SPS Commerce Q2 earnings call highlights. July 31, 2026 Key points. * SPS Commerce reported solid Q2 results, with revenue up 6% year over year to $197.8 million, adjusted EBITDA of $66.6 million and trailing 12-month free cash flow up 40% to $198.7 million. The company used nearly 90% of quarterly free cash flow for share repurchases. * The company completed the sale of its third-party Revenue Recovery business for $9.5 million, recording a $23.5 million loss and removing about 7,300 customers. Management said the divestiture sharpens its focus on first-party suppliers and will reduce second-half 2026 revenue by approximately $10.5 million. * AI remains a key growth initiative as SPS plans to roll out its MAX agent to all Fulfillment customers and begin selling autonomous supply-chain agents by late Q4. Full-year 2026 guidance calls for revenue of $788.4 million to $793.4 million and adjusted EBITDA of $264.6 million to $269.1 million. * MarketBeat previews top five stocks to own in August. SPS Commerce NASDAQ: SPSC reported second-quarter 2026 revenue of $197.8 million, up 6% from a year earlier, as the company cited continued upsell and cross-sell momentum among its core customers. The company said its core business, excluding the divested third-party Revenue Recovery operation, grew at a high-single-digit rate. Adjusted EBITDA rose to $66.6 million in the quarter. SPS Commerce ended the period with $173 million in cash and cash equivalents and generated $57.4 million in free cash flow, bringing trailing 12-month free cash flow to $198.7 million, up 40% year over year. The company used $51.2 million, or nearly 90% of quarterly free cash flow, for share repurchases. Revenue Recovery divestiture narrows focus. On June 30, SPS Commerce completed the sale of its 3P Revenue Recovery business, which primarily served Amazon Marketplace sellers. The company received $9.5 million in cash at closing and recorded a $23.5 million loss on the sale during the second quarter. CEO Chad Collins said the transaction is intended to concentrate SPS Commerce's efforts on first-party suppliers selling wholesale through multiple retailer relationships. He said those customers have greater overlap with the company's broader portfolio, including Fulfillment, Revenue Recovery and Analytics offerings. "The 1P side of this business is much more attractive for us and has much more overlap with our ideal customer profile than the 3P side does," Collins said during the call. He also cited the former business's take-rate model and policy changes affecting third-party sellers on Amazon as factors behind the decision. The divestiture removed approximately 7,300 customers from the company's recurring-revenue customer base. SPS Commerce reported approximately 46,650 recurring-revenue customers at the end of the second quarter and average revenue per customer of $15,100. CFO Joe Del Preto said the timing of the sale caused the reported quarterly ARPU figure to skew higher because the company included full-period 3P revenue while the quarter-end customer count no longer included the divested customers. He said the calculation method was unchanged and should normalize going forward. AI Rollout Centers on MAX. Collins highlighted the company's MAX artificial intelligence agent, which draws on transaction activity, trading-partner patterns, digital specifications and compliance rules across the SPS network. The company plans to make MAX available to all Fulfillment customers by the end of the summer, after initially offering it through a beta program. According to Collins, MAX can identify supply-chain errors, compare retailer requirements and help customers diagnose operational issues. He said beta users have used the tool to identify a $290,000 invoice failure tied to an incorrect UPC code, 100 stalled drop-ship orders for an outdoor brand, and $70,000 in unacknowledged purchase orders for a food manufacturer. Branch, a wholesale brand serving retailers including Williams-Sonoma, Lumen and Office Depot, used MAX to reduce the weekly time spent managing overdue orders for one key retail partner by 90%, Collins said. SPS Commerce expects MAX Chat, the current conversational interface, to be included in standard customer subscriptions. Collins said the company's primary AI monetization opportunity is expected to come from autonomous agents that can detect and, in some cases, resolve recurring supply-chain issues. The company expects to be able to sell those agents by late in the fourth quarter. "The first set of agents that we put out are going to be probably more addressable for the more highly complex customers with more trading relationships," Collins said, adding that the company expects to extend the capabilities to medium and smaller customers over time. Analytics platform and customer expansion. The company also said its Analytics product is now operating on an enhanced platform designed to support higher data volumes, broader uses and future AI-based predictive capabilities. Collins said the updated platform improves the user experience and provides customers with more self-service tools and more detailed product- and location-level insights. RuffleButts, a Texas-based children's clothing company, is using the platform to analyze sell-through data across more than 400 retail locations and an e-commerce channel for one major retailer, according to SPS Commerce. The company said the customer is considering adding another major retailer to its reporting. On Revenue Recovery, Collins said the company is increasingly using network data to identify Fulfillment customers that may be strong candidates for the offering. He said SPS can assess trading volumes and partner relationships to target potential customers and, in some cases, estimate recovery opportunities. The company said its customer count declined by slightly more than 200 sequentially on a first-party basis, primarily because of timing in retail enablement programs. Collins said those customers tend to carry low ARPU and that the company expects customer count to be flat to slightly positive for the full year, with some second-half enablement momentum potentially carrying into early 2027. Outlook includes impact of sale. SPS Commerce said its outlook incorporates an estimated $10.5 million reduction to second-half 2026 revenue from the 3P Revenue Recovery divestiture. The company expects the divestiture to be neutral to adjusted EBITDA during the second half. * Third-quarter revenue is projected at $196.3 million to $198.3 million. * Third-quarter adjusted EBITDA is projected at $67.4 million to $69.4 million. * Third-quarter GAAP diluted earnings per share are expected to be $0.72 to $0.76, while non-GAAP diluted income per share is expected to be $1.20 to $1.23. * Full-year revenue is projected at $788.4 million to $793.4 million, representing about 5% growth at the midpoint. * Full-year adjusted EBITDA is projected at $264.6 million to $269.1 million, implying a 34% midpoint margin and approximately 300 basis points of expansion from 2025. Excluding the divested business, SPS Commerce expects core revenue growth to remain in the high single digits for 2026. Del Preto attributed the quarter's revenue outperformance to improved gross retention and expansion among existing customers, including the addition of more trading partners. Management said it was not seeing substantial macroeconomic pressure in customer conversations. Collins noted that supplier customers faced tariff-related headwinds and contract right-sizing in 2025, but said those pressures had dissipated as expected in 2026. The company continues to monitor fuel costs and tariff uncertainty. About SPS Commerce (NASDAQ:SPSC). 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider SPS Commerce, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SPS Commerce wasn't on the list. While SPS Commerce currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. 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Hennepin Partners advises SPS Commerce on the sale of its 3P Revenue Recovery business. Minneapolis, MN - Hennepin Partners acted as exclusive financial advisor to SPS Commerce, Inc. (the "Company"), a leading provider of intelligent supply chain solutions that connects trading partners around the globe, on the sale of its 3P Revenue Recovery business to an undisclosed buyer. The Company previously acquired the 3P Revenue Recovery business through the Carbon6 Technologies, Inc. (Carbon6) acquisition which closed on February 7, 2025. Carbon6 was a provider of software tools to Amazon sellers, including specialized offerings for revenue recovery for both first-party (1P) and third-party (3P) suppliers. John Strenger, Vice President of Corporate Development at SPS Commerce, remarked, "It was a pleasure working with the Hennepin Partners team throughout this transaction. They were an important partner, providing sound advice, thoughtful execution, and steady support along the way. We appreciated their collaborative approach and commitment to helping us achieve a successful outcome."

Y Intercept Hong Kong Ltd has $4.94 million stock position in SPS Commerce, Inc. $SPSC. July 6, 2026 Key points. * Y Intercept Hong Kong Ltd sharply increased its SPS Commerce stake by 774.1% in the first quarter, ending with 88,683 shares valued at about $4.94 million. * SPS Commerce reported better-than-expected Q1 earnings of $1.10 per share, beating estimates, while revenue came in at $192.12 million and rose 5.8% year over year. * Analysts remain cautious overall, with the stock carrying a Hold consensus rating and a consensus price target of $76.45, even after some firms lowered targets following the earnings report. * MarketBeat previews top five stocks to own in August. Y Intercept Hong Kong Ltd increased its position in shares of SPS Commerce, Inc. (NASDAQ:SPSC - Free Report) by 774.1% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 88,683 shares of the software maker's stock after acquiring an additional 78,537 shares during the quarter. Y Intercept Hong Kong Ltd owned 0.24% of SPS Commerce worth $4,937,000 as of its most recent SEC filing. Other hedge funds have also made changes to their positions in the company. NewEdge Advisors LLC boosted its stake in SPS Commerce by 545.7% in the 1st quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock worth $30,000 after purchasing an additional 191 shares during the period. Advisory Services Network LLC purchased a new stake in shares of SPS Commerce in the third quarter valued at $32,000. Global Retirement Partners LLC boosted its position in shares of SPS Commerce by 2,130.0% in the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock worth $40,000 after buying an additional 426 shares during the period. Summit Securities Group LLC purchased a new position in shares of SPS Commerce during the fourth quarter valued at $45,000. Finally, Park Place Capital Corp grew its holdings in shares of SPS Commerce by 29.7% during the fourth quarter. Park Place Capital Corp now owns 564 shares of the software maker's stock valued at $50,000 after buying an additional 129 shares in the last quarter. Hedge funds and other institutional investors own 98.96% of the company's stock. Insider transactions at SPS Commerce. In other SPS Commerce news, Director Marty M. Reaume sold 1,000 shares of SPS Commerce stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $57.90, for a total value of $57,900.00. Following the completion of the sale, the director directly owned 9,158 shares in the company, valued at $530,248.20. The trade was a 9.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.58% of the stock is owned by company insiders. SPS Commerce price performance. Shares of NASDAQ SPSC opened at $59.06 on Monday. SPS Commerce, Inc. has a one year low of $49.04 and a one year high of $143.55. The business's 50-day moving average price is $55.02 and its two-hundred day moving average price is $66.00. The company has a market capitalization of $2.17 billion, a P/E ratio of 24.61 and a beta of 0.56. Discover more Market Cap Calculator EV Market Report SPS Commerce (NASDAQ:SPSC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.97 by $0.13. The company had revenue of $192.12 million during the quarter, compared to the consensus estimate of $192.50 million. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.The business's quarterly revenue was up 5.8% on a year-over-year basis. During the same period last year, the business earned $1.00 EPS. SPS Commerce has set its FY 2026 guidance at 4.730-4.760 EPS and its Q2 2026 guidance at 1.060-1.090 EPS. On average, equities analysts anticipate that SPS Commerce, Inc. will post 3.35 EPS for the current year. Analysts set new price targets. Several brokerages recently issued reports on SPSC. Needham & Company LLC reduced their price objective on SPS Commerce from $110.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Morgan Stanley set a $70.00 target price on SPS Commerce in a report on Friday, May 1st. Rothschild & Co Redburn set a $60.00 price target on shares of SPS Commerce and gave the stock a "neutral" rating in a research report on Thursday, April 16th. DA Davidson set a $55.00 price target on shares of SPS Commerce and gave the stock a "neutral" rating in a research report on Wednesday. Finally, Stifel Nicolaus set a $60.00 price target on shares of SPS Commerce in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $76.45. SPS Commerce company profile. 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. Want to see what other hedge funds are holding SPSC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for SPS Commerce, Inc. (NASDAQ:SPSC - Free Report). This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider SPS Commerce, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SPS Commerce wasn't on the list. While SPS Commerce currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you'll find 7 stocks that could play a major role in the next tech-driven market boom.