SPS Commerce, Inc. (SPSC) Income Statement

19Y historyFree accessUpdated daily

Revenue growth decelerated to 5.6% year-over-year in 2026Q2, while operating margin compressed to 4.3% from 18.0% in 2025Q4, reflecting a sharp loss of momentum and margin instability.

Annual statement

SPSC Income Statement

SPS Commerce, Inc. (SPSC) annual income statement — 19-year revenue, gross profit & net income history

Annual Quarterly

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	772.49M	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 %	9.8%	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	242.71M	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	529.78M	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 %	68.58%	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	388.77M	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	310.44M	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	68.84M	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	1000K	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	98.85M	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 %	12.8%	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	129.06M	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 %	16.71%	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 %	-16.44%	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)	30.21M	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	94.39M	123.83M	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	2.23M	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	1.08M	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	5.95M	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	104.8M	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 %	13.57%	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	26.8M	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 %	25.57%	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	78M	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 %	10.1%	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 %	-5.96%	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)	71.14M	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)	2.11	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 %	-5.05%	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	37.03M	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	36.95M	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	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeDecelerating

ProfitabilityStrained

Balance SheetAdequate

Cash FlowStable

Top Statement Risk

Revenue growth deceleration and margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Growth Momentum Fades Sharply

Revenue growth decelerated from 22.0% in 2025Q2 to 5.6% in 2026Q2, per reported figures, signaling a sharp loss of momentum that may reflect market saturation or competitive pressures.

The sequential deceleration from 12.7% in 2025Q4 to 5.6% in 2026Q2 is pronounced, with the most recent quarter showing the weakest growth in the series. This suggests that the company's historical double-digit expansion is not sustainable at current levels, and investors should monitor whether this is a temporary dip or a structural slowdown. The growth rate is now below the peer average, indicating potential share loss or a maturing market.

Gross Margin Volatility Raises Concerns

Gross margin swung from 74.9% in 2026Q2 to 64.3% in 2026Q1, a 10.6-point swing within two quarters, as reported in financial statements, suggesting instability in cost of goods sold or revenue mix.

The gross margin in 2026Q2 rebounded to 74.9%, but the prior quarter's drop to 64.3% was the lowest in the series, indicating potential one-time costs or pricing pressure. This volatility is atypical for a software company and may indicate changing revenue composition, such as increased low-margin services. Compared to peers like Paylocity (69.2%) and GoDaddy (61.6%), SPSC's margins are still respectable, but the inconsistency warrants further investigation into the drivers.

Operating Leverage Inverted

Operating income fell to $8.4M in 2026Q2 from $34.7M in 2025Q4, with operating margin compressing to 4.3% from 18.0%, as per reported data, indicating that revenue growth is no longer translating to profit growth.

The operating margin contraction from 18.0% in 2025Q4 to 4.3% in 2026Q2 is severe, despite revenue growth of 5.6% year-over-year. This suggests that operating expenses, particularly SG&A, are growing faster than revenue, eroding operating leverage. The spike in SG&A to $80.6M in 2026Q2 from $74.7M in 2025Q4, while revenue only grew modestly, indicates a loss of cost discipline. This trend, if sustained, could signal a structural shift in the company's cost structure.

Earnings Quality Deteriorates

Net income dropped 63.5% year-over-year in 2026Q2 to $6.9M, while stock-based compensation remained elevated at $18.7M, exceeding net income, as reported in SEC filings, raising questions about reported profitability.

In 2026Q2, SBC of $18.7M was nearly three times net income of $6.9M, indicating that reported earnings are significantly inflated by non-cash charges. The EPS decline of 63.5% year-over-year is stark, and the gap between SBC and net income suggests that cash earnings are much weaker than GAAP earnings. This may indicate that the company is using stock-based compensation to attract talent, but it dilutes shareholders and masks underlying profitability.

SG&A Escalation Outpaces Revenue

SG&A expenses rose to $80.6M in 2026Q2, up from $74.7M in 2025Q4, while revenue grew only 5.6% year-over-year, as per reported figures, indicating a loss of expense discipline.

The sequential increase in SG&A from $74.7M to $80.6M, a 7.9% rise, contrasts with revenue growth of only 5.6% year-over-year, suggesting that the company is investing heavily in sales and marketing without commensurate returns. This is a red flag for investors, as it implies that the company may be struggling to acquire new customers efficiently. The R&D expense remained relatively stable, indicating that the cost pressure is concentrated in go-to-market activities.

What Could Invalidate the Growth Story

The sharp deceleration in revenue growth and margin compression could indicate that SPSC's competitive position is weakening, as evidenced by the 5.6% growth in 2026Q2 versus peers like Clearwater Analytics at 61.9%.

Short-sellers might argue that SPSC's growth is converging to industry levels, and the elevated SBC suggests that earnings are not as robust as they appear. The gross margin volatility and SG&A escalation could be signs of pricing pressure or increased competition, which may lead to further margin erosion. If revenue growth continues to decelerate and margins do not recover, the stock's premium valuation could be at risk.

SPSC — Frequently Asked Questions

Quick answers to the most common questions about buying SPSC stock.

What was SPS Commerce, Inc.'s (SPSC) revenue in 2025?

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.

Is SPS Commerce, Inc. (SPSC) profitable?

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%.

What is SPS Commerce, Inc.'s operating profit margin?

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.

What is SPS Commerce, Inc.'s gross profit and gross margin?

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.