Revenue growth has slowed to 4.1% in 2026Q3 from 22.0% a year earlier, while operating margin has oscillated between 4.3% and 20.2% and diluted EPS has ranged from $0.19 to $0.85, showing high sensitivity of earnings to SG&A timing.
SPS Commerce, Inc. (SPSC) annual income statement — 19-year revenue, gross profit & net income history
| 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 | 780.24M | 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 % | 6.92% | 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 | 232.3M | 231.63M | 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 | - | 30.82% | 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 | 547.93M | 519.88M | 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 % | 70.23% | 69.18% | 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 % | - | 21.74% | 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 | 416.89M | 401.57M | 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 | - | 53.44% | 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 | 310.73M | 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 | 68.11M | 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 | 4M | 37.17M | 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 | 131.04M | 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 % | 16.8% | 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 | 192.93M | 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 % | 24.73% | 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 % | 17.77% | 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) | 61.89M | 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 | 132.41M | 118.3M | 99.48M | 85.56M | 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 | 1.61M | 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 | 1.61M | 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 | -17.39M | 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 | 113.65M | 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 % | 14.57% | 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 | 30.54M | 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 % | 26.87% | 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 | 83.12M | 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 % | 10.65% | 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 % | -2.28% | 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) | 83.12M | 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) | 2.30 | 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 % | 0.9% | 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 | 36.21M | 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 | 35.9M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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 $519.9M in gross profit for the year, representing a gross profit margin of 69.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile quarterly net margins
Metrics are mathematically derived from official filings.
Revenue Growth Steady but Decelerating
Based on reported figures, SPSC's quarterly revenue reached $197.6M in 2026Q3, up 4.1% year over year after growth of 22.0% in 2025Q2, indicating a clear deceleration in top-line momentum over the period.
The shift from double-digit expansion through 2025 to low-single-digit growth in 2026 suggests the recurring software base is maturing or that new customer additions are slowing. Investors should monitor whether sequential revenue gains continue, since the reported figures show revenue roughly flat between 2026Q1 and 2026Q3. The growth profile warrants further investigation into the mix of volume versus pricing contribution, which the supplied data does not break out.
Gross Margin Volatility Limits Pricing Read
As reported in financial statements, SPSC's gross margin swung from 64.3% in 2026Q1 to 74.9% in 2026Q2 and 71.1% in 2026Q3, a range that is wide for a mature software business and warrants scrutiny.
The gross margin trend appears more sensitive to cost timing than a stable subscription model would typically imply, which may reflect variable hosting or service delivery costs. Relative to peers such as PCTY at 69.2% and CWAN at 67.3%, SPSC's recent margins sit within the competitive band, but the quarter-to-quarter swings complicate assessment of underlying pricing power. Further analysis of COGS composition would be needed before drawing firm conclusions about structural margin durability.
Operating Leverage Fading in Recent Quarters
Based on SPSC's reported figures, operating margin compressed from 15.6% in 2024Q3 to 4.3% in 2026Q2 before recovering to 20.2% in 2026Q3, showing that operating income has been highly sensitive to SG&A timing.
SG&A rose from $64.7M in 2024Q3 to $74.3M in 2026Q3 while revenue grew more slowly, which suggests overhead has been absorbing a growing share of gross profit during the period. The 2026Q2 SG&A spike to $80.6M against flat revenue produced the weakest operating result in the dataset, indicating limited scalability in that quarter. The subsequent rebound appears to depend on a single quarter's cost moderation rather than a demonstrated structural trend.
Net Income Swings Track Operating Results
According to recent SEC filings, SPSC's diluted EPS fell from $0.68 in 2025Q4 to $0.19 in 2026Q2 before jumping to $0.85 in 2026Q3, with net margin following the same volatile path.
Net income moved closely with operating income across the period, which suggests limited reliance on non-operating items to shape reported earnings. Stock-based compensation remained in a range of roughly $10M to $19M per quarter, a meaningful drag on GAAP profitability that investors should weigh alongside headline EPS. The very large quarter-to-quarter EPS changes may reflect timing effects that warrant further investigation rather than a clear underlying earnings trend.
SG&A Dominates the Expense Base
Based on EDBL's reported figures, SPSC's SG&A consumed between $59.2M and $81.1M per quarter across the period, making it the largest operating cost line and the primary driver of margin variability.
R&D remained comparatively contained at roughly $14M to $18M per quarter, suggesting spending discipline in product development relative to selling and administrative outlays. The rise in SG&A from 2024 levels to 2026 outpaced revenue growth in several quarters, which may indicate sales capacity expansion ahead of revenue conversion. Management's expense discipline appears uneven, and the supplied data does not isolate the drivers of SG&A increases.
Margin Compression Could Persist
The strongest bear case is that SPSC's decelerating growth to 4.1% combined with elevated SG&A could compress margins further, as the reported figures show operating margin falling below 5% in 2026Q2.
Short-sellers would likely argue that the recent margin recovery in 2026Q3 is an outlier rather than a trend, given the sharp reversal within a single quarter. If revenue growth remains in the low single digits while SG&A continues to grow, operating leverage would turn negative and profitability could erode. Peer comparisons show SPSC operating margins are not clearly superior to competitors such as APPF at 16.1% or PCTY at 21.8%, which may limit the premium the market can justify.