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First quarter 2026 revenue grew 6% and recurring revenue grew 7% from the first quarter of 2025 April 30, 2026 16:05 ET | Source: SPS Commerce, Inc.
MINNEAPOLIS, April 30, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the first quarter ended March 31, 2026.
Financial Highlights
First Quarter 2026 Financial Highlights
Revenue was $192.1 million in the first quarter of 2026, compared to $181.5 million in the first quarter of 2025, reflecting 6% growth.Recurring revenue grew 7% from the first quarter of 2025.Net income was $19.7 million or $0.53 per diluted share, compared to net income of $22.2 million or $0.58 per diluted share in the first quarter of 2025.Non-GAAP income per diluted share was $1.10, compared to non-GAAP income per diluted share of $1.00 in the first quarter of 2025.Adjusted EBITDA for the first quarter of 2026 increased 7% to $57.9 million compared to the first quarter of 2025.Share repurchases in the first quarter of 2026 totaled $47.1 million. “SPS Commerce delivered a solid performance this quarter, led by growth of our core business and momentum in cross-selling across our customer base,” said Chad Collins, CEO of SPS Commerce. “To further empower our customers, we are excited by the launch of MAX, our new set of AI capabilities. Embedded into existing supply chain workflows and powered by proprietary network data, MAX guides customer connections to support the success of their trading relationships.”
“SPS Commerce’s core business fundamentals remain strong. We are focused on driving margin expansion through operating leverage and AI-driven efficiencies,” said Joe Del Preto, CFO of SPS Commerce. “With a large addressable market, a clear path to scale, and disciplined capital allocation, SPS is well positioned to deliver balanced growth and long-term shareholder value.”
Guidance
Second Quarter 2026 Guidance
Revenue is expected to be in the range of $194.5 million to $196.5 million, representing 4% to 5% year-over-year growth.Net income per diluted share is expected to be in the range of $0.53 to $0.56, with fully diluted weighted average shares outstanding of 37.3 million shares.Non-GAAP income per diluted share is expected to be in the range of $1.06 to $1.09.Adjusted EBITDA is expected to be in the range of $60.9 million to $62.4 million.Non-cash, share-based compensation expense is expected to be $19.0 million, depreciation expense is expected to be $5.2 million, and amortization expense is expected to be $9.4 million. Fiscal Year 2026 Guidance
Revenue is expected to be in the range of $796.0 million to $802.0 million, representing 6% to 7% growth over 2025.Net income per diluted share is expected to be in the range of $2.66 to $2.69, with fully diluted weighted average shares outstanding of 37.3 million shares.Non-GAAP income per diluted share is expected to be in the range of $4.73 to $4.76.Adjusted EBITDA is expected to be in the range of $262.8 million to $267.3 million, representing 14% to 16% growth over 2025.Non-cash, share-based compensation expense is expected to be $69.8 million, depreciation expense is expected to be $23.0 million, and amortization expense is expected to be $37.4 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 Q1 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 is the leading intelligent supply chain network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 50,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics are using SPS as their retail network. SPS is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.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, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended March 31, 2026, included the expense impact from disposals of other equipment. 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, other adjustments as necessary for a fair presentation, including for the three months ended March 31, 2026, the expense impact from disposals of other equipment, 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 second 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) March 31,
2026 December 31,
2025ASSETS Current assets Cash and cash equivalents$154,271 $151,355 Accounts receivable 72,003 75,295 Allowance for credit losses (6,897) (7,129) Accounts receivable, net 65,106 68,166 Deferred costs 65,906 66,693 Other assets 43,457 49,090 Total current assets 328,740 335,304 Property and equipment, net 46,154 43,117 Operating lease right-of-use assets 4,856 5,025 Goodwill 540,836 541,719 Intangible assets, net 206,069 215,815 Other assets Deferred costs, non-current 20,294 20,719 Deferred income tax assets 511 493 Other assets, non-current 13,748 7,667 Total assets$1,161,208 $1,169,859 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$14,468 $13,757 Accrued compensation 42,647 47,577 Accrued expenses 15,535 13,074 Deferred revenue 80,382 75,590 Operating lease liabilities 1,918 4,353 Total current liabilities 154,950 154,351 Other liabilities Deferred revenue, non-current 5,318 5,288 Operating lease liabilities, non-current 4,700 2,839 Deferred income tax liabilities 33,801 33,201 Other liabilities, non-current 279 287 Total liabilities 199,048 195,966 Commitments and contingencies Stockholders' equity Common stock 40 40 Treasury stock (226,903) (177,949)Additional paid-in capital 741,544 722,737 Retained earnings 449,167 429,438 Accumulated other comprehensive loss (1,688) (373) Total stockholders’ equity 962,160 973,893 Total liabilities and stockholders’ equity$1,161,208 $1,169,859 SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in thousands, except per share amounts) Three Months Ended
March 31, 2026 2025Revenues$192,121 $181,549Cost of revenues 59,217 56,914Gross profit 132,904 124,635Operating expenses Sales and marketing 44,734 41,634Research and development 17,917 17,439General and administrative 36,374 31,018Amortization of intangible assets 9,320 8,588 Total operating expenses 108,345 98,679Income from operations 24,559 25,956Other income, net 1,405 2,207Income before income taxes 25,964 28,163Income tax expense 6,235 5,967Net income$19,729 $22,196 Net income per share Basic$0.53 $0.58Diluted$0.53 $0.58 Weighted average common shares used to compute net income per share Basic 37,379 37,990Diluted 37,442 38,163 SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands) Three Months Ended
March 31, 2026 2025 Cash flows from operating activities Net income$19,729 $22,196 Reconciliation of net income to net cash provided by operating activities Deferred income taxes 713 (4,418)Depreciation and amortization of property and equipment 5,834 4,957 Amortization of intangible assets 9,320 8,588 Provision for credit losses 1,973 1,822 Stock-based compensation 18,073 13,867 Other, net (242) 168 Changes in assets and liabilities, net of effects of acquisitions Accounts receivable 1,103 (7,443) Deferred costs 1,265 (1,247) Other assets and liabilities (715) 1,174 Accounts payable (792) 1,677 Accrued compensation (5,988) (7,948) Accrued expenses 893 3,868 Deferred revenue 4,873 3,160 Operating leases (410) (438)Net cash provided by operating activities 55,629 39,983 Cash flows from investing activities Purchases of property and equipment (7,140) (6,150)Acquisition of business, net — (141,636)Net cash used in investing activities (7,140) (147,786)Cash flows from financing activities Repurchases of common stock (47,124) (40,000)Net proceeds from exercise of options to purchase common stock 743 635 Net proceeds from employee stock purchase plan activity 520 411 Net cash used in financing activities (45,861) (38,954)Effect of foreign currency exchange rate changes 288 661 Net increase (decrease) in cash and cash equivalents 2,916 (146,096)Cash and cash equivalents at beginning of period 151,355 241,017 Cash and cash equivalents at end of period$154,271 $94,921 SPS COMMERCE, INC.
NON-GAAP RECONCILIATIONS
(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
Adjusted EBITDA Three Months Ended March 31, 2026 2025 Net income$19,729 $22,196 Income tax expense 6,235 5,967 Depreciation and amortization of property and equipment 5,834 4,957 Amortization of intangible assets 9,320 8,588 Stock-based compensation expense 18,073 13,867 Realized gain from investments and foreign currency transactions (120) (366)Investment income (1,151) (1,849)Other 11 1,013 Adjusted EBITDA$57,931 $54,373 Adjusted EBITDA Margin Three Months Ended March 31, 2026 2025 Revenue$192,121 $181,549 Net income 19,729 22,196 Margin 10% 12% Adjusted EBITDA 57,931 54,373 Adjusted EBITDA Margin 30% 30% Non-GAAP Income per Share Three Months Ended March 31, 2026 2025 Net income$19,729 $22,196 Stock-based compensation expense 18,073 13,867 Amortization of intangible assets 9,320 8,588 Realized gain from investments and foreign currency transactions (120) (366)Other 11 1,013 Income tax effects of adjustments (5,879) (7,285)Non-GAAP income$41,134 $38,013 Shares used to compute net income and non-GAAP income per share Basic 37,379 37,990 Diluted 37,442 38,163 Net income per share, basic$0.53 $0.58 Non-GAAP adjustments to net income per share, basic 0.57 0.42 Non-GAAP income per share, basic$1.10 $1.00 Net income per share, diluted$0.53 $0.58 Non-GAAP adjustments to net income per share, diluted 0.57 0.42 Non-GAAP income per share, diluted$1.10 $1.00
The annual per share amounts may not cross-sum due to rounding.
Contact:
Investor Relations
The Blueshirt Group
Irmina Blaszczyk
[email protected]
