Revenue growth has significantly decelerated to 5.8% in 2026Q1, though the company has maintained a stable 69.2% gross margin despite rising competitive pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 762.08M | 751.5M | 637.76M | 536.91M | 450.88M | 385.28M | 312.63M | 279.12M | 248.24M | 220.57M | 193.29M | 158.52M | 127.95M | 104.39M | 77.11M | 57.97M | 44.6M | 37.75M | 30.7M | 25.2M |
| Revenue Growth % | 13.79% | 17.83% | 18.78% | 19.08% | 17.03% | 23.24% | 12% | 12.44% | 12.55% | 14.11% | 21.94% | 23.89% | 22.57% | 35.39% | 33.01% | 29.98% | 18.15% | 22.96% | 21.82% | - |
| Cost of Goods Sold | 243.51M | 268.8M | 210.71M | 182.07M | 153.06M | 131.68M | 99.84M | 92.24M | 81.75M | 73.63M | 64.35M | 50.04M | 39.99M | 31.78M | 22.04M | 15.37M | 12.63M | 11.71M | 9.21M | 6.38M |
| COGS % of Revenue | - | 35.77% | 33.04% | 33.91% | 33.95% | 34.18% | 31.93% | 33.05% | 32.93% | 33.38% | 33.29% | 31.57% | 31.26% | 30.44% | 28.58% | 26.51% | 28.31% | 31.04% | 30% | 25.32% |
| Gross Profit | 518.57M | 482.71M | 427.05M | 354.84M | 297.81M | 253.6M | 212.79M | 186.88M | 166.49M | 146.94M | 128.95M | 108.47M | 87.96M | 72.61M | 55.07M | 42.6M | 31.97M | 26.03M | 21.49M | 18.82M |
| Gross Margin % | 68.05% | 64.23% | 66.96% | 66.09% | 66.05% | 65.82% | 68.07% | 66.95% | 67.07% | 66.62% | 66.71% | 68.43% | 68.74% | 69.56% | 71.42% | 73.49% | 71.69% | 68.96% | 70% | 74.68% |
| Gross Profit Growth % | - | 13.03% | 20.35% | 19.15% | 17.43% | 19.18% | 13.86% | 12.25% | 13.31% | 13.95% | 18.87% | 23.33% | 21.13% | 31.86% | 29.25% | 33.26% | 22.82% | 21.14% | 14.19% | - |
| Operating Expenses | 392.34M | 364.4M | 338.17M | 277.59M | 226.63M | 198.51M | 162.64M | 148.48M | 139.76M | 138.51M | 121.43M | 101.45M | 83.57M | 70.84M | 53.49M | 41.47M | 28.93M | 24.15M | 22.9M | 20.64M |
| OpEx % of Revenue | - | 48.49% | 53.02% | 51.7% | 50.26% | 51.52% | 52.02% | 53.19% | 56.3% | 62.8% | 62.82% | 64% | 65.32% | 67.86% | 69.38% | 71.53% | 64.88% | 63.98% | 74.6% | 81.91% |
| Selling, General & Admin | 304.18M | 295.72M | 251.85M | 207.82M | 169.11M | 149.35M | 126.07M | 114.86M | 113.58M | 110.76M | 94.71M | 80.19M | 67.22M | 56.81M | 43.56M | 34.99M | 24.59M | 19.84M | 19.26M | 17.09M |
| SG&A % of Revenue | - | 39.35% | 39.49% | 38.71% | 37.51% | 38.76% | 40.33% | 41.15% | 45.75% | 50.21% | 49% | 50.59% | 52.54% | 54.42% | 56.49% | 60.35% | 55.13% | 52.58% | 62.74% | 67.84% |
| Research & Development | 69.16M | 68.68M | 62.81M | 53.65M | 45.75M | 39.04M | 31.02M | 28.3M | 22.09M | 23.18M | 21.98M | 17.95M | 13.49M | 10.87M | 8.17M | 5.84M | 4.35M | 4.3M | 3.64M | 3.55M |
| R&D % of Revenue | - | 9.14% | 9.85% | 9.99% | 10.15% | 10.13% | 9.92% | 10.14% | 8.9% | 10.51% | 11.37% | 11.33% | 10.55% | 10.41% | 10.59% | 10.07% | 9.75% | 11.41% | 11.86% | 14.07% |
| Other Operating Expenses | 2M | 0 | 23.51M | 16.12M | 11.77M | 10.13M | 5.54M | 5.32M | -720K | -320K | 732K | -145K | -458K | -147K | -248K | 643K | 0 | 0 | 0 | 0 |
| Operating Income | 116.91M | 118.3M | 88.88M | 77.25M | 71.18M | 55.09M | 50.16M | 38.41M | 26.73M | 8.43M | 7.52M | 7.02M | 4.38M | 1.77M | 1.57M | 1.14M | 3.04M | 1.88M | -1.41M | -1.82M |
| Operating Margin % | 15.34% | 15.74% | 13.94% | 14.39% | 15.79% | 14.3% | 16.04% | 13.76% | 10.77% | 3.82% | 3.89% | 4.43% | 3.43% | 1.7% | 2.04% | 1.96% | 6.81% | 4.98% | -4.59% | -7.23% |
| Operating Income Growth % | - | 33.1% | 15.06% | 8.52% | 29.22% | 9.82% | 30.6% | 43.68% | 217.17% | 12.12% | 7.03% | 60.23% | 147.35% | 12.72% | 38.5% | -62.62% | 61.4% | 233.4% | 22.57% | - |
| EBITDA | 161.62M | 176.56M | 131.11M | 112M | 99.37M | 80M | 68.82M | 54.84M | 39.42M | 20.21M | 18.85M | 16.59M | 12.95M | 9.82M | 6.49M | 3.78M | 4.57M | 3.33M | 553K | -92K |
| EBITDA Margin % | 21.21% | 23.49% | 20.56% | 20.86% | 22.04% | 20.76% | 22.01% | 19.65% | 15.88% | 9.16% | 9.75% | 10.47% | 10.12% | 9.41% | 8.42% | 6.52% | 10.25% | 8.81% | 1.8% | -0.37% |
| EBITDA Growth % | 10.56% | 34.66% | 17.07% | 12.7% | 24.22% | 16.24% | 25.49% | 39.14% | 95.04% | 7.2% | 13.61% | 28.12% | 31.86% | 51.36% | 71.6% | -17.22% | 37.37% | 501.45% | 701.09% | - |
| D&A (Non-Cash Add-back) | 44.71M | 58.26M | 42.23M | 34.75M | 28.19M | 24.91M | 18.66M | 16.44M | 12.69M | 11.78M | 11.34M | 9.57M | 8.57M | 8.05M | 4.92M | 2.65M | 1.53M | 1.45M | 1.96M | 1.73M |
| EBIT | 94.9M | 123.83M | 88.88M | 77.25M | 71.32M | 53.54M | 50.16M | 38.41M | 28.34M | 9.98M | 6.38M | 7.02M | 4.11M | 2.06M | 1.57M | 1.08M | 3.05M | 1.52M | -1.38M | -1.7M |
| Net Interest Income | 1.76M | 0 | 10.58M | 7.66M | 0 | 278K | 1.1M | 2.95M | 2.33M | 1.03M | 601K | 197K | 187K | 112K | 19K | 89K | 84K | -270K | -419K | -439K |
| Interest Income | 1.76M | 0 | 10.58M | 7.66M | 0 | 278K | 1.1M | 2.95M | 2.33M | 1.03M | 601K | 197K | 187K | 112K | 46K | 89K | 158K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27K | 0 | 74K | 270K | 419K | 439K |
| Other Income/Expense | 4.73M | 5.53M | 10.59M | 8.31M | 142K | -1.54M | 2.52M | 3.66M | 1.61M | 712K | 1.33M | 52K | -271K | -35K | -229K | -51K | -60K | -628K | -391K | -319K |
| Pretax Income | 121.64M | 123.83M | 99.48M | 85.56M | 71.32M | 53.54M | 52.68M | 42.07M | 28.34M | 9.14M | 8.85M | 7.08M | 4.11M | 1.74M | 1.34M | 1.08M | 2.98M | 1.25M | -1.8M | -2.14M |
| Pretax Margin % | 15.96% | 16.48% | 15.6% | 15.94% | 15.82% | 13.9% | 16.85% | 15.07% | 11.42% | 4.14% | 4.58% | 4.46% | 3.21% | 1.66% | 1.74% | 1.87% | 6.67% | 3.32% | -5.87% | -8.49% |
| Income Tax | 30.76M | 30.5M | 22.42M | 19.74M | 16.19M | 8.94M | 7.09M | 8.36M | 4.47M | 11.58M | 3.14M | 2.44M | 1.41M | 686K | 121K | -12.62M | 92K | 91K | 94K | 16K |
| Effective Tax Rate % | 25.29% | 24.63% | 22.54% | 23.07% | 22.7% | 16.7% | 13.47% | 19.87% | 15.77% | 126.7% | 35.48% | 34.43% | 34.24% | 39.49% | 9.01% | -1164.11% | 3.09% | 7.26% | -5.22% | -0.75% |
| Net Income | 90.87M | 93.34M | 77.05M | 65.82M | 55.13M | 44.6M | 45.59M | 33.71M | 23.87M | -2.44M | 5.71M | 4.64M | 2.7M | 1.05M | 1.22M | 13.7M | 2.88M | 1.16M | -1.9M | -2.16M |
| Net Margin % | 11.92% | 12.42% | 12.08% | 12.26% | 12.23% | 11.58% | 14.58% | 12.08% | 9.62% | -1.11% | 2.95% | 2.93% | 2.11% | 1.01% | 1.58% | 23.64% | 6.47% | 3.08% | -6.17% | -8.56% |
| Net Income Growth % | 11.85% | 21.13% | 17.06% | 19.39% | 23.63% | -2.17% | 35.22% | 41.22% | 1078.36% | -142.73% | 23.09% | 71.56% | 157.28% | -13.99% | -91.08% | 375.14% | 148.19% | 161.32% | 12.11% | - |
| Net Income (Continuing) | 90.87M | 93.34M | 77.05M | 65.82M | 55.13M | 44.6M | 45.59M | 33.71M | 23.87M | 351K | 4.96M | 4.64M | 2.7M | 1.05M | 1.22M | 13.7M | 2.88M | 1.16M | -1.9M | -2.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.43 | 2.46 | 2.04 | 1.76 | 1.49 | 1.21 | 1.26 | 0.94 | 0.68 | -0.07 | 0.17 | 0.14 | 0.08 | 0.03 | 0.04 | 0.54 | 0.12 | 0.06 | -3.22 | -0.11 |
| EPS Growth % | 12.15% | 20.59% | 15.91% | 18.12% | 23.14% | -3.97% | 34.04% | 38.24% | 1067.28% | -141.35% | 21.43% | 74.13% | 143.64% | -24.83% | -91.87% | 350% | 91.39% | 101.95% | -2827.27% | - |
| EPS (Basic) | - | 2.46 | 2.07 | 1.80 | 1.53 | 1.24 | 1.29 | 0.96 | 0.69 | -0.07 | 0.17 | 0.14 | 0.08 | 0.03 | 0.05 | 0.57 | 0.18 | 1.77 | -3.22 | -3.30 |
| Diluted Shares Outstanding | 37.44M | 37.99M | 37.86M | 37.48M | 36.95M | 36.96M | 36.28M | 36M | 35.21M | 34.71M | 34.48M | 34.06M | 33.63M | 31.86M | 27.82M | 25.49M | 23.19M | 18.54M | 588K | 19.05M |
| Basic Shares Outstanding | 37.38M | 37.88M | 37.31M | 36.65M | 36.12M | 35.93M | 35.23M | 35.02M | 34.39M | 34.37M | 33.89M | 33.13M | 32.47M | 30.4M | 26.11M | 23.92M | 16.07M | 658K | 588K | 654K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Retail sector consolidation
According to the most recent quarterly data, SPSC's revenue growth has decelerated to 5.8% in 2026Q1, a notable departure from the double-digit expansion observed throughout 2025, suggesting that the company's core market penetration may be reaching a point of saturation within its primary domestic retail segments.
The sharp decline in year-over-year growth suggests that the company's historical reliance on new customer acquisition is encountering friction. Investors should monitor whether this slowdown reflects a broader cooling in retail infrastructure investment or if the company is struggling to maintain its historical pace of network expansion.
As reported in financial statements, SPSC maintained a gross margin of 69.2% in 2026Q1, which remains consistent with its historical range, indicating that the company has successfully preserved its pricing power despite the recent deceleration in top-line growth and potential competitive pressures in the EDI space.
The ability to sustain margins near 69% suggests that the company's proprietary network architecture provides a durable moat against commoditization. However, the lack of significant margin expansion despite revenue growth implies that the cost of onboarding new trading partners remains a persistent, non-trivial variable expense.
Based on the provided income statement data, stock-based compensation remains a significant recurring expense, reaching $18.1M in 2026Q1, which effectively masks the underlying operational profitability and suggests that GAAP net income figures may overstate the company's true cash-generative capacity for shareholders.
The volatility in quarterly net income appears heavily influenced by the timing of these non-cash charges, complicating a clear view of core operating performance. Analysts should adjust for these recurring equity grants to better assess the company's true earnings power and the sustainability of its current valuation multiples.
Analysis of the income statement reveals that SG&A expenses reached $81.1M in 2026Q1, representing a significant portion of revenue and suggesting that the company is currently forced to increase its investment in sales and marketing to defend its market position against emerging competitive threats.
The upward trend in operating costs relative to revenue growth indicates a potential compression in operating leverage that warrants further investigation. If the company cannot achieve greater efficiency in its 'Community' sales model, the current cost structure may limit future margin expansion even if revenue growth recovers.
While the company's network effect is often cited as a defensive moat, the recent income statement trends suggest that SPSC is increasingly vulnerable to retail consolidation, as evidenced by the 2026Q1 revenue slowdown which may reflect a reduction in the total number of required EDI connections.
Short-sellers might argue that the company's reliance on a finite number of large retail 'hubs' creates a structural ceiling on growth. If large-scale retail mergers continue to reduce the number of independent trading partners, the company's pricing power and total addressable market could face a permanent, non-cyclical contraction.
Quick answers to the most common questions about buying SPSC stock.
For fiscal year 2025, SPS Commerce, Inc. (SPSC) reported total revenue of $751.5M. This represents a 2882.4% increase compared to $25.2M in 2007.
SPS Commerce, Inc. (SPSC) is profitable, generating $93.3M in net income for the fiscal year ending 2025 with a net profit margin of 12.4%.
SPS Commerce, Inc. (SPSC) reported an operating income of $118.3M, resulting in an operating profit margin of 15.7%. This margin reflects the operational efficiency of the business before interest and taxes.
SPS Commerce, Inc. (SPSC) generated $482.7M in gross profit for the year, representing a gross profit margin of 64.2%. This demonstrates the company's core pricing power and production efficiency.