through its cloud-based platform to automate and optimize omnichannel commerce operations.
Business
SPS Commerce operates in the supply chain management software industry, providing cloud-based solutions that facilitate electronic data interchange (EDI) and supply chain automation between trading partners. The company's core offering is the SPS Commerce Network, a cloud-based platform that serves as a digital backbone connecting retailers, suppliers, grocers, distributors, and logistics companies. The company's business is organized around two primary product segments: 1. Fulfillment Solutions (approximately 80% of revenue): This segment provides fulfillment automation that replaces or augments traditional electronic communication infrastructure between trading partners. The platform enables automatic compliance with retailer requirements, digital exchange of purchase orders, invoices, and shipping notices, and provides visibility into order fulfillment processes. For example, when a retailer like Target places an order with a supplier, SPS Commerce's platform automatically translates and routes the electronic documents between the companies' different systems, ensuring compliance with specific formatting and timing requirements. 2. Analytics Solutions (approximately 20% of revenue): This segment consists of data analytics applications that provide supply chain visibility through advanced analytics capabilities. The platform aggregates data from across the network to help customers optimize inventory levels, improve demand forecasting, and enhance sell-through performance. Additionally, through recent acquisitions like SupplyPike, the company offers revenue recovery solutions that help suppliers manage invoice deductions and chargebacks from retailers. The company also offers complementary products including assortment management tools for accurate order management and community products that accelerate vendor onboarding. SPS Commerce essentially acts as a translator and facilitator in the complex world of retail supply chains, where different companies use incompatible systems and data formats to communicate critical business information.
Revenue model
SPS Commerce operates on a Software-as-a-Service (SaaS) subscription model, generating revenue primarily through recurring monthly or annual fees charged to customers for access to its cloud-based platform. The company serves over 45,000 recurring revenue customers with an average wallet share of approximately $13,300 per customer annually. Revenue is generated through multiple channels: Primary Revenue Streams: The core business model involves charging subscription fees based on transaction volume, number of trading partner connections, and the breadth of services utilized. Customers typically pay based on the number of electronic documents processed through the platform, such as purchase orders, invoices, and shipping confirmations. The company also generates revenue from onboarding fees, professional services, and premium analytics capabilities. Customer Base: SPS Commerce serves a diverse mix of small-to-medium businesses and large enterprises across retail, manufacturing, distribution, and logistics sectors. Paying customers include both sides of trading relationships - retailers who require suppliers to connect through the platform, and suppliers who need to comply with retailer requirements. Margin Factors: Several factors influence the company's profitability. Positive margin drivers include the network effect where additional customers increase platform value, operational leverage as the platform scales, and cross-selling opportunities from an expanding product portfolio through acquisitions. The company benefits from high customer retention rates and increasing wallet share as customers adopt additional services. However, margin pressures can arise from customer acquisition costs, integration expenses from acquisitions, competitive pricing in the EDI market, and the need for continuous technology investments to maintain platform reliability and add new features. Macroeconomic factors such as retail industry consolidation, supply chain disruptions, and economic uncertainty can impact customer spending patterns, though the company's essential role in supply chain operations provides some insulation from economic downturns.
Competitive moat
SPS Commerce possesses a moderate to strong competitive moat built primarily around network effects and switching costs. The company's primary competitive advantage stems from its position as a critical infrastructure provider in retail supply chains, where it has built the "world's retail network" connecting over 50,000 trading partners. Network Effects: The platform becomes more valuable as more participants join, creating a virtuous cycle. When major retailers require suppliers to use SPS Commerce for EDI compliance, it drives supplier adoption, which in turn makes the platform more attractive to other retailers. This two-sided network effect creates significant barriers to entry for competitors. Switching Costs: Once integrated into a company's supply chain operations, replacing SPS Commerce involves substantial costs and risks. Customers must reconfigure systems, retrain staff, and potentially disrupt critical business processes. The mission-critical nature of supply chain operations makes customers reluctant to switch providers. Regulatory and Compliance Advantages: The company maintains expertise in complex retailer-specific requirements and regulatory compliance across different industries and geographies. This institutional knowledge and the ongoing maintenance of retailer "rulebooks" creates additional switching barriers. However, the moat faces several challenges. The EDI and supply chain software market includes large competitors like IBM, Oracle, and specialized providers. Cloud-based integration platforms and APIs are making it easier for companies to build direct connections, potentially reducing dependence on intermediary platforms. Additionally, large retailers or technology companies could potentially develop competing solutions or acquire existing competitors. The company's growth strategy through acquisitions also carries execution risks that could weaken its competitive position if not managed effectively.
Risks & safety
SPS Commerce demonstrates a strong margin of safety with solid financial fundamentals and conservative capital structure. • Liquidity Position: Strong cash position of $95 million with minimal debt (debt-to-equity ratio of 0.013), providing substantial financial flexibility • Profitability: Consistent profitability with positive free cash flow of $34 million in Q1 2025 and strong operating cash flow generation of $40 million • Valuation Metrics: Trading at premium valuations with P/E ratio of 57x and EV/EBITDA of 30x, reflecting growth expectations but potentially limiting downside protection • Current Ratio: Healthy liquidity with current ratio of 1.64x, indicating ability to meet short-term obligations • Business Model Resilience: Recurring revenue model with 23% growth in recurring revenue provides predictable cash flows and reduces earnings volatility • Market Position: Essential role in supply chain infrastructure provides some recession resistance, though exposure to retail sector creates cyclical risks
Recent development
Over the past few years, SPS Commerce has pursued an aggressive acquisition strategy to expand its product portfolio and geographic reach. Key strategic developments include the acquisition of TIE Kinetix to establish a European presence and add e-invoicing capabilities, SupplyPike to enter the revenue recovery market helping suppliers manage invoice deductions, and Traverse Systems to expand supply chain performance optimization capabilities. Most recently, the company acquired CarbonSix in February 2025, adding approximately 6,500 customers primarily from Amazon marketplace sellers and further strengthening its position in revenue recovery solutions. The company has also been expanding its addressable market analysis, identifying a global total addressable market of $11.1 billion with an estimated 275,000 potential recurring revenue customers. This represents a significant expansion from previous market assessments and reflects the company's broader product portfolio and international expansion efforts. Operationally, SPS Commerce has focused on community enablement programs where retailers drive supplier adoption of the platform, and has been investing heavily in network scalability and resilience. The company is also exploring artificial intelligence applications to enhance network efficiency and has been expanding its analytics capabilities to provide greater supply chain visibility. International expansion, particularly in Europe through the TIE Kinetix acquisition, represents another key growth initiative as the company seeks to replicate its North American success in new markets.
SPSC company profile · for informational purposes only — not investment advice.
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