At a glance
SPS Commerce Inc is worth $3.03B, about 35 times its fiscal 2025 earnings. Revenue grew 17.8% to $751.5M in fiscal 2025, with 12.4% kept as profit; over 5 years it has grown 19.2% a year. It pays no dividend; it spent $215.5M buying back its shares over FY2021–FY2025. The stock returned −22.2% over the past year with dividends reinvested and −13.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 46.3% in the 2020 crash (S&P 500: 33.7%) and 29.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 6 months after the lows.
The business in plain English
SPS Commerce runs a cloud-based network that links retailers, grocers, brands, distributors, manufacturers and logistics firms so they can exchange the order data behind wholesale, online and marketplace sales. A company connects once and can then trade electronically with thousands of partners, while SPS maintains each partner's rules and data standards. Its main product, Fulfillment, automates the steps from order to invoice. Analytics gathers and cleans data on how a supplier's products are moving through its retail partners. Smaller products handle item data (Assortment) and supplier onboarding (Relationship Management).
Customers pay recurring fees, and SPS earns more as their activity on the network grows. In fiscal 2025, revenue was $751.5 million, up 17.8%, and 96% came from recurring revenue customers. The largest customer was less than 1% of revenue. SPS also earns one-time fees for professional services and for testing and certification. The quarter ended December 31, 2025 was its 100th straight quarter of revenue growth.
The 10-K does not give a clean breakdown of revenue by product, segment or region, so the share from each is not available. SPS aims to grow beyond the United States, building on its presence in Asia Pacific and Europe. In 2025 it acquired Carbon6, a maker of software tools for Amazon merchants and suppliers, including revenue recovery.
Price history
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SPSC -22.2% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $197.6M, up 4.1% from a year earlier, and net income was $30.7M (+20.0%).
- For fiscal 2025, revenue was $751.5M (+17.8% year over year; +19.2% a year from FY2020 to FY2025) with a 12.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +19.2% good |
|---|---|
| Operating margin | 15.7% good |
| Free cash flow margin | 20.3% good |
| Return on equity (FY2025) | 9.6% watch |
| Return on assets (FY2025) | 8% good |
| Cash and investments | $183.5M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $312.6M | $45.6M | $72.1M |
| FY2021 | $385.3M | $44.6M | $93.3M |
| FY2022 | $450.9M | $55.1M | $80.2M |
| FY2023 | $536.9M | $65.8M | $112.5M |
| FY2024 | $637.8M | $77.1M | $137.4M |
| FY2025 | $751.5M | $93.3M | $152.3M |
Valuation snapshot
| Market value | $3.03B |
|---|---|
| P/E ratio | 34.8 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
SPS Commerce’s market value went from $1.19B at the end of 2016 to $3.03B on Oct 28, 2026, about 2.5 times as much; since the end of 2025 it is down 10%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.03B | -9.7% |
| 2025 | $3.36B | -51.4% |
| 2024 | $6.91B | -2.8% |
| 2023 | $7.11B | +53.7% |
| 2022 | $4.63B | -9.6% |
| 2021 | $5.12B | +33.5% |
| 2020 | $3.83B | +98.6% |
| 2019 | $1.93B | +32.7% |
| 2018 | $1.46B | +73.9% |
| 2017 | $836.9M | -29.7% |
| 2016 | $1.19B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SPSC price data to Oct 28, 2026 | -4.0% | -22.2% | -17.8% | -13.1% | +10.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -4.0% |
| 2025 | -51.6% |
| 2024 | -5.1% |
| 2023 | +50.9% |
| 2022 | -9.8% |
| 2021 | +31.1% |
| 2020 | +95.9% |
| 2019 | +34.5% |
| 2018 | +69.5% |
| 2017 | -30.5% |
| 2016 | -0.5% |
| 2015 | +24.0% |
| 2014 | -13.3% |
| 2013 | +75.2% |
| 2012 | +43.6% |
| 2011 | +64.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.7% over that stretch · deepest drop along the way 46.3%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12% over that stretch · deepest drop along the way 29.4%, back to its old high 6.4 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 14 sales ($1.7M), 14 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 20, 2026 | Chadwick Collins Chief Executive Officer, Director | sell (plan) | $452K |
| Feb 20, 2026 | Kimberly K. Nelson EVP & CFO | sell (plan) | $215K |
| Feb 20, 2026 | Chadwick Collins Chief Executive Officer, Director | sell (plan) | $167K |
| Feb 20, 2026 | Chadwick Collins Chief Executive Officer, Director | sell (plan) | $166K |
| Jan 7, 2026 | Marty M Reaume Director | sell (plan) | $123K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.7% | Sep 30, 2025 |
| Vanguard Portfolio Management | 8.01% | Mar 31, 2026 |
| DISCIPLINED GROWTH INVESTORS INC /MN | 5.9% | Jun 30, 2026 |
| Vanguard Capital Management | 5.3% | Mar 31, 2026 |
ETFs with the most weight in SPSC
| PSCT Invesco S&P SmallCap Information Technology ETF | 3.65% |
| CLOU Global X Cloud Computing ETF | 3.35% |
| CSMD Congress SMid Growth ETF | 2.36% |
| WCLD WisdomTree Cloud Computing Fund | 1.68% |
| SOVF Sovereign's Capital Flourish Fund | 1.19% |
| SLYG SPDR S&P 600 Small Cap Growth ETF | 0.85% |
| XITK SPDR FactSet Innovative Technology ETF | 0.84% |
| IJT iShares S&P Small-Cap 600 Growth ETF | 0.83% |
What could go wrong
- Customers can cancel on short notice. Most recurring revenue contracts let customers cancel for any reason with 30 to 90 days' notice. If service slips or rivals offer lower prices, revenue could fall quickly.
- Tied to retailers and retail spending. Revenue depends on the health of retailers. Economic turmoil and factors such as tariffs have reduced spending with SPS before, and uncertainty can delay customers' technology purchases and lengthen sales cycles.
- Growth needs new and expanding customers. SPS must keep adding customers and getting existing ones to use more products. Revenue growth slowed to 5.6% in the quarter ended June 30, 2026, from 17.8% for fiscal 2025.
- Acquisitions such as Carbon6 may disappoint. SPS grows partly by acquiring companies, including Carbon6 in 2025. Combining their technology, staff and customers is hard, and a deal that fails to fit could hurt financial results.
- Competition, AI and free software. The market is highly competitive. Rivals moving faster on AI, or open source (freely available) and no-cost software spreading into supply chain tools, could push SPS prices and revenue down.
- Outages or breaches could damage trust. The network carries customers' order data and relies on third-party data centers. Service failures or cyber-attacks could harm SPS's reputation, bring lawsuits and lead customers to leave.
Recent events
- Quarterly results released
- Quarterly results released
- Shareholder vote results
- Executive or board change
- Quarterly results released
- Executive or board change
- Major agreement signed; Executive or board change; Investor presentation or announcement
- Quarterly results released; Executive or board change; Investor presentation or announcement; Other company announcement
- Quarterly results released; Executive or board change; Other company announcement
For income and retirement investors
SPS Commerce pays no dividend, and its 10-K says it does not plan to declare one in the foreseeable future. An income investor would get no cash payments, so any income would have to come from cashing in shares. Instead, the company repurchased $215.5 million of stock from fiscal 2021 through 2025, including $114.3 million in fiscal 2025. Even so, the share count, about 36.0 million on July 23, 2026, was nearly unchanged from October 2021, so repurchases mostly offset new shares issued.
The shares have been volatile. In the 2020 COVID crash they fell 46.3% but recovered in about 1.6 months. In the 2022 bear market they dropped 29.4% and took about 6.4 months to recover. A deeper slide followed: the stock lost 51.6% in 2025, and its deepest fall over the three years to October 28, 2026 was 76.8%. A single stock like this carries more risk than a diversified fund.
Questions investors ask
How does SPS Commerce make money?
Mostly through recurring fees from companies that use its cloud-based supply chain network. In fiscal 2025, 96% of its $751.5 million in revenue came from recurring revenue customers. Retailers, brands, distributors, manufacturers and logistics firms connect once and exchange order data with thousands of partners, and SPS earns more as their activity on the network grows. It also charges one-time fees for professional services and for testing and certification. Its largest customer made up less than 1% of revenue.
Does SPS Commerce pay a dividend?
No. SPS Commerce paid no dividends in fiscal 2021 through 2025, and its 10-K says it does not intend to declare any in the foreseeable future. Instead, it repurchased $215.5 million of its own shares over those five years, including $114.3 million in fiscal 2025. Investors who rely on regular income would receive no cash from holding the shares, because returns depend entirely on the share price.
How much has SPS Commerce stock fallen?
Sharply. The shares lost 51.6% in calendar 2025, and the deepest peak-to-trough fall in the three years to October 28, 2026 was 76.8%. Over the year to that date they fell 22.2%, though over 10 years the price rose 172% in total. The business kept growing, with fiscal 2025 revenue up 17.8%, but revenue growth slowed to 5.6% in the quarter ended June 30, 2026.
Is SPS Commerce profitable?
Yes. SPS Commerce earned a profit in every fiscal year from 2020 through 2025. In fiscal 2025, net income was $93.3 million on $751.5 million of revenue, a 12.4% net margin, and free cash flow (cash from operations after capital spending) was $152.3 million. Profit dropped in the quarter ended June 30, 2026, when net income was $6.9 million, down 65.2% from a year earlier. As of that date it held $173.2 million in cash and investments, and its filings showed no borrowings.
Which ETFs hold SPS Commerce stock?
About 89 ETFs hold SPS Commerce. Its largest weights are in the Invesco S&P SmallCap Information Technology ETF (PSCT, 3.65%), the Global X Cloud Computing ETF (CLOU, 3.35%), the Congress SMid Growth ETF (CSMD, 2.36%) and the WisdomTree Cloud Computing Fund (WCLD, 1.68%). Small-cap growth index funds such as the SPDR S&P 600 Small Cap Growth ETF (SLYG, 0.85%) and the iShares S&P Small-Cap 600 Growth ETF (IJT, 0.83%) also hold it, spreading risk across many companies.