SPS Commerce Reports Fourth Quarter and Fiscal Year 2025 Financial Results

SPS Commerce Reports Fourth Quarter and Fiscal Year 2025 Financial Results SPS Commerce Reports Fourth Quarter and Fiscal Year 2025 Financial Results GlobeNewswire February 12, 2026

Company delivers 100th consecutive quarter of topline growth

Fourth quarter 2025 revenue grew 13% and recurring revenue grew 14% from the fourth quarter of 2024

Announces planned retirement of Chief Financial Officer and appointment of new Chief Financial Officer

Announces increase to Share Repurchase Program 

MINNEAPOLIS, Feb. 12, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the fourth quarter and year ended December 31, 2025.

Financial Highlights

Fourth Quarter 2025 Financial Highlights

Fiscal Year 2025 Financial Highlights

“SPS Commerce’s sustained and profitable growth and ongoing network expansion demonstrate our success in delivering the products and services that retailers and suppliers depend on to strengthen collaboration and drive continuous improvement,” said Chad Collins, CEO of SPS Commerce. “We’re excited about our recently launched agentic capabilities that leverage decades of expertise and proprietary network intelligence and competitively position SPS to deliver more meaningful and scalable AI enhancements across our product portfolio to better address the trends that are shaping the future of supply chain collaboration.”

“The fourth quarter of 2025 marks SPS Commerce’s 100th consecutive quarter of revenue growth – a milestone that speaks to the durability of our business model and our disciplined financial strategy. As we look ahead, we remain focused on driving balanced, profitable growth and delivering long-term value for our customers and shareholders,” said Kim Nelson, CFO of SPS Commerce.

Executive Appointment
SPS Commerce also announced it has appointed Joseph Del Preto as its Executive Vice President and Chief Financial Officer, effective March 16, 2026. Del Preto brings more than 20 years of experience leading finance, accounting, and operational strategy for high-growth, publicly traded technology companies, most recently serving as Chief Financial Officer and Treasurer of Sprout Social, Inc., a publicly traded social media management and analytics platform. Before Sprout Social, Del Preto held senior finance leadership roles at Groupon and Echo Global Logistics and began his career in public accounting at PricewaterhouseCoopers. Kim Nelson, who announced her intent to retire as Executive Vice President & Chief Financial Officer, will remain at SPS Commerce through the conclusion of a customary transition period.

“For nearly two decades, Kim has been a steady, trusted leader through some of the most defining chapters of our company’s journey, from the IPO to our evolution into a global organization that just achieved 100 consecutive quarters of growth. On behalf of the entire SPS team, I want to thank Kim for her extraordinary contributions and congratulate her on a well-earned retirement,” said Chad Collins, CEO of SPS Commerce. “As we look ahead, I’m excited to welcome Joseph Del Preto as our new Chief Financial Officer. He brings deep experience leading finance organizations at scale, a strong understanding of public-company dynamics, and a leadership style that aligns closely with our values. I’m confident Joe will build on the strong foundation Kim created and help guide SPS through our next chapter of growth.”

Share Repurchase Program
The Company also announced today that the Board of Directors of SPS Commerce approved an additional $200.0 million in repurchase authority under the Company’s previously announced share repurchase program that was approved on October 29, 2025 for the repurchase of up to $100.0 million of common stock, for a total authorized repurchase amount of $300.0 million under the program. Purchases may be made from time to time in the open market or in privately negotiated purchases, or both. The share repurchase program became effective on December 1, 2025 and expires on December 1, 2027.

Guidance
First Quarter 2026 Guidance

Fiscal Year 2026 Guidance

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 Q4 2025 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 world’s leading retail 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 has achieved 100 consecutive quarters of revenue growth and 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 or loss from investments held and foreign currency impact on cash and investments, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the year ended December 31, 2025 included the expense impacts from disposals of certain capitalized internally developed software, disposals of other equipment, remeasurement of acquired earn-out payments, and one-time acquisition-related insurance costs. Other adjustments for the year ended December 31, 2024 included the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance 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 or loss from investments held and foreign currency impact on cash and investments, other adjustments as necessary for a fair presentation, including for the year ended December 31, 2025 the expense impacts from disposals of certain capitalized internally developed software, disposals of other equipment, remeasurement of acquired earn-out payments, and one-time acquisition-related insurance costs and for the year ended December 31, 2024 the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance 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 first 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, 2024, 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)
    
 December 31,
2025		 December 31,
2024
ASSETS   
Current assets   
Cash and cash equivalents$151,355  $241,017 
Accounts receivable 75,295   56,214 
Allowance for credit losses (7,129)  (4,179)
Accounts receivable, net 68,166   52,035 
Deferred costs 66,693   65,342 
Other assets 49,090   23,513 
Total current assets 335,304   381,907 
Property and equipment, net 43,117   37,547 
Operating lease right-of-use assets 5,025   8,192 
Goodwill 541,719   399,180 
Intangible assets, net 215,815   181,294 
Other assets   
Deferred costs, non-current 20,719   20,572 
Deferred income tax assets 493   505 
Other assets, non-current 7,667   2,033 
Total assets$1,169,859  $1,031,230 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities   
Accounts payable$13,757  $8,577 
Accrued compensation 47,577   47,160 
Accrued expenses 13,074   12,108 
Deferred revenue 75,590   74,256 
Operating lease liabilities 4,353   4,583 
Total current liabilities 154,351   146,684 
Other liabilities   
Deferred revenue, non-current 5,288   6,189 
Operating lease liabilities, non-current 2,839   7,885 
Deferred income tax liabilities 33,201   15,541 
Other liabilities, non-current 287   241 
Total liabilities 195,966   176,540 
Commitments and contingencies   
Stockholders' equity   
Common stock 40   40 
Treasury stock (177,949)  (99,748)
Additional paid-in capital 722,737   627,982 
Retained earnings 429,438   336,099 
Accumulated other comprehensive loss (373)  (9,683)
Total stockholders’ equity 973,893   854,690 
Total liabilities and stockholders’ equity$1,169,859  $1,031,230 


SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in thousands, except per share amounts)
    
 Three Months Ended
December 31,		 Twelve Months Ended
December 31,
  2025  2024   2025  2024
Revenues$192,652 $170,907  $751,505 $637,765
Cost of revenues 56,957  55,585   231,629  210,714
Gross profit 135,695  115,322   519,876  427,051
Operating expenses       
Sales and marketing 41,740  39,220   169,130  148,920
Research and development 16,694  17,142   68,680  62,809
General and administrative 32,996  26,354   126,594  102,929
Amortization of intangible assets 9,579  7,862   37,169  23,510
Total operating expenses 101,009  90,578   401,573  338,168
Income from operations 34,686  24,744   118,303  88,883
Other income (expense), net 1,292  (373)  5,532  10,593
Income before income taxes 35,978  24,371   123,835  99,476
Income tax expense 10,137  6,812   30,496  22,422
Net income$25,841 $17,559  $93,339 $77,054
        
Net income per share       
Basic$0.69 $0.47  $2.46 $2.07
Diluted$0.68 $0.46  $2.46 $2.04
        
Weighted average common shares used to compute net income per share       
Basic 37,712  37,646   37,881  37,306
Diluted 37,763  38,133   37,992  37,856


SPS COMMERCE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
  
 Twelve Months Ended
December 31,
  2025   2024 
Cash flows from operating activities   
Net income$93,339  $77,054 
Reconciliation of net income to net cash provided by operating activities   
Deferred income taxes 18,909   (9,786)
Depreciation and amortization of property and equipment 21,089   18,721 
Amortization of intangible assets 37,169   23,510 
Provision for credit losses 9,918   7,683 
Stock-based compensation 53,728   54,557 
Other, net (1,087)  577 
Changes in assets and liabilities, net of effects of acquisitions   
Accounts receivable (20,297)  (9,653)
Deferred costs 157   (3,120)
Other assets and liabilities (28,686)  (7,313)
Accounts payable 4,715   796 
Accrued compensation (3,721)  1,434 
Accrued expenses (3,568)  4,115 
Deferred revenue (787)  728 
Operating leases (2,088)  (1,905)
Net cash provided by operating activities 178,790   157,398 
Cash flows from investing activities   
Purchases of property and equipment (26,524)  (20,046)
Purchases of investments —   (85,759)
Maturities of investments —   143,275 
Acquisition of business, net (142,628)  (147,924)
Net cash used in investing activities (169,152)  (110,454)
Cash flows from financing activities   
Repurchases of common stock (114,277)  (37,567)
Net proceeds from exercise of options to purchase common stock 3,861   4,714 
Net proceeds from employee stock purchase plan activity 9,584   9,827 
Net cash used in financing activities (100,832)  (23,026)
Effect of foreign currency exchange rate changes 1,532   (1,982)
Net increase (decrease) in cash and cash equivalents (89,662)  21,936 
Cash and cash equivalents at beginning of period 241,017   219,081 
Cash and cash equivalents at end of period$151,355  $241,017 


SPS COMMERCE, INC.
NON-GAAP RECONCILIATIONS
(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
 
Adjusted EBITDA
 Three Months Ended
December 31,		 Twelve Months Ended
December 31,
  2025   2024   2025   2024 
Net income$25,841  $17,559  $93,339  $77,054 
Income tax expense 10,137   6,812   30,496   22,422 
Depreciation and amortization of property and equipment 5,787   4,711   21,089   18,721 
Amortization of intangible assets 9,579   7,862   37,169   23,510 
Stock-based compensation expense 10,410   12,293   53,728   54,557 
Realized (gain) loss from investments held and foreign currency impact on cash and investments 290   2,521   (388)  (115)
Investment income (1,036)  (2,205)  (4,649)  (10,582)
Other (546)  86   583   1,064 
Adjusted EBITDA$60,462  $49,639  $231,367  $186,631 


Adjusted EBITDA Margin
 Three Months Ended
December 31,		 Twelve Months Ended
December 31,
  2025   2024   2025   2024 
Revenue$192,652  $170,907  $751,505  $637,765 
        
Net income 25,841   17,559   93,339   77,054 
Margin 13%  10%  12%  12%
        
Adjusted EBITDA 60,462   49,639   231,367   186,631 
Adjusted EBITDA Margin 31%  29%  31%  29%


Non-GAAP Income per Share
 Three Months Ended
December 31,		 Twelve Months Ended
December 31,
  2025   2024   2025   2024 
Net income$25,841  $17,559  $93,339  $77,054 
Stock-based compensation expense 10,410   12,293   53,728   54,557 
Amortization of intangible assets 9,579   7,862   37,169   23,510 
Realized (gain) loss from investments held and foreign currency impact on cash and investments 290   2,521   (388)  (115)
Other (546)  86   583   1,064 
Income tax effects of adjustments (2,344)  (6,371)  (22,279)  (24,505)
Non-GAAP income$43,230  $33,950  $162,152  $131,565 
        
Shares used to compute net income and non-GAAP income per share       
Basic 37,712   37,646   37,881   37,306 
Diluted 37,763   38,133   37,992   37,856 
        
Net income per share, basic$0.69  $0.47  $2.46  $2.07 
Non-GAAP adjustments to net income per share, basic 0.46   0.43   1.82   1.46 
Non-GAAP income per share, basic$1.15  $0.90  $4.28  $3.53 
        
Net income per share, diluted$0.68  $0.46  $2.46  $2.04 
Non-GAAP adjustments to net income per share, diluted 0.46   0.43   1.81   1.44 
Non-GAAP income per share, diluted$1.14  $0.89  $4.27  $3.48 
                

The annual per share amounts may not cross-sum due to rounding.

Contact:
Investor Relations
The Blueshirt Group
Irmina Blaszczyk
SPSC@blueshirtgroup.com


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