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Second quarter 2026 revenue and Adjusted EBITDA exceed high end of guidance range Company provides updated full year 2026 guidance following recently completed divestiture
MINNEAPOLIS, July 30, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the second quarter ended June 30, 2026.
Financial Highlights
Second Quarter 2026 Financial Highlights
Revenue was $197.8 million in the second quarter of 2026, compared to $187.4 million in the second quarter of 2025, reflecting 6% growth.Recurring revenue grew 6% from the second quarter of 2025.Net income was $6.9 million or $0.19 per diluted share, compared to net income of $19.7 million or $0.52 per diluted share in the second quarter of 2025.Non-GAAP income was $46.4 million or $1.27 per diluted share, compared to non-GAAP income of $38.0 million or $1.00 per diluted share in the second quarter of 2025.Adjusted EBITDA for the second quarter of 2026 increased 19% to $66.6 million compared to the second quarter of 2025.Share repurchases in the second quarter of 2026 totaled $51.2 million. “SPS Commerce is executing its growth and innovation roadmap. MAX, our agentic capabilities embedded within SPS' supply chain network, has already delivered tangible value to beta users, equating to hundreds of thousands of dollars in savings to individual customers in just a matter of three months. We are excited about MAX’s launch to all SPS Fulfillment customers later this summer,” said Chad Collins, CEO of SPS Commerce. “No other company can match the unique combination of AI capabilities, 25 years of proprietary data, deep domain expertise, and expansive network access to drive this kind of tangible value, collaboration, and operational efficiencies that SPS offers today.”
“Solid second-quarter performance reflects up-sell and cross-sell momentum across our core business,” said Joe Del Preto, CFO of SPS Commerce. “We continue to demonstrate operational rigor, exceeding our margin expansion goals while simultaneously rolling out our AI strategy across the SPS network.”
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.
Third Quarter 2026 Guidance
Revenue is expected to be in the range of $196.3 million to $198.3 million.Net income per diluted share is expected to be in the range of $0.72 to $0.76, with fully diluted weighted average shares outstanding of 36.8 million shares.Non-GAAP income per diluted share is expected to be in the range of $1.20 to $1.23.Adjusted EBITDA is expected to be in the range of $67.4 million to $69.4 million.Non-cash, share-based compensation expense is expected to be $16.4 million, depreciation expense is expected to be $5.4 million, and amortization expense is expected to be $8.5 million. Fiscal Year 2026 Guidance
Revenue is expected to be in the range of $788.4 million to $793.4 million, representing 5% to 6% growth over 2025.Net income per diluted share is expected to be in the range of $2.24 to $2.33, with fully diluted weighted average shares outstanding of 36.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $4.84 to $4.93.Adjusted EBITDA is expected to be in the range of $264.6 million to $269.1 million, reflecting an Adjusted EBITDA margin of 34% at the midpoint, an increase of approximately 300 basis points compared to full year 2025.Non-cash, share-based compensation expense is expected to be $69.8 million, depreciation expense is expected to be $23.4 million, and amortization expense is expected to be $35.6 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 Q2 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 global offices, SPS Commerce is headquartered in Minneapolis, Minnesota. For more information, visit spscommerce.com.
SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries.
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 and six months ended June 30, 2026, included the expense impact from disposals of other equipment, remeasurement of an acquired earn-out liability, and one-time divestiture exit and disposal costs. 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 and six months ended June 30, 2026, the expense impact from disposals of other equipment, remeasurement of an acquired earn-out liability, and one-time divestiture exit and disposal costs, 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 third 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.
CONSOLIDATED BALANCE SHEETS
(Unaudited; In thousands, except shares) June 30,
2026 December 31,
2025ASSETS Current assets Cash and cash equivalents$173,167 $151,355 Accounts receivable 71,681 75,295 Allowance for credit losses (7,994) (7,129)Accounts receivable, net 63,687 68,166 Deferred costs 64,001 66,693 Other assets 29,541 49,090 Total current assets 330,396 335,304 Property and equipment, net 44,142 43,117 Operating lease right-of-use assets 4,985 5,025 Goodwill 539,411 541,719 Intangible assets, net 172,446 215,815 Other assets Deferred costs, non-current 20,296 20,719 Deferred income tax assets 514 493 Other assets, non-current 13,239 7,667 Total assets$1,125,429 $1,169,859 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$9,484 $13,757 Accrued compensation 39,470 47,577 Accrued expenses 14,901 13,074 Deferred revenue 80,867 75,590 Operating lease liabilities 1,540 4,353 Total current liabilities 146,262 154,351 Other liabilities Deferred revenue, non-current 4,720 5,288 Operating lease liabilities, non-current 4,766 2,839 Deferred income tax liabilities 30,928 33,201 Other liabilities, non-current 271 287 Total liabilities 186,947 195,966 Commitments and contingencies Stockholders' equity Common stock 40 40 Treasury stock (276,922) (177,949)Additional paid-in capital 763,354 722,737 Retained earnings 456,031 429,438 Accumulated other comprehensive loss (4,021) (373)Total stockholders’ equity 938,482 973,893 Total liabilities and stockholders’ equity$1,125,429 $1,169,859 SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in thousands, except per share amounts) Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Revenues$197,815 $187,400 $389,936 $368,949Cost of revenues 59,028 59,826 118,245 116,740Gross profit 138,787 127,574 271,691 252,209Operating expenses Sales and marketing 43,936 43,434 88,670 85,068Research and development 16,957 17,271 34,874 34,710General and administrative 36,646 30,890 73,020 61,908Amortization of intangible assets 9,381 9,509 18,701 18,097Loss on sale of business 23,454 — 23,454 —Total operating expenses 130,374 101,104 238,719 199,783Income from operations 8,413 26,470 32,972 52,426Other income, net 1,997 773 3,402 2,980Income before income taxes 10,410 27,243 36,374 55,406Income tax expense 3,546 7,510 9,781 13,477Net income$6,864 $19,733 $26,593 $41,929 Net income per share Basic$0.19 $0.52 $0.72 $1.10Diluted$0.19 $0.52 $0.72 $1.10 Weighted average common shares used to compute net income per share Basic 36,533 37,965 36,953 37,978Diluted 36,577 38,099 37,026 38,132 SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
Six Months Ended
June 30, 2026
2025
Cash flows from operating activities Net income$26,593 $41,929 Reconciliation of net income to net cash provided by operating activities Deferred income taxes (4,412) (5,914)Depreciation and amortization of property and equipment 11,984 9,948 Amortization of intangible assets 18,701 18,097 Provision for credit losses 4,621 4,111 Stock-based compensation 36,769 28,865 Loss on sale of business 23,454 — Other, net (1,445) 274 Changes in assets and liabilities, net of effects of acquisitions Accounts receivable (2,139) (13,713)Deferred costs 2,797 (412)Other assets and liabilities 11,871 (2,258)Accounts payable (3,236) 2,082 Accrued compensation (9,551) (11,006)Accrued expenses 1,419 (1,833)Deferred revenue 5,087 3,012 Operating leases (854) (876)Net cash provided by operating activities 121,659 72,306 Cash flows from investing activities Purchases of property and equipment (15,738) (12,815)Proceeds from sale, net 8,768 — Acquisition of business, net — (142,628)Net cash used in investing activities (6,970) (155,443)Cash flows from financing activities Repurchases of common stock (98,358) (59,558)Net proceeds from exercise of options to purchase common stock 866 2,406 Net proceeds from employee stock purchase plan activity 4,321 5,426 Net cash used in financing activities (93,171) (51,726)Effect of foreign currency exchange rate changes 294 1,449 Net increase (decrease) in cash and cash equivalents 21,812 (133,414)Cash and cash equivalents at beginning of period 151,355 241,017 Cash and cash equivalents at end of period$173,167 $107,603 SPS COMMERCE, INC.
NON-GAAP RECONCILIATIONS
(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
Adjusted EBITDA Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Net income$6,864 $19,733 $26,593 $41,929 Income tax expense 3,546 7,510 9,781 13,477 Depreciation and amortization of property and equipment 6,150 4,991 11,984 9,948 Amortization of intangible assets 9,381 9,509 18,701 18,097 Stock-based compensation expense 18,696 14,998 36,769 28,865 Realized gain from investments and foreign currency transactions (402) (107) (522) (473)Investment income (1,211) (688) (2,362) (2,537)Loss on sale of business 23,454 — 23,454 — Other 154 106 165 1,119 Adjusted EBITDA$66,632 $56,052 $124,563 $110,425 Adjusted EBITDA Margin
Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Revenue$197,815 $187,400 $389,936 $368,949 Net income 6,864 19,733 26,593 41,929 Margin 3% 11% 7% 11% Adjusted EBITDA 66,632 56,052 124,563 110,425 Adjusted EBITDA Margin 34% 30% 32% 30% Non-GAAP Income per Share Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Net income$6,864 $19,733 $26,593 $41,929 Stock-based compensation expense 18,696 14,998 36,769 28,865 Amortization of intangible assets 9,381 9,509 18,701 18,097 Realized gain from investments and foreign currency transactions (402) (107) (522) (473)Loss on sale of business 23,454 — 23,454 — Other 154 106 165 1,119 Income tax effects of adjustments (11,770) (6,285) (17,649) (13,570)Non-GAAP income$46,377 $37,954 $87,511 $75,967 Shares used to compute net income and non-GAAP income per share Basic 36,533 37,965 36,953 37,978 Diluted 36,577 38,099 37,026 38,132 Net income per share, basic$0.19 $0.52 $0.72 $1.10 Non-GAAP adjustments to net income per share, basic 1.08 0.48 1.65 0.90 Non-GAAP income per share, basic$1.27 $1.00 $2.37 $2.00 Net income per share, diluted$0.19 $0.52 $0.72 $1.10 Non-GAAP adjustments to net income per share, diluted 1.08 0.48 1.65 0.89 Non-GAAP income per share, diluted$1.27 $1.00 $2.36 $1.99
The annual per share amounts may not cross-sum due to rounding.
Contact:
Investor Relations
The Blueshirt Group
Irmina Blaszczyk
[email protected]